Amendment to the Regulation on Acquiring Turkish Citizenship.

In a bid to further enhance its investment landscape, the Turkish Government has recently made amendments to the Regulation on the Implementation of the Turkish Nationality Law, as outlined in the Official Gazette, on December 12, 2023, under article number 32397. The significant change mandates the construction of buildings on land in order to obtain citizenship through investment. In this blog post, we will explore the details of this new regulation and its potential impact on both investors and the nation.

Explanation of the Amendment:

According to the revised 20th article of the Regulation on the Implementation of the Turkish Nationality Law, issued on February 11, 2010 (decision number 2010/139 by the Council of Ministers), the phrase "immovable property in foreign currency" has been replaced with "immovable property in the form of land on which a condominium ownership or floor easement has been established or on which a building is located in foreign currency." This change requires foreign investors to construct buildings on land with structure permits or buildings already in place to qualify for Turkish citizenship through investment.

Effective Date and Enforcement:

The amended regulation came into effect on December 12, 2023. As stated in article 3, the President of Turkey will be responsible for enforcing the provisions of this regulation.

Reasoning behind the Amendment:

The introduction of this amendment aligns with the Turkish government's objective to attract more foreign direct investment and stimulate economic growth. By requiring investors to construct buildings on the acquired land, it ensures that investments contribute to the development of the local infrastructure and real estate sector. This regulation also aims to mitigate concerns regarding unutilized or undeveloped properties and promotes sustainable urbanization.

Potential Benefits for Foreign Investors:

While the introduction of construction requirements may be perceived as an additional burden for some investors, it brings various advantages and opportunities. Firstly, investing in real estate encompasses potential capital appreciation and rental income. The construction of new buildings also offers investors the chance to tailor their properties to the demands of the local market, ensuring long-term profitability. Additionally, this amendment may lead to increased demand for skilled labor, creating job opportunities for both local and foreign construction professionals.

Advantages to Turkey's Economy and Society:

The new regulation's main objective is to boost Turkey's economy. By encouraging investments in the construction sector, the country aims to experience economic growth through increased employment opportunities, tax revenues, and regional development. Moreover, the real estate market and related industries are expected to flourish, stimulating economic progress in urban areas. This amendment also serves as a mechanism to ensure that foreign investment contributes to the overall development and modernization of the country.

The recent amendment to the Regulation on the Implementation of the Turkish Nationality Law, requiring the construction of buildings on land for citizenship through investment, showcases Turkey's commitment to attracting foreign investors while fostering sustainable development. By linking investments directly to real estate development, the Turkish government aims to capitalize on the potential economic benefits and ensure the responsible urbanization of the nation. As the amended regulation comes into effect, investors are presented with new opportunities to contribute to Turkey's growth story while enjoying the advantages of a flourishing real estate market.