Turkey: citizenship through real estate appeals to buyers from the Middle East

The Turkish programme grants citizenship to foreigners who purchase real estate worth at least from $400,000¹ and keep it for 3 years².

The Turkish passport opens about 118³ visa-free destinations. That is modest compared with European passports, but considerable for a national of a Middle Eastern or Central Asian state whose passport opens a third as many.

That is the whole explanation for where demand comes from. The value of a passport is not assessed in absolute terms but by comparison with the one you already hold, and for this clientele the gap is very favourable.

On top of this come reasons of personal and financial security, in regions where stability cannot be taken for granted, and a cultural and linguistic proximity that makes settling easier.

A third factor, rarely mentioned, is liquidity. For a buyer from the region, the Turkish property is not just an entry ticket: it is an asset located in a market they know, whose prices they follow and in which they will be able to resell. For a European investor, it is a distant market whose customs and intermediaries they do not master.

This information asymmetry explains some of the disappointments. The same property, bought at the same price, does not carry the same risk depending on whether the buyer lives a few hours' drive away or at the other end of the continent.

For a French national, the gap is nil, or even negative: the French passport opens considerably more destinations. Acquiring Turkish citizenship brings no gain in mobility.

In tax terms, it brings nothing either. Citizenship does not move tax residency, and the Turkish income tax scale ranges from 15%⁴ to 40%⁵ at its top marginal rate.

Corporate tax stands at 25%⁶, and inheritance tax ranges from 1%⁷ to 30%⁸. Turkey is not a low-tax jurisdiction.

The only serious reason for a French national lies in the access that Turkish citizenship opens to the United States through the visa for treaty traders and investors, France not being in the same treaty position as Turkey on this specific point.

This is a legitimate but very specific reason, and it presupposes a plan to do business in the United States. Outside this case, the expense is hard to justify.

The investment is in real estate denominated in Turkish lira, in a country with high inflation and a volatile currency. The threshold, however, is expressed in dollars.

This asymmetry has two effects. On entry, the value used depends on the exchange rate and the official valuation, which may differ from the price paid. On exit, the proceeds of the resale in lira must be converted back, with the risk that entails.

The 3 years² restriction on sale also ties up the asset, and the resale market at this price level is largely made up of other applicants to the same scheme.

We do not publish the application fees, Turkish transfer taxes or processing times: they do not appear in the official sources we have been able to verify.

• The value of a passport is assessed by comparison with the one you already hold: nil for a French national.
• The threshold is in dollars, the market in lira: it is the official valuation, not the price paid, that is measured against the threshold.
• The 3 years² restriction on sale ties up the asset in a narrow market.
• Turkish citizenship does not move tax residency and does not reduce any French tax.
• Its only specific benefit lies in the access to the United States it opens, which presupposes a plan to do business there.

Finally, an alternative route exists through fixed capital investment, starting from $500,000⁹. It avoids exposure to the property market but requires a genuine business project, which makes it rarely practicable for a passive investor.