Real estate investment in Turkey has witnessed a significant surge recently, offering profitable returns due to political openness adopted by the Turkish government and the substantial facilitations provided to both Turkish citizens and foreigners. With a growing interest in residing or investing in Turkey, having an account in investment funds opens doors, the most prominent being the opportunity to obtain Turkish citizenship.
What is the Concept of Investment Funds in Turkey?
Investment funds are defined as the financial portfolio placed in a significant position in the Turkish financial market. Buying and selling investment funds by investors involve the assessment of their savings through the purchase of mutual investment funds. In this investment process, savings are reinvested by distributing them across mutual capital markets.
What are the Types of Investment Funds in Turkey?
- Comprehensive Stock Fund:
– Manages the export operations of goods for local or foreign exporters.
- Comprehensive Precious Metals Fund:
– Invests in gold and precious metals, trading them on the stock exchange.
- Comprehensive Fund:
– Participates in other funds traded on the stock exchange.
- Money Market Fund:
– Handles lending and provides liquidity in the capital market within a maturity period not exceeding 184 days.
- Variable Comprehensive Fund:
– Possesses a unique investment system and varied business areas subject to changing circumstances.
- Free Comprehensive Fund:
– Funds established with shares available for sale only to qualified investors.
- Real Estate Investment Funds:
– Dedicated to investment in the real estate sector, including buying, selling, contracting, and construction.
Steps to Join Investment Funds in Turkey:
- Obtain approval from the Capital Markets Board in Turkey.
- Establish the investment fund by the company forming it.
- Maintain a set of documents and submit them with the trade registry for approval.
- The depositor retains the fund’s assets.
- Upon registering the company in the Turkish business registry, an agreement is made with a recognized depository in the Capital Markets Board.
What are the Benefits of Real Estate Investment Funds in Turkey?
Investing through real estate investment funds stands out as it is managed by specialized experts with comprehensive knowledge of market conditions and real estate situations in Turkey. They can secure the best prices and terms for buying and selling through qualified staff overseeing legal procedures in documentation and licensing. These funds are distinguished by their ability to initiate major projects that provide opportunities not offered by individual projects. Some investment funds adhere to Islamic law, such as Kuwait Turkey Bank.
Can Investment Funds Help You Obtain Turkish Citizenship?
Foreigners can exceptionally obtain Turkish citizenship by participating in a real estate investment fund in a share or project valued at no less than $500,000 or its equivalent in foreign currency. This follows Law No. 31711 in item (h) of the second paragraph of the Regulation for Implementing the Turkish Citizenship Law. The Capital Markets Board determines the project’s value, with the condition of retaining the participation share in the investment fund for a period of no less than 3 years, and selling it to the Turkish Central Bank.
Keywords:
Residence in Turkey
Turkish Citizenship
Real Estate Investment in Turkey
Investment in Turkey
