Posted On: Wed, 03/14/2018 - 15:56
5 Reasons for the Surging Popularity of Turkey’s Citizenship by Investment Program
by Apex Consultancy
So, while considering which residence or citizenship by investment program is best suited for you and your family, where better to start than the capital of the world?
Here are some things to consider when looking at the Turkish Citizenship by Investment Program:
On September 18th, 2018, Turkey reduced the minimum real estate investment for obtaining citizenship to $250,000 (down from $1M), making it one of the cheapest CIP’s on the market. Since the reduction, property sales to foreigners have increased by over 150% as of the end of 2018. Furthermore, annual property sales to foreigners are expected to increase from $4 billion to $10 billion in 2019.
#1: Government incentives for property investors
Lower purchasing taxes, VAT-exemption, digital land registry, and Cadastre (Takbis) system: These are some of the incentives and radical changes the Turkish government has implemented to help encourage foreign property investment and to boost their CIP.
#2: The best point of entry into the 500-million population Eurasia market
ith double the GDP of Greece and Portugal combined, Turkey has a diverse economy. With a plethora of multinational blue-chip companies locating their Eurasian headquarters here, Turkey is rapidly emerging as a popular destination for investment migration.
Although the majority of FDI emanates from neighboring countries and the MENA region, Turkey also attracts attention from the Far East. In 2018, the number of Chinese tourists into the country rose by 100% on the previous year, and there is even a new China Town being developed right in the heart of Istanbul. There are also significant Far Eastern investments in Leisure facilities, luxury hotels and residential projects, including the Mandarin Oriental, The Peninsular, and Raffles to name a few.
#3: Participation in a fast-growing market
Perhaps even more significantly, China’s “One belt, One road” mega project which promises to reignite the old Silk Road as the world’s most important trade route, will have Turkey and Istanbul as a key hub, thanks in part to its geographical positioning, and excellent logistics infrastructure.
The tourism industry plays a big role in Turkey’s economy, and 2019 is expected to be a record setting year, as hotels across the country are already reporting higher than average bookings. That is an impressive feat considering that Turkey experienced one of its worst ever years in tourism numbers in 2016. The rapid rate of recovery in the tourism sector is a true testament to Turkey’s resilience and ability to bounce back.
After a brief hiatus, 2018 saw Turkey’s FDI surge to $13.2 billion USD, an impressive 14% increase on the previous year, and at a time when other traditional ‘safe havens’ for FDI have been experiencing sharp retractions. Perhaps even better news for Turkey is that investor sentiment seems to be optimistic about its long-term prospects.
Furthermore, the World Bank recently published its ‘’Doing Business – 2019 Report’’, ranking Turkey in the top 10 for overall improvement, and moving it up 17 places to an overall rank of 43 rd in the world, after having carried out a record number of business reforms over the past year.
#4: Visa-free travel to 115 destinations, Schengen-access within sight
A Turkish passport is one of the most valuable in the Eurasia zone, with visa-free or on arrival access to 115 countries, including the US E-2 Visa. Turkey already boasts strong ties with the EU, and it is on now on the verge of having its citizens being granted visa-free access to the Schengen Zone countries. In fact, the EU has confirmed that Turkey has already completed 65 out of a list of 72 criteria, in order to gain Schengen access.
#5: Prime property bargains
Property prices in prime locations are still very attractive, and investors can own a luxury, LEED Gold quality residence in one of Istanbul’s most iconic high-rise buildings, for as little as the required minimum CIP investment of $250,000.
For those who prefer the more relaxed holiday vibe, we can offer great deals for newly built, luxury projects with facilities, in coastal resort towns, like Bodrum – The jewel of the Aegean, often likened to the St. Tropez of Turkey.
The government has also been playing its part by ensuring that the property market is well regulated and transparent. And, as of the end of February 2019, all properties are required to have an approved valuation by the capital markets board for any potential foreign acquisitions, adding an extra layer of protection for buyers.
The best way to participate in the Turkey CIP
To qualify for the CIP, purchased properties must also be complete or close to completion, with habitation certificates in place. The new land registry system means that once the client’s lawyers have conducted due diligence on their selected property, the purchasing process can be completed in a matter of days, thus paying on delivery title of deeds and eliminating any risk.
Taymour Polding, Director at Apex Consultancy
For over 15 years we have been working alongside a reputable international law firm that has successfully delivered title deeds to more than 2,000 foreign buyers in Turkey, whilst providing a range of auxiliary services, including all legal, tax, company registration, and citizenship applications.
We can also assist investors with alternative vehicles to qualify for Turkish citizenship, through our developer partners, who happen to be one of Turkey’s largest conglomerates, and publicly listed on Istanbul’s stock exchange, involved in over 40 businesses, including their own Real Estate Investment Trust (REIT), and commercial bank, rated by Moody’s.
Turkey’s star continues to rise, and it has never been easier to gain Turkish citizenship and take advantage its great lifestyle, culture, and the ever-expanding business opportunities being Eurasia’s main hub, granting access to a market of over 500 million people.