Turkish Citizenship by Investment Rules
The minimum required investment required to acquire Turkish citizenship by investment must be $250,000 USD for residential properties and up to four times that amount for commercial properties. Until today the minimum required amount has been $billion USD (or more than five times the amount of investment), in the event that it is to be held for at least three years. However, if the investment is made during the first five years then it can be made unlimited.
Turkish Citizenship by Investment Rules & Process
Investment in residential properties can be made with different types of property. They can be land, villas, apartments, condos, plots of land, etc. The main reason that the amount can be unlimited is because the land remains at its ownership until it is sold, after which the investment will be returned immediately. Similarly, if you buy a plot of land in Istanbul or in any other cities then all your investment will be returned immediately, regardless of how long it takes.
On the contrary, investment properties in other countries like the UK, USA, and Canada may not hold their property for many years at a time. If the investor decides to purchase a property in these countries then he will have to pay taxes on the property every year.
Advantage of Turkish Citizenship by Investment
The main advantage that one can get from investing in investment properties in Turkey is that there are no taxes involved. This makes it easier for foreigners to buy properties. However, there are certain risks that have to be considered before investing.
While investing in residential and commercial properties in Turkey one has the option of purchasing real estate from a property developer. However, the price for purchasing property from a developer can vary from five to fifteen percent depending on the quality of the property and the location of the property. This is because there is a huge markup added to the cost by the developer, which has to be passed on to the buyer.
Real estate developers also charge an amount for leasing the property. This amount is known as the developer’s commission. It is the amount that goes to the developer in return of the money paid to the developer. Another factor that has to be considered before investing in real estate projects is the location of the project.
A real estate developer who wants to purchase property in Istanbul would look for good locations to build the projects. For example, if a person wants to invest in a project near to an airport then he can get a lot of offers from developers. However, if the property is located near a town with a large population then the developer will have to pay a higher amount.
Property in Turkey is also sold by the government or by the private companies. The prices of the properties can be controlled by various laws that are enforced. In fact, the government is able to make a claim to control the prices by controlling the taxation.
When investing in an investment property in Turkey, it is important to get hold of all relevant documents, before purchasing. These documents include the land contract, the house plan, the house description, and the architect’s plans.
Once you purchase the property, you need to make sure that it is not subject to any tax. Taxation plays an important role in determining the value of the property. Also, if you are planning to lease the property, then it is important that the lease period is specified.
There is a provision called the tax agreement, that states how the laws of the state where you live will apply to your property in that country. It is very important for you to understand all the rules before investing.
Property in Turkey is usually very cheap and this is one reason why many people invest here. It also has a very attractive investment potential.