Turkey’s 2022 official name change to “Türkiye” was quickly followed by a 60 % increase in the minimum property investment required for its citizenship‑by‑investment (CIP) program. Four years later the higher threshold remains, while a new tax regime offers long‑term exemptions on foreign‑source income, prompting a shift in how the program is marketed and delivered.
Name Change and Investment Threshold
- May 26 2022 – Turkey registered the name “Türkiye” with the United Nations.
- June 13 2022 – The government raised the minimum qualifying property investment from US $250,000 to US $400,000.
- The $400,000 figure has stayed unchanged through 2026, and applications have continued without a noticeable drop in demand.
Citizenship‑by‑Investment Requirements
- Property route – Purchase real estate valued at ≥ US $400,000. An appraisal by a Capital Markets Board‑licensed appraiser determines eligibility; the purchase contract amount alone is not decisive.
- Resale restriction – The property cannot be sold for three years after acquisition.
- Family inclusion – A spouse and all children under 18 can be included in the same application at no extra cost.
- No language test and no minimum physical residence are required; processing takes months rather than years.
Alternative investment routes (US $500,000 minimum):
- Bank deposit, government bonds, shares in a real‑estate or venture‑capital fund, or a fixed‑capital investment, each held for three years.
- Creation of at least 50 jobs in Turkey qualifies under a separate employer‑based scheme.
Turkey also maintains an E‑2 treaty with the United States, allowing Turkish passport holders to apply for the U.S. investor visa, which is granted based on nationality rather than residency.
2026 Tax Incentives (Law No. 7582)
- Article 20/D of the Income Tax Law, published 4 June 2026, grants 20‑year exemption from Turkish income tax on foreign‑source income and capital gains for individuals who become Turkish tax residents from 1 January 2026 onward.
- Exempted items include foreign dividends, overseas rental income, and capital gains realized outside Turkey.
- Inheritance tax for qualifying individuals is set at a flat 1 %, compared with the standard progressive rates that can exceed double digits.
- The exemption applies only to income earned abroad; domestic income remains subject to Turkey’s regular progressive tax rates.
To benefit, applicants must obtain a certificate from the tax office under General Communiqué No. 333 (published 4 July 2026). Eligibility requires:
- No Turkish domicile or tax liability in the three calendar years preceding residency.
- Proper classification of income sources to meet the exemption criteria.
The certificate must be secured before filing Turkish tax returns, and the timing of residency determines the filing schedule.
Integrated Service Model of CIP Türkiye
The firm formerly known as CIP Turkey rebranded to CIP Türkiye (cipturkiye.com) to align with the country’s new spelling. Its approach now bundles citizenship acquisition with tax planning, corporate setup, and residency services, aiming to provide a single point of coordination for clients who need:
- Citizenship planning – eligibility review, source‑of‑funds documentation, property valuation, residence permit processing, and passport issuance.
- Tax structuring – pre‑arrival residency analysis, treaty review, timing of move, estate and inheritance planning, and acquisition of the exemption certificate.
- Corporate services – company formation, licensing, holding‑structure design for cross‑border trade, accounting, payroll, work permits, and governance, coordinated with partner law firm Yüksel Law.
- Property acquisition – sourcing vetted residential and commercial assets through partner Turkey Investment Property, with due‑diligence focused on qualifying purchases.
- Financial infrastructure – banking‑as‑a‑service solutions (accounts, cards, payments) via partner CoinPanel.
The firm emphasizes that the integrated file reduces the need for clients to interact with multiple professionals in different languages and jurisdictions.
Early Adoption and Outlook
The first cohort of clients is already undergoing tax‑residency processing to benefit from the 20‑year foreign‑income exemption. Private capital is moving first, with expectations that larger corporate entities will follow once the model proves viable. The combination of a stable $400,000 property threshold, the E‑2 treaty advantage, and the extensive tax relief package positions Türkiye as a competitive option for high‑net‑worth individuals seeking both citizenship and a tax‑efficient base.
Source article: www.imidaily.com
