Turkish Citizenship by Government Bonds

Of all six pathways to a Turkish passport, the government bond route is the one that gets the least attention — and that is partly because it is less straightforward to execute than a bank deposit, and partly because most brokers and migration consultants do not fully understand the operational mechanics. But for the right investor profile, particularly those who already work with sovereign debt instruments and want a government-backed asset rather than a bank product, it is a legitimate and underutilised option.

This guide explains how Turkish citizenship by government bonds works in 2026, what types of bonds qualify, how the tax treatment compares to the bank deposit route, what the step-by-step process looks like, and where the practical difficulties lie.

Legal Notice: This page provides general legal information for educational purposes only. It does not constitute legal advice. For guidance specific to your situation, please consult a qualified attorney.

What Makes Government Bonds Different From the Bank Deposit Route

Both the bond and deposit routes require USD 500,000 held for three years. On the surface they look identical. But there are meaningful differences:

The issuer is the sovereign, not a bank

A government bond is a direct obligation of the Turkish state. It is not subject to bank insolvency risk and is not covered (or limited) by deposit insurance thresholds. For investors placing USD 500,000, this distinction matters: the full amount is backed by the Republic of Turkey’s balance sheet, not by a commercial bank’s.

Tax treatment has been significantly more favourable

For bonds acquired between 22 December 2021 and 30 June 2026, the withholding tax rate on interest income for individual beneficial owners is 0%, per Presidential Decree No. 10706 published in the Official Gazette (Resmî Gazete) No. 33112 dated 19 December 2025. This compares to withholding rates of 10–17.5% on bank deposit interest. The zero-rate period has been extended several times and runs through 30 June 2026. After this date, the applicable rate may revert or be extended again by Presidential Decree — investors should verify the current rate with counsel before proceeding.

The compliance authority is different

For bank deposits, the compliance certificate is issued by the Banking Regulation and Supervision Agency (BDDK). For government bonds, confirmation of the investment is issued by the Ministry of Treasury and Finance. This difference affects the operational pathway and which institutions are involved.

Execution is less standardised

The bank deposit route is well-practised by every major Turkish bank. The bond route requires working through an authorised broker or bank with access to the government securities market, and the process for obtaining the Ministry’s conformity certification is less routine. This is not a barrier — but it does mean that working with legal counsel who knows the process is more important here than on any other route.

Legal Framework

Turkish citizenship by government bonds is established under Article 20(d) of the Implementing Regulation on the Implementation of Turkish Citizenship Law No. 5901.

The bond purchase is governed by Public Debt Management Law No. 4749, which regulates the issuance of Turkish government debt instruments. The Ministry of Treasury and Finance is the issuing authority and the body that issues the conformity certificate confirming that the investment meets the citizenship program requirements.

Interest income taxation is governed by Temporary Article 67 of Income Tax Law No. 193, with current reduced rates set by Presidential Decree No. 10706, extended through 30 June 2026 per the Official Gazette No. 33112, 19 December 2025.

Anti-money laundering compliance applies under Law No. 5549 on Prevention of Laundering Proceeds of Crime, administered by MASAK. Source of funds documentation is reviewed before the investment is confirmed.

Investment Requirements at a Glance

Requirement	Details
Minimum investment	USD 500,000 or equivalent in foreign currency
Instrument type	Turkish government bonds or treasury bills (DİBS) approved by the Ministry of Treasury and Finance
Holding period	3 years from citizenship grant date
Sale or transfer	Not permitted during holding period
Confirming authority	Ministry of Treasury and Finance
Interest income tax	0% withholding for bonds acquired 22.12.2021 to 30.06.2026 (subject to extension)
Capital gains tax	0% for individual investors on bonds acquired in the same period

Types of Qualifying Instruments

Not all Turkish government securities qualify for the citizenship program. The investment must be in instruments approved by the Ministry of Treasury and Finance under Public Debt Management Law No. 4749.

Domestic government bonds and treasury bills (Devlet İç Borçlanma Senetleri / DİBS)

These are Turkish lira-denominated fixed or floating rate instruments issued by the Treasury and traded on the Istanbul Stock Exchange (Borsa Istanbul) or over the counter through licensed intermediaries. They are the most commonly used instruments for citizenship purposes.

Eurobonds (foreign currency-denominated)

Turkey issues USD and EUR denominated sovereign bonds in international capital markets. These can qualify for the citizenship program but require specific structuring through an authorised Turkish intermediary institution.

Lease certificates (Sukuk / Kira Sertifikası)

Islamic-structure lease certificates issued by Asset Leasing Companies established under Law No. 4749 qualify under the same tax treatment as conventional bonds. The 0% withholding rate applies equally. This option is available for investors who prefer Sharia-compliant instruments.

The specific instruments selected must be confirmed as eligible before the investment is made. We verify instrument eligibility with the Ministry of Treasury and Finance as part of our pre-investment advisory.

Tax Treatment in Detail

This is where the government bond route has a clear edge over the bank deposit route — at least for the current period.

For bonds acquired between 22 December 2021 and 30 June 2026:

Income type	Withholding tax rate (individual)
Interest income on TRY-denominated bonds	0%
Interest income on foreign currency bonds	0%
Capital gains on bond sales	0%
Income from qualifying lease certificates	0%

Source: Presidential Decree No. 10706, Official Gazette No. 33112, 19 December 2025

What happens after 30 June 2026?

The 0% rate has been extended multiple times since its introduction. There is no guarantee it will be extended again. The standard withholding tax rate under Temporary Article 67 of Income Tax Law No. 193 for government bonds is 0–10% depending on the instrument and holding period. Investors whose three-year citizenship holding period extends beyond June 2026 should obtain updated tax advice on the applicable rates at that time.

Double taxation treaties

Turkey maintains tax treaties with over 80 countries that may provide for reduced withholding rates or home-country tax credits. The full treaty list is published by the Ministry of Treasury and Finance. Even where domestic withholding is 0%, home-country tax treatment of Turkish bond income should be verified with a tax advisor in the investor’s country of residence.

The Step-by-Step Process

Step 1: Obtain a Turkish Tax Identification Number

Before any investment account can be opened, you need a Turkish Tax Identification Number (Vergi Kimlik Numarası), obtained at any local tax office with your passport. This can be handled remotely by your legal representative under power of attorney.

Step 2: Open an Investment Account with an Authorised Intermediary

Government bonds are purchased through banks or licensed intermediaries (aracı kurum) authorised to operate in Turkish government securities markets. These institutions are regulated by the Capital Markets Board (SPK) and the Banking Regulation and Supervision Agency (BDDK).

Unlike the bank deposit route, where almost any major bank can process the investment, the bond route requires working with an institution that has active access to the DİBS market and experience with citizenship-related bond purchases. We identify the right intermediary for each client.

Step 3: Transfer Funds and Purchase Bonds

The USD 500,000 or equivalent is transferred into your Turkish investment account. Funds must originate from your own account and be traceable for AML purposes under Law No. 5549. The bonds are then purchased at current market prices.

The USD equivalent of the investment must meet the USD 500,000 threshold at the date of purchase. For TRY-denominated bonds, the conversion rate applied by the Central Bank of Turkey (TCMB) on the date of purchase determines whether the threshold is met.

Step 4: Obtain the Conformity Certificate from the Ministry of Treasury and Finance

After the bond purchase is confirmed, the Ministry of Treasury and Finance issues a conformity certificate (uygunluk belgesi) confirming that the investment meets the requirements of the citizenship program. This is the document that triggers the citizenship application process.

The Ministry’s confirmation process is less routine than the bank compliance certificate process. Timeline for issuance varies. Plan for this step to take longer than the equivalent bank deposit step, and initiate it as soon as the purchase is completed.

Step 5: Obtain a Short-Term Residence Permit

A short-term residence permit is a procedural prerequisite to the citizenship application, applied for through the Directorate General of Migration Management under Law No. 6458 on Foreigners and International Protection. Your spouse and children under 18 are included in the same application.

Physical presence in Turkey is required for biometric data collection during this step, typically arranged as a single trip of one to two days.

Step 6: Submit the Citizenship Application

With the conformity certificate and residence permit in hand, the citizenship application is submitted to the General Directorate of Population and Citizenship Affairs (NVI). The application is reviewed by the Ministry of Interior and General Directorate of Security. If all conditions are met, citizenship is approved and Turkish ID cards and passports are issued.

Standard processing time from full submission: 3 to 6 months.

Required Documents

• Valid passport for all applicants, with certified translations by sworn translators
• Biometric photographs meeting Ministry of Interior specifications
• Birth certificates for all applicants
• Marriage certificate (if applicable), apostilled or notarized
• Police clearance certificates from countries of current and prior residence
• Conformity certificate issued by the Ministry of Treasury and Finance
• Bond purchase documentation and account statements
• Proof of fund transfer showing source and origin of funds
• Source of funds documentation (required under Law No. 5549 / MASAK)
• Short-term residence permit
• Power of attorney (strongly recommended)

Government Bonds vs. Bank Deposit: A Direct Comparison

These two routes have the same investment threshold, the same holding period, and the same citizenship outcome. The differences are operational and financial.

Factor	Government Bonds	Bank Deposit
Minimum investment	USD 500,000	USD 500,000
Issuer	Republic of Turkey (sovereign)	Licensed Turkish bank
Interest/return	Market yield on bonds	Bank deposit rate
Withholding tax (current)	0% until 30 June 2026	10–17.5% depending on maturity
Compliance certificate	Ministry of Treasury and Finance	Bank (BDDK-regulated)
Process standardisation	Less routine	Well-practised at all major banks
Islamic option	Sukuk/lease certificates available	Participation accounts available
Liquidity after 3 years	Sellable on secondary market	Full withdrawal
Insolvency protection	Sovereign obligation	TMSF deposit insurance (partial)

For investors who want the strongest possible counterparty — the Turkish government rather than a commercial bank — and who are comfortable with a slightly less routine operational process, the bond route is the stronger product. For investors who prioritise simplicity and process certainty, the bank deposit route is easier to execute.

Practical Considerations and Risks

The conformity process is slower and less standardised

The Ministry of Treasury and Finance conformity certificate does not have a fixed issuance timeline. Some cases are processed in weeks; others take longer depending on administrative workload and the completeness of the documentation submitted. We prepare all documentation to the highest standard before submission to minimise delays.

Currency risk on TRY-denominated bonds

The same currency risk that applies to TRY bank deposits applies to TRY-denominated bonds. High nominal yields in lira may not compensate for depreciation in USD terms. Foreign currency bonds (Eurobonds) eliminate this risk but may offer lower nominal yields. We advise clients on instrument selection based on their reference currency and return expectations.

Tax rate uncertainty after June 2026

The 0% withholding rate is set by Presidential Decree, not by statute, and is therefore subject to change without legislative action. Investors whose three-year holding period extends beyond 30 June 2026 should monitor potential rate changes and plan accordingly.

Market price fluctuations

Unlike a fixed bank deposit, bond prices fluctuate on the secondary market. The USD 500,000 threshold is assessed at the date of purchase, not on an ongoing basis, so price movements after purchase do not affect citizenship eligibility. However, investors who plan to sell after three years should track market conditions as the holding period nears its end.

Source of funds documentation

Turkish authorities and the Ministry of Treasury and Finance require documentation of the legitimate origin of all investment funds. Investors with complex structures or funds from multiple jurisdictions should prepare documentation packages before initiating the investment.

Who This Route Suits

The government bond route is best suited for:

• Investors who work professionally with sovereign debt instruments and are comfortable with securities market execution
• Investors who want a direct Turkish state obligation rather than a bank product
• Those investing before 30 June 2026 who want to benefit from the 0% withholding rate on interest income
• Investors whose home-country tax advisors have identified the bond route as more efficient under applicable double taxation treaties
• Those who prefer Sharia-compliant instruments through the sukuk/lease certificate option

It is less suited for investors who want the simplest possible process or who have no existing relationship with Turkish capital markets infrastructure.

Frequently Asked Questions

Can I hold a mix of different bond types to reach USD 500,000?

Yes, provided all instruments are approved under Public Debt Management Law No. 4749 and the combined value meets the threshold at the date of purchase. Each instrument must be confirmed as eligible before purchase.

What happens to the interest income during the three-year holding period?

Interest is paid to the investor according to the coupon schedule of each bond. As of mid-2026, this income is subject to 0% withholding tax for individual investors under the extended Presidential Decree. The principal remains locked; the coupon payments are accessible.

Can I sell individual bonds within the portfolio as long as I replace them with new ones of equivalent value?

No. The holding commitment applies to the specific instruments purchased for citizenship purposes. Any disposal triggers a breach of the three-year requirement and risks citizenship revocation. Consult legal counsel before taking any action on the portfolio during the holding period.

Is the bond route available for Islamic investors?

Yes. Lease certificates (kira sertifikası / sukuk) issued by Asset Leasing Companies under Law No. 4749 qualify for the program and are subject to the same 0% withholding rate under the current Presidential Decree. Turkish participation banks and some conventional banks can facilitate sukuk purchases for citizenship purposes.

Do I need to be in Turkey to purchase the bonds?

Not necessarily. With a properly structured power of attorney, your legal representative can manage the account opening and bond purchase on your behalf. Physical presence is required for the biometric registration step during the residence permit application.

What if Turkey’s credit rating changes during the holding period?

A change in sovereign credit rating does not affect your citizenship eligibility or your legal obligation to hold the bonds. It would affect the market price of the bonds if you planned to sell after the holding period, but has no bearing on the citizenship application itself.

Working With Aslan Attorney

Aslan Attorney is an Istanbul-based international law firm registered with the Istanbul Bar Association. The government bond route requires specific knowledge of Turkish capital markets law, Ministry of Treasury procedures, and the citizenship application framework simultaneously. We handle all three.

Our process for bond route cases: instrument eligibility verification with the Ministry, intermediary identification and account setup, investment execution and documentation, conformity certificate coordination, residence permit and citizenship application preparation, and ongoing compliance monitoring during the holding period.

For clients considering both the bond and deposit routes, we provide a full comparative analysis including tax modelling, process timeline projections, and all-in cost comparisons as part of the initial consultation.

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