Maha Shafqat

Turkey is currently experiencing the excitement of a highly anticipated election. After twenty years in power, President Recep Tayyip Erdoğan faces the potential loss of both his presidential seat and the majority in parliament held by his AKP–Nationalist Movement Party (MHP) coalition. The outcome of the impending elections in Turkey also casts uncertainty on the Future of the Turkish Citizenship by Investment Program. The Turkish Citizenship by Investment Program has been a popular option for individuals looking to obtain a second citizenship and gain access to the benefits of living in Turkey. However, recent reports suggest that the program may be facing closure.

Is Turkey Citizenship by Investment Program Closing ?

There are a few reasons why the Turkish government may consider closing the program. First, the program has attracted a large number of individuals who are not necessarily looking to live in Turkey full-time, but rather want to take advantage of the benefits of a Turkish passport, such as visa-free travel to a large number of countries. Additionally, some have raised concerns that the program may not be adequately screening applicants, leading to concerns about money laundering and other illicit activities. This could put the reputation of the Turkish government and its citizenship program at risk.

There are also concerns about the economic impact of the program. While it does bring in revenue for the government, some argue that the benefits may not outweigh the costs, such as the strain on public services such as education and healthcare from a large influx of foreign citizens. Moreover, increased competition in the job market, making it harder for local workers to find employment, and a rise in property prices, making it more difficult for locals to afford housing.

Recent changes in regulations

Based on recent changes in regulations managed by the Ministry of Environment, Urbanization, and Climate Change it seems that the current government is deliberately trying to create barriers for foreigners to obtain Turkish citizenship by investment. The new rules, which went into effect on January 1st, 2023, include restrictions on purchasing high-value properties and restrictions on Turkish companies with foreign shareholders. 

Future of the Turkish Citizenship by Investment Program

The changes to the law show the government’s preference for who will or will not continue to benefit from the CIP and their desire to control and avoid misuse of notarized sales contracts. The new restrictions may disrupt established business models and property rights, leading to a decrease in demand for luxury properties and potentially a decrease in the number of acquisitions through this route of investment. This suggests that the Turkish government is actively taking steps toward potentially closing the CIP program.

At this time, it is unclear if and when the Turkish Citizenship by Investment Program will be closed. However, it is clear that the government is taking these concerns into consideration and is evaluating the future of the program. For those considering Turkish citizenship through investment, acting swiftly is advisable.