The Turkish Citizenship by Investment Program’s update on December 12, 2023, brought a significant shift in the criteria for property investments eligible for citizenship. This update now includes the purchase of land as a qualifying investment.
Under this amendment, the term “döviz tutarındaki taşınmazı” in subparagraph (b) of Article 20’s second paragraph in the Turkish Citizenship Law Implementation Regulation is replaced with “döviz tutarındaki kat mülkiyeti veya kat irtifakı kurulmuş ya da üzerinde yapı bulunan arsa vasıflı taşınmazı.” This change has major implications for both investors and applicants.
Originally, the regulation allowed any real estate property of a certain value for citizenship eligibility. Now, the regulation specifies that the investment must be in property with established condominium ownership (kat mülkiyeti) or floor easement (kat irtifakı), or in land with a constructed building. This revision narrows the range of qualifying properties, influencing investment approaches.
Investor Implications:
- Specific Property Types Required: The new regulation mandates investments in properties with specific legal designations – condominium ownership, floor easement rights, or built-on land. This excludes real estate like undeveloped land or properties lacking these legal designations.
- Market Influence: This change may shift the real estate market focus towards properties meeting the new criteria, possibly driving up demand and prices for such properties.
- Legal and Financial Planning: Investors must understand the legal aspects of condominium ownership and floor easement rights in Turkey and ensure investments comply with these new rules. This knowledge is crucial for effective financial planning, considering the varying costs and returns of different property types.
- Enhanced Due Diligence: Investors should intensify due diligence, verifying property legal status, understanding the local market, and ensuring compliance with the citizenship program.
- Anticipation of Further Regulations: Investors should remain alert to any additional changes in the Turkish Citizenship by Investment Program.
Types of Title Deeds in Turkey:
Condominium Ownership (Kat Mülkiyetli): A title deed for a completed, habitable property unit, like an apartment. Vital for the new regulation, it signifies a finished, livable property.
Floor Easement (Kat Irtifaklı): A title deed for under-construction properties, securing rights to a specific unit upon completion. Although the property is not yet livable, this deed confirms the investor’s future claim.
Land Title (Arsa Tapulu): A deed for land, either with or without construction. Under the new rules, land with a building may qualify for the citizenship program, whereas vacant land likely won’t. Some buildings or flats might be “arsa tapulu” if part of a larger land plot not yet subdivided into individual condominium units.
Investor Actions:
- Title Deed Verification: Investors must check the property’s title deed type to ensure it meets the new criteria.
- Risks in Under-Construction Investments: Investing in properties with “kat irtifaklı” deeds involves risks related to the project’s future completion. It’s crucial to evaluate the developer’s reliability.
- Legal Implications Understanding: Each deed type carries specific legal implications and rights, important for informed investment decisions.
- Expert Consultation: Considering the complexity of Turkish real estate laws and recent investment criteria changes, seeking advice from real estate and legal experts in Turkey is strongly recommended.
