We have the ultimate guide on Turkey Citizenship by Investment, which explains the program completely. Therefore, in this article, without getting into the details of the program, we will explain the recent changes that took place in Turkey citizenship by investment program.
Turkey’s General Directorate of Land Registry has changed some major rules in the game. Consequently, new applicants must be aware of them before taking a step into Turkey Citizenship by Investment Program.
WHAT IS THE DIFFERENCE BETWEEN A PROPERTY SALES AGREEMENT AND A PROMISE OF SALE AGREEMENT?
Firstly, we would like to briefly touch upon the difference between the “sale of immovable property” and “promise of sale agreements” in Turkish law. For those who are not familiar with them, the sale of real estate is the process of purchasing real estate. To clarify, this means that the construction is already completed and the title deed is ready to be transferred. In short, the buyer takes ownership of the real estate at the land registry, right after making the payment.
On the other hand, when it is not legally possible to physically purchase immovable properties, a “promise of sale agreement” takes to the stage. When the construction is not completed or the title deed is not legally suitable for transfer, the legal solution is to sign a “promise of sale agreement” in return for the money paid. This agreement includes the details of how and when the construction will be completed. Moreover, it allocates the prospective buyer’s right to purchase the property in the future. When the construction and permits are completed, buyer requests the title deed from the seller by invoking the before-mentioned agreement. Such agreements must be signed at a notary in order to be valid and enforceable.
Now that we have clarified the difference between the two types of agreements, we can address the recent changes. These changes listed below will be effective as of February 1, 2023.
FEBRUARY 2023 Changes in Turkey Citizenship by Property Investment Option
1. Shared ownership is not allowed for Turkey Citizenship Program anymore
It is no longer possible to apply for Turkey Citizenship by purchasing a share of one single immovable property. In other words, if an immovable property is acquired by more than one foreigner as shared ownership, it cannot be subject to citizenship. Only way to apply for citizenship through real estate investment is to acquire the whole ownership. An investor can still purchase multiple properties and combine their value. However, shared ownerships are not eligible for Turkey Citizenship by Investment Program anymore.
2. Only one promise of sale agreement is accepted for Turkey Citizenship by Investment Program
If an investor wants to buy an unfinished construction project, signing a “promise of sale agreement” is the only option. Meanwhile, the $400,000 investment limit must be provided with a single agreement. To clarify, it is possible to subject more than one immovable property to a sales promise under a single contract. So, if you want to apply by a “promise of sale agreement”, you cannot submit more than one agreement. It is not about the number of properties, but about the number of contracts. Consequently, you can sign “promise of sale agreement” for multiple properties that fulfill the $400,000 criteria under a single contract.
3. Combining a “promise of sale agreement” and a “property sales agreement” is not possible for Turkey Citizenship
If purchased properties don’t meet the investment limit for citizenship acquisition, it is not possible to complete the remaining amount with a “promise of sale agreement”. In other words, if the sale price of the real estate you purchased does not meet the $400,000 limit, you cannot enter into a “contract of promise to sale” for another real estate to complete the difference. In such a case, the only way to complete the difference is to buy an additional property.
In conclusion, shared ownership of a property is no longer acceptable for Turkey Citizenship Program. Also, anyone who wants to apply with an unfinished property must exceed the investment limit in a single contract. Finally, if an applicant’s investment stays below $400,000 only way to complete is by buying extra properties. It’s not possible to complete the investment threshold by combining the purchased property with promise of sale agreement for an unfinished project. In short, investors have to purchase actual finished properties until the total value reaches $400,000.
To get up to date informaton, please subscribe to our YouTube channel, follow us on Instagram, Facebook, Twitter and LinkedIn. For any queries, reach out to us by sending an email to [email protected]
Turk Fortune team is happy to be your ambassadors in Turkey!
We are always happy to hear from you!
+90(546) 577 73 18
Büyükdere Cad, Mecidiyeköy Mah. No:81 Kuğu İş Merkezi Floor:4 No:7, Şişli/İSTANBUL
Mansuroğlu Mah. 286/1 Sk. No:1 Floor: 2 Office: 217 Bayraklı/İZMİR