Mobility Galaxy

This article outlines the current legal framework, requirements, and step-by-step process for obtaining Turkish citizenship through this investment channel.

1. The Core Investment Requirement

The fundamental rule, governed by the Regulation on the Implementation of the Turkish Citizenship Law, is a minimum capital investment of USD 500,000 (or its equivalent in Turkish Lira or another foreign currency).

• Eligible Assets: The investment must be made into shares of either a Real Estate Investment Fund (Gayrimenkul Yatırım Fonu - GYF) or a Venture Capital Investment Fund (Girişim Sermayesi Yatırım Fonu - GSYF).
• Holding Period: A critical condition is that these fund shares must be held for a minimum of three years. This commitment is officially annotated in the records of the Central Securities Depository (Merkezi Kayıt Kuruluşu - MKK), preventing their sale or transfer during this period.
• Regulatory Oversight: The entire process is overseen and attested by the Capital Markets Board of Turkey (Sermaye Piyasası Kurulu - SPK), ensuring transparency and compliance.

2. Understanding the Investment Vehicles

• Real Estate Investment Fund (REIF): As defined in the context of the program, a REIF is a professionally managed pool of capital that invests primarily in real estate assets, real estate development projects, and real estate-based capital market instruments. Investors buy shares in the fund, which in turn owns and manages the underlying income-generating properties. This allows for diversification and professional management, removing the burden of dealing with tenants, maintenance, or individual property taxation.
• Venture Capital Investment Fund (VCIF): These funds invest capital into early-stage or growth-oriented companies (startups, scale-ups) with high growth potential. While higher risk, they offer potentially higher returns and contribute to the Turkish entrepreneurial ecosystem.

3. The Step-by-Step Application Process

Step 1: Preparation & Investment

1. Tax ID & Bank Account: The investor must obtain a Turkish Tax Identification Number and open an investment account with a bank or intermediary institution in Türkiye.
2. Fund Selection & Purchase: Working with licensed investment advisors or banks, the investor selects suitable REIFs or VCIFs.
3. Execution: The investment of at least USD 500,000 is made. Crucially, a Foreign Exchange Purchase Certificate (Döviz Alım Belgesi - DAB) must be issued by the bank, proving the foreign currency was converted into Turkish Lira for the investment.

Step 2: Obtaining the Conformity Certificate (Uygunluk Belgesi) This is the most critical step. The investor or their legal representative must apply to the Capital Markets Board (SPK) Intermediary Activities Department to obtain a certificate confirming that the investment meets the citizenship criteria.

• Required Documents for the Application:
  • A written application letter containing the investor's full name, date of birth, foreign identity number (if any), address, contact information, and MKK registration number.
  • Detailed information regarding the investment funds owned (fund codes, amounts, dates).
  • A clear copy of the investor’s passport.
  • If applying through a proxy, a specially drafted power of attorney (POA) that explicitly authorizes the representative to carry out all procedures related to the citizenship application based on fund investment.
• SPK Action: Upon review, the SPK will instruct the MKK to place a "block" on the fund shares, ensuring they cannot be sold for three years. Once this is confirmed, the SPK issues the Conformity Certificate.

Step 3: Residence Permit & Citizenship Application

1. Investor Residence Permit: With the Conformity Certificate in hand, the investor applies for a special short-term residence permit (Type E, per Article 31/1-j of the Law on Foreigners) for themselves and their eligible family members (spouse and children under 18).
2. Final Citizenship Application: Once the residence permit is granted, the complete file is submitted to the Directorate of Population and Citizenship Affairs for final processing and Presidential approval.

Benefits of the Fund Investment Route

• Professional Management: No need to deal with property maintenance, tenants, or complex real estate transactions.
• Speed & Simplicity: Often faster and requiring less paperwork than buying physical properties.
• Potential Returns: Exposure to the professional real estate or venture capital markets in Türkiye.
• Secure & Regulated: The process is tightly regulated by the Capital Markets Board, providing a high degree of security for the investor.

Disclaimer: Investment laws and regulations can change. It is highly recommended to consult with qualified legal and financial professionals in Türkiye to ensure compliance with the most current legislation.