Several high-earning Indians are investing in real estate in Türkiye in a bid to get Turkish passports or residency as the nation hopes to ease widening current account deficit as its economy faces a downturn.
These Indians, mostly individuals from the Muslim community, hailing from across India’s major cities like New Delhi, Meerut, Lucknow, Hyderabad, Mumbai, Bengaluru and Thiruvananthapuram are seeking Turkish citizenship via real estate investments.
The new legislation in Türkiye now allows a foreign national who purchases real estate worth at least $400,000, roughly equivalent to Rs 3.1 crore, to be eligible for Turkish citizenship.
The only binding conditions are they need to deposit the money in a Turkish bank and not put the house up for sale for three years.
Once these conditions are met foreign nationals can get a Turkish passport for themselves and their spouses and children aged below 18 years.
The move by the Turkish government is also aimed at supporting the real estate and construction sectors of the country.
News18 spoke to some investors who recently purchased houses in Turkish cities. Meerut-resident Mohammad Khaja (named changed on request) purchased a flat worth Rs 1.9 crore ($250,000) to make himself and his family eligible for Turkish citizenship.
“Business opportunities are growing in Türkiye, therefore, I chose to invest in Istanbul,” Khaja said.
Another businessman Feroz Alam (named changed on request) said his father purchased a three-storeyed building in Ankara worth Rs 6.2 crore ($800,000) while claiming the rates were cheaper than most real estate in metropolitan cities of India. Alam said his family will receive their Turkish passports soon.
Another hotel owner, Syed Osman Quadri (name changed on request) completed his investment of Rs 38 lakhs ($50,000) to get residency status in Türkiye. He said his brother plans to open an eatery serving cuisine from the southern states of India.
Why Rise In Investments In Türkiye?
These Indians investing in Türkiye are attracted to the benefits being offered by the Turkish government.
The scope of visa-free travel to 120 destinations, free healthcare and education, a shot at better economic opportunities, higher quality of living and eligibility for US E-2 investor visa are some of the other perks that these Indians are eyeing.
There is also no obligation for permanent residency and Turkish passports within four months are attracting Indians as well. The lifetime Turkish citizenship for all direct family members as well as for children under 18 years of age and disabled children is a plus.
There is also no requirement of any eligibility interview or language proficiency tests. Any child who is disabled is entitled to the same benefits with no age bar.
There is also no obligation with respect to wealth declaration and income from sources outside Türkiye will not be taxed. Also 100% of the wealth will be repatriated after three years with no exchange control restrictions
Tajamul Hussain, co-founder and CEO of Hashmi Group, a Türkiye-based firm with expertise in Turkish citizenship and residency by investment programs, however, urged interested investors to conduct due diligence before making any purchases.
He said ahead of purchase, consultants should be roped in, rather than real estate agents who could dupe prospective investors and buyers.
He said that the uptick in investments in Türkiye are done by those who seek to make FDI investments in other countries.
Sadaquat Hussain, consultant of Hyderabad-based firm Indo-Turkish property consultants, said that some Indians are also purchasing agricultural lands in Türkiye.
Hyderabad-based chartered accountant Tariq Imam said that Indian residents (individuals) could invest only $250,000 (₹1.9 crore) per financial year as per Foreign Exchange Management Act (FEMA) rules but Indians are purchasing property in the name of the two family members after the Turkish government raised the real estate investment cap to $400,000.
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