Legislator’s Attitude and Latest Changes Made in CBI Turkiye

In this blog, I’ll discuss the significant changes occurring in Turkiye citizenship, linking them to previous legislative discussions.

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Two major changes stood out in 2022: adjustments in foreign currency documentation and a raised citizenship requirement of $400,000. Yet, seemingly minor changes wield significant influence among investors.

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These modifications include the abolishment of acquiring different citizenships based on a single property, ceasing the allowance of partial ownership for citizenship applications, and, as of February 2023, mandating investors to visit Turkiye for fingerprinting and biometrics.

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With the latest change, Turkish Citizenship cannot be obtained solely through the purchase of undeveloped land or without a building permit. The recent Circular 2023/6, issued by the Immovable Valuation Department on November 22, 2023, introduces guidelines for valuing under-construction properties. (https://www.tkgm.gov.tr/tasinmazd-db/20236-sayili-genelge) These guidelines emphasize fairness, considering factors like construction risks, economic trends, and the time value of money.

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Key points to note:

• Valuation procedures mandate signatures from three individuals: the responsible appraiser, auditor, and another appraiser. These procedures detail corrections, goodwill, and market values in line with legal standards.
• Valuing incomplete properties or those under construction involves considering the current value, progress, documentation, and risks.
• Verification relies on up-to-date construction photography aligned with the assessment date.
• Building permits and construction commencement significantly influence property valuations.

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Effective from November 27, 2023, this new circular replaces the previous one.

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However, this change might not create a significant impact from the way we see, primarily aiming to ensure fair application processes. In our experience, not many clients favor purchasing undeveloped land or properties lacking building permits. This concrete change suggests a shift in the legislator’s approach, as I’ve highlighted in prior blogs.
I interpret these adjustments as indicative of the need for a change in the desired investor profile, aiming to facilitate trade and investment for serious investors more securely and efficiently.

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