The Turkish citizenship by investment program has proven extremely popular with foreign high net worth individuals looking to obtain second citizenship through investment.
The program has naturalized more than 9000 people to date and continues to garner remarkable demand from all around the globe. The simplicity of the program, along with the quick processing times and affordable investment amount, has made it an attractive venture for many of the world’s elite, especially those in close proximity within the Middle East – where the majority of applicants come from.
The program has various investment options, but the cheapest – and by far the most popular – is a 250,000 USD investment in immovable property within Turkish borders. The premise is simple; buy one or more properties amounting to 250,000 USD, submit an application, and obtain citizenship within six months.
But, within that simplicity lies a series of red flags you need to look out for; simple mistakes that could end up losing your time and money, even going so far as getting your citizenship application rejected. In this piece, we will highlight the three main concerns you need to keep an eye out for before investing in Turkey citizenship.
Transferring the investment amount
One major issue to take note of is how you buy the property that qualifies you to apply for citizenship. We will talk about choosing the property later in this article, but for now, we want to highlight a trivial mistake that could have dire consequences – transferring the investment amount.
When buying a property to qualify for Turkish citizenship it is imperative that the investment amount be transferred directly to the developer selling you the property. The government will require proof that the money was sent from your account directly to the seller’s bank account.
If you use a third party, say a broker, and send them the investment amount, and then they pay the developer on your behalf, your entire application will be in jeopardy. Having proof of investment between you and the seller is one of the few requirements of the program, and failing to do so can result in a rejection of your citizenship application.
Look out for small margins.
In a recent development in 2021, the Turkish government will allocate you a property evaluation expert randomly from a select pool. This is a very important development that needs to be considered when buying a property.
If you buy a property for 250,000 USD, and then the evaluator you are assigned turns out to be extremely stingent, they may value it at 248,000 USD, which does not qualify you for Turkish citizenship. You then have to buy another property for the lowest amount possible to close the gap and be able to apply, which is a headache and a loss of money.
Evaluating your property through a government-assigned evaluation expert before buying is key; failure to do so can prove extremely costly. If you evaluate prior to completing the purchase then you can ensure you meet the threshold required to gain citizenship before committing any money. Also, keep in mind that, by Turkish law, you have 14 days to refund your property after buying it, so if you do forget to evaluate before your purchase, do it within the first week of buying so you can return the property and get your money back in case it does not meet the citizenship by investment requirements.
Remember to adjust for mortgages.
Is it possible for someone to buy 1 million USD worth of property and see their investment not qualify for citizenship? Well, yes.
If you buy one or more properties and then take out mortgages on them, you have to adjust the entire investment amount. The Turkish government deducts the value of a mortgage from the overall investment amount, meaning you could buy for ten times the required minimum but not qualify if you take out mortgages on the property.
For example, if you buy a property worth 500,000 USD, but take out a mortgage of 300,000 USD on it, then the Turkish government will only take into account an investment amount of 200,000 USD, which leaves you 50,000 USD short of the minimum threshold.
An outstanding program with sensitive spots
The Turkish citizenship by investment program is becoming more popular by the day. It is simple, quick, affordable, and loaded with benefits that would enhance the quality of living of any person and their family members.
However, it is well worth noting that approaching the program without taking into consideration the flaws and mistakes that many make and ignoring the small – yet crucial – red flags that can derail your application, will lose you money, time, and peace of mind.
This is precisely what we at Savory & Partners help you avoid. Our in-depth expertise regarding the Turkish citizenship by investment program and all of its small intricacies allows us to easily find you a suitable qualifying investment, and help you prepare and submit an application with no holes or mistakes that could lead to rejection.
We pride ourselves on being perfectionists within our craft, and for you and your family to enjoy the experience of obtaining Turkish citizenship, perfectionists are exactly what you need. If you would like to know more about the Turkish citizenship by investment program and how we can help you become a Turkish citizen, contact us today for a free, comprehensive consultation.