Case: how we obtained Turkish citizenship for the purchase of real estate
In September 2018, Turkey adopted a law by which property buyers with a value of $ 250,000 or more can receive citizenship. The rules came into force less than a year ago, but they are already working. Prian.ru has found specialists who have tested the new law in practice, and asked them to tell how such transactions are proceeding.
In April 2019, we received another Turkish citizenship for our client under the new investment law. For everything about everything – 2.5 months. Delayed because of the elections, if it were not for them, they would have managed in 1.5 months. The law really works fast! Using the example of this transaction, I will tell you how passports are issued for investors in Turkey.
November 2018 There is a request for the selection of property for citizenship
We were approached by a family of four with an uneasy inquiry. They wanted to find property for citizenship in Izmir (this is an unconventional city for Russian-speaking buyers). Familiar Turks, with whom the client works, advised him of this location. The place is really good, but the difficulty is that he himself did not know the city. Imagine, a person had to take four or five days, while we were selecting objects, to get to know Izmir, to feel his areas, to understand which one is better suited for his family. It is not so easy.
Like many clients, at the first stage he didn’t even understand what he wanted – a house or apartment. Initially, his eyes were burning when we looked at the villas for the money. But you have to understand: a private house has both advantages and disadvantages. Caring for a villa, if you do not constantly live in Turkey (and they were not going to move, they planned to get citizenship and rent property), is difficult. In terms of ease of maintenance and liquidity, an apartment in a quality complex with the management company is preferable. He listened to our advice – they began to choose among apartments.
It was difficult to find a suitable option. It was in November, before the adoption of a new law on the mandatory receipt of expert assessment of Turkish real estate, which a foreigner intends to buy. But in the case of citizenship, the appraiser’s report was already needed even then. The minimum value of the object in lira, equivalent to $ 250 thousand, should be stated in the certificate of ownership and confirmed by an expert assessment of an accredited company.
The problem is that 80-90% of real estate in Izmir and in Turkey do not meet the requirements of the citizenship for investment program.
Very often, the Turks prescribe undervalued in the tapas (certificate of ownership). For example, he once bought an apartment for $ 200 thousand, and wrote in tapas that for $ 50 thousand. And now he cannot spend the full amount on securities – $ 250 thousand, because he will have to pay $ 200 thousand in profits. tax – 20%.
Another important limitation: the apartment that the investor buys must belong to a Turkish natural or legal person, that is, you cannot take the object from a foreigner.
For these reasons, most of the proposals were eliminated, we had to choose from the remaining 10%. But we managed – we found an excellent apartment in the elite area of Izmir.
December 28, 2018. Making a deal, making out tapas
Real estate transactions in Turkey are made quickly, but in the registration of objects for citizenship has its own nuances.
First: you need to get a report in advance of the appraiser that the property costs from $ 250 thousand. The owner can set any price, but if a certified expert does not confirm this, then the real estate will not be able to participate in the program “citizenship for investments”.
Second, all money must be officially transferred from the buyer’s account to the seller’s account.
And third: it is important to work correctly with exchange rates. The Turkish lira is now volatile, and the price in lire is indicated in tapu. There is a risk to miss, to choose an object that at the time of the transaction will cost $ 249 thousand, and not $ 250 thousand. Then there will be no basis for obtaining citizenship.
It is extremely important that at each stage the figures coincide – the appraiser’s report, the amount transferred by the buyer, and the calculation of the Central Bank at the effective sale of the dollar at the time of the transaction. If you make a mistake in these nuances, then you will not receive citizenship.
On December 28, a deal passed, the client received a tapa on the same day. Then he handed us documents for citizenship, issued a power of attorney to represent his interests in Turkey and flew home.
Documents required for registration of citizenship in Turkey for investment
– Application in duplicate. The form is filled by the applicant or his representative by proxy
– Notarized translation of a passport
– Birth certificates of all children (apostille)
– Birth certificates of adult applicants (apostille)
– Marriage certificate (apostille)
– Certificate of family composition (apostille)
– Certificate stating that the applicant is still married (apostille)
– Certificate of good conduct (for the investor and all relatives who will apply for citizenship)