Turkey has two options for its Citizenship by Investment program:
- Invest $400,000 in any real estate in the country (can be multiple properties)
- Deposit $500,000 in a Turkish bank for three years
The deposit option was very popular as investors, through a number of mechanisms and guarantees by the central bank, were in large part protected against currency devaluation.
These mechanisms are being removed as a CBI option. Henceforth, new citizenship by investment applicants for the deposit option will be fully exposed to the Lira.
People have made a killing with Turkish Lira term deposits in the past year as interest rates are high and the Lira has been relatively stable.
Objectively however, the deposit option is now dead. Three years of Turkish Lira exposure is simply too high risk.
My lawyer Yüksel notified me of this development, as it hasn’t been reported anywhere yet.
If you are interested in the real estate option, make sure to read my analysis of the Istanbul real estate market and of the Izmir real estate market. They will give you a good overview of what to expect, including case studies.
And here is more information of the Turkish CBI process itself.
Hungary is killing the €500,000 direct real estate option for its Golden Visa
The first fund was recently approved for the Hungarian golden visa (invest €250,000 in a real estate fund to get a Hungarian Golden Visa with full Schengen access). Many people were waiting for the direct real estate option which had been announced. Unfortunately the government decided to cancel it before even launching it.
So the real estate investment fund it is. Sad. More information on the Hungarian Golden Visa.
This is yet another reminder that programs change, and rarely for the better
If there is a program you like and that you can afford, it’s always best to act decisively.
All the best to everyone for 2025, and brace yourselves for another year of volatility!
To a World of Opportunities,
The Wandering Investor.
Other articles on Turkey:
- Making a real estate investment in Izmir? A value play within Turkey
- My Apartment Renovation in Istanbul – Case Study with numbers
- Why is the Turkish Citizenship by Investment Program misunderstood?
- Making a Real Estate Investment in Istanbul, Turkey – Overview and what to watch out for
- I bought an apartment in Istanbul
- How to buy Real Estate in Istanbul for the Turkish Passport
- Buying Izmir real estate for the Turkish citizenship by investment
- Net real estate rental yields and cap rates in Istanbul, a case study
- Turkey Citizenship by Investment – Timelines, Fees, and Traps to Avoid
Available services in Turkey:
Other ways to get Golden Visas and Citizenships by Investment:
- Fastest way to get Permanent Residency in Malta
- Be careful when you buy a passport in the Caribbean
- Best Deal for the Citizenship by Investment in Turkey
- How to obtain Vanuatu Citizenship by Investment
- Saint Lucia Citizenship by Investment
- St Kitts & Nevis Citizenship by Investment
- Citizenship by Investment in Egypt
- Vanuatu or Caribbean passport? Which to choose, and why?
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Transcript of “Changes to Citizenship by Investment in Turkey – deposit option”
LADISLAS MAURICE: Hello, everyone. Ladislas Maurice of the Wandering Investor. Today, we shall be breaking some news with regards to the Turkish Citizenship By Investment Program, the bank deposit option, which was quite interesting, because in many ways, though you had to convert your $500,000 into liras, there were various mechanisms in place, which meant that in large part you were covered in terms of forex risk, but now this is being removed, and investors will have to take on 100% Turkish Lira risk. Yüksel is my lawyer in Turkey. She helps a lot of my clients with the Citizenship by Investment application, whether it be for real estate, or for the term deposit, or for the bank deposit option. Yüksel, how are you? And Happy New Year, we’re on the 31st here.
Changes to bank deposit option for Turkish CBI
YÜKSEL: Thank you so much, Ladislas. The same, I wish you a very happy and successful year to you, too. And indeed, we had this news out of blue, really. It was the Central Bank changed whole program last week, and then they announced to all the banks. The original program was providing amazing and very attractive options for the CBI investors. Indeed, the investment was need to convert it into the Turkish Lira but Central Bank was guaranteeing all the currency rate exchange risk, plus they were, the Central Bank, providing additional return which was paid out of any condition. So it was one of the favorable, very attractive and unique option for the CBI investors.
But now I have spoken to a bank manager today, and then I read the legislations, and it is not available anymore.
How the program will work in 2025
YÜKSEL: How the program is going to work now is that the investors have to keep the money in Turkish lira, and they have to treat it as the same as the Turkish citizens, whatever the interest rate available. So still it is available, standard bank investment options is available, but with the interest rate, what the banks are providing with them looks like it is not quite rewarding and attractive options for CBI clients. So the remaining options, the real estate, which is the most traditional and most rewarding, potentially rewarding options with the capital appreciation and the rent yield is outstanding options for them.
So the current account will be honored by the Central Bank. Still for the client, the program is available, but obviously, it might be not great options for them, considering the inflation and the devaluation of the Turkish Lira. Plus, I always advise the clients, if they consider it, consider applying for Turkey citizenship, they may consider it quickly, because the government really making it difficult in the recent years. They are making it difficult in terms of the documentation, in terms of the process, plus one door is closed, as we see this week. So it is a really outstanding program among the others, so we advise our clients they should better to make their decision for Turkey CBI as soon as possible, when they like, of course.
LADISLAS MAURICE: Yeah. So essentially, people who did go for the bank deposit option, their contract is being honored, all good. But people who now want to go for the bank deposit option, normal deposit rates. I mean, they’re really high in Turkey. We’re talking 50%, roughly, on the Turkish Lira. The lira has stabilized in the past year, so people have made a lot of money. People who invested in Turkish Lira in the past year have made an absolute killing, because there has been very little devaluation and a lot of interest paid. But is there a guarantee that this will continue for another three years? Absolutely no clue. It’s a volatile currency. So there’s a lot of currency risk.
If people want to go for this, I’d have a hard time recommending it to people now, the bank deposit option.
Turkish CBI by real estate investment
LADISLAS MAURICE: But the real estate option is still very valid. Yüksel, you help a lot of your clients with the real estate option. Terms of gross yields, we’re looking at 5% to 7% growth. In some cases, you can do a bit better if you go for some niche products. So that’s the best way to go about it. I wrote a whole article on the real estate market in Istanbul, as well as Izmir, with case studies, etc., with my agents there who can help you. There’s a link below with all the information. It’ll give you a more realistic picture of what real estate is like in Istanbul.
And feel free to get in touch with Yüksel, there’s her email below.
YÜKSEL: Just to add, there is political pressure on the government on the program. The program may be sealed, canceled by the government in the near future, because it is a great pressure by the opponent parties. So before the program is gone, we recommend to our clients, potential clients, to have a look into the real estate options with your team, and we are ready to help also in the legal terms.
LADISLAS MAURICE: Yeah. Look, when Turkey was at $250,000 for real estate, it was a complete steal. Then this got raised to $400,000 for real estate and $500,000 for the term deposit. And people were like, “Oh man, it went up. Blah, blah, blah, blah.” But the day the Turkish Citizenship by Investment gets canceled, people will regret not being able to access this program, because it genuinely is, I find, one of the best programs out there.
YÜKSEL: Yeah. Also, Turkey is a unique locations among the region, Middle East, and Europe, and Caucasus regions. It is really strategic locations, and we have a very strong diplomacy and so on. It’s a very dynamic economy and population also. So it’s a real investment and real opportunity to invest in Turkey.
LADISLAS MAURICE: Yeah. And it comes with volatility. So people who can’t stomach volatility should avoid Turkey, it’s not for you. All right, fantastic. Yüksel, thank you, and Happy New Year.
YÜKSEL: Thank you so much, Ladislas. Happy New Year to you, too. Ciao.
