Portugal amended its nationality law on Friday last week.

Previously, the required five-year period for citizenship eligibility began after residency approval. Now, it starts from the date of residency application.

In practice, this means that golden visa applicants become eligible for citizenship about 1-2 earlier than they otherwise would.

The main paths to residency leading to citizenship with minimal stay/visit requirements include:

• Investment in funds: An investment of 500,000 euros, plus fees.
• University donation: A total donation of 170,000 euros, including all fees.

In 2023 alone, our team has successfully assisted over 50 American clients toward their goal of obtaining Portuguese residency.

With our unparalleled expertise in Portuguese residency options tailored for American applicants, we are uniquely positioned to assist you in this journey.

Interested in exploring these opportunities further?

Simply contact us, and we’ll arrange a phone call or a Zoom meeting at your convenience to discuss your pathway to Portuguese residency and citizenship.

We are looking forward to assisting you.

The post Portugal’s New Nationality Law: Fast-Tracking the 5-Year Path to Citizenship appeared first on Global Residence Index.

The Freedom Visa: A Closer Look

Dubbed the “Freedom Visa,” this initiative is more of a donation to the country rather than an investment. Applicants are promised approval within six weeks, but it’s crucial to note that this is just for the visa, not the citizenship. The process from obtaining the visa to the passport is still unclear, raising questions about the program’s transparency and effectiveness.

Comparing Passport Benefits

The Salvadorian passport offers comparable benefits to Caribbean passports, with access to Europe, Russia, and certain Asian countries like Korea, Japan, and the Philippines. However, it lacks access to destinations like the US, Canada, and the UK. This limitation could be a significant deterrent for potential applicants, especially compared to programs like Malta’s, which offers a more powerful passport and EU residency for a similar investment.

Future Prospects and Concerns

El Salvador’s growing relationship with Eastern countries like China and Russia is noteworthy. Significant investments from China, including infrastructure projects, hint at future enhancements to the passport’s power, possibly including visa-free access to China. However, El Salvador’s alignment with Eastern powers may hinder its ability to secure visa-free travel agreements with Western countries.

The Direction of El Salvador

Under the leadership of Nayib Bukele, El Salvador has transformed, becoming safer and more stable. However, Bukele’s frequent criticism of Western powers may impede the development of beneficial relationships for El Salvador and its citizens, further impacting the attractiveness of its citizenship program.

Who is it For?

The program seems tailored for ultra-high-net-worth individuals with a deep affinity for El Salvador or those heavily invested in cryptocurrencies. However, for the average millionaire or crypto enthusiast looking for a Plan B, the program’s high donation requirement and lack of clarity might be unappealing.

Final Thoughts

El Salvador’s citizenship by investment program has potential but requires significant improvements to attract a broader audience. As it stands, the program seems limited to a very niche market. It will be interesting to see if El Salvador makes the necessary adjustments to appeal to a broader range of investors and crypto enthusiasts seeking alternative citizenship options.

The post El Salvador Citizenship, Golden Visa & Residency by Investment appeared first on Global Residence Index.

Hungary has introduced a new Golden Visa option for those seeking residency in Europe through real estate investment. This initiative follows the closure of Hungary’s previous permanent residency program in 2017.

The Old and the New

Previously, Hungary offered a straightforward permanent residency program, requiring a €300,000 investment in bonds. However, this program was discontinued.

Despite this, Hungary has maintained a Golden Visa program where investing in real estate through a Hungarian company granted residency. This involved purchasing two apartments totaling €240,000 and earning rental income, thereby granting residency under favorable tax conditions.

The New Golden Visa: Guest Investor Program (GIP)

The Guest Investor Program (GIP) is Hungary’s latest offering. It includes:

• Investing €250,000 in a real estate fund,
• Purchasing €500,000 worth of real estate directly, or
• A less popular option of a €1 million donation.

The details regarding the type of real estate and location restrictions are yet to be finalized, with more information expected in the coming months. This program is set to activate in late 2024.

The previously outlined €240,000 investment pathway offers a viable alternative if you are eager to secure European residency sooner. Additionally, other attractive residency programs across Europe can be explored.

Additional Residency Options

Besides GIP, Hungary offers other residency routes:

• Purchasing an apartment over €100,000 in Budapest,
• Starting a company with active business operations, or
• Purchasing two apartments totaling €240,000 and earning rental income.

These options highlight Hungary’s openness to high-value immigration while maintaining strict policies against free-entry refugees.

Hungary’s Attractive Tax and Lifestyle Benefits

Hungary is appealing due to its:

• Low corporate tax rate of 9%.
• Absence of inheritance and wealth taxes.
• Crypto-friendly policies.
• Beautiful cities like Budapest and a vibrant expat community.

Political and Economic Context

Hungary, under Viktor Orban’s leadership, has been assertive in its economic and immigration policies, often clashing with EU norms. This stance includes maintaining low taxes and attracting high-value immigrants while opposing minimum corporate taxes.

The Future of Hungary’s Golden Visa

The GIP is expected to be a streamlined and more accessible version of Hungary’s residency options. It’s designed to be less subjective than previous programs and to attract a broader range of applicants, especially from China and the USA.

Conclusion

Hungary’s new Golden Visa program, along with its other residency options, presents an attractive opportunity for those looking to invest in Europe. The country’s low tax rates and strategic location within the Schengen area make it an appealing destination for investors and high-net-worth individuals.

Next Steps

For more information on European residency by investment, feel free to explore other sections of our website. Should you require personalized advice or wish to discuss specific opportunities, please don’t hesitate to reach out and schedule a consultation with our expert team of advisors.

The post Hungary’s Golden Visa Program: An Overview appeared first on Global Residence Index.

This update, sourced from prominent Turkish news outlet T24 and various local papers, comes as the third major price revision since the program’s inception in 2017. Initially, the program demanded a hefty $1 million investment, which was drastically reduced to $250,000 in 2018 and later adjusted to $400,000 last year.

The reported increase is not yet backed by an official statement, as attempts to verify the news through the Directorate of Immigration Administration remain unconfirmed.

At Global Residence Index, we stand ready to assist our clients in navigating these changes. We offer tailored services to find the right real estate that meets all requirements, ensuring a seamless process toward achieving Turkish citizenship.

If you wish to secure Turkish citizenship at the current $400,000 investment threshold, we invite you to contact us.

Contact us at Global Residence Index to explore how these changes might affect your investment plans and to discuss the best strategy moving forward.

The post Turkey’s Real Estate Option Set to Increase to $600,000 in 2024 appeared first on Global Residence Index.

Below is a guide about the program. For a more personalized consultation regarding the different investment options available under the HQA visa, please don’t hesitate to contact our team of experienced consultants. We’re here to assist you in navigating this journey with tailored advice and insights.

Understanding the Program’s Essentials:

Cost-effective and Flexible Residency Option: The Portugal HQA Visa offers a streamlined path to EU residency and eventual citizenship, demanding a reasonable investment starting from just EUR 170,000. This program is designed for those seeking a cost-effective solution to reside in the European Union.

Residency Timeline: Upon application, residency is granted initially for two years, extendable for another three, leading to the option of permanent residency after five years. This structured timeline provides clarity and stability for applicants.

Citizenship Eligibility: After five years of residency under the HQA residency visa, applicants become eligible to apply for permanent residency or citizenship citizenship, opening doors to a life in the European Union.

Why Consider the Portugal ‘Highly Qualified Activities’ Visa?

Family Inclusive: One of the key benefits of this program is its inclusivity for your entire family, ensuring that your loved ones can also enjoy the benefits of EU residency.

Business and Investment Opportunities: Portugal’s thriving startup and investment landscape offers abundant opportunities. By opting for the HQA Visa, you gain access to a network of local talent and investment possibilities, enriching your entrepreneurial journey.

A Safe and Secure European Lifestyle: Choosing the Portugal HQA Visa ensures security in various aspects such as banking, property ownership, and business operations within the European Union’s stable environment.

Ideal for Leaders and Innovators: This program is particularly suited for top-level executives, entrepreneurs, business owners, and cryptocurrency experts seeking to expand their horizons in the EU.

Active vs Passive Investment Options

The Portugal HQA Visa offers two distinct pathways:

• active engagement through the start-up visa; and
• passive investment in qualifying projects.

For the active route, applicants participate in an incubation program, aiding in setting up a company in Portugal. This involves meeting business performance requirements and potentially leads to permanent residency or citizenship. Support from a business incubator and an advisor is key, especially in understanding local business dynamics and tax rates.

Alternatively, those preferring a hands-off approach can opt for passive investments in qualifying projects. This option suits applicants who wish to invest in Portugal’s economy without the day-to-day involvement in running a business. Both paths offer unique benefits and lead towards residency and citizenship in Portugal.

For more detailed information on concrete investment options, we encourage you to contact us. Our team is ready to guide you through the various pathways to obtaining your HQA visa in Portugal.

Aligning with EU’s Vision to Attract Global Talent

A Program with a Purpose: The HQA Visa Program is not just a residency and citizenship pathway — it’s a vital part of the European Union’s strategy to attract global talent. This initiative is tailored to enrich Portugal’s talent pool by welcoming entrepreneurs, investors, and senior executives from around the world.

Targeting the Innovators and Leaders: At the heart of the Highly Qualified Activities Program is the goal to draw in individuals who can contribute significantly to Portugal’s growing economy. Whether you’re an entrepreneur ready to embark on your next venture, an investor looking for new opportunities, or a senior executive aiming to expand your professional footprint, this program offers the perfect platform.

A Unique Collaboration with Portuguese Universities: What sets the HQA Program apart is its unique approach to residency. Eligible applicants engage in a contractual agreement with a Portuguese university, contributing to research and development, particularly in startup environments. This collaboration not only facilitates your residency in Portugal but also immerses you in Portugal’s innovative academic sphere.

Advantages for Entrepreneurs, Investors, and Executives Under Portugal’s HQA Visa Program

Seamless EU Residency and Citizenship Pathway: The Portugal HQA Visa offers a straightforward route to EU residency, paving the way for citizenship. This program stands out for its simplicity and effectiveness in integrating applicants into the EU framework.

Visa-free European Travel: Enjoy the freedom of movement and visa-free travel within the European Union, a benefit that extends to the entire Schengen Area, offering unparalleled mobility and convenience.

A Secure and Neutral First-World Jurisdiction: Portugal’s reputation as a safe, stable, and neutral jurisdiction makes it an ideal destination for business and personal life. This aspect is particularly appealing to those seeking a secure environment for their ventures and families.

Attractive Tax and Banking Benefits: Leverage Portugal’s favorable tax regime, including the Non-Habitual Resident (NHR) tax program, designed to offer significant tax efficiencies. The banking system in Portugal is robust and entrepreneur-friendly, offering a range of incentives.

Dual Citizenship Acceptance: Portugal allows dual citizenship, offering flexibility and ease for those looking to expand their global presence without giving up their original nationality.

World-Class Healthcare and Safety: Benefit from Portugal’s robust healthcare system and enjoy a life in one of the countries with the lowest crime rates in Europe, ensuring a safe environment for you and your family.

Enviable Lifestyle: Relish Portugal’s sunny climate, stunning coastline, rich cultural heritage, and world-renowned cuisine, offering an unmatched quality of life.

Other Program Benefits: What Sets the Portuguese HQA Program Apart?

Flexibility in Residency: Contrasting with the D7 visa, which mandates full-time residence in Portugal for status maintenance and citizenship eligibility, this program provides greater flexibility for those who travel frequently.

Efficient Processing and Timeline: Experience swift and hassle-free processing of your application, ensuring you receive your residency and ID card without unnecessary delays.

Streamlined Customer Experience: Benefit from a premium migration service, characterized by a white-glove approach, ensuring a seamless and straightforward experience.

Cost-Effective Solution: The Portugal HQA Visa program requires a lower capital investment (€170,000) compared to alternatives like the alternate Portuguese Golden Visa (€500,000 for qualifying fund investments), making it an economically attractive option.

Gateway to an EU Passport: While the HQA is not a direct citizenship by investment program, it can be considered an indirect one. After five years of holding the visa, you can apply for Portuguese citizenship status. The passport opens doors to global mobility and a lifestyle in the European Union, enhancing your personal and professional opportunities.

Access to European Society: Embrace the opportunity to integrate into European society, benefiting from its rich cultural, economic, and social landscape.

An Overview of Costs and Steps

Understanding the Financial Commitment: The total cost for participating in the HQA Program is €170,000, structured in three payments:

1. Initial Payment: A €10,000 non-refundable fee to initiate the process and schedule an appointment with SEF (Serviço de Estrangeiros e Fronteiras).
2. Second Payment: €80,000 due upon successful appointment with SEF, refundable until the third payment.
3. Final Payment: The remaining €80,000 is payable upon successful receipt of your residence ID, refundable until the renewal of residence after two years.

HQA Visa Application Process:

Step 1: Preliminary Assessment: Begin with a due diligence and compliance assessment to ensure eligibility for the program. Key documents required include a passport copy, proof of address, and your CV or professional qualifications.

Step 2: Online Assessment Meeting: Participate in an online meeting or interview with the university, forming a crucial part of the assessment process.

Step 3: Concluding the Service Agreement: Upon pre-approval by the university, conclude a service agreement that includes:

• A) Facilitating Program Participation: Assistance in arranging program participation and facilitating agreements with the university. Options include investing in startups, conducting R&D for investment, or using infrastructure for R&D to launch into Portugal and Europe.
• B) Immigration Services: Comprehensive immigration assistance for you and your family.

Step 4: SEF Appointment Scheduling: Schedule an appointment at SEF or the Portuguese consulate, depending on your access to the Schengen Zone. Collect necessary documents, including your CV, non-criminal record certificate, contract with the university, proof of financial funds, and proof of accommodation.

Step 5: Submitting Your Application: Submit your complete file at SEF for processing. Residence permits are typically processed within 2 to 12 weeks, initially issued for a period of two years.

Step 6: Residence Permit Extension: The extension of the residence permit after two years is contingent upon confirmation from the university regarding the validity of the contract. Following this, the permit is extended for an additional three years, after which you become eligible for permanent residence and citizenship.

Need Guidance? We are here to help you.

If you’re feeling overwhelmed by the complexity of navigating the Portuguese HQA visa, you’re not alone. Many find it challenging to obtain clear and accurate information in the vast sea of options. We understand these hurdles and are here to offer clarity and reliable guidance. By signing up for a consultation with our experienced team, you’ll gain access to personalized advice tailored to your unique situation. We are ready to help you simplify the process and make informed decisions with confidence and ease.

The post Portugal HQA Visa: A Guide to the Highly Qualified Activities Residency appeared first on Global Residence Index.

In a significant update to the CBI landscape, several Caribbean nations have recently announced mandatory interview requirements along with adjustments to their due diligence processes and fee structures. Here’s a breakdown of these pivotal changes:

Commonwealth of Dominica

Dominica has introduced a mandatory interview fee of $1,000 USD for applicants aged 16 and over. These interviews will be conducted virtually and require the presence of the applicant and any dependents aged 16 and over, without agents or promoters. Applicants must be ready with their ID and supporting documents, and they have the option to conduct the interview in their preferred language.

St. Lucia

Starting September 4, 2023, St. Lucia’s CBI program will require mandatory interviews, which can be conducted either in-person or online. The main applicants will face an increased due diligence fee of $8,000 USD, up by $500. This interview requirement applies only to the main applicant.

Grenada

From September 4, 2023, Grenada mandates interviews for applicants 17 years or older, with an interview fee of $1,000 USD per family member. Applicants can choose their preferred interview language, and the interview process will be automated with instructions provided via email.

St. Kitts and Nevis

In St. Kitts and Nevis, the Citizenship by Investment program now includes mandatory interviews for applicants. These can be conducted virtually or in person, and are handled either by an independent professional firm or the Citizenship Unit itself.

Accompanying this update is a revision of the due diligence fees. The fee for the main applicant is now set at $10,000, and for dependents aged 16 and above, it is $7,500. This adjustment in fees aligns with the inclusion of interview costs and the enhanced processing measures for the program.

Antigua and Barbuda

From December 15, 2023, all applicants, including family members aged 16 and above, will have to undergo an interview, priced at $1,500 per application. These interviews will be part of the due diligence process and will be conducted virtually.

What Does This Mean for Applicants?

These updates mark a significant shift in the CBI programs, emphasizing enhanced security and due diligence processes. Applicants should be prepared for these additional steps and fees when planning their citizenship applications.

We welcome and appreciate these changes as they serve to strengthen the reputation of our industry and the Caribbean CBI programs. By reinforcing security measures and due diligence, these programs continue to maintain high standards, thereby enhancing their credibility and appeal on the global stage. This commitment to excellence not only benefits the nations offering these programs but also provides greater assurance and value to the applicants.

For more information and detailed guidance on navigating these changes, stay tuned to our blog or contact us for expert advice and assistance.

The post New Mandatory Interview Requirements in Caribbean Citizenship by Investment Programs appeared first on Global Residence Index.

The option of direct investment into real estate is no longer an option. The Golden Visa Fund or Investment Fund option is arguably the most sought-after route to obtain temporary residence and, ultimately, citizenship in Portugal. 

In this article, I’ll outline the Golden Visa Fund option and its availability for applicants. Through my experience of working with many clients in the investment migration industry (and specifically the Portuguese program), I will share some pros and cons of the Golden Visa fund option and describe how Global Residence Index can assist in your end-to-end case management process.

What is the Portuguese Golden Visa Fund and what are the criteria that a fund needs to go through to be eligible for accepting client funds? The answers are part and parcel of my guide below. 

Please enjoy.

The Golden Visa Fund Investment Option

The law under Portugal’s Article 90A Residence for Investment purposes defines the investment funds route to the Portugal Golden Visa as follows:

• The Golden Visa Fund is the capital transfer of €500,000 or higher to acquire units of investment funds or venture capital funds dedicated to capitalizing companies, capital injected under the Portuguese legislation. The maturity of the investment cannot be shorter than five years, and at least 60% of the investments are realized in commercial companies with head offices in the national territory.

There are four essential conditions that an Investment Fund needs to show to qualify for the capital transfer path for a Portuguese Golden Visa:

1. The fund needs to be approved and regulated by CMVM (Portuguese Securities Market Commission);
2. For an added level of security, the Central Bank regulates the activities of the fund as well as the management company; 
3. 60% of the fund’s capital must be invested in companies with headquarters in Portugal;
4. The investor has to buy fund units for a minimum of €500,000; and
5. The investment must be kept during the Golden Visa process until permanent residency or citizenship is acquired, which takes at least five years but can extend to six or seven years.

How Does a Golden Visa Fund Investment Work?

The Portugal Golden Visa Investments funds are defined as investing capital alongside other investors. This ensures that the fund is not a fly-by-night investment fund, but rather a fully focused investment business. 

There are advantages to investing in the Golden Visa Fund Investment:

1. Using professional investment managers;
2. Benefiting from economies of scale, i.e., lower costs; and
3. Increased asset diversification.

The Portuguese Securities Market Commission (CMVM) must supervise and regulate the financial instruments market and the agents that operate in them and promote investor protection. These apply to the Golden Visa Funds, increasing investor protection. 

There are roughly two hundred funds in Portugal. However, only around fifty are eligible for the Golden Visa fund option based on the fundamentals set by the CMVM. 

Risk Appetite for Golden Visa Fund Investors 

The Golden Visa Fund investments are classified as fundo de capital de risco (FCR). The applicant demand is growing even with the higher cost criteria at €500,000. 

Why is this the case? Should investors not want to limit their investment size for the Golden Visa through alternative options?

There are several answers to these questions. A priority reason is that the Golden Visa investment funds can provide significant returns for clients.

• There are low, medium, and high-risk investment funds depending on the risk appetite of the applicant; 
• The Golden Visa fund allows investors to have exposure in Portugal, across Europe, and even exposure outside of Europe; 
• Early seed rounds can provide for investments with multiple-digit returns for investors if companies succeed in future funding rounds.

The Golden Visa fund presents a solid case for clients for the security of their investments. To be eligible and approved as a fund, there are tight regulations the funds must adhere to when taking on investor funds. 

The investment fund is tax efficient, something the real estate industry suffered from. There are no IMI transfer taxes, stamp duty, notary fees, exit taxes, or estate agent commissions. These taxes, or lack thereof, in the investment fund option can significantly impact the end ROI for investors.

Types of Golden Visa Funds in Portugal

The Golden Visa fund investment is excellent for having diverse asset exposure in multiple risk classes in Portugal and abroad. Earlier, we mentioned that asset risk is an item to consider.

That being said, the funds can have a blend of each type of investment to get further diversification across asset classes. These details will be discussed when consulting with the fund manager. 

Although often investors focus on obtaining Portuguese citizenship as a primary incentive to invest in the Golden Visa funds, getting a decent return on investment is equally important. 

Let’s consider a few more details of the Golden Visa funds that will help clients understand their options and make a better-informed decision when the time comes. As per the laws, the funds can use 40% of investment outside Portugal.

Private Equity Funds 

Private equity funds actively invest in privately held companies, bypassing the stock market. They predominantly target sectors such as healthcare, industrial, and IT. Their primary strategy involves taking a controlling stake in operational businesses and increasing their value through active involvement in company management.

The PE Golden Visa funds have a medium to high-risk profile alongside an expected yield of similar magnitude. An investor should look at anywhere from 7 to 15% p.a.

The Golden Visa, through investing in a Venture Capital fund, is a subset of the private equity. They actively focus on early-stage startups with global growth potential before these businesses achieve profitability. 

Venture Capital Funds

Consequently, venture capital investments entail more risk but promise a higher anticipated return. The Portuguese VC funds concentrate on sectors like technology, life sciences, and clean energy. 

The VC fund’s primary emphasis is on maximizing returns upon exit. Only a small percentage is placed into these more speculative investments if the investment is within a mutual fund. However, the potential upside can be considerable and have a significant positive impact on the overall ROI. 

Benefits:

• Offers a higher potential upside compared to other fund types; and
• Objective track records may be publicly accessible.

More Risk:

• Generally carries more downside risk than other fund types; 
• The investment is typically locked in for a more extended period compared to other fund types (might be a ten-year hold); and
• Assessing these funds without industry expertise can be challenging.

Mutual Managed Funds 

In the case of a mutual managed fund, it is under the active supervision of a professional portfolio manager or a team of experienced managers who are responsible for making informed decisions about the selection of underlying investments for the fund’s portfolio.

Some mutual managed funds are designed for conservative investors who prioritize capital preservation and may aim for modest returns of 2 to 5%. Others, with a more aggressive growth-oriented approach, may aim for higher return, but typically with a higher level of risk at 7 to 10% or even more.

It’s important to note that past performance is not indicative of future results, and there are no guarantees in investment markets.

Portuguese Golden Visa Fund Fees

In the Golden Visa fund scenario, fees can be payable in the investment cycle’s setup, management, and investment exit. it’s always important to consider the combination of all three.

Fees reduce your overall return on investment, but they are already baked into the fund’s forecasted returns. Investment funds won’t necessitate additional fees by the investors or that investors experience an unexpected loss of capital when executing a sale in the case of real estate. I.e. clients trying to sell their €350,000 purchased property that can only sell for €250,000 where agent fees and other fees were built into the purchase cost.

An applicant can expect to pay the following fees through the Golden Visa Investment funds:

• Setup Fees: Investors pay a one-time setup fee when investing in funds. This fee can be a percentage of the invested capital, typically ranging from 0.5% to 2%, or a fixed amount; 
• Management Fees: This ongoing fee is usually calculated on a monthly or quarterly basis using the fund’s resources and typically falls within the range of 1 to 2.5% and
• Performance Fees: The performance fee represents the portion of investment returns the fund does not distribute to investors. The magnitude of performance fees can vary significantly based on strategy, asset type, and whether the fund disburses annual dividends.

Investors will further pay fees that are directly related to the Golden Visa. Advisory, legal and administrative fees are front loaded based on the investment amount and could be between 5 to 8%. 

Possible Shortfalls for the Golden Visa Fund Investment

Early exit can be a financially negative aspect that a client might consider undergoing. Depending on the investment fund, liquidity to exit might be near impossible, especially if the fund has a long lock-in period. Other possibilities include having to take a severe penalty for early exit. 

The investor will lose the ability to hold the Golden Visa in Portugal if they exit from the investment within the five-year investment threshold to be eligible for permanent residence and citizenship. 

The Golden Visa Fund Investment Process 

Suppose the Portuguese Golden Visa is the investment migration program for you, using an investment fund as the qualifying investment for the Golden Visa is a great choice. 

The high-level step-by-step process for obtaining temporary residency through the Golden Visa investment fund. 

1. Complete the initial KYC process and identify the fund for investment;
2. Register and obtain a tax number in Portugal;
3. Open a bank account with a Portuguese bank;
4. Complete the application document collection process;
5. Invest in the correct Golden Visa fund;
6. Submit the application and complete biometrics at the SEF office when available and
7. Obtain a two-year temporary residence ID card. 

You can start your renewal process for your second temporary residence about ninety days before expiry. After completing five years of temporary residence and being physically present in Portugal for thirty-five days, investors can obtain Permanent Residence and apply for citizenship at the same time. 

The Portugal Golden Visa law changes will impact the understanding of the program, and there can be areas that are misunderstood. Global Residence Index does not provide financial advice, but we can introduce you to golden visa eligible investment funds and take care of your Golden Visa process until citizenship via our partner team of local lawyers in Portugal. 

If your are interested in the Portuguese golden visa, want to speak with our team about how we can assist you, or if you are seeking introductions to regulated fund managers with golden visa eligible investments, please contact us by clicking here.

Frequently Asked Questions about Portugal’s Golden Visa Funds

What is the minimum investment for the Golden Visa fund option?

€500,000 into an approved Golden Visa fund makes you eligible for temporary residence.

What is the length of investment into the Golden Visa fund?

Although the Golden Visa requires investors to hold their investment for at least five years, the funds might be longer from six to ten years, depending on the investment.

Can I make a return on my investment?

Yes, the purpose of the Portuguese Golden Visa fund option is to use the capital to grow the economy and give an excellent return to the investors. 

Are the fees payable even if I do not make a return?

Fees will vary from fund to fund. There might be an initial setup fee and an ongoing management fee. However, the fund should emphasize a performance percentage for their fees.

The post Portugal Golden Visa Investment Funds appeared first on Global Residence Index.

Is someone’s country of domicile and country of residence different? The two terms often need to be correctly interpreted. Confusion can arise when they are interpreted incorrectly. However, the two have legal differences that can significantly impact someone’s financial status. 

Citizenship by investment and Golden Visa Programs are excellent legal ways to have residence and domicile in a country. Additionally, there are special tax non-dom programs for individuals. Global citizens can legally reduce their tax liabilities by using their residence, domicile, and non-dom status. 

There is a Difference Between Domicile vs. Residence

When understanding the legal concepts of domicile and residency, it is crucial to delve deeper into their meanings. Governments consider domicile as an important legal status for someone having close ties to the country. Even if one moves from their domicile of origin, their principal home can remain the same.

On the other hand, governments see residence as something that is not as formal. An individual can have multiple residences, depending on where they reside. To better understand the differences, let’s look at them independently.

What is Domicile

The common question is, “What does domicile mean?” Domicile refers to a person’s permanent legal residence, which is the place where they have the most significant connections, such as family, property ownership, and voting registration. Residency, however, refers to where a person lives, temporarily or permanently.

Domicile is not automatic in many countries, and there are specific administrative requirements that you need to fulfill. 

What is Residence

“Residence” refers to where someone lives or resides, temporarily or permanently. It can refer to a physical location, such as a house or apartment, or a broader area, such as a city or country. 

A person’s residence is typically determined by where they spend some of their time and where they have legal residency. Residence can still have legal implications, such as choosing a person’s eligibility for certain benefits or services based on where they reside. In a broader sense, it can refer to someone’s overall sense of belonging or attachment to a particular place. 

Primary Differences of Residency vs. Domicile

A person can have multiple residences. A residence is a more flexible and temporary concept. A person’s residence can change frequently and have numerous residences simultaneously. 

Regarding legal status, a domicile is often considered more formal and legally significant than a residence. Domicile determines their legal rights and obligations, such as tax liabilities, inheritance rights, and eligibility for certain benefits or services. 

Possible Hurdles to Overcome

Domicile can be more challenging to obtain and to change than residency. Domicile requires a person to demonstrate an intent to abandon their previous domicile and establish a new one. Showing intent usually involves a more substantial and permanent move, such as buying a new home, moving your family or registering to vote (if possible).

• Residency requirements: 
  • Many countries require individuals to establish a minimum residency before claiming domicile. The residency period can vary depending on the country and may range from a few days, months to several years.
• Proof of intent: 
  • To establish a domicile, an individual must intend to make the country their permanent home. The process can be challenging, as it requires evidence of long-term commitments, such as property ownership, employment, and social connections.
• Legal and administrative barriers: 
  • Obtaining domicile often involves navigating complex legal and administrative procedures, such as applying for visas and work permits, registering with local authorities, and complying with tax and immigration laws. Some countries have special domicile forms that an individual needs to formally submit for approval.
• Language and cultural barriers: 
  • Moving to a new country can be challenging, mainly if significant language and cultural differences exist. Knowing a local language can make establishing social connections and integrating into the local community easier. No doubt, this can impact one’s ability to domicile.
• Financial considerations: 
  • Moving to a new country can be expensive. A new domicile can increase your cost of living or additional costs to establish a new business or source of income. A domicile may require considerable financial resources to cover housing, education, and healthcare expenses.

State of Domicile Meaning: Physical Presence?

A person can have only one domicile at a time, but they can have multiple residencies. For example, someone might have a primary residence in one state but spend several months each year in a second home in another state. Many countries follow a 183 days per year rule that can help domicile in a country. Other countries may only need persons to show a few days physical presence to be domiciled. These persons are likely to have significant assets and investments in the country. 

Other factors determining a person’s domicile can be complex and require consideration. Where they spend the most time,  pay taxes, and where their primary business interests are. Countries may even issue residence that only needs a resident to be in the country for one day per year. Others issue residences with no physical presence requirements.

Tax Specifics for Domiciled Persons

Domicile is often used for legal and tax purposes, while residency can determine eligibility for services and benefits, such as in-state tuition or healthcare. Each country can have varying interpretations of domicile status and tax status. For tax purposes, residency vs. domicile are two concepts that can impact an individual’s income tax liability.

Individual Income Taxes

Individual income tax is determined based on a set of rules and regulations set forth by the tax authorities of a particular country. These rules typically consider the taxpayer’s income, deductions, exemptions, and credits, among other factors. The income subject to tax can come from various sources such as wages, salaries, tips, interest, dividends, rental income, and capital gains. 

Deductions and exemptions can reduce the income subject to tax. Credits, such as those for child care or education expenses, can directly reduce taxes. The tax rate, which often varies depending on the taxpayer’s income level, is applied to the taxable income to determine the amount of tax owed.

Capital Gains Tax

Capital gains tax is a tax on the profits from selling assets such as stocks, bonds, or real estate. While some countries tax capital gains, others do not, regardless of the state of domicile. In countries that do levy capital gains tax, the tax rate may vary depending on the type of asset sold, the length of time the investment, and the amount of profit made from the sale. 

Some countries may also provide certain exemptions or deductions that can reduce the amount of capital gains tax owed. Understanding the capital gains tax laws in the country is essential to ensure compliance with the tax requirements and minimize potential tax liability. 

Inheritance Tax

Domicile can significantly impact inheritance tax, particularly when an heir passes away in a different country. In general, inheritance tax is usually governed by the country’s tax laws where the deceased person was domiciled. The country where the deceased was a resident impacts the initial inheritance claim. If the heir moves the assets from one jurisdiction to another, there is potentially another tax event that can arise. 

However, some countries may have bilateral tax treaties or agreements to prevent double taxation on inherited assets. In such cases, the two countries’ tax authorities may work together to determine the appropriate tax liability and ensure that the heir is not taxed twice on the same assets.

Where May be Good to Domicile 

Tax laws, regulations, and qualifications for a domicile in different countries are subject to change. Tax liability can depend on various individual factors, such as income, assets, and residency. However, some countries are known for having low or no tax liabilities for individuals who are domiciled there.

Countries such as Monaco, Andorra, the United Arab Emirates (UAE), and the Cayman Islands are known for their favorable tax regimes for individuals. These countries offer low or no income, capital gains, and inheritance taxes, making them attractive options for individuals looking to reduce their tax burden.

The Caribbean Islands and citizenship by investment programs can offer great places to domicile. Antigua and Barbuda is free of taxes if citizens can obtain a legal domicile. Similarly, Saint Kitts and Nevis is also a great option. Other citizenship by investment programs, Dominica, Grenada, and Saint Lucia, will be good places to domicile if persons do not remit income in the countries. None of the above countries tax global income that is not remitted in the country. 

What about Nom-Dom Status

Non-dom status programs are residency programs some countries offer that allow individuals to enjoy favorable tax treatment on their foreign-sourced income or assets. These programs attract high net worth individuals seeking to minimize their tax liability. Under a non-dom status program, an individual who becomes a country resident may be able to claim non-dom status. 

The status means that they are not subject to tax on their foreign-sourced income or assets or are subject to tax only on a limited basis. In some cases, these programs may also offer other benefits, such as reduced or exempted rates of inheritance or wealth taxes.

The crux of non-dom status is that, at times, there is significantly limited presence compared to standard requirements for domicile vs. residence. The UK only requires an individual to be physically present for sixteen days for non-dom status, and Cyprus is sixty days. 

Which Countries Have Non-Dom Programs

Many countries in Europe offer non-dom status to residents. Often the resident cannot be a citizen of the country itself, but there are exceptions. Notable countries that have non-dom programs include the Golden Visa countries such as Portugal and Greece. These two programs can offer residents non-dom status to reduce their tax liability legally.

Portugal Non Habitual Residence

The Non Habitual Residence (NHR) program was introduced in 2009 and is designed to attract non-resident individuals to become tax residents of Portugal, offering several tax benefits for ten years.

Under the NHR program, qualifying individuals can benefit from a tax exemption on foreign-sourced income and certain Portuguese-sourced income if they meet specific criteria. The NHR can reduce Golden Visa holders tax liability to 0% with the maximum threshold at 20%. 

Greece Non-Dom Resident Tax Regime

Greece offers a non-dom program that is called the Non-Dom Resident Tax Regime. The Greek non-dom program attracts high-net-worth individuals and entrepreneurs to live and invest in Greece. Often Golden Visa investors use the program as there is limited physical presence.

Under the Non-Dom Resident Tax Regime, qualifying individuals who become tax residents of Greece can benefit from a flat tax rate of €100,000 per year on their foreign-sourced income and assets, as long as they do not have any Greek-sourced income. Individuals who qualify for the program can also benefit from exemptions or reduced rates on inheritance and gift taxes.

Malta Global Residence Program

Malta’s special tax program is the Global Residence Programme (GRP). It is designed to attract individuals not nationals of the EU, EEA, or Switzerland and are not long-term Maltese residents. 

The program allows qualifying individuals to benefit from a flat tax rate of 15% on their foreign-sourced income remitted to Malta, with a minimum tax liability of €15,000 per year. To be eligible for the GRP, individuals must meet specific criteria, such as having a minimum annual income of €100,000 or a minimum net worth of €500,000. The GRP can be an essential consideration for investors using Malta’s Exceptional Investor Naturalization (MEIN) program. 

Frequently Asked Questions

What is the difference between domicile and residence?

Domicile refers to a person’s permanent legal home or country of origin, whereas residence refers to where a person currently lives and spends most of their time.

How does domicile impact tax liabilities?

Domicile can significantly impact a person’s tax liabilities, as it can determine which country has the right to tax their income and assets.

Can a person have multiple residences?

Yes, you can have multiple residences. Certain residence do not require any significant time in different locations throughout the year.

Can a person change their domicile?

Yes, a person can change their domicile if they establish a new permanent legal home in another country and sever their ties to their previous domicile. The process can be somewhat tricky at times to cut all previous ties to a previous domicile. 

How do non-dom status programs work?

Non-dom status programs typically require individuals to meet specific criteria, such as having a minimum income or net worth and limiting their physical presence in their country of domicile. In return, they may receive tax advantages or exemptions in the new jurisdiction where they establish tax residency.

What are some popular non-dom status programs?

Popular non-dom status programs include the Greek Non-Dom Tax Resident program, Portugal’s Non-Habitual Resident (NHR) program, and Malta’s Global Residence Programme (GRP).

The post Domicile vs. Residence: Are Both Possible? appeared first on Global Residence Index.

As a sponsor of the America Outbound Summit, we’re thrilled to invite you to this year’s most important event for Global Opportunities in Citizenship by Investment, Golden Visas, Tax Planning, and Wealth Protection.

Locations and dates:

• New York, September 12th
• Los Angeles, September 14th

Why Attend?
• Explore the realm of investment migration, second citizenships, and golden visas.
• Stay updated on global real estate market trends.
• Engage in insightful discussions on wealth protection and tax planning.
• Network with like-minded entrepreneurs, investors, and specialists from around the globe.

The America Outbound Summit is your bridge to new possibilities, connecting American families, entrepreneurs, and investors with overseas opportunities.

As a proud sponsor of this year’s seminal event, we have been provided with a number of tickets to give away to our esteemed clientele. Normally sold at $770 each, we are offering you a chance to attend this event, free of charge.

Reserve Your Spot Now:

Whether you’re an existing client, or someone who has shown interest in our services, we value our association.

To claim your complimentary ticket or to learn more, click on this link: www.globalresidenceindex.com/event

We’re eager to meet you at the event and discuss the myriad of possibilities this industry has to offer.

The post Global Residence Index Proudly Sponsors the America Outbound Summit 2023 appeared first on Global Residence Index.

Global Residence Index is an Investment Migration solutions-based company. Our company works with you to determine which second residence or passport program. Part of our services includes building guides that can make a physical move to another country more accessible. Turkey is receiving growing interest worldwide for its Citizenship by Investment program.  

We actively assist many clients worldwide to find the best possible investment that will lead to second or multiple citizenships. In this guide, we hope to provide enough information to build a holistic view of living in Turkey. There are many benefits to having Turkish citizenship and living in the country for personal and professional reasons. 

Why don’t you sign up for our free consultation if you are interested in Turkish citizenship or any of the Citizenship and Golden Visa programs?

This article hopes to teach you about the following:

• An Overview of Living in Turkey
• What is the process of moving to Turkey
• What Residence and Citizenship are there for Living in Turkey
• Turkey’s Strategic Positioning for Business
• The Real Estate Market in Turkey
• The Process of Banking and Paying Taxes for Life in Turkey
• Cost of Living 
• Who Can Benefit from Moving to Turkey

Living in Turkey Quick Notes

Turkey is a country that has long been at a crossroads between Europe and Asia, blending rich cultural heritage, diverse cuisine, and natural beauty. As an expat, living in Turkey can offer a unique and exciting experience. Living in Turkey is popular for expats, offering a cost-effective living and a high standard of living, along with a warm and welcoming culture. Moreover, the Turkish people are known for their hospitality and kindness towards foreigners, making it easy for expats to settle into their new surroundings and form meaningful relationships.

• Turkey has a population of over 82 million people, making it the 18th most populous country in the world;
• Istanbul, the largest city in Turkey, has a population of over 15 million people, making it one of the most populous cities in the world;
• Turkey is a relatively affordable country to live in, with a cost of living index of 40.16, compared to the United States’ index of 71.05;
• The Turkish Lira (TRY) is the currency used in Turkey, and as of March 2023, 1 USD is equivalent to approximately 19 TRY;
• Turkey has a diverse economy, with key industries including agriculture, manufacturing, and tourism;
• Turkey is a top tourist destination, with over 51 million visitors in 2019;
• The Turkish healthcare system is generally affordable and accessible; and
• Turkey is a secular country, but the majority of the population identifies as Muslim.

Who Should Read Our Guide

The team has developed this guide for a few different reasons and aims at helping a few other groups that might be living in Turkey as expats. 

• Foreigners who want to move to Turkey for its geographic location include remote workers, entrepreneurs, and international students;
• Retirees that are looking for options available to them that are cost-effective and offer an abundance of activities; and
• Investors interested in growing their real estate and business portfolio can obtain a second citizenship.

The guide covers a lot of general information about Turkey that will be useful to everyone interested in living in Turkey. 

The Process to Move to Turkey

The Republic of Türkiye stretches across the continents of Europe and Asia, with a small section located on the Balkan Peninsula in Southeast Europe. It shares borders with Georgia to the northeast, Armenia, Azerbaijan, and Iran to the East. Iraq is found to the southeast, and Syria and the Mediterranean Sea to the south. The country also shares maritime borders with Greece and Bulgaria to the northwest and Cyprus off its southern coast.

The capital city is Ankara, although Istanbul is the largest city in the country, with a population of over fifteen million. The Turkish Lira is the official currency of Turkey, but the US dollar is available for cash transactions. Around 90% of the population speaks Turkish. English is spoken in tourist areas and metropolitan cities like Istanbul and Ankara.  

Getting to Turkey

Once again, the positioning of Turkey is an advantage concerning travel and getting to Turkey. Turkish Airlines is the national flag carrier of Turkey and one of the largest airlines in the world. With a fleet of over 360 aircraft and an extensive network of destinations. The airline connects most of the world, serving over 300 destinations in more than 120 countries. Turkish Airlines operates flights to major global hubs. New York, London, Tokyo, and Beijing and many other destinations in Europe, Africa, Asia, and the Americas. 

Similar to Emirates and Dubai as a hub and spoke model for air travel. Istanbul is straightforward to travel to and from, connecting expats to their home countries with direct, non-stop flights. With its modern fleet, exceptional service, and competitive pricing, Turkish Airlines has become a popular choice for travelers and residents to easily explore the world.

What Are Residence or Citizenship Options There to Live in Turkey?

The Citizenship by Investment Program

The Turkish Citizenship by Investment Program is a program that allows foreign investors to obtain Turkish citizenship by making a significant investment in Turkey. The program was launched in 2017 and has been popular among foreign investors interested in obtaining Turkish citizenship.

Under the program, foreign investors can obtain Turkish citizenship by making one of the following investments:

• Real estate investment: A foreign investor can acquire Turkish citizenship by purchasing real estate in Turkey worth at least $400,000 and holding onto it for at least three years;
• Capital investment: A foreign investor can obtain Turkish citizenship by making a capital investment of at least $500,000 in a Turkish company or by purchasing government bonds worth at least $500,000 and holding onto them for at least three years;
• Bank deposit: A foreign investor can obtain Turkish citizenship by making a bank deposit of at least $500,000 in a Turkish bank and holding onto it for at least three years; and
• Job creation: A foreign investor can obtain Turkish citizenship by creating jobs for at least 50 Turkish citizens.

After completing the investment, the foreign investor can apply for Turkish citizenship. The application process takes approximately six months. The investor must meet specific requirements, such as not having a criminal record and being able to support themselves financially in Turkey. You can use our citizenship comparison tool to compare programs here to view Turkey’s Citizenship by Investment program and others.

Short-term Residence Permits: Proof of Income Residence

Turkey does not offer a retirement or digital nomad visa. Those who wish to stay in the country for more than three months must apply for a residence permit. Applicants must show that they receive at least $500 per month. A second requirement is to show international healthcare coverage or a healthcare policy with a local provider.

To do so, you must first apply for a short-term residence permit (e-Ikamet) within one month of arriving in Turkey. Once applicants complete the online application, they must make an appointment with the nearest DGMM office to complete the process and pay the necessary fees.

Short-term residence permits are valid for two years. After living in Turkey for eight years under this permit, you may apply for long-term residence permit. However, regardless of the residence permit you are using, you must provide proof of adequate financial resources.

Some of the advantages of obtaining a residence permit in Turkey are: 

• The renewal process is generally easy to do and uncomplicated;
• Residents will be eligible to get a Turkish identity card;
• Opening a bank account in a Turkish bank; and
• Easy to convert your existing driver’s license to a Turkish one.

Real Estate Ownership 

There is a unique residence permit for expats that own real estate in Turkey that does not qualify for the citizenship by investment program. Investors who own immovable property in Turkey worth a minimum amount of $75,000 can obtain a short-term residence permit for a maximum of one year and renew it annually.  

Naturalization After Living in Turkey  

Expats who have lived in Turkey for five years can acquire Turkish citizenship through the general naturalization process. If citizenship is not top of mind, residents can apply for a long-term residence permit and obtain indefinite residence in Turkey after living there for eight years.

The naturalization process requires the applicants to be able to converse in the Turkish language. Other requirements include showing proof of income, not being a threat to the state, and being of good moral character. There are benefits of dual citizenship in Turkey, including healthcare cover and access to education. 

Turkish Passport and Schengen Area Visa Waiver 

Turkey’s passport allows visa-free travel to 111 destinations globally, providing investors with solid visa-free access to most continents worldwide in its CIP program. Unlike many Asian passports that lack reasonable access to central Asia, Africa, and South America, Turkey’s passport opens up emerging economies, providing excellent business opportunities for investors. Additionally, the passport offers access to a range of countries, including Mexico, Brazil, Argentina, Chile, South Africa, Kenya, Ethiopia, Russia, Hong Kong, Taiwan, and Singapore, among others.

The topic of visa-free access and the Schengen area has been a long-standing debate. While neighboring Eastern European countries have visa-free access to the Schengen area.

The final process for visa waiver still needs to be completed. Turkey still needs to meet five out of the seventy-two benchmarks outlined in the roadmap to visa-free access. The Turkish passport ranking will increase to the top forty worldwide if there is a visa waiver agreement. No doubt the country’s citizenship program will surge.

Istanbul a Business Stronghold: Where East Meets West

Istanbul’s unique location at the crossroads of Europe and Asia has long been a strategic advantage for businesses operating there. It is a gateway between the East and the West, making it an important hub for international trade, finance, and logistics. The city’s position at the meeting point of two continents has enabled it to build strong economic ties with Europe and Asia, allowing businesses to access a diverse range of markets and customers. 

Istanbul’s rich history and cultural heritage have also made it a center for art, fashion, and design, providing a creative and dynamic environment for entrepreneurs and startups. The city’s strategic location, vibrant business culture, and talented workforce make it an ideal destination for companies looking to expand their global reach.

Life in Istanbul

Life in Istanbul is vibrant. The bustling city seamlessly blends its rich history with modern developments. The city offers a wide range of experiences, from exploring ancient sites such as the Hagia Sophia and the Blue Mosque to indulging in Turkish cuisine at local eateries and enjoying the city’s lively nightlife. You may also navigate the city’s chaotic traffic and busy streets, but you will have the convenience of a well-connected public transportation system. 

With a mix of traditional and modern neighborhoods, you’ll be able to find an area that suits your lifestyle and budget. Living in Istanbul as an expat can be challenging and rewarding, offering a unique cultural experience and the opportunity to build a new life in a vibrant and dynamic city.

Business Opportunities

Turkey’s dynamic and diverse economy provides numerous opportunities for foreign investors and entrepreneurs. There is a range of industries such as automotive, tourism, and energy showing strong growth. Istanbul, in particular, has emerged as a center of commerce, attracting multinational corporations and startups alike with its well-developed infrastructure, skilled workforce, and vibrant business environment.

Turkey’s membership in the Customs Union with the EU and free trade agreements with various countries allow for easy access to markets across Europe and beyond. The well-educated, multilingual, and tech-savvy population makes it an attractive destination for companies looking to expand their operations or establish regional headquarters.

The country’s strategic location, diverse economy, and business-friendly environment make it an excellent place for expats looking to conduct business locally, regionally, and globally. Whether you are an investor, entrepreneur, or corporate executive, Turkey offers numerous opportunities to achieve your business goals and thrive in a dynamic and growing market.

Global Business Agreements 

Ankara Agreement 

The Ankara Agreement is an agreement between Turkey and the European Economic Community (EEC), the European Union’s predecessor, signed on September 12, 1963, in Ankara, Turkey. The agreement aimed to create a framework for economic cooperation between Turkey and the EEC, with the ultimate goal of Turkey’s eventual integration into the European Economic Community.

In addition to economic cooperation, the Ankara Agreement also provided for the free movement of Turkish nationals to work and reside in EEC member states. This provision is commonly called the “Turkish ECAA (European Community Association) Agreement,” which provides a path for Turkish nationals to start a business or work in the UK.

USA – E2 Investor Residence 

Turkey is a treaty country with the United States, and Turkish citizens can apply for the E-2 Treaty Investor visa. The E-2 visa allows Turkish nationals who invest in a US business to reside and work in the US. The EB-5 is available to non-US Treaty countries, with a minimum investment of nearly $1 million. The E-2 investor visa significantly reduces the investment required compared to the EB-5 investor visa. The E-2 investment requirement is $150,000 to $250,000. 

Before 2023, investors could obtain Turkish citizenship by investing in the US under the E-2 visa. The route significantly reduces the total investment, even with a $400,000 real estate purchase in Turkey. The US now requires applicants to be domiciled in the country of their application for at least three years if they obtained their citizenship by investment. 

Real Estate Market for Living in Turkey  

Due to various factors, Turkey’s real estate market has been booming for the last few years. Firstly, there has been a growing demand for property in Turkey from domestic buyers and foreign investors. Several factors have driven the demand, including a growing population, a strong economy, and government incentives such as the Citizenship by Investment program. 

Additionally, the Turkish government has made it easier for foreigners to purchase property in the country and has introduced a range of tax incentives and other measures to encourage investment in the real estate sector. The citizenship by investment program is another reason for good yields in Turkey’s key areas that drive tourism. Annual yields have consistently been around 20% year on year. The Global Residence Team ensure you receive information from a registered and approved agent on the ground in Turkey. Our goal is to ensure you maximise your return on investment while obtaining a second citizenship. 

What Regions to Look at?

Expats, including Americans living in Turkey, are often first pointed to Istanbul as the most popular destination for expats. The cities large population, business opportunities, and cultural attractions are a few draw cards. Antalya, on the southern coast of Turkey, is also a popular destination for expats due to its warm climate, beaches, and tourist industry. Ankara, the capital of Turkey, is home to many expats working for the government, diplomatic missions, and international organizations. Bodrum, a growing tourist location, is growing its digital nomad presence, and real estate investors are looking for significant long-term growth opportunities. 

The Turkish Lira is a depreciating currency against major forex indices like the US dollar, Euro, and Pound. The rise in real estate prices in Lira is partially due to the consistent decline of the local currency against the US dollar. Real estate is an asset that holds its value in dollar terms in global markets like Istanbul, Antalya, Ankara, and Bodrum. The actual return is, however, positive even in US dollar terms, thus attracting foreign real estate investors to Turkey.

Cost of Buying Real Estate in Turkey  

The cost of purchasing real estate in Turkey will vary from city to city and vastly differ within each town. As discussed earlier, the prices of the Turkish Lira are consistently increasing due to the currency’s depreciation. In US dollar terms, there are steady increases in prices in major cities. Buying is only for some, and renting can be cost-effective for expats, including Americans living in Turkey.

A two-bedroom apartment can cost anywhere from 3,000 to 12,000 TRY ($155 to $680) per month depending on which of the following in four locations:

• Istanbul: 6,500 to 13,000 TRY ($340 to $680);
• Ankara: 3,600  to 7,200 TRY ($190 to $380);
• Antalya: 3,000 to 6,000 TRY ($155 to $310); and
• Bodrum: 4,900 to 12,000 TRY ($260 to $630). 

The cost to buy a two-bedroom apartment in the metropolitan areas of Istanbul, Ankara, Antalya, and Bodrum can vary depending on the location, quality, and other factors. Here are some approximate price ranges:

• Istanbul: 1,600,000 to 8,000,000 TRY ($95,000 to $470,000);
• Ankara: From around 600,000 to 3,00,000 TRY ($35,000 to $180,000);
• Antalya: 400,000 to 2,000,000 TRY ($24,000 to $120,000); and
• Bodrum: From 800,000 to 4,000,000 TRY ($48,000 to $240,000).

Getting Setup Financially and Banking While Living in Turkey

Setting up financially in Turkey as an expat can be straightforward, but it depends on your circumstances and the specific financial services you need.

Banking 

To open a bank account in Turkey, you must typically provide your passport and proof of residency, such as a residence permit. Some banks may also require additional documentation, such as a tax identification number or a work permit.

• İşbank is the largest bank in Turkey;
• Garanti BBVA is known for its excellent customer service and offers a range of banking services, including online banking in English;
• Akbank is another popular choice for expats and offers a range of banking services, including online banking in English;
• HSBC is an international bank that operates in many countries around the world;
• Citibank Turkey is another international bank that operates and offers a range of banking services for expats; and 
• DenizBank has excellent online banking services and offers a range of banking services.

Tax Planning

Turkey has a waterfall tax schedule for income taxes for its tax residents. Tax residency requires someone to live in Turkey for more than six months annually. Income taxes range from 0 to 35%, and individuals can use deductions and allowances to reduce their taxable income. Non-tax residents will not pay taxes on their global income. 

After meeting specific conditions, foreign employees living in Turkey for up to two years may be exempt from income tax on their salaries. One of the conditions is that a foreign employer must pay their wages.

Corporate taxes sit at 20% for profits earned within a tax year. However, Turkey has eight economic free zones. Companies set up in these jurisdictions are tax-exempt from profits, stamp duty, property taxes, and VAT on logistics.  

Retired foreign individuals may benefit from reduced income tax rates if their retirement income comes from abroad and is not subject to taxation in Turkey. Under this incentive, foreign retirees may benefit from a flat income tax rate of 15% on their foreign-source income. The allowance applies to any retirement income, including pensions, annuities, and other retirement benefits.

Cost of Living in Turkey 

The monthly budget for a single person in any Turkish city, like Antalya, is estimated to be around $1000. Compared to other European cities, the living costs are relatively similar or even lower. If you move to Turkey from a mid-priced town in the United States, you can expect your monthly living costs to be about 60% lower. This significant difference may be one reason why many Americans live in Turkey and why retirees of other nationalities consider Turkey a retirement destination.

Accommodation

The cost of rent varies greatly depending on the apartment’s location, size, and condition. In a decent neighborhood, a two-bedroom apartment can range from 3,000 to 12,000 TRY ($155 to $680).

Groceries

Basic groceries for a single person can cost around 2,280 to 4,560 Turkish Lira per month (approximately $120 to $240). Eating out in a mid-range restaurant can cost approximately 50 to 100 Turkish Lira per meal (roughly $6 to $12).

Transportation

 The cost of public transportation in Istanbul is relatively low. A single metro, tram, or bus trip costs 10 Turkish Lira (approximately $0.55). Monthly passes are also available for around 475 Turkish Lira (about $25).

Entertainment

The cost of entertainment can vary widely depending on personal preferences. Movie tickets cost around 55 to 75 TRY (approximately $3 to $4). A gym membership can range from 475 to 950 TRY per month (roughly $25 to $50).

Healthcare Cost and Quality of Care

Turkey’s national healthcare system is ranked 70th out of 191 by the World Health Organization. Healthcare quality in Turkey can vary by region, with limited access in rural areas despite the lower costs compared to some European countries. Major urban centers like Istanbul generally offer higher-quality care and English-speaking healthcare providers. For this reason, many expats choose to use private medical facilities instead of public ones. The monthly cover is cost-effective, coming in between $50 and $100 (950 to 1,900 TRY).

All residents under sixty-five must have either public or private health insurance. After residing in Turkey for over a year with a residence permit, expats can apply for public health insurance through the state-run Sosyal Güvenlik Kurumu (SGK). However, many expats prefer to supplement public insurance with private insurance or opt for private insurance alone to cover additional fees at private facilities.

What Age Groups Can Live in Turkey 

Turkey offers a unique experience for expats seeking adventure, affordability, and a high quality of life. With its rich culture, beautiful landscapes, and welcoming people, it is no wonder that many people choose to make Turkey their home away from home.

Retirees

A large growing group of expats retire to Turkey each year. There are many opportunities to enjoy your retirement years while living in Turkey. Turkey’s cost of living is relatively low, making it easier for retirees to live on a fixed income. Retirees can enjoy various activities like hiking, sightseeing, and socializing with other expats. Many retirees also find they can volunteer or work part-time to stay active. 

Business Entrepreneurs and Digital Nomads

Entrepreneurs and digital nomads can find many opportunities while living in Turkey. Turkey has a growing startup scene, with many incubators and accelerators supporting new businesses. Turkey also has a young and tech-savvy population. Thus a good talent pool for digital nomads looking to build a remote team. Many digital nomads can also work from co-working spaces and cafes, which offer high-speed internet and a supportive community.

Students

Turkey’s rich history and culture provide a unique learning experience. Many universities in Turkey offer courses in English, making it easier for international students to adapt to their new environment. Turkey is more affordable for international students to study abroad. 

• Bilkent University: Bilkent University is a private university in Ankara known for its excellent academic programs and research facilities. Bilkent University is among the top 500 universities in the world. It has a highly international student body, with over 3,000 students from seventy-five different countries;
• Middle East Technical University (METU): METU is a public research university in Ankara, Turkey. It was founded in 1956 and is known for its strong academic programs in engineering, natural sciences, and social sciences;
• Boğaziçi University Istanbul: Boğaziçi University is a public research university located in Istanbul, Turkey. It was founded in 1863 and is one of the oldest universities in Turkey. There are over 2,000 students from more than ninety different countries;
• Sabancı University: Sabancı University is a private university and one of Turkey’s most prestigious universities. It has a highly international student body, with over 1,500 students from over seventy countries. 

Closing Thoughts on Living in Turkey

Turkey is an interesting country for many reasons. For those considering the citizenship by investment program, it’s essential to choose a reliable and experienced service provider to ensure a smooth and successful process. It’s also important to research and understand the investment options and requirements before making any commitments.

For retirees moving to Turkey, it’s worth considering the country’s retirement-friendly policies and low cost of living. Turkey offers retirement visas that allow expats to stay in the country for extended periods, and the healthcare system is relatively affordable and accessible.

Regardless of your reason for moving to Turkey, it’s important to respect the local culture and laws and make an effort to learn the language. Connecting with the expat community can also be helpful in making the transition smoother.

If you are interested in any of the programs, why don’t you sign up for our free consultation?

Frequently Asked Questions

Are there any restrictions on the types of investments that can be made for Turkish citizenship?

Yes, there are restrictions on the types of investments that can be made for Turkish citizenship. Only certain types of investments, such as real estate and fixed capital investments, are eligible for the program.

How long does it take to obtain Turkish citizenship through the investment program?

It takes approximately three to four months to obtain Turkish citizenship through the investment program, once the qualifying investment has been made.

Can I apply for Turkish citizenship by investment if I am not a resident of Turkey?

Yes, you can apply for Turkish citizenship by investment even if you are not a resident of Turkey.

Will I be able to retire in Turkey with $1,500 per month?

Yes. Although cities like Istanbul and Ankara are generally more expensive,  smaller cities and towns may be more affordable. Rent, groceries and transport are relatively cheap compared to most European and American cities.

What are the benefits of holding a Turkish passport as a citizen?

Benefits of holding a Turkish passport as a citizen include visa-free travel to over 110 countries and access to the Turkish healthcare and education systems.

Can I apply for Turkish citizenship through investment if I have a criminal record?

No, it is not possible to apply for Turkish citizenship through investment if you have a criminal record.

The post Living in Turkey: Global Residence Index Inside Guide appeared first on Global Residence Index.