Thursday 20, September 2018 by Kudakwashe

Turkey cuts citizenship investment criteria

 

The Government has been taking measures to boost investment in the economy and support the lira which has fallen 40 per cent this year.

Turkey has slashed the financial and investment criteria for foreigners to become Turkish citizens, in a move expected to double annual property investment by foreigners to around $10 billion, reported Reuters.

The new regulations require foreigners to own property worth $250,000 for three years, down from a previous value set at $1 million or to hold $500,000 of Turkish debt for three years, down from a previous $3 million.

Turkish officials expect the reduction of the minimum limit to invest for citizenship to double property sales and bring in cash.

Since the introduction of the citizenship by investment programme in January 2017, foreigners purchased $4.6 billion worth of properties, with a large proportion of them from Iraq, Saudi Arabia as well as Kuwait and Russia.

The reduction in the required foreign currency value applies to fixed capital investments and bank deposits, as well as for properties and bond holdings.

There have been investor concerns over domestic economic policy and Erdogan’s continued opposition to high-interest rates, although the central bank hiked its main policy rate from 6.25 per cent to 24 per cent last week.

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