Investing in Turkish Real Estate: How to Obtain Citizenship and Save on Your Purchase?

Are you planning to invest in Turkish real estate with a budget of $400,000 or more? If so, purchasing an apartment or house can offer you more than just a property. Provided specific conditions are met, an investment of $400,000 can serve as the basis for obtaining Turkish citizenship, while the right choice of property and deal structure can help minimize acquisition costs.

In other words, rather than simply buying real estate, an investor can simultaneously secure an asset, a place to live, and citizenship.

What steps are required to obtain citizenship? The primary requirement is to purchase real estate in Turkey valued at $400,000 or more. Once the title deed is issued, the investor can apply for citizenship under the investment program.

There is one key condition: the property cannot be sold for a period of three years. This obligation is formally recorded in the property documents. However, it is not mandatory to purchase a single apartment for $400,000; in certain cases, the investment can be distributed across multiple properties, provided they meet the program's requirements.

For example: An investor has $450,000. They could purchase a single property in Istanbul or consider multiple properties, provided the structure complies with the program's rules.

As a result, they gain property ownership and the opportunity to apply for Turkish citizenship without having to invest an additional $400,000 specifically "for the passport."

And what should be done with the property during those three years? The owner does not simply wait out the three-year sales restriction. The investor can use the property for its intended purpose—for instance, by living in it or, depending on the specific property and usage terms, renting it out.

In other words, the investment can remain an income-generating asset while the investor fulfills the program's requirements. This is precisely what makes the program attractive to those who were planning to buy property in Turkey regardless of citizenship.

Is it possible to not only obtain citizenship but also save money? Yes, and this is where taxes come into play. Purchasing property in Turkey involves various taxes and fees. However, for certain foreign buyers—provided specific conditions are met—the law allows for a VAT exemption when purchasing qualifying new properties.

Therefore, a property priced at $400,000 does not necessarily mean the investor's total expenditure will be exactly $400,000. Before purchasing, it is essential to calculate the full cost of the transaction, including the property price, VAT, fees, and other expenses.

Sometimes, choosing the right property can significantly alter the final financial outcome of the purchase.

Why shouldn't you simply buy the apartment first and sort out the tax details later? Imagine you have found an apartment for $420,000; you like the neighborhood, the view, and the developer. It might seem like the right time to sign the contract immediately.

However, before making the payment, you should ask a few simple questions:

Is this property eligible for the citizenship program?

Does its value meet the program's requirements?

Can a VAT exemption be applied to this purchase? Is the property subject to a mortgage or other encumbrances?

Will the payment be structured correctly?

What additional taxes and fees will apply?

If these matters are checked only after the contract is signed, altering the deal structure can be far more difficult.

What should you pay special attention to during the purchase? First is the property's legal status. Before the transaction, it is essential to verify the absence of mortgages, liens, or other restrictions that could impede the sale. Investment Office Türkiye also recommends conducting such a check.

Second is the property's eligibility for the citizenship program; not every real estate purchase automatically qualifies the buyer for citizenship. Third is the tax regime. If a VAT exemption is important to the investor, this must be verified prior to the purchase, not after. Fourth is the method of handling payments and documentation. For the investment program, it is crucial that all documents and registration details comply with established requirements.

Is it necessary to live in Turkey? No. A foreigner does not need to obtain a Turkish residence permit before purchasing property. This is particularly convenient for international investors: one can select a property, conduct legal due diligence, and finalize the purchase before proceeding with the citizenship application process.

The investment program appeals to more than just the investor. Provided the program's requirements are met, the opportunity to obtain citizenship extends to specific family members of the investor as well.

Therefore, for a family planning to relocate or seeking additional options for living and international mobility, such an investment can hold far greater value than a simple real estate purchase. In short, an investment of $400,000 or more in qualifying real estate can yield several benefits:

→ ownership of the property;

→ eligibility to apply for Turkish citizenship;

→ the option to use or rent out the property;

→ and, subject to meeting specific conditions, the opportunity to benefit from a tax exemption on the purchase.

Crucially, however, these benefits must be factored into the deal structure prior to the purchase. 

If you are simply looking for an apartment in Turkey, a real estate agent suffices; however, if your goal is to purchase property, obtain citizenship, and optimize costs simultaneously, you need comprehensive legal support.

Antwort Law assists investors throughout the entire process, from selecting the investment structure to finalizing the paperwork. We verify the property, assess its eligibility for the citizenship program, analyze tax implications, and oversee the transaction.

We also help identify properties that align with the investor's goals and manage the process of obtaining Turkish citizenship.

If you are considering a real estate investment in Turkey starting at $400,000, the priority is not merely choosing an apartment, but structuring the transaction correctly. This is what ensures you maximize the efficiency of your investment.

Lidia Ivanova

International lawyer
Antwort Law