Insider insights indicate an impending increase in investment requirements for obtaining Turkish CBI. It is expected that from 2024, non-residents will have to invest a minimum of USD 600,000 to be eligible for the program, a rise from the current threshold of USD 400,000.
In flux: turbulence ahead for Turkey’s CIP
At present, the information remains unverified, with no official confirmation from Turkish government authorities about changes to the current Citizenship by Investment Program (CIP). However, reports from local newspapers and major Turkish news outlets suggest that plans to increase the investment threshold for the program could be introduced shortly.
Immigration experts and field specialists project that in the case of the Turkish CIP it is expected to rise in the first half of 2024. Given the program’s popularity and high demand, it’s considered likely that the authorities would seek to increase foreign investment in Turkey through this adjustment.
Launched in 2017, the program aims to boost the economy, create jobs, and attract Foreign Direct Investment (FDI). Acquiring Turkish citizenship through investment is acknowledged worldwide for its efficiency and simplicity, providing a pathway to a second citizenship and passport for global investors.
The program’s original investment requirement was USD 1,000,000, as set by the Turkish government.
In 2019, Turkey’s CBI program underwent a significant change, reducing the investment requirement to USD 250,000 to attract more foreign investors. By April 2022, the threshold for real estate investments linked to citizenship acquisition under the CIP rose to USD 400,000.
During the announcement of this increase in 2022, Turkish authorities also allowed a transitional period. In the month following the revised regulations, non-residents could still submit their citizenship applications with an investment of USD 250,000.
Current expert analysis suggests that Turkish authorities might introduce a similar transitional phase before potentially raising the investment threshold to USD 600,000. While this information awaits official confirmation, interested parties should do their best to apply for economic citizenship under the more favorable conditions presently in force.
Following the 2022 announcement of the increased investment threshold, Turkey’s property market experienced a swift and significant price escalation. Real estate that qualified for the Citizenship by Investment Program (CIP) witnessed an unprecedented 15% price hike. This rapid market reaction underscores the urgency for prospective investors to expedite their citizenship by investment applications in Turkey.
Anticipated modifications to Turkey’s economic citizenship program, also known as the citizenship by investment program, have prompted updates to the residency acquisition regulations. This is why the country’s officials declared a hike in the investment amounts required to be eligible for Turkish residency.
Previously enforced regulations stipulated the following investment amounts for foreign investors seeking residency permits in Turkey:
- USD 50,000 for properties in smaller towns
- USD 75,000 for properties in larger cities.
As of fall 2023, new legislation permits foreigners to seek economic residency in Turkey through a minimum real estate investment of USD 200,000, applicable to small towns too.
Besides, the Turkish Ministry of Internal Affairs has capped the number of districts eligible for the program in sought-after provinces at 1000. This measure addresses the increasing presence of foreign nationals in specific regions of Turkey.
Immigration specialists suggest that recent alterations to Turkey’s residency program could signal forthcoming revisions to the regulations governing citizenship acquisition through real estate investment.
Turkey’s intent to adjust the real estate investment threshold reflects the country’s economic advancement and the escalating demand for its passports. The proposed increase of USD 200,000 in the investment amount demonstrates the government’s dedication to securing significant Foreign Direct Investment (FDI) in the near future.
Opportunities in Turkey’s real estate market
In 2024, the real estate investment landscape is evolving, with a discernible shift towards developed properties. This trend is driven by investors’ preference for assets that offer immediate returns or development potential. For instance, commercial real estate in metropolitan areas like Istanbul’s Levent and Maslak districts is in high demand due to their established business environments and ongoing infrastructure developments. These areas are known for high-rise office buildings and luxury apartments, which are attractive to investors for their rental income potential and long-term value growth.
Similarly, the residential sector in coastal regions like Bodrum and Antalya is witnessing a surge in interest. These locations are not only tourist hotspots but also emerging as hubs for international business, making investments in these areas particularly lucrative. Local properties are sought after for their lifestyle appeal and the premium they command in the rental market.
The Turkish government’s urban renewal projects in historic districts are creating opportunities for investment in properties that are part of cultural heritage preservation. These projects often lead to an increase in property values post-restoration, offering a unique combination of cultural significance and economic benefit.
Overall, the strategic approach to real estate investment in 2024 involves a careful selection of properties with existing structures in areas boasting strong growth indicators. Whether it’s bustling city centers with their commercial allure or scenic coastal towns with their lifestyle advantages, the focus is on regions that promise infrastructure stability and a projection for value appreciation. This careful planning helps investors make smart choices that keep up with the changing trends of Turkey’s property market.
Seize the opportunity: Turkish citizenship at the current investment threshold
Currently, there has been no official announcement from Turkish authorities regarding a rise in the investment threshold for economic citizenship. This is an excellent chance for non-residents to act. The existing regulations allow foreign nationals to apply with an investment of just USD 400,000.
No doubt, the real estate market in Turkey is full of possibilities in 2024, and obtaining the nation’s passport is just one of them. Should you be interested in pursuing Turkish citizenship at the present investment threshold of USD 400,000, we encourage you to reach out to the International Wealth team without further delay. Our experts are ready to provide comprehensive guidance and support throughout the entire process. With them on your side, you will soon locate and move into the property of your dreams!
Source: Explore
