Turkey’s vibrant real estate market continues to offer compelling opportunities for foreign investors looking to acquire Turkish citizenship. A crucial element in this journey, especially when purchasing properties in projects where title deeds are not yet available for immediate transfer, is the Sales Promise Agreement (Satış Vaadi Sözleşmesi). This article delves into whether Turkish citizenship can be acquired through these agreements, outlines the relevant regulations, and explains how the latest guidelines from February 1, 2023, impact the process.
What Exactly is a Sales Promise Agreement?
A Sales Promise Agreement is a legally binding document that commits to the future sale of a property. It’s a common instrument in real estate transactions for properties still under development, or where the title deed (tapu) has not yet been issued. This agreement provides assurance to the buyer that they will receive the property’s title deed once construction is complete and the property is legally registered. Essentially, it acts as a robust pre-sale contract, securing your future ownership rights in a developing project.
Turkish Citizenship through Real Estate Investments
Under current Turkish regulations, foreign nationals can obtain Turkish citizenship by purchasing real estate valued at a minimum of $400,000 USD or its equivalent in another currency. The process involves remitting the required amount and strictly adhering to specific legal formalities. This makes Turkey an attractive destination for investors seeking a second passport through property acquisition.
Regulations Effective from December 7, 2018
The regulations introduced on December 7, 2018, opened the door for investors to apply for Turkish citizenship using a Sales Promise Agreement, provided certain conditions were met:
- Minimum Investment: The total investment must be at least $400,000 USD or the equivalent in foreign currency. This threshold is non-negotiable for the application.
- Single Agreement Rule: Crucially, the entire investment amount must be covered by a single sales promise agreement. While one agreement can include multiple properties, using multiple separate agreements will not be accepted for citizenship applications.
Furthermore, the agreement must be notarized and include a firm commitment that the property will not be transferred or encumbered for a period of three years. This critical commitment must also be registered with the land registry office to be legally binding and visible to third parties.
Impact of February 1, 2023, Guidelines: What’s New?
The guidelines introduced on February 1, 2023, brought significant clarifications and stricter enforcement for citizenship applications via sales promise agreements:
- Strict Single Contract Rule: For citizenship applications based on a sales promise agreement, the entire required investment amount must be fulfilled through one single contract. This reinforces that combining multiple sales promise agreements is not permissible for meeting the investment threshold.
- Investment Completion: If the initial property purchases (or single sales promise agreement) do not fully cover the $400,000 USD threshold, any remaining balance cannot be covered by additional sales promise agreements. This means investors must ensure the $400,000 USD minimum is met either through a single, comprehensive sales promise agreement or by making additional actual property purchases with readily available title deeds.
These updates aim to streamline the process and prevent ambiguities, making it essential for investors to plan their acquisitions meticulously.
Choose the Right Project
It’s not just about meeting the $400,000 USD threshold; it’s about securing your investment. Finding the right project means a comprehensive due diligence process. You must be confident that the developer has a solid track record, the necessary financial strength, and a clear timeline for completion. This isn’t just about avoiding delays; it’s about ensuring that the property you’re promised will indeed materialize and meet all legal requirements for title deed transfer.
Don’t just rely on glossy brochures; delve into the specifics of the project’s financing, the developer’s past successes, and any available guarantees for timely delivery. This thorough approach is key to making a secure and successful real estate investment in Turkey.
Step-by-Step: Using a Sales Promise Agreement for Turkish Citizenship
Following these steps is crucial for a smooth application:
- Choose the Right Project: Select a real estate development where properties are being sold under sales promise agreements and which aligns with your investment goals.
- Verify Investment Value: Double-check that the total value of the property or properties specified in your sales promise agreement meets or exceeds the $400,000 USD requirement.
- Execute Notarized Agreement: Formalize your commitment by signing a notarized sales promise agreement with the developer. Ensure this agreement explicitly states the commitment that the property will be transferred to you and will not be sold or encumbered for three years.
- Register the Commitment: Crucially, the commitment regarding the non-transfer and non-encumbrance must be officially recorded with the Turkish land registry. This step is vital for the validity of your citizenship application.
- Submit Your Application: With the notarized agreement and verifiable proof of your investment, you can then proceed to submit your Turkish citizenship application.
We are Asons, We are Turkish Lawyers
At Asons, we specialize in providing comprehensive legal and expert services to international investors navigating the complexities of Turkish real estate and citizenship by investment. Our experienced team is dedicated to guiding clients through every stage of the process, ensuring your investment is both secure and legally sound. Contact us today for expert guidance.
