The main purpose for Turkish citizenship through investment is to import 250.000$ to the country's economic system. Any application disrupting this direct entry is treated as illegal and the application can be revoked, even after the realization takes place after the citizenship is granted.
During the latest investigations, the Turkish government realized that the citizenship process is currently being used for scams by using different payment methods and repurchase guarantees. In order to prevent fraud methods and not to allow the actual investment to go to the wrong parties' pockets, the government has made some changes to the associated laws. The new arrangements in Turkish citizenship regulation are published by TKGM (Turkish General Directorate of Land Registry and Cadastre) on 22.03.2021 stated that from that day forward, the sellers cannot give repurchase guarantee for the real estate that have been used for citizenship applications. These attempts for scams will be prevented by the Turkish Government.
Clawback Guarantee on Real Estate is Not Applicable
Clawback, buyback, or repurchase guarantee system is a method commonly used by construction companies for citizenship applications, misguiding the government. This method turns out to be just a crafty malicious marketing tool for citizenship applications. These companies offer citizenship opportunities with real estate cheaper than the required amount of investment by the government.
They change the expertise report for the building to match the citizenship appliance worth (250.0000$). After the applicant citizenship status waiting period is over (approximately 3 years), the company is repurchasing the property using the clawback guarantee, which is issued supposedly with the intention of protecting the owner from the price fluctuation, promising the repurchase of the said real estate at a 30-35% higher price. But they use the clawback guarantee for return to citizens extra payment in the first place. With the new changes made in regulation, if the clawback on the real estate is noticed, the first applicant’s citizenship status will be canceled.
That may sound overcomplicated, best to explain with an example;
If you are looking to apply for Turkish citizenship, the Turkish Government requires 250.000$ as an investment. Instead of paying this amount, some construction companies sell properties cheaper than the citizenship investment limit, illegally changing the appraisal report of the applicant's property for the required amount. They give a clawback or resale guarantee with a 30-35% increase in price after 3 years of waiting period for the property that you used for citizenship.
But now thanks to the changes in citizenship regulations, a property can only be used once for citizenship applications, and the companies cannot repurchase the properties used for citizenship applications, averting the scam attempts beforehand.
Prepaid Rental Income Guarantee Method is Scam
The clawback system also gets supported prepaid rental income guarantee as well. Basically, this system is used as another front to paying back the extra amount that the company gets from the customer during the first stage. Early rental income is just a marketing trick for construction companies to turning citizenship applications into crafty businesses.
According to the changes made in regulation on 22 March 2021;
• The seller cannot buy the same property back if the property is used for citizenship purposes, even after 3 years of waiting period ends.
• If a property is used for Turkish citizenship applications before, the same property cannot be used for another citizenship application. One property can only be used once for citizenship application.
• Prepaid rental income guarantee for citizenship process is not legal anymore.
If the buyer’s citizenship application is crossing one of these conditions, even the first one, the citizenship status of the buyer will be canceled, losing the citizenship rights. For more information, you can click here and further read about the regulation.
As the leading real estate company in Turkey, we always work in accordance with legal and ethical rules. We believe in the importance of building trust and recommend foreigners who invest or buy a home to apply for citizenship in Turkey using legal ways. By being a part of these schemes, you will be paying for someone else’s mistake and risk your citizenship process along the way. Respecting the legal procedure is important to build confidence and trust.
More information: You can read our Citizenship in Turkey page for more info about the process and accurate steps.
