The Republic of Turkey is surrounded by four seas and is a desirable tourist destination. On this basis, residents of neighboring and post-Soviet countries try to visit this territory. There are many types of recreation, and more than half of them are active ways of spending time on the beaches of sunny Antalya and other cities. Many people are planning to move to live in this country. The fastest way is to build a family with a Turkish expatriate or replenish the state’s investment fund.
How is it possible to obtain Turkey citizenship or a green card (turquoise), and what is required? The most extended way to become a law-abiding citizen is naturalization. If you sign a contract with a company and get a job, you will have all the grounds for documents in five years. You can apply for a passport if you marry a Turkish man or a Turkish girl. However, it will happen after three years of life together and interviews, which will confirm that the marriage is valid. Therefore, today, the fastest way to get what you want is through investment.
What is Turkey Citizenship by Investment?
The native passport of a particular country gives its owner advantages but also offers responsibilities. However, every person wants to ensure that their rights are not infringed and wants to live a decent life, so many consider themselves dual citizens. In today’s world, it is no secret that dual citizens get the freedom of action, travel, and new financial opportunities.
If there are prerequisites to moving to Turkey, you should do it as soon as possible. Then, all you need to do is to contact an authorized agency, which will direct your actions in the right trajectory. As the expert Svetlana Gorchakova notes (the company Immigrant Invest), you can obtain a political and legal attachment to Turkish citizenship within six months of submitting your application.
There are several ways to invest in the economy and be sure to expect a “reward”:
- purchase of real estate;
- shares and government bonds;
- purchase of a unit in an investment fund;
- investment in a business;
- a deposit in one of the Turkish banks.
At the same time, the participant must be of legal age at the time of application. Many dual citizens are interested in the turkey taxation system because they do not want to build a business where the government infringes on the rights of private entrepreneurs and “rips off” large taxes when applying for citizenship status. Turkey, on the contrary, provides all chances for a foreigner to get out in the people, quickly legitimize his rights and freedoms, to prove his worth through the expansion of the tourism sector or any other business.
What are the Tax Benefits of Turkey Citizenship by Investment?
So, when buying a residential property for the first time, the owner can count on an 18% income tax exemption. However, this property must not have been resold before, and it can only be the first sale from hand to hand. Sale without paying VAT is possible if the buyer does not reside in the state at the moment. In addition, a small property purchased in a non-elite area is subject to only 1% of VAT. Note that the subsequent sale of the property after five years on legal grounds exempts the owner from paying income tax.
Tax Exemptions
As noted, the tax structure makes it possible to use Turkey tax benefits, such as no VAT or low rate for the buyer of real estate if he purchases for the first time. He can also sell it and get an untaxed income after five years. In addition, there is an exemption from duties on equipment imports necessary for the business. Moreover, the government reduces corporate taxes and business employee fees.
Low Tax Rates
Low tax rates are provided based on the form of ownership or type of contribution. For example, if it is a commercial or residential property, not more than 150 square meters, and is located in the suburbs rather than in a central area, the VAT will be 1%.
By agreement with the seller, you can pay a 4% duty when transferring the property with the owner in half (2% each). Suppose you make citizenship through a deposit in one of the banks. In that case, it is most beneficial to open an account in Turkish Liras, and you can avoid taxation altogether if you keep the money in the account for more than one calendar year.
Access to Double Taxation Treaties
Turkey does not support double taxation; that’s why it has agreements with more than 50 countries worldwide. It gives excellent pros, and you do not have to pay import VAT if your business develops in different countries, including visa-free destination with Turkish passport. The primary condition is that the third-party income belongs to the Turkish government once it is generated in another country.
No Wealth or Inheritance Taxes
Turkey has no wealth tax; you will also avoid deductions for inheritances. But, again, it is proof of the tax system’s and government’s loyalty to dual nationals.
Conclusion
As in any country, there is taxation in Turkey, but taxes are minimal here. In addition, under certain conditions, you can avoid paying interest when buying real estate legally or depositing in one of the banks in the Turkish currency – the lira.
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