Citizenship by Investment
Turkey has developed “exceptional citizenship” mechanisms after 2017 to attract foreign investors to the country. Under this mechanism, foreigners who meet certain conditions may apply for Turkish citizenship. Options include purchasing real estate, making fixed capital investments, creating employment, depositing funds in a Turkish bank, buying government debt instruments, or acquiring shares of investment funds.
In particular, the “USD 500,000 investment” model allows an application for citizenship through a bank deposit, government bonds, or investment fund shares. This is an alternative for investors who do not wish to buy real estate in Turkey or who prefer to diversify their portfolio.
However, to use this route, the investment must comply with Turkish regulations, be blocked/pledged, and be held for specific periods. Below, the investment routes, procedures, and risks are explained step by step.
Investment Options: Deposit, Bonds, Fund Units
INVESTMENT INSTRUMENTS THAT QUALIFY FOR A CITIZENSHIP APPLICATION are generally classified as follows:
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Investment Instrument
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Basic Criterion
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Holding Requirement
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Competent Supervisory / Approving Authority
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Bank deposit
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At least USD 500,000 or equivalent in foreign currency / TRY
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Blocked for at least 3 years / not withdrawable
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As determined by the Banking Regulation and Supervision Agency (BRSA/BDDK)
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Government debt instruments (bonds, bills, etc.)
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At least USD 500,000 or equivalent in foreign currency / TRY
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Held/blocked for at least 3 years
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Ministry of Treasury and Finance / relevant regulations
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Investment fund units (real estate investment fund, venture capital fund)
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At least USD 500,000 or equivalent invested
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Continuous ownership for at least 3 years
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Capital Markets Board (CMB/SPK)
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Details and key considerations for each option are below.
1. Bank Deposit
- The foreign investor and their attorney open a deposit account in the name of the foreign national at a bank operating in Turkey. The relevant bank and authorized branch should be contacted in advance.
- At least USD 500,000 or the equivalent in foreign currency/TRY is deposited. The full amount may be spread across different accounts; what matters is that the aggregate reaches the threshold.
- The investor undertakes not to withdraw the funds for three years; a suitable undertaking/pledge instruction/consent is executed with the bank.
- Interest/return may accrue during the blocking period; however, the principal must not be touched.
- At the end of three years, the block can be lifted and the investor can use the funds. If, during this period, currency movements cause the value to fall below USD 500,000, this does not adversely affect the application.
- Advantages include relative flexibility over cash and the potential for yield. If the deposit is in TRY, exchange-rate risk must be evaluated carefully.
2. Investment in Government Debt Instruments
- The foreign investor purchases at least USD 500,000 or equivalent in foreign currency/TRY in Turkish government bonds, bills, or other sovereign debt instruments.
- These instruments must be blocked/held without sale for 3 years.
- Coupon interest during the blocked period is paid to the investor; the principal amount must be preserved.
- After the period ends, the investor may sell the bonds; the citizenship application may already have been concluded by then.
- This path is often preferred for its relatively lower risk profile; nonetheless, interest rates, liquidity, and Turkey’s credit risk should be considered.
3. Investment Fund Units (REIF / VCIF)
- The foreign investor must acquire Capital Markets Board (SPK)-approved units of a Real Estate Investment Fund (REIF/GYF) or a Venture Capital Investment Fund (VCIF/GSYF).
- The investment must total at least USD 500,000 or equivalent.
- The investor must continuously hold the units for 3 years; reducing or transferring the units through sale or assignment is not accepted.
- If currency fluctuations reduce the value below USD 500,000, this does not automatically jeopardize the citizenship application.
- This option offers professional fund management and diversification. However, fees, liquidity, and manager performance matter.
Application Process: Stages and Required Documents
Below are the general steps and the key documents to watch:
- Choose the Investment Route
Decide among a bank deposit, government debt instruments, or fund units. Evaluate each option’s advantages and risks.
- Apply for the Certificate of Eligibility
Under Turkish law, the investor must first obtain a Certificate of Eligibility confirming that the investment meets the legal requirements. This is typically handled with the assistance of a law firm.
- Execute the Investment
Open the bank account and deposit funds, purchase government bonds, or acquire fund units. During these processes, the investor submits identification, tax number, etc.
- Blocking / Undertakings / Account Freezing
The investment must be blocked for 3 years or the investor must sign undertakings not to sell/transfer during this period. This is arranged with the bank or intermediary institution.
- Short-Term Residence Permit Application
After the investment, the foreigner may apply for a short-term residence permit in Turkey (Type J, investment purpose). This provides lawful stay during the citizenship process.
- Citizenship Application
Once the residence card is obtained, an application is made to the provincial Population and Citizenship Directorate (or relevant authority) with the Certificate of Eligibility, investment documents, ID, passport, clean criminal record, health documents, etc.
- Evaluation
Relevant ministries (Interior, Justice, Finance, etc.) review the application. They assess compliance with investment conditions, criminal record, and legitimacy of funds.
- Citizenship Decision and Passport Procedures
If approved, Turkish citizenship is granted by Presidential decision. Afterwards, civil registry and passport procedures are completed.
- After the Blocking Period
Once citizenship is granted and the 3-year blocking period ends, the investor may lift the block and liquidate or sell the investment.
Required Documents (General List)
- Passport and copy
- Birth certificate
- Criminal record (from country of residence)
- Health insurance / health report
- Documents evidencing the investment (bank receipt, bond purchase slip, fund unit certificate, etc.)
- Bank / institution letter confirming the block
- Tax number / Turkish tax ID
- Biometric photographs
- Certificate of Eligibility
- Marriage/children’s documents (if applicable)
- Turkish translations and notarizations (where required)
Each investment model may require additional documents and deeper checks; working with a specialized attorney is highly advisable.
Advantages & Disadvantages
Advantages
- Citizenship without real estate
A practical alternative for those who do not wish to buy property or who want portfolio diversification.
- Passport and citizenship rights
With Turkish citizenship, you gain the rights to live, work, study, and access healthcare in Turkey. Turkish passport-related visa waivers may also apply.
- Eligibility of family members
The spouse, children under 18, and in some cases parents may benefit from citizenship together with the main applicant.
- No residency requirement
There is no obligation to live in Turkey for a set period under the investment route.
- Potential investment return
Deposits and government bonds can generate yield; fund units provide diversification.
- Flexibility in currency
Investments may be made in foreign currencies or TRY; current regulations allow this flexibility.
Disadvantages & Risks
- Exchange-rate risk
If invested in TRY, currency movements can significantly affect value.
- Liquidity restriction
Funds are effectively tied up for 3 years.
- Uncertain yields
Bond rates and fund performance may underperform expectations.
- Legitimacy and compliance risk
If the source of funds cannot be lawfully demonstrated (anti-money laundering rules), applications may be refused.
- Administrative risk
Bureaucratic delays, audits, or regulatory changes may occur.
- Changing conditions
If no investment has yet been made, future amendments could alter thresholds or rules.
Questions We Ask When You Contact Us
Answering the questions below helps us build the right roadmap for you.
- Which investment do you prefer?
- Deposit USD 500,000 in a Turkish bank
- Buy government bonds (debt instruments)
- Acquire investment fund units (real estate or venture capital)
- What is your application plan?
- I’m still researching
- I already have a bank account in Turkey
- I have / want a short-term residence permit in Turkey
- I will apply with my spouse and children
- What is your citizenship goal?
- Living in Turkey
- Second passport / investment only
- Long-term settlement with family
Citizenship via Bank Deposit
A. Conditions
- Deposit at least USD 500,000 or equivalent in foreign currency/TRY.
- Undertake not to withdraw the funds for 3 years.
- Interest or profit share may be earned.
- The total may be distributed across different banks, provided the threshold is met.
- Competent authority: Banking Regulation and Supervision Agency (BDDK).
B. Advantages
- Potential for interest/profit share.
- Funds can be withdrawn after the term ends.
- Processing can be relatively quick (about 1–3 months).
C. Disadvantages
- No access to funds for 3 years.
- Exposure to exchange-rate risk.
Citizenship via Government Bonds
A. Conditions
- Purchase at least USD 500,000 or equivalent in foreign currency/TRY in government bonds/bills.
- Bonds cannot be sold or transferred for 3 years.
- Coupon interest belongs to the investor.
- Competent authority: Ministry of Treasury and Finance.
B. Advantages
- Backed by the state.
- Coupon income.
- No property management.
C. Disadvantages
- No early sale option.
- Interest rates may be lower than market alternatives.
Citizenship via Investment Funds (REIF or VCIF)
A. Conditions
- Acquire SPK-approved fund units worth at least USD 500,000 or equivalent in foreign currency/TRY.
- Continuous ownership for 3 years is required.
- Fund types:
- Real Estate Investment Fund (REIF/GYF)
- Venture Capital Investment Fund (VCIF/GSYF)
- Competent authority: Capital Markets Board (SPK).
B. Advantages
- Potential fund returns.
- Professional portfolio management.
- More flexibility compared to property investment.
C. Disadvantages
- Market risk of the fund.
- Returns are not guaranteed.
- Management fees may apply.
Comparison Table
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Criterion
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Bank Deposit
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Government Bonds
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Investment Fund
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Minimum Amount
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USD 500,000
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USD 500,000
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USD 500,000
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Term
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3 years
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3 years
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3 years
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Yield
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Yes (interest/profit)
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Yes (coupons)
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Yes (fund performance)
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Liquidity
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Limited (blocked)
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Limited (no sale for 3 years)
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Medium (no sale allowed)
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Risk
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Low
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Low–Medium
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Medium–High
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Authority
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BDDK
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Treasury & Finance
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SPK
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Ease of Management
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Easy
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Easy
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Medium
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Citizenship Processing Time
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3–6 months
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4–6 months
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4–8 months
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Important Points and Tips
- Carefully track the block start date versus the investment date; the 3-year clock starts when the investment is actually made.
- If currency depreciation causes the investment to fall below USD 500,000, the application remains valid under current rules.
- Legal counsel is strongly recommended throughout the process.
- The amount need not be in a single account; multiple accounts can be aggregated.
- Consider tax rules in Turkey on any returns.
- Monitor regulations, as the investment-citizenship framework can be updated.
- Plan the inclusion of family members in advance and prepare civil documents.
- Track the 3-year term meticulously; early withdrawal/transfer can jeopardize the process.
Summary and Final Remarks
The citizenship by investment program offers alternatives to real-estate purchases: bank deposit, government bonds, or investment fund units. By investing USD 500,000 (or equivalent in foreign currency/TRY) and complying with the 3-year blocking requirement, foreigners become eligible to apply for Turkish citizenship.
Of course, the process does not end with merely investing. Obtaining the Certificate of Eligibility, applying for a residence permit, ensuring a clean criminal record, documenting the source of funds, and receiving legal guidance are all essential. Risks such as exchange-rate movements, liquidity constraints, and possible regulatory changes should also be considered.
USD 500,000 Citizenship by Investment – Frequently Asked Questions (FAQ)
- Is it possible to obtain Turkish citizenship by investing USD 500,000?
Yes. Under Article 12 of the Turkish Citizenship Law No. 5901 and the relevant regulation, foreigners who invest at least USD 500,000 (or equivalent in foreign currency/TRY) may apply. Qualifying investments include bank deposits, government bonds, or investment fund units.
- Which investment types qualify for citizenship?
- A bank deposit of at least USD 500,000 in Turkey,
- Purchase of government bonds/bills of at least USD 500,000,
- Acquisition of SPK-approved fund units (REIF or VCIF) worth at least USD 500,000.
These must be held (not disposed of) for 3 years.
- In which currency can I invest?
USD, EUR, GBP, or TRY. The threshold is calculated against USD 500,000 at the time of investment/application.
- Must I invest the full USD 500,000 at once?
No. You may aggregate across different banks or instruments, provided the total reaches USD 500,000 and is fully blocked.
- How is the 3-year period calculated?
From the actual investment date. For example, if the deposit was made on 15 May 2025, the block ends on 15 May 2028. Withdrawing funds, selling bonds, or transferring fund units within this period risks the citizenship process.
- Do exchange-rate drops affect my application?
No. If currency movements reduce the value below USD 500,000, the application remains valid.
- Do I have to live in Turkey after investing?
No. There is no physical residence requirement for the investment route. However, a short-term (investment) residence permit is obtained during the process.
- How long does the process take?
Typically 3–6 months, depending on investment type, completeness of documents, and inter-agency approvals.
- Which authorities are competent?
- Bank deposits: BDDK (Banking Regulation and Supervision Agency)
- Government bonds: Ministry of Treasury and Finance
- Investment funds: SPK (Capital Markets Board)
- Can my family also obtain citizenship?
Yes. The spouse and children under 18 are included. Children over 18 may require a separate basis.
- Is a TRY investment accepted?
Yes. TRY is accepted at the USD equivalent on the transaction date.
- Can I withdraw or sell before 3 years?
No. Early dissolution or transfer jeopardizes the citizenship entitlement and may lead to revocation.
- After citizenship, can I sell the investment?
Yes, after the 3-year period ends.
- Will I earn returns during the block?
Yes. Deposits may earn interest/profit share; bonds pay coupons; funds may distribute returns. It is advisable to coordinate with your bank and, where needed, obtain clarifications from the Population and Citizenship Affairs Directorate.
- Which banks may I use?
Any bank authorized in Turkey, supervised by BDDK, that can implement the blocking.
- What should I check when selecting a fund?
SPK approval, whether it is REIF or VCIF, the manager’s license and track record, potential returns, fees, and liquidity terms.
- Can the application be refused?
Yes—for criminal/security issues, inability to document the lawful source of funds (AML), or deficiencies/forgery in documents.
- Must I come to Turkey during the process?
Usually yes for the residence permit step (in-person at the Migration Directorate). Many steps can be handled by an attorney with a power of attorney.
- Is dual citizenship possible?
Yes, Turkey allows it—but check your current country’s laws.
- Is working with a lawyer mandatory?
Not mandatory, but highly recommended due to the multi-agency, evidence-heavy process.
- How is the Certificate of Eligibility obtained?
After making the investment, an application is filed to the relevant authority; the certificate is the core basis of the citizenship file.
- What rights do we have if we settle in Turkey as a family?
Access to education, healthcare, employment, and social security; ability to acquire property, establish a company, and work independently.
- What if I relocate abroad for the next 3 years?
No problem—there is no physical residence obligation, provided the investment remains blocked in Turkey.
- Which documents are needed during the process?
- Passport
- Birth certificate
- Criminal record
- Turkish tax ID
- Biometric photos
- Health insurance
- Investment receipts/certificates
- Certificate of Eligibility
- Residence card or application form
- Marriage/children’s documents
All with sworn translations and notarization as required.
- Will I have tax obligations in Turkey after citizenship?
Citizenship alone does not create tax liability; income sourced in Turkey is taxed under Turkish law.
- Can the USD 500,000 threshold change?
Yes. Regulations may be updated by Presidential decision; verify current thresholds before proceeding.
- Can I open a Turkish bank account before investing?
Yes—with a passport, Turkish tax ID, and address declaration.
- After citizenship approval, how long to receive my passport?
Civil registry steps usually take 1–2 weeks; the Turkish ID and passport are typically issued within 5–10 days thereafter.
- Is the program only for individuals?
Yes. Only natural persons may apply; corporate investments do not qualify.
- How is legal security ensured after I invest?
The blocking letter, bank confirmation, Certificate of Eligibility, and notarial undertakings provide the official legal basis. Investments without this documentation may be deemed invalid for citizenship.
- If I increase my investment later, does it help?
No. USD 500,000 is a minimum; investing more does not give additional privileges.
- May I transfer my fund units to a third party?
No. No transfer is allowed during the 3-year period; otherwise, the certificate can be revoked.
- How do I prove the source of funds?
Bank transfer receipts, overseas account statements, and income records; AML rules require a legitimate source.
- Are there any tax advantages?
Not inherently; certain funds (e.g., VCIFs) may have specific exemptions, depending on the instrument.
- If my application is refused, do I get my money back?
Yes—the block can be lifted and the funds or bonds returned. The reason for refusal (e.g., criminal issues) is considered separately.
- Can I change my name after acquiring citizenship?
Yes, via the Population Directorate subject to legal procedures. Related article (Turkish):
https://www.avkubrakeles.com/turk-vatandasligi-sonrasi-isim-ve-soyisim-degisikligi
- If the investor dies before 3 years, do the family members lose their right?
If citizenship has already been granted, no. If not yet granted, the Ministry of Interior evaluates the case.
- After becoming a Turkish citizen, can I acquire another citizenship?
Yes, Turkey permits multiple citizenships—subject to the other country’s laws.
- What if my visa/residence expires during the process?
The investment (Type J) residence provides lawful stay throughout. Apply for extensions before expiry.
- Will I have military service obligations after naturalization?
Foreign male investors are generally exempt. Age, prior military service, and citizenship history are considered.
