..Before touching on the issue of Turkish citizenship acquisition with government bonds, the main elements of Turkish citizenship acquisition through government bonds; it is necessary to define the elements of government debt instruments, ministry, investor and regulation. According to this;
- Government debt instruments: Government domestic debt securities and bonds issued in foreign markets for external financing, and the Undersecretariat of Treasury Varlık Kiralama A.Ş. lease certificates issued by the company in domestic and international markets,
- Ministry: T.C. Ministry of Treasury and Finance,
- Investor: The foreign person who has applied to acquire Turkish citizenship within the framework of the Regulation on the Amendment of the Regulation on the Implementation of the Turkish Citizenship Law,
- Regulation: Refers to the Regulation on the Implementation of the Turkish Citizenship Law.
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Application Conditions for Acquisition of Turkish Citizenship with Government Bonds
- The investor who applies for the acquisition of Turkish citizenship through government bonds can open an investment account in the domestic branches of banks operating in Turkey, subject to the Banking Law No. 5411, and purchase a government debt instrument in the amount of net 500,000 USD or equivalent foreign currency or Turkish Lira in accordance with the relevant provision of the Citizenship Regulation. must purchase.
- The investor applying for the acquisition of Turkish citizenship by means of government bonds is required to sign and submit to the bank the petitions regarding the blocking of the government debt instrument investment account to be opened in the bank for at least 3 years in order to apply for citizenship by investing in government debt instruments.
- The amount blocked in the account by the declaration of the investor, which corresponds to the amount determined in accordance with the regulation and applied for the acquisition of Turkish citizenship with government bonds at the bank, should not be reduced by the will of the investor through transactions such as sale and transfer of the government debt instrument.
However, the blocking process, which is established upon the request of the investor who applies for Turkish citizenship acquisition through government bonds on government debt instruments, is of an optional nature and does not prevent the right of disposal of the investor who applies for Turkish citizenship acquisition with government bonds. 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. In this context, any legal restrictions that prevent the use of or reduce the amount on the account shown as the basis for the application for the acquisition of Turkish citizenship through government bonds are immediately submitted by the banks to the Ministry of Finance, the Ministry of Interior General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management. will be forwarded.
Calculation of the Investment Required for Acquiring Turkish Citizenship with Government Bonds
When calculating the investment required for the acquisition of Turkish citizenship with government bonds, the minimum investment requirement for government debt instruments is USD 500,000 or equivalent in foreign currency or Turkish Lira, which is valid for the date the government debt instruments are blocked in the investor’s account (in case of gradual blocking, each It is calculated using the effective selling rate of US Dollars and/or the cross-exchange rate announced by the Central Bank of the Republic of Turkey (valid for the blockage date, valid for this blockage date if it is blocked at once). If the net value of the government debt instrument falls below $500,000 as a result of the cross-currency or TL/USD exchange rate change, it does not affect the citizenship application and/or acquisition. In addition, in case of a decrease in the value of government debt instruments blocked due to changes in market conditions, the minimum investment requirement is not deemed to have been lost.
The Role of Banks in the Process of Acquiring Turkish Citizenship with Government Bonds
- In the process of acquiring Turkish citizenship with government bonds, the investor petition (declaration) regarding the blocking of the investment account to be opened in the bank for at least 3 years for the purpose of holding the government debt instrument, together with the cover letter, is submitted to the Ministry of Finance, on behalf of the investor who wishes to apply for the acquisition of Turkish citizenship through government bonds within the scope of the regulation within the scope of the regulation. must be forwarded.
- On the other hand, if the blocked investment account for any reason falls below the minimum amount, the relevant bank must immediately notify the Ministry of Finance, the Ministry of Interior, General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management in writing.
The Duties of Ministries in the Process of Acquiring Turkish Citizenship with Government Bonds
The ministry that stands out in the management of the Turkish citizenship acquisition process through government bonds is the Ministry of Finance. After the letter and annexes to be sent to the Ministry of Finance by the person applying for the acquisition of Turkish citizenship with government bonds;
- The determination of the Ministry of Finance regarding the applications that meet the conditions specified in the Regulation is notified in writing to the General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management within 5 working days, and the sample of the letter is sent to the relevant bank in order to inform the person.
- For investors applying for the acquisition of Turkish citizenship through government bonds determined by the Ministry of Finance to meet the conditions specified in the regulation, the start date of the 3-year minimum investment period is based on the blockage date when the minimum investment amount requirement is met. If the minimum investment requirement is met by blocking the cascade, the most recent blocking date is taken as the starting date of the 3-year minimum investment.
Other Details to Know About Obtaining Turkish Citizenship with Government Bonds
- In an investment account in a bank operating in Turkey before and after the regulation. It is possible to use government debt instruments with government bonds as a basis for the application for Turkish citizenship. However, it is not possible to accept the pre-application period as the basis for the citizenship application.
- Government debt instruments stored in a foreign branch, subsidiary or representative office of a bank established in Turkey. It is not possible to accept government bonds as a basis for the application for the acquisition of Turkish citizenship. In addition, a foreign branch, subsidiary or representative office of a bank established in Turkey or an international custodian. State debt instruments kept at institutions in banks in Turkey, subject to the Banking Law No. 5411. In the account opened in the name of the person applying for the acquisition of Turkish citizenship through government bonds. It is possible to be followed, provided that it is in accordance with national and international regulations.
- From the interest/rent yield of government debt instruments blocked in the investment account. It is possible for investors who apply for the acquisition of Turkish citizenship with government bonds to benefit freely.
- In case it is desired to continue the process of acquiring Turkish citizenship with government bonds in another bank. This process must be carried out in a way that does not hinder the supply and continuation of the 3-year period. For this purpose, if the blockage in the account is removed, the information regarding the removal of the blockage is provided by the relevant bank to the Ministry of Finance. The Ministry of Interior, General Directorate of Population and Citizenship Affairs and General Directorate of Migration Management will be notified immediately. Our Ministry immediately sends the information about the blockage process in the bank to which the government debt instruments are transferred, together with other information about the investor. The Ministry of Interior will notify the General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management.
- Acquiring Turkish citizenship through government bonds is one of the most preferred methods of obtaining Turkish citizenship by foreigners.
To start your application for Turkish Citizenship Acquisition with Government Bonds, please contact us via our contact information.
Hunting. Mikail Enes CUBAN, LL.M.
