What are investment funds?

Investment funds can be briefly described as financial vessels through which participatory capital is collected from a number of investors, so that the investment fund manager invests these amounts in one of the various investment tools, or in a group of investments. It is the fund manager's responsibility to develop investment plans, manage capital, deal with potential risks, and submit periodic reports on the progress of the fund's investments, in addition to financial reports.

The Turkish government regulates the work of investment funds operating in Turkey through strict monitoring of their work, and grants them a set of investment advantages, such as tax exemptions or reductions, in addition to the possibility of applying for Turkish citizenship for foreigners when investing in this investment sector.

Is it possible to obtain Turkish citizenship through investment funds?

In accordance with the regulations published in the Official Gazette, dated September 18, 2018 regarding the law granting Turkish citizenship, and in accordance with the amendment also published in the Official Gazette on 1/6/2022 and numbered 31711 in clause (e) of the second paragraph of Article 20 of the regulations regarding the implementation of the law Turkish citizenship: Foreigners can exceptionally apply for Turkish citizenship when participating in a share in a real estate investment fund (gayrimenkul yatırım fonu) or in a capital investment fund (sermayesi yatırım fonu) with a value of not less than $500,000 or its equivalent in foreign currency. As determined by the Capital Markets Council, and on the condition that the participating share in the investment fund is maintained for at least three years.

How to invest in investment funds to obtain Turkish citizenship?

Anyone wishing to apply for Turkish citizenship can invest in investment funds; Conduct its transactions through companies licensed and specialized in establishing and managing these funds (such as Oragon Company), or in any Turkish bank that provides this service for this type of investment, after studying your options and ensuring that this investment is suitable for your goals.

Investment funds are managed by companies that are run by experts in their fields of business, in addition to a team of financiers and specialists registered with the Financial Markets Authority and subject to its supervision. When the specified amount is deposited in the investment fund, the procedures for applying for Turkish citizenship can begin, after completing the specified legal conditions.

Conditions for obtaining Turkish citizenship through investment funds

The conditions for applying for and obtaining Turkish citizenship by investing in investment funds are determined by several points:

1. Invest in the amount of $500,000 or its equivalent in other currencies.
2. The investment must be in one of the funds licensed by the Turkish Capital Markets Authority.
3. Keep those units purchased from the fund, and pledge not to sell them for at least 3 years.
4. The investor must also be of an age that qualifies him to invest himself (over 18 years).
5. Provide the required identification documents for the investor and all family members (spouses and children under the age of 18), the most important of which are: proof of investment in the fund for the specified amount - a valid passport - proof of the integrity of the security record in his country - personal photos

Advantages of Turkish citizenship through investment funds

It is known that the means of obtaining Turkish citizenship through various types of investment are many and varied, the most famous of which is real estate investment. However, depriving some nationalities of real estate ownership in Turkey stands as an obstacle to some foreign nationalities, such as investors with Syrian citizenship, and therefore investing through The path of investment funds can be another investment outlet to apply for Turkish citizenship.

Turkish citizenship is granted to investors in licensed mutual funds within a relatively short time (about 6 months), and the citizenship decision also includes the investor, his wife, and his children who are under the age of 18 years.

In addition, investing in investment funds is supposed to achieve good investment gains for investors at the end of the three years, which means the growth of capital when it is recovered through investment by experts in their fields of work, with the possibility of diversifying these investments, which means the ease of this investment in itself.

Types of funds that can be invested in to obtain Turkish citizenship

Despite the variety of investment funds that can be licensed in Turkey and contributed to, the specific funds for investment leading to obtaining Turkish citizenship are determined by two options:

• Joint real estate investment funds (gayrimenkul yatırım fonu katılma): The idea of ​​these funds depends on collecting investor funds to invest in specific real estate projects, where investors in the real estate investment fund are partners in the profits and losses resulting from the fund’s real estate investment, without the need to personally manage the real estate properties.
• Capital investment funds (girişim sermayesi yatırım fonu katılma): It is a type of investment fund that invests its money in a variety of investment assets, to finance the establishment of emerging companies or the expansion of existing small companies, this fund aims to support emerging companies or companies with rapid expansion by providing the capital required to achieve the strategic objectives of the project.

Is it possible to profit from investment funds designated for Turkish citizenship?

The appropriate choice of an ambitious investment fund must be based on a thorough study of all the information surrounding it, while verifying its investment plans and the way it manages potential risks, in addition to the need to verify the history of the fund’s investment achievements during previous periods, and also to know the biographies of the people in charge of the fund; Their ability to manage the fund and their previous experience will be an essential pillar in choosing the appropriate fund and capital growth.

It is also noteworthy that real estate investment funds in Turkey are among the most important investment funds that have the opportunity to grow and multiply profits, given the success of the real estate sector in Turkey and the urgent need for real estate products to meet the urgent needs of the internal community.

When can funds be withdrawn from investment funds designated for Turkish citizenship?

Foreign investors wishing to obtain Turkish citizenship must not sell their assets purchased in investment funds for a full 3 years, lest they lose their right to citizenship. At the end of this period, investors can withdraw capital from the investment fund unless there is another restriction or condition between the investor and the fund management. After fulfilling the conditions and financial fees between the two parties to the contract.

Oragon Company services for obtaining Turkish citizenship through investment funds

At Oragon Company, which specializes in establishing and managing investment funds, we are keen to provide the best competitive services in our fields of business, thanks to the high ability and extensive experience we possess in this regard.

Our services at Oragon include services for establishing investment funds, in addition to managing real estate investment funds. These funds are supervised by an elite group of the most skilled specialists in business sectors whose resumes are full of important investment achievements.

At Oragon, we are also keen to provide free consultations for those wishing to experience investment in a fund, in addition to helping foreign investors wishing to obtain Turkish citizenship through this type of investment, by helping them complete the procedures and conditions specified for obtaining citizenship in the shortest way and without any obstacles.

Edited by Oragon Company ©