Turkish citizenship through share investment
Owners of hotels and real estate began to divide their property into equal shares and sell it to foreigners. The place where a foreigner gets a share of 250 thousand dollars and acquires Turkish citizenship in this way, also invests in the hotel for 15 years.
According to the Turkish translation, the right to citizenship, which is granted to foreigners in return for buying a house or real estate worth 250 thousand dollars, began to appear in various sectors. The tourism sector witnessed a major qualitative leap during the past two years and opened the door for foreigners to obtain citizenship rights. Recently, hoteliers began to sell their hotels to foreigners in equal shares, as this issue is considered a real estate investment partnership.
Turkish citizenship through share investment examples
- The first example in this regard is the sale of a hotel in Nisantasi, where the owner of a 28-room hotel in Nisantasi district of Istanbul divided the hotel building into 10 equal shares and sold each share for $250,000. Of the shares bought by ten people, many foreigners have invested in the tourism sector and obtained Turkish citizenship
- Foreign investors will also get a share of the hotel’s profits and the investment period will be 10-15 years.
How does a property sell for more than its value?
Ibrahim Khalil Korkmaz, President of Istanbul Tourism Association (ISTTA), stated that while translating Turkey, owners of small hotels in Istanbul started selling their property to foreigners by dividing it into equal shares in this way.
Korkmaz said that when hotels are divided into shares, they can be sold at a much higher price than their real value, and the owner can sell the hotel to someone for 1.5-2 million dollars, and it can be sold in this way, 2.5 to 3 million dollars. This system also benefits foreign investors, Korkmaz continues: “Selling a hotel is a real and sustainable business, and the shares invested in the hotel, worth 250 thousand USD, provide great returns and income for the hotel, and you can obtain citizenship through investment shares.
Good return by renting a room
Korkmaz explains the profit split mechanism as follows: For example, a hotel with 20 to 30 rooms has an estimated annual revenue of 150 thousand to 200 thousand, depending on its geographical location and the advantages of this hotel. It provides an annual return of $200,000, i.e. when 10 shares are split, $15,000 per year based on the number of people. He said that this means that a person gets his investment back within 10 to 15 years, which is very attractive to a foreign investor and this creates a profitable situation for both the seller and the buyer.
Investing in stocks can be extended to other sectors
President of Istanbul Tourism Association (ISTTA) Korkmaz stated that the interest in hotel quotas is gradually increasing by investors from the Middle East, especially Iraq and Iran, and that this new investment model is highly appreciated and will become more widespread. Includes European countries and Asian countries. He added that this model will expand further in the next two years and that these investments will expand to include other sectors outside the field of tourism, such as power stations.