The “Amendment Regulation on the Regulation on the Implementation of the Turkish Citizenship Law” (“Amendment Regulation”), which was published in the Official Gazette dated 01/06/2022 and numbered 31711; brought changes to the Regulation on the Implementation of the Turkish Citizenship Law (“Regulation”), entered into force on the day of its publication.
The Amendment Regulation brings fundamental changes to the regulations regarding the exceptional acquisition of Turkish citizenship.
How Was the Implementation Before the Amendment Regulation?
Prior to the Amendment Regulation, although the monetary amounts for the investment forms stipulated for the exceptional acquisition of Turkish citizenship in the paragraph 2 of Article 20 of the Regulation were determined in US Dollars, it was also possible to make such investments in Turkish Lira or an equivalent foreign currency. Before the Amendment Regulation, the payment of the investment amount and determination of the payment of the investment amount stipulated in the Regulation for each investment type by the relevant authority specific to the investment type in order to acquire Turkish citizenship exceptionally was sufficient.
What Does the Amendment Regulation Say?- With the amendment made in subparagraphs (a), (b), (c), (ç), (d) and (e) of paragraph 2 of Article 20 of the Regulation,the investment amounts determined in these subparagraphs must be only in US Dollars or equivalent foreign currency. In other words, investments cannot be made in Turkish Lira.
- With the Amendment Regulation, the "Ministry of Family, Labor and Social Services" specified in the paragraph 7 of Article 20 of the Regulation was changed to "Ministry of Labor and Social Security", and "Ministry of Environment and Urbanization" was changed to "Ministry of Environment, Urbanization and Climate Change".
- With the paragraph 9 added to Article 20 of the Regulation with the Amendment Regulation; It has decreed that the procedures and principles to be applied in determining whether the investment conditions within the scope and amount specified in the relevant legislation are met according to the investment forms determined in the paragraph 2 of Article 20 of the Regulation will be determined by the institution making the determination.
- Pursuant to the paragraph 10 added to the Article 20 of the Regulation with the Amendment Regulation; It is regulated that the foreign currency amounts determined for the investments to be made within the scope of the following subparagraphs of the paragraph 2 of the Article 20 of the Regulation will be sold to a bank operating in Turkey "before the transaction" and to the Central Bank of the Republic of Turkey by this bank.
- Type of investment envisaged in subparagraph (b)
(Purchase of a property on the value of minimum USD 250,000 and not to transfer the property for 3 years)
- Type of investment envisaged in subparagraph (ç)
(Depositing minimum USD 500,000 in a bank operating in Turkey and holding it for following 3 years)
- Type of investment envisaged in subparagraph (d)
(Purchase of public borrowing instruments in the value of minimum USD 500,000 and holding it for following 3 years)
- Type of investment envisaged in subparagraph (e)
(Purchase of real estate investment fund participation share or venture capital investment fund participation of at least USD 500,000 and holding it for following 3 years)
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The 10th paragraph added to the Regulation with the Amendment Regulation also envisages that;
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The amounts obtained pursuant to subparagraph (ç) be kept in Turkish Lira deposits,
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The Turkish Lira amounts obtained in accordance with subparagraph (d) be kept in public borrowing instruments which are in Turkish Lira
for a period of 3 years.
Conclusion
With the Amendment Regulation; It has been regulated that the investments foreseen in order to acquire Turkish citizenship in an exceptional way can only be made in foreign currency and not in Turkish Lira and an obligation to sell the foreign currency investment amounts to the Central Bank of the Republic of Turkey is imposed in terms of some forms of investment.
It has been regulated that the implementation principles regarding the sale of foreign currency amounts within the scope of investment to the Central Bank of the Republic of Turkey will be determined by the Central Bank of the Republic of Turkey, and the regulations envisaged within the scope of the Amendment Regulation will become clear after the publication of these implementation principles.
The full text of the Amendment Regulation can be found
here.
MORAL & PARTNERS
Aybike Gürcan, Associate
Orhun Tezel, Trainee Lawyer