Citizenship Investment Program in Turkiye: Bank Deposits, Government Bonds, Investment Funds, Real Estate, & Direct Business Investment

24.02.24 09:51 PM

The World's Most Successful - By Design: Qualitative and Quantitative

Turkiye’s Citizenship Program is the world’s most successful because it is designed intentionally to be the most competitive option for investors to choose. During the previous 18 months other countries have changed their own programs to become more competitive with Turkiye, and despite the increase in the minimum required amount for real estate investment in Turkiye, the underlying attractions of Turkey's Program have not been significantly diminished.

 

The attractions can be described as two types.... qualitative and quantitative.

 

I. Qualitative: The qualitative attractions of Turkiye put it ahead of most other competing locations:

  1. In investment terms, Turkish assets provide diversification from the beta of macro-economic performance characterizing most developed world economies.
  2. In terms of quality of life, the benefits of enjoying a happier and healthier lifestyle  place Turkiye among the leading destinations in the world, not simply amongst choices for countries providing citizenship. The life style advantages extend to cultural, social, and medical considerations, and include better travel logistics, food, entertainment, social life, education and work place factors.
  3. No additional onerous requirements for learning the local language or minimum residency in the country unlike the programs of many countries.

 

II. Quantitative: The Quantitative attractions of Turkiye’s Citizenship by Investment Program are the key competitive advantages in comparison with other countries.

  1. Application & Approval Risks: Application procedures are standardized and approval processes are objectively based on established and published criteria in Turkiye. This is an important factor because in the programs of many countries, an applicant’s approval relies on subjective decisions by unseen administrators applying non-transparent subjective considerations. There are no such risks in Turkiye.
  2. Capital Preservation Risks: Wealth preservation is a key factor for investors’ economic evaluation of various countries’ citizenship programs.

a) Program Features: Turkiye’s program does not have a mandatory ‘contribution' or 'donation' element, unlike many competing countries. This means that 100% of an investors capital is preserved.

b) External Factors:  The currency exchange rate risk previously inherent in the program has now been removed by enabling investment in assets that are not denominated in Turkish Lira, but instead denominated in foreign currencies and alternative assets (gold etc) of the investor’s preference. A mechanism has been established to require documentation of entry into the program with Turkish Lira for a one-day period, and that one-day period may be managed to remove currency risk.

 

Investment Choices... 

Investments available for investors to choose (listed in order of ranking best wealth preservation choices first):

 

Bank Deposits ($ 500,000)  are now available in multi structure and currency protected. what this means is that the structuring of the deposit in different currencies than Turkish Lira is now an option with varying durations. In addition bank deposits that are denominated in  gold and silver are available. The Turkish government also provides a specific type of bank deposit with a Turkish Government Guarantee protecting the principal capital value and accrual increase value for the duration of the deposit term. This investment choice is not only safe and secure, but also benefits from greater flexibility and lower transaction costs, thus enhancing its wealth preservation features.

 

Government Bonds ($ 500,000) denominated in Turkish Lira, USD, EUR and YEN are available as an investment choice. These debt instruments have the full repayment guarantee of the Turkish Government. Investor’s preference for investment returns and minimizing risk may be achieved with professional investment advice from the expert advisors at MyTapu Associates. Liquidity is assured. This investment choice is not only safe and secure, but also benefits from greater flexibility and lower transaction costs, thus enhancing its wealth preservation features.

 

Investment Funds & Venture Capital Funds ($ 500,000), are available as an investment choice. These financial instruments provide greater scope for meeting Investors' individual preferences for a wider range of investment returns. Eliminating or minimizing Turkish Lira exchange rate risk is achieved by selecting funds that invest in and hold assets denominated in Gold, Silver, USD, EUR, US and EU shares, international Film & TV participations etc Liquidity is generally assured by resale on public capital markets.. Minimizing risk may be achieved with professional investment advice from the expert advisors at MyTapu Associates. This investment choice is not only safe and secure, but also benefits from greater flexibility and lower transaction costs, thus enhancing its wealth preservation features.

 

Real Estate ( $ 400,000) investment in commercial or residential properties is  available but because of the wide spread practice by agents and CIP advisors of sharing the pirated ‘hidden profit’ from undisclosed price mark ups, the investors’ capital suffers an immediate loss of the amount of the hidden profit, usually a minimum of 20%. Investor’s are advised to obtain expert insights from MyTapu Associates before choosing real estate for citizenship investment purposes.

 

Direct Business Investment for the creation of 50 full time employees is suitable in the case where an opportunity has been identified for joint venture with an established local Turkish operating partner for the purpose of capacity expansion. This option for CIP investment may be suitable in other situations, but the economics of implied costs generally do not favor this investment for wealth preservation purposes. The advisors at MyTapu associates are pleased to advise further.


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Further reading is available on Turkiye's Citizenship by Investment Program, or by contacting the experts at MyTapu Associates by email at info@mytapu.com....



 

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