Not every investor wants to own Turkish real estate. Some have no interest in managing a property from abroad; others prefer an investment with a defined end date and no maintenance. For them the deposit route exists: USD 500,000 placed in a bank operating in Turkey, held for three years, and certified by the banking regulator. This article sets out how it works, what the money can and cannot do during those three years, and how it compares with buying property.
The rule
Article 20 of the Regulation implementing Law No. 5901 provides that a foreign national who deposits at least USD 500,000 — or the equivalent in foreign currency or Turkish lira — in banks operating in Türkiye, and undertakes to keep it there for three years, may apply for exceptional citizenship. Compliance is certified by the Banking Regulation and Supervision Agency, the BDDK.
Three things follow. The bank must be one operating in Türkiye under BDDK supervision — which includes the Turkish subsidiaries of foreign banks. The three-year commitment is a condition of the certificate, not a contractual penalty. And the certifying authority is the regulator, not the bank itself, although the bank supplies the underlying confirmation.
What "held for three years" actually means
This is the point on which investors are most often misinformed, in both directions.
The deposit is not confiscated, blocked from earning, or transferred to the state. It remains your money, in an account in your name. It earns interest, or profit share in a participation bank, at whatever rate you negotiate — and that return belongs to you and can be withdrawn.
What you undertake is not to let the principal fall below the threshold for three years. You cannot deposit USD 500,000, obtain the certificate, and withdraw USD 300,000 the following month. The BDDK monitors compliance, and a breach can put the basis of the citizenship in question.
Within that constraint there is flexibility. Deposits can generally be renewed, moved between accounts at the same bank, or restructured between term and demand accounts, provided the balance is maintained. Moving the funds to a different bank is possible but must be handled carefully so that continuity is documented; this is not a step to improvise.
Currency: dollars, euros or lira?
The threshold is expressed in US dollars, and the equivalent is calculated at the Central Bank effective selling rate. You may hold the deposit in foreign currency or in Turkish lira.
The choice is a genuine financial decision rather than a legal one. Lira deposits have historically offered materially higher nominal interest rates than foreign currency accounts; they also carry exchange rate risk over a three-year horizon. An investor whose obligation is measured in dollars but whose deposit is held in lira must watch the balance, because a currency move can push the dollar equivalent below the threshold even though the lira figure has grown.
The conservative approach — and the one most investors adopt — is to hold in foreign currency, accept a lower return, and keep the threshold question closed. Investors who want lira exposure usually deposit meaningfully above USD 500,000 to absorb movement.
Opening the account
The practical sequence is short:
- Tax identification number. Obtainable from the tax office or online with a passport, in minutes.
- Bank account. Opened on the strength of the passport and tax number. Banks apply their own compliance requirements, and some ask for proof of address or a residence permit; policies vary between institutions and between branches.
- Transfer of funds. The money must arrive through the banking system, from an account traceable to the investor. Cash deposits and third-party transfers create source-of-funds questions that are far harder to answer later.
- Foreign exchange purchase document. Where funds arrive in foreign currency and are converted, the bank issues a DAB recording the transaction. It evidences that the money entered Türkiye as foreign currency.
- Application to the BDDK for the certificate of conformity, supported by the bank's confirmation.
Anti-money-laundering compliance sits over all of this. Banks are required to establish the source of funds, and a transfer arriving from a jurisdiction or counterparty that raises questions will be examined. Prepare the documentation of where the money came from before it moves, not after the bank asks.
Deposit or property: an honest comparison
| Real estate | Bank deposit | |
|---|---|---|
| Minimum | USD 400,000 | USD 500,000 |
| Holding period | 3 years | 3 years |
| Return during the period | Rent, plus any capital growth | Interest or profit share |
| Downside risk | Overpayment; illiquid resale | Currency risk if held in lira |
| Ongoing obligations | Management, tax, insurance, maintenance | None |
| Exit at year three | Requires finding a buyer | Withdrawal |
| Main documentary risk | Valuation, title defects | Source of funds |
The USD 100,000 difference in threshold is what buys the simplicity. Property costs less to enter and more to manage; a deposit costs more to enter and nothing to manage. Investors who intend to live in Türkiye, or who want an asset they can use, choose property. Investors treating citizenship as a discrete transaction usually choose the deposit.
One asymmetry deserves emphasis. The most expensive mistakes in the property route — buying at an inflated price, discovering a title defect, finding no buyer at year three — have no equivalent here. A deposit cannot be overpriced.
After three years
The undertaking expires. The funds can be withdrawn or transferred abroad in the ordinary way, subject to normal banking procedures. Citizenship already granted is unaffected: it is not conditional on the money staying, and it does not lapse.
Investors sometimes ask whether the withdrawal triggers a review. It does not. The condition was three years, and three years having passed, the condition is spent.
Where these files go wrong
- Funds arriving from a third party. A transfer from a relative's or business partner's account raises a source-of-funds question that can stall the file for months. Send the money from an account in your own name.
- Cash deposits. Untraceable and, for a sum of this size, certain to attract compliance scrutiny.
- Sitting on exactly USD 500,000 in lira. A currency move takes the dollar equivalent below the line.
- Withdrawing the interest and part of the principal together without checking the balance against the threshold.
- Moving banks mid-term without documenting continuity. Permissible, but it must be evidenced.
- Assuming the certificate is automatic. It is applied for, on a documented file, like every other route.
Frequently asked questions
Can I use a participation (Islamic) bank? Yes, provided it operates in Türkiye under BDDK supervision. Profit share replaces interest.
Can I split the deposit between banks? Practice varies and it complicates certification; a single institution is simpler.
Do I have to come to Türkiye to open the account? Often not — some banks offer remote onboarding for non-residents, and an attorney holding a power of attorney with explicit banking authority can open and operate an account. Policies differ by bank.
Can I withdraw the interest? Yes. Only the principal must remain at or above the threshold.
Is the interest taxable? Interest income earned in Türkiye is subject to withholding tax at source. Your own country of residence may also tax it; a double taxation treaty may apply.
Does the deposit route cover my family? Yes — spouse and children under eighteen, as with every other route.
What happens if I need the money in year two? The undertaking would be broken and the basis of the citizenship called into question. If there is any realistic prospect of needing the funds, this is not the right route.
Getting the file right
The deposit route is the simplest of the six on paper and still fails when the money's history is not documented. What a lawyer contributes here is preparation of the source-of-funds file before the transfer, coordination with the bank's compliance department, and management of the BDDK certification — followed by the residence permit and the citizenship application itself.
Dural Hukuk handles these files for investors who prefer not to hold Turkish property, including clients who complete the entire process by power of attorney. Call +90 535 260 74 54 or use the contact form on this site.
This article is general information on Turkish law as at August 2026 and is not legal or financial advice. Interest rates, banking policies and administrative practice change; obtain advice on your own circumstances before transferring funds.