Investment in Türkiye by buying property or bank deposit?

Investing in Turkey has recently gained significant attention among Iranians. However, many people are unsure whether it’s better to invest by purchasing property or by depositing funds in Turkish banks. Both options have their own advantages and disadvantages. Purchasing property in Istanbul, for example, not only allows investors to potentially obtain residency or citizenship but also provides the option to use the property for living or renting out.

This type of investment offers a tangible asset that tends to hold long-term value. Real estate in popular areas such as Istanbul can appreciate over time, offering both a secure asset and income through rental returns. On the other hand, investing through bank deposits offers a more passive way of earning returns without the responsibility of property management. However, the returns may be lower compared to real estate investments, and the value is less likely to appreciate over time. Ultimately, the choice depends on the investor’s financial goals, risk tolerance, and interest in property management.

On the other hand, bank deposits offer a simpler method of investment without the need for continuous management. With fixed interest rates, it provides a way to generate income without engaging in the real estate market. The choice between these two methods depends on the investor’s financial goals, the amount of capital available, and their personal needs. For those seeking a more hands-off approach with less involvement, bank deposits may be a better option.

However, for those interested in potential capital appreciation, rental income, and the tangible benefits of owning real estate, investing in property might be the preferred choice. Ultimately, it is important for investors to carefully evaluate their risk tolerance, financial objectives, and the potential for long-term growth when deciding which investment method best suits their needs.

To make a better decision for a more secure investment, we recommend watching the video explanation by Mr. Sadegh Moradi, CEO of ForKey Holding, about the best investment methods in Turkey.

Safe investment by obtaining Turkish citizenship

In today’s world, for many investors seeking international opportunities, acquiring citizenship in foreign countries is highly attractive. One of the popular ways to invest in Turkey is through bank deposits, which can lead to Turkish citizenship.

This comprehensive guide provides foreign investors with key information and guidance on the process of acquiring Turkish citizenship through investment in Turkey via bank deposits in 2024.

In January 2017, the Turkish government published an amendment to the regulations related to the implementation of Turkish citizenship laws in the Official Gazette of Turkey (TC Resmi Gazete). This amendment introduced a Turkish citizenship program, allowing foreign nationals and their families who contribute economically to the country to acquire Turkish citizenship. Economic contributions must be aimed at stimulating the real estate market, bringing in foreign currency, and creating jobs.

Foreign investors seeking to obtain Turkish citizenship through a bank deposit must follow a straightforward process. This option is available to individuals along with their spouses and children under 18 years of age. By depositing at least $500,000 USD (or its equivalent in other currencies) into one of Turkey’s banks, they can apply for Turkish citizenship. It is important to note that there are no nationality restrictions, and this opportunity is available to citizens of all countries.

Afterward, the application process for residency and Turkish citizenship begins. Eventually, upon receiving the identification card and Turkish passport, investors can enjoy the benefits of Turkish citizenship.

Conditions for obtaining a Turkish passport through investment and bank deposit

To begin this process, investors must open an account in their name at one of Turkey’s state-owned banks, using both Turkish lira and foreign currency. The next crucial step involves transferring $500,000 USD or the equivalent from their home country or any foreign account to a Turkish bank. The deposited amount must be converted to Turkish lira and locked in the account for a mandatory three-year period. This process requires careful navigation, and seeking professional assistance is advised to avoid potential issues.

The YUVAM account, with a combination of interest returns and protection against exchange rate fluctuations, offers an attractive yield. The interest rate varies based on the maturity period. For investors aiming for Turkish citizenship, it is recommended to initially opt for a 2-year account with an interest rate of 6%, followed by a recurring 1-year term with a 5% interest rate. This strategic approach can provide significant returns and generate more motivation for foreign investors.

The YUVAM account protects investors against currency exchange rate fluctuations. At the end of the 3-year maturity period, investors are guaranteed that they will not incur losses due to exchange rate differences. This structure ensures that the initial principal amount of $500,000 deposited remains safe.

Documents required to open a bank deposit account

1. Passport translation
2. The Turkish Tax Identification Number (TIN) is a unique identification number required for conducting financial activities and transactions such as property purchases and opening a bank account in Turkey for both foreigners and Turkish citizens.
3. Career and education records
4. The contact address and proof of address is in your country.

These accounts are often offered by banks that have an international license and are able to serve foreign customers.

Investors must deposit the desired investment amount into these accounts and maintain it for a specified period (three years) in order to apply for Turkish citizenship through investment. Investors should ensure that they follow all steps carefully and in accordance with legal instructions to ensure that the investment process and citizenship acquisition proceed smoothly.

After the funds are blocked, a compliance letter is issued by the Banking Regulation and Supervision Agency (BRSA). This letter confirms that the investor has made the required investment amount and that the account is locked for the specified three-year period. This document serves as the basis for the subsequent application for Turkish residence and citizenship.

Residence permit and application for Turkish citizenship after investment

After receiving the compliance confirmation, investors seeking to invest in Turkey through a bank deposit are required to travel to Turkey once to undergo fingerprinting. After this step, they can apply for a one-year residence permit. The required documents include the compliance confirmation, passport translation, entry and exit stamps, visa copy (if applicable), application form, biometric photos, birth certificate, and health insurance.

After the residence permit is approved, a legal representative on behalf of the entire investor’s family, who has invested in Turkey through a bank deposit, applies for citizenship. The required documents for the citizenship application include biometric photos, a marital status certificate, birth certificate, passport translation, and a power of attorney.

Which banks are suitable for Turkish citizenship with a bank deposit?

For joint accounts opened in a bank in the Republic of Turkey (for example, an account opened with the foreign applicant’s spouse), if the partner, other than the citizenship applicant, agrees that the account will not be withdrawn from outside, the bank will hold the account for 3 (three) years without reduction. In this case, it is possible to apply for Turkish citizenship with a joint account.

In addition, questions such as which bank is suitable for Turkish citizenship through bank deposit and who is eligible for this process are important. In this case, individuals who open an account in active banks within the borders of the Republic of Turkey and deposit 500,000 USD in the bank, provided that the account is maintained for 3 years, can apply for citizenship.

Thus, in addition to the applicant for citizenship, their spouse and children under the age of 18 can also apply for citizenship using the same deposit account where the funds have been deposited. Additionally, the investment must be approved by the Banking Regulation and Supervision Agency.

Benefits of Turkish citizenship by investing in Türkiye through bank deposit

Turkish citizenship with a bank deposit has many advantages. Some of the benefits are listed below.

• Living, working, and studying freely in Turkey: Turkish citizenship through a bank deposit grants you and your family the right to live, work, and study in Turkey. For example, you can use your real estate or earn income by renting out your property. Furthermore, if you plan to move to Turkey with your family, you can reduce the stress related to the education process in Turkey, as the visa is granted to the entire family. Both you and your children will have access to the Turkish education system and lifestyle standards.
• A fast and easy path to citizenship: Turkish citizenship through a bank deposit is the quickest way to obtain Turkish citizenship. After depositing $500,000 USD in a bank, you have the right to receive your Turkish passport in less than four months after submitting your application.
• Family reunification: Applicants for Turkish citizenship through investment can bring their spouse, children (dependents under 18 years old), and parents along. Additionally, all family members can access free healthcare services just like local citizens of Turkey.
• Easy Schengen visa: Turkish citizens can apply for a Schengen visa with relative ease, provided they submit the necessary documents. Additionally, many other countries have bilateral agreements with Turkey that allow visa-free travel. These include Hong Kong, Singapore, Japan, Mexico, South Korea, and nearly all of Latin America.
• Easy access to E2 visa: Obtaining Turkish citizenship offers an excellent opportunity for individuals who are unable to apply for the E2 visa through their original citizenship, such as those from India and China. The E2 visa application is open to citizens of countries with trade agreements with the United States. Turkish citizens are eligible, and you can easily apply for an E-2 investor visa with Turkish citizenship.
• Dual nationality: Turkey allows dual nationality, meaning you don’t have to renounce your original citizenship to obtain a Turkish passport. This is a significant advantage for many investors who have obligations in their home country.
• Profitable investment: Unlike some other investment citizenship methods, Turkey does not require financial donations in exchange for a passport. Instead, it offers various investment paths that are highly promising and profitable.

Frequently asked questions about investing in Türkiye through bank deposits

• Who can apply for Turkish citizenship by making a bank deposit in the bank?

Foreign individuals who open an account at banks operating within the borders of the Republic of Turkey and deposit $500,000 for a period of 3 years can apply for citizenship. The spouse and children under 18 of the investor, who apply for citizenship based on the deposited amount in the bank, can also apply for citizenship based on the deposit made in the same account. For children over 18 or other spouses, the citizenship application must be submitted separately.

• Should the deposited amount be transferred from outside Turkey? Is it possible to proceed with the amount in the bank account in Türkiye?

The amount in question can be already in Türkiye and deposited in the bank, or transferred from abroad. Both methods will be accepted.

• Is it possible to benefit from the interest of the amount deposited in the bank?

Depending on the agreement with the bank where the money is deposited or the type of account, you can enjoy various returns and benefits as long as the amount is less than $500,000 USD.

• If the account is opened in Turkish Lira or an equivalent currency other than US dollars, will the deposit in US dollars be tracked for 3 years? Are exchange rate fluctuations considered during the tracking period?

If a foreign currency deposit other than US dollars is made in the banks, the equivalent of US dollars as determined by the BRSA on the specified date will be used as the basis, and the amount will be considered to remain in the banks at the same rate for 3 years.

Are there any restrictions on opening a bank account by foreigners in Türkiye?

Foreign nationals who have a possible tax number can open an account if they provide all the documents requested by the banks.

• Is it necessary to deposit money in the bank for the applicant? Can an attorney or a third party make a deposit on behalf of the applicant?

The deposit can be made by the applicant, their representative, or a third party. The main condition here is that the deposited amount must be 500,000 US dollars and remain in the account for 3 years.

• Is there a fee when depositing money in the bank?

There are no transaction fees for opening an account in active banks in Turkey.

Note: While some banks do not charge any fees for this process, others may charge account operation fees, and the corresponding amount may vary from one bank to another.

• Does a person who applies for citizenship by depositing money in a bank have to have a bank account? If you use a joint account with your spouse, can you apply for citizenship with the money deposited into this account?

A citizenship application through a joint account is possible only if the account partner, other than the foreign person applying for citizenship, agrees that the account will remain locked for three years in the bank where it is opened.

Additionally, the account partner commits to not withdrawing the money from the account for 3 years, and ensuring it does not decrease. Therefore, it does not matter if the account partner is the spouse or someone else. What matters here is that the account partner commits to not withdrawing the money from the bank for the full 3 years.

• Should the deposit be opened in an account? Can the total amount be deposited in different accounts?

The entire amount can be deposited into different accounts, provided that the required amount as per the regulation is met and the freeze notice serves as the basis for the citizenship application.

• Is it possible to change the exchange rate deposited in the bank before the citizenship application is finalized?

The deposited amount in the bank must be 500,000 US dollars or its equivalent in foreign currency or Turkish lira. For example, it is possible to convert the deposited amount to US dollars at a convertible exchange rate or its equivalent in Turkish lira to 500,000.00 US dollars within the 3-year period of the investor’s request.

• Can the amount deposited in the bank be withdrawn before the 3-year commitment period expires?

The amount deposited in the banks for citizenship purposes is blocked by the banks in line with the wishes of the people (receiving Turkish citizenship), but withdrawal of these amounts is always possible.

Investment in Türkiye through bank deposit with 4kgroup team

Begin your journey to Turkey for citizenship and secure international investment with For Key Group Legal Firm. Our expert legal team, based in the vibrant city of Istanbul, Turkey, is dedicated to guiding you through the complexities of Turkey’s citizenship program and investment through bank deposits. With our deep knowledge and experience, secure the future and financial well-being of your family.

Let us be your trusted partners in this transformative investment. Contact a Turkish lawyer and official immigration lawyer at For Key Group Legal Firm today to start your unique journey toward Turkish citizenship and unlock a world of possibilities. Your successful future awaits – take the first step with us.

Final summary

Given Turkey’s strategic geographical location and its high growth potential, investing in Turkey through deposits can be a smart choice for those looking to secure a financially stable future. This method of investment not only offers access to new markets but also opens the door to countless business and personal opportunities across the Eurasian region.