Obtain Citizenship by Investing in Real Estate Investment Funds or Private Equity Investment Funds
Acquiring Turkish citizenship through an investment in Real Estate Investment Funds (REIF) or Private Equity Investment Funds (PEIF) is a viable option. This method not only provides a pathway to citizenship but also allows investors to earn dividends or long-term gains. It is suitable for those who prefer not to deal directly with real estate management or direct equity investments in companies.
We believe this is a rational choice. It is frequently chosen by investors who wish to leave management tasks to professionals.
Legal Basis
According to Article 20, Paragraph 2, Clause (e) of the Regulation on the Implementation of the Turkish Citizenship Law, foreign nationals can obtain exceptional Turkish citizenship by purchasing shares in a REIF or PEIF worth at least $500,000 or equivalent foreign currency, provided they hold the shares for a minimum of three years.
The invested foreign currency must be sold to a bank operating in Turkey, which in turn must sell it to the Central Bank of Turkey. The Central Bank has issued an “Application Instruction on the Sale of Foreign Currency to the Central Bank of the Republic of Turkey under the Regulation on the Implementation of the Turkish Citizenship Law” regarding this matter.
Steps to Acquire Turkish Citizenship Through Fund Investment
Step 1: Open an Investment Account
The investor needs to open an investment account with a Turkish bank.
Step 2: Transfer and Convert Funds
Transfer $500,000 to your bank account in Turkey. Sell the foreign currency to a Turkish bank, which will then sell it to the Central Bank. Deposit the funds into your investment account and purchase shares in the REIF or PEIF of your choice. You must hold your investment for at least three years, although you can switch between different alternative investment instruments. For citizenship or residency applications, the shares must be blocked in your account by the Central Registry Agency (CRA) as a “Citizenship Blocked Sub-Account.”
Investors must request their brokerage firm to initiate the blocking process with the CRA. The blocking process is voluntary and does not prevent the investor from exercising their rights over the shares.
Step 3: Apply for Eligibility Certificate
To apply for an eligibility certificate, the foreign investor must submit a written application including their name, surname, date of birth, foreign ID number, address, contact details, CRA registry number, investment details, and proof that the REIF or PEIF shares are blocked in the “Citizenship Blocked Sub-Account.” A copy of the passport should also be attached. If the application is made by an attorney, the power of attorney must authorize all application procedures. The eligibility certificate is issued within two business days upon verification from the CRA.
Step 4: Apply for Residency Permit
After making the investment, you can immediately apply for a residency permit. You will also need to provide your fingerprints.
Step 5: Apply for Citizenship
After obtaining your residency permit, you can apply for citizenship for yourself, your spouse, and your children under 18. The citizenship application is submitted to the General Directorate of Population and Citizenship Affairs, and you will be invited for the final signatures.
Important Considerations
- Three-Year Holding Requirement: To qualify for citizenship, the investor must hold the shares continuously for three years from the date the minimum investment amount is met. The shares must not be reduced through sales or transfers initiated by the investor.
- Exchange Rate Fluctuations: A decrease in the value of the shares below $500,000 due to exchange rate fluctuations does not affect the citizenship application or acquisition.
- Reduction in Share Value or Number: A reduction in the value or number of shares due to actions beyond the investor’s control (e.g., cash dividends or share redemptions as per the fund’s bylaws) does not disqualify the investment.
- Restrictions on Shares: During the three-year period, if there are any encumbrances, liens, provisional attachments, or any restrictions that limit ownership rights over the REIF/PEIF shares, the “three-year holding requirement” is considered unmet.
Conclusion
Investing in fund shares is one of the fastest, easiest, and most reliable ways to obtain Turkish citizenship. You can monitor your investment via online banking, ensuring a seamless process from start to finish.
For further details and personalized assistance, please contact our law firm in Istanbul. We specialize in guiding investors through the process of acquiring Turkish citizenship through investment.
