From a million to 300 thousand dollars!
At the Uludag Economic Summit, which examined the future of the Turkish real estate sector, the Turkish government prepared a study on the possibility of expanding the scope of beneficiaries for citizenship request for investors to include buying a property worth 300 thousand US dollars instead of one million dollars, this came In order to attract more foreign investments to the Turkish real estate sector. Moreover, The participants in the summit indicated that the value of the foreign-acquired property for 2017 amounted to $ 5 billion and that they are taking measures to raise this amount to $ 20 billion.
Work is underway to prepare the necessary procedures in order to pass a new law for reducing the minimum amount of real estate investment from $ 1 million to $ 300 thousand and that’s to grant Turkish citizenship to foreign investors, thus, the real estate sector is expected to witness significant movement due to this new law.
Economic Growth Expected Under the New Citizenship Law
The law is expected to be issued in May 2018 and is expected to encourage a wider range of foreign investors to own property in Turkey, also it will enable them to get the Turkish citizenship more easily. The head of the executive office of the Real Estate Partnership Association of Turkey, Yetgin: This move will affect the real estate market very much, as statistics show that the foreign investor prefer real estate prices ranging between $ 100 to 300 thousand dollars.
Mr. Yetgin added that the procedures of the land registry for foreign investors should be facilitated and accelerated to attract the largest number of them to the real estate market, in addition to facilitating procedures for issuance of housing licenses and other relevant documents.
Information on the current law for the granting a real estate citizenship
The law that grants Turkish citizenship to foreign investors in return for owning a real estate in Turkey worth one million dollars, was issued last year and was published in the Official Gazette on 12 January 2017. The law requires the property’s ownership should last for at least 3 years, to allow for applying to get a special Turkish citizenship.
Turkey relies heavily on the real estate sector as one of the most important pillars of economic growth, which is linked to dozens of sectors directly or indirectly and supports this sector to the maximum extent possible.
Turkey encourages investment in the real estate sector and offers many advantages and facilities to those who invest or buy property in Turkey after the real estate market has experienced significant growth, especially following the change in the Foreign Ownership Act of 2012, which allowed foreigners to own in Turkey.
The law, which gives the right to obtain Turkish citizenship on an exceptional basis for a $ 1 million property for at least three years, is one of the most important advantages to Turkey.
Conditions for Obtaining Real Estate Citizenship
The Ministry of the Environment and Cities of Turkey has set out many conditions in order to obtain citizenship in this way. A report issued according to the valuation criteria should be obtained by a legal property appraiser approved by the Turkish Capital Markets Authority to clarify the market value of the property that the buyer wishes to purchase.
Is it possible to resell the property after obtaining the citizenship?
The law provides that a person with foreign nationality who wishes to obtain Turkish citizenship by owning a property in Turkey must make an undertaking not to sell the immovable property owned for the purpose of obtaining this citizenship for a period of three years from the date of obtaining the nationality, This is recorded in the property register. The prohibition on the sale of the property may be lifted following an application submitted by the owner in the event of a desire to sell after the person has obtained the Turkish citizenship and after the expiration of the three years period after confirming the registration information and data of the person who obtained the Turkish citizenship.
Alternatives to purchasing the property for citizenship
The Ministry of the Environment and Cities of Turkey, issued earlier last year a decision to include a form to apply for Turkish citizenship to foreign investors.
The application form under the current citizenship grant law provides for five conditions, each of which has the right to apply for citizenship: a fixed investment of at least $ 2 million, purchase of at least one million dollars and not sell for three years or providing a job opportunity for at least 100 Turkish citizens, depositing $ 3 million in Turkish banks for three years, or buying three-million-dollar treasury bills for three years.