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FREQUENTLY ASKED QUESTIONS ABOUT TURKISH CITIZENSHIP ACQUISITION BY INVESTMENT – PART 2

January 11, 2019

For the first part of the Frequently Asked Questions & Answers please click here.

 

1. ARE THERE ANY RESTRICTIONS FOR CERTAIN NATIONALITIES IN THE MANNER OF TURKISH CITIZENSHIP ACQUISITION VIA INVESTMENT, OR FOR APPLICANTS WHO HAVE MULTIPLE (MORE THAN 2) CITIZENSHIPS?

 

Neither holding certain nationalities, nor holding multiple citizenship is linked to a restriction with regard to acquisition of Turkish citizenship. However Armenian and Syrian citizens are not allowed to purchase a real estate for the time being.

 

Please be aware that there are some countries that doesn’t allow its citizens to hold multiple citizenships, however Turkey is not one of them.

 

2. IS IT POSSIBLE TO APPLY FOR TURKISH CITIZENSHIP BY INVESTMENT IN REAL ESTATE DEVELOPMENT PROJECTS?

 

As of 07/12/2018, with the latest amendments it is possible for the applicant to commence application procedure by investing in real estate development projects.

 

For such purpose, basically the applicant has to transfer at least USD 250,000.00 to the seller and sign a “Preliminary Agreement to Sell” before a notary public, that states the purchaser shall neither transfer, nor assign such preliminary agreement to any third parties for 3 (three) years.

 

For details regarding Application for Turkish Citizenship by Investment in Real Estate Development Projects please click here to read our article.

 

3. IS IT POSSIBLE TO APPLY FOR CITIZENSHIP ACQUISITION WITH AN INVESTMENT UNDER THE NAME OF A COMPANY?

 

It is strictly regulated by the law that the investor must be the applicant, in person. In other words it is not possible for the applicant to invest (purchase the property) under the name of neither a company nor any legal person or entity.

 

4. HOW DOES THE ACQUISITION PROCESS FINALIZE? IS THERE AN ANNOUNCEMENT IN THE OFFICIAL GAZETTE OR A NOTIFICATION TO THE ORIGIN COUNTRY OF THE APPLICANT ABOUT THE ACQUISITION?

 

Acquiring of Turkish citizenship is finalized by the official decision of President of Turkey.

 

According to Turkish Constitution, there are two types of official documents which President can compose. These are “Presidential Decree”, which regulates general and important matters and “Presidential Decision”, which is about regulating small matters and subjects.

 

By law, a presidential decree must always be published on the Official Gazette of Turkey no matter it’s content, while publishing a presidential decision with low importance is decided by the President of Turkey himself. Namely, decision of accepting into Turkish citizenship is an aforementioned presidential decision and therefore highly unlikely to be published.

 

5. IS IT POSSIBLE TO SEND THE COST OF THE PROPERTY FROM A DIFFERENT ACCOUNT WHILE THE PROPERTY IS TITLED IN THE APPLICANT’S NAME?

 

There are no regulated restrictions about the source of funding but considering the forthcoming comprehensive examination; for the sake of such exceptional application, sender should be the applicant, in person. It should be noted that, even if the applicant follows every single legal step successfully; granting the citizenship is still under the Republic of Turkey’s sovereignty.

 

6. ARE THERE ANY RESTRICTIONS ON FUNDS ENTERING TURKEY?

 

There aren’t any general restrictions on funds entering Turkey, as long as such funds or the sending and receiving parties are not subject to any international criminal investigation focusing terrorism or money laundering considering the fact that all the applications shall be examined by General Directorate of Security and the National Intelligence Organization. Also, all the money transfers shall be examined by the Financial Crime Investigation Board.

 

7. DO FUNDS NEED TO BE DEPOSITED FIRST INTO A TURKISH ACCOUNT IN THE APPLICANT’S NAME AND THEN TRANSFERRED TO THE SELLER OR CAN IT BE DIRECTLY SENT FROM THE ACCOUNT OUTSIDE OF TURKEY?

 

While transferring funds directly from a foreign bank account to seller’s account is possible, we have to warn our clients about possible technical problems that might cause a delay and affect the purchase.

 

Please note that most of the transactions from abroad are being examined by the Financial Crime Investigation Board. Our clients may encounter problems with regard to money transactions on the basis of their nationality (e.g. transfer from Iran and some other countries located in middle east region may be challenging), lack of “clear explanation” in transfer or technical problems. Naturally, the seller will be expecting a smooth transfer and the mentioned delays are likely to disturb the seller.

 

In order to evade such outcomes, it is recommended to open a bank account in the applicant’s name in one of the Turkish banks and deposit the total amount beforehand.

 

8. IS IT POSSIBLE TO OPEN A BANK ACCOUNT IN TURKEY BY PROXY?

 

Establishing a bank account in Turkey via an attorney is possible. The operation requires a special Power of Attorney (“PoA”) or a special wording in the general PoA.

 

Opening a bank account in any Turkish bank as a foreign individual (whether via an attorney or not) requires a Potential Tax ID Number that will be issued by the provincial tax office.

 

With your request, KOOBY Law & Consultancy team can easily apply on behalf of you for such number with a special PoA.

 

Please note that obtaining a Potential Tax ID Number does not require any declaration. It is only required for the taxation of your further actions in Turkey such as obtaining a real estate, banking transactions etc.

 

 

 

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FREQUENTLY ASKED QUESTIONS ABOUT TURKISH CITIZENSHIP ACQUISITION BY INVESTMENT – PART 2

January 11, 2019

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