What Exactly Is Citizenship By Investment And How Does It Work

Acquiring dual nationality comes with numerous perks, especially for adventure-seeking travelers. It enhances global mobility by letting you visit twice as many countries visa-free as you would on a single citizenship.

Dual citizenship also provides certain professional and entrepreneurial benefits. Professionals can access a larger job market and broaden their networks, while entrepreneurs can leverage the tax benefits in their second home to expand their businesses.

The most common ways to gain citizenship of another country are through birth, marriage, and naturalization. However, several countries have also introduced a special citizenship initiative, citizenship by investment, to attract foreign investment.

Here’s everything you need to know about the citizenship by investment program and how it works.

What Is Citizenship By Investment?

Citizenship by investment (CBI) is a legal mechanism used by various countries around the world, which grants citizenship to foreign nationals in exchange for a commitment to invest in the destination country. It’s the easiest way to obtain a second citizenship and passport.

Some of the countries that run a CBI program include St. Lucia, the Dominican Republic, and Turkey. Earning Turkey investment citizenship, as with any country that has a citizenship by investment program, offers benefits both to the country and the CBI applicant.

Benefits of Citizenship By Investment

1. New Business Opportunities

Most people who pursue citizenship by investment are seasoned investors looking to expand their businesses.

Acquiring dual nationality allows you to do business in the host country without being subjected to trade and tariff restrictions commonly imposed on foreign investors.

Setting up a business in a second country also grants access to newer markets. Turkey, in particular, stands out for its strategic location between Europe, the Middle East, and Western Asia.

2. Favorable Taxation

Taxation is one of the key factors that drive the choice of an ideal investment destination.

Dual citizenship allows investors to leverage favorable tax policies in their second country.

For instance, some nations only levy income tax earned within their borders. This mechanism prevents double taxation while presenting investors with an opportunity to grow their wealth.

3. Better Security

Dual citizenship provides better security, both from economic and sociopolitical standpoints.

Setting up a venture in another country allows you to diversify your investment portfolio. It reduces the anxieties caused by political unrest in your native country.

Turkey may be situated near one of the world’s most war-torn regions – the Middle East. However, the nation has enjoyed a thriving economy due to its long history of political stability and unparalleled hospitality to foreigners.

4. Enhanced Global Mobility

Possessing two passports provides visa-free access to numerous countries. You can travel to multiple destinations either for business prospecting or to simply take in the sights.

According to the VisaGuide Passport Index, the Turkish passport currently ranks 93^rd in the world. The passport offers visa-free access to 78 countries and visa-on-arrival access to over 30 more destinations. Those include prime investment hubs like Japan, Singapore, and Hong Kong.

Successful applicants of the Turkish citizenship by investment program are also eligible for an E-2 Investor Visa in the United States, provided that they’ve been domiciled in Türkiye for three years. The U.S. E-2 Investor Visa is valid for a 5-year renewable period.

5. Family Benefits

Most citizenship by investment programs allow the primary applicant to enjoin their close family members, including spouses, children, and parents.

Türkiye CBI applicants may include their legal spouses, dependent children under 18 years old, and children of any age that are living with disabilities.

As an investor, you can leverage the opportunity to secure your children’s future by raising them in a country with access to world-class education and healthcare stability.

Eligibility Criteria and Application Process for the CBI Program

There are three primary ways to qualify for the citizenship by investment program.

The first method is by pledging an investment in the destination country’s real estate industry. The identified real estate project must be government-approved.

Secondly, you could invest directly into government-issued bonds. The last option is by making a predetermined donation amount to a state-run fund.

Below are the various ways to obtain a Türkiye citizenship by investment;

Make a real estate investment worth at least USD 400,000
Commit at least USD 500,000 into either a venture capital investment share fund or a real estate investment fund share
Invest a minimum of USD 500,000 into government bonds
Make a fixed capital contribution of at least USD 500,000
Commit a minimum of USD 500,000 into a Turkish private pension scheme for a minimum holding period of three years
Deposit at least USD 500,000 into a Turkish bank account
Create direct jobs for at least 50 Turkish residences, and such opportunities to be attested by the country’s Ministry of Family, Labour and Social Services

After selecting your preferred investment option, make a residence permit application through a state-appointed agent.

In the case of Turkey, the next process would entail opening a Turkish bank account and paying the statutory investment amount.

Submit the required documentation and wait for feedback. These typically include your official identification cards (such as ID card and driver’s license), police records, and medical reports.

Wrap Up

The citizenship by investment program has broadened access to business opportunities for investors while increasing foreign investment to the relevant countries.

Several nations now provide CBI as one of the mechanisms for acquiring dual citizenship. Turkey especially stands out for its strategic location as a transcontinental country, beautiful scenery, and a thriving economy.

Additional:

Note: Image are use from pixabay.com