Exceptional Turkish Citizenship Acquisition for Foreigners by Investing

Principles and Procedures to be Applied to the Board of Foreigners who will apply for a Citizenship or Long-Term Residence Permit by Investing in Real Estate Investment Fund or Venture Capital Investment Fund Participation Shares in order to obtain a Certificate of Conformity

With the amendment published in the Official Gazette dated 6/1/2022 and numbered 31711 in subparagraph (e) of the second paragraph of Article 20 of the Regulation (Regulation) on the Implementation of the Turkish Citizenship Law, "Real estate investment fund participation share or venture amounting at least 500,000 USD or equivalent in foreign currency determined by the Capital Markets Board, with the condition of holding the investment fund participation share for at least three years. It is stipulated that foreigners can acquire Turkish citizenship exceptionally, that the amount of foreign currency in question will be sold to a bank operating in Turkey and to the Central Bank by this bank before the transaction, and the principles of implementation regarding this issue will be determined by the Central Bank of the Republic of Turkey (CBRT). The CBRT has published the “Implementation Instruction Regarding the Sales of Foreign Exchange to the Central Bank of the Republic of Turkey within the Scope of the Regulation on the Implementation of the Turkish Citizenship Law”.

In addition, the short-term residence permit to be issued in accordance with the subparagraph (j) of the first paragraph of Article 31 of the Foreigners and International Protection Law No. 6458, of the same investment scope and amount, and Article 43 of the Law in accordance with the Decision of the Migration Policy Board dated 26.04.2017 and numbered 2017/02. It has been deemed appropriate to be taken as a basis for long-term residence permit requests to be made according to the second paragraph. In this context, the "Certificate of Conformity" applications that foreign investors will request from our Board in order to prove that the minimum investment requirement is met for use in both citizenship and residence permit applications will be finalized by our Board within the framework of the following procedures and principles.

a) Applications to be made to our Board for citizenship and long-term residence permit

Foreign person who will apply for a certificate of conformity, name, surname, date of birth, foreign identity number, address and contact information, MKK registration number and investment related to real estate investment fund (REIF) or venture capital investment fund (GSYF) participation shares owned by him. The applicant will make a written application to the Board, including the document showing that the REIC or GDPR participation shares have been blocked in the "Citizenship Blockage Sub-Account" at CRA, with a copy of the passport attached. If the application is made by a proxy on behalf of the foreign person, the provision that will ensure the execution of all procedures regarding the application must be included in the power of attorney.

b) Requesting information from MKK by our Board

With a written request to be made to the Central Registry Agency (MKK) within 2 business days from the date the required documents are delivered in full by our Board, it is possible to find out whether the relevant foreign person has the REIF or GSYF participation share, which is dematerialized in MKK, within the minimum scope and amount required in the Regulation. It is requested to notify our Board within 3 working days. In the letter to be sent to MKK, the MKK registration number and identity information of the person who is the subject of the application is included in order to determine the real right holder.

c) Transactions to be made by MKK

I. In order to enable foreign investors to apply for citizenship or residence permit by investing on the condition that the REIF or GIF participation shares are held for 3 years, the participation shares must be blocked by the MKK (in the "Citizenship Blockage Sub-Account") on the date they are transferred to the investor's account. In this context, an application must be made to the relevant investment institution(s) for the request of the investor to carry out blocked transactions, and the said requests must be forwarded to MKK by the relevant investment institution(s). However, the blocking of REIF and GIF participation shares, established upon the request of the investor, is optional and does not prevent the investor's right of disposition on the REIF and GIF participation shares. In this context, the investor has the right to sell, transfer and cancel the citizenship process by removing the said blockage at his/her own will.

ii. In accordance with the provisions of the sixth and tenth paragraphs of Article 20 of the Regulation and the CBRT's "Implementation Instruction Regarding the Sales of Foreign Exchange to the Central Bank of the Republic of Turkey within the Scope of the Regulation on the Implementation of the Turkish Citizenship Law", before the purchase of the REIF or GIF participation share in the amount of minimum 500,000 USD or equivalent foreign currency from the fund. It is determined whether the relevant foreign currency amount was sold to a bank operating in Turkey and to the Central Bank by this bank, and whether the Turkish Lira amounts and GIF or GIF participation share were purchased from the fund after this transaction.

iii. In order for the investor to qualify for citizenship within the framework of the Regulation, he/she must have the relevant participation shares continuously for 3 years from the date the minimum investment requirement is met, and within this scope, the participation shares should not be reduced by the will of the investor through transactions such as sales and transfer.

iv. As a result of the change in the exchange rate, the decrease in the value of the participation shares below 500.000 USD does not affect the citizenship application and/or acquisition.

v. In the event of a decrease in the value of the REIF or the GIF or the number of participation certificates (through transactions such as cash dividend and/or participation share refund or liquidation pursuant to the provisions of the Fund's internal statute and issuance document) against the will of the investors, the minimum investment requirement shall not be deemed to have been lost.

vi. If it is determined by MKK that the applicant foreigner has met the minimum scope and amount sought in the Regulation within the framework of the provisions of the CBRT's "Implementation Instruction Regarding the Sales of Foreign Exchange to the Central Bank of the Republic of Turkey within the Scope of the Regulation on the Implementation of the Turkish Citizenship Law", the situation is notified to the Board within 3 working days.

vii. In case of exceptional citizenship applications to be made within the scope of subparagraph (e) of the second paragraph of Article 20 of the Regulation, there are any restrictions on the REIF/GSYF participation shares within the 3-year period, such as real right, lien, interim injunction/precautionary lien or any restriction that will limit the ownership right of the participation shares In the event that the "purchase with the condition of holding for 3 years" sought in the Regulation is not met, it is considered that the condition is not met.

viii. Investors who, during the weekly checks to be made by MKK, are found to have unblocked participation shares, decrease in the account balance with the condition of sale and transfer, or any encumbrance on the participation shares that will limit their real right, lien, precautionary injunction/precautionary lien or property right shall be notified to the Board within 3 working days. Thereupon, the Board, T.C. Necessary notifications are made immediately to the Ministry of Interior, General Directorate of Migration Management, General Directorate of Population and Citizenship Affairs, and the applicant.

d) Finalization of the application

A "Certificate of Conformity" is issued within 2 business days upon confirmation of the investment conditions being met upon the letter received from MKK. The content of the "Certificate of Conformity", which will be sent to the foreigner at the same time, to the General Directorate of Migration Management and the General Directorate of Population and Citizenship Affairs, includes the foreigner's identification number, address and contact information. In addition, a copy of the documents (passport, residence document, etc.) showing the identity information of the applicant is also sent to the General Directorate of Migration Management and the General Directorate of Population and Citizenship Affairs.

If it is determined that the required conditions are not fulfilled, this situation is notified to the applicant.

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