Citizenship by investment in Turkey is now within reach of more investors than ever before, as the government slashes the minimum required property spend by $750,000 USD to $250,000.
Until now, foreigners wishing to become Turkish citizens were required to invest US$1m into the country. Now, in a bid to prop up the lira, the government has dropped the minimum requirement, a move that is expected to generate huge investor interest.
Other routes to citizenship were also eased, with bank deposits cut from $3m to $500,000, and the amount of required fixed capital investment reduced to $500,000 from $2m.
Turkey citizenship by property investment revised 2018
The government hopes the move will push Turkish property sales to foreigners from their current $4.6 billion to $10 bn in the initial stage, and generate an annual $20bn from next year.
Property Turkey director Cameron Deggin said the move was “excellent news for anyone looking to invest in Turkey and get a passport into the deal”.
“Data shows the average foreign buyer spends $177,000 on a Turkish property, so this move means there will be greater interest from the middle of the investment sector, and the $250,000 will encourage buyers to spend a little more.”
Deggin expected to field a large number of enquiries. “We had so many queries about gaining Turkish citizenship by investment over the past year, even before this move. Interest in the scheme is high, from all over the world.”
When the Turkish government first announced the scheme, Property Turkey created a legal division catering to buyers wishing to gain a Turkish passport along with their property.
“We find most buyers are eager to get started on the process but understandably don’t want the hassle of negotiating the red tape involved. So we now offer a way to do it as part of a purchase package,” he said.
Property Turkey also offers a rental management service. “With citizenship, purchase and rental management all wrapped up, we've become a one stop shop for investors. It does not get easier than this to get on board,” Deggin said.
- Deggin said the requirements will most likely remain the same as under the previous deal.
- Buyers will need to pay a minimum of the equivalent of $250,000 in Turkish Lira.
- The three-year requirement meant buyers should focus on mid-term investments, Deggin said.
“Areas like Media Highway, Eyup, Bomonti and Maslak are in the the middle of a huge transition, which means three years is the ideal time frame for investors entering the market with a three-year plan,” Deggin said.
Eyup: while property prices in Eyup rose by 50 percent in the five years to 2016, catching the eye of investors. However, the Golden Horn area’s investment potential is still in its infancy, Deggin said. “There are a large number of properties that are well under $250,000 in Eyup, allowing investors to buy two or three for an instant rental portfolio.”
Media Highway: the central area is a new development based around a financial hub. “Its investment potential is high, and it’s also in hot demand among young professionals looking for rentals.”
Bomonti: property prices in Bomonti are no longer low - in fact they’ve more than doubled in the last three years - but there are still opportunities for buyers entering the market around the $250,000 minimum, Deggin said. “It’s become a sought-after central area with plenty of room to catch up with its affluent neighbours.”
Maslak: the rapidly developing business district in northern Istanbul seems to have a new skyscraper under construction each week. “This is an ideal destination for investors looking for steady rental income and decent capital gains,” Deggin said.
For more information about investing in one of these areas, or for questions about the citizenship requirements, get in touch with us at [email protected].
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