7,000 foreigners took advantage of Turkey’s citizenship via home purchases
between 2017 and 2020. As of January 6, 2022, the Turkish government has
enacted small updates to its regulations concerning the granting of citizenship
to foreigners in return for specific investments in real estate.
Foreign buyers who purchase property in Turkey worth at least $400,000 USD will find themselves on the path to Turkish citizenship. Buyers must hold the property for three years and their spouse and children under the age of 18 will also be granted Turkish passports.
According to the new regulation, the foreign currency obtained from the sale of the property to foreigners must now be sold to the central bank through a local bank and converted into Turkish Lira. Prior to this amendment, one could invest with foreign currency or the Turkish Lira equivalent.
The new requirement will help strengthen the Lira by preventing and reversing the dollarization trend in the country. Despite the new conditions, the monetary value of the real estate investment has not changed and there is no expectation that the new regulation will slow down or create gaps in real estate transactions.
Home sales to foreigners reached an all-time high last November with a 48.4% year-over-year increase with 7, 363 units sold. Central Bank data shows that net investment in real estate reached $5.7 billion USD. Sales to foreigners exceeded the annual threshold of 50,000 for the first time ever in 2021. We look forward to seeing what 2022 brings.