Among the six routes to Turkish citizenship by investment, the government bond route attracts a particular kind of investor: one who wants sovereign credit risk rather than property risk, a defined maturity, and nothing to manage. USD 500,000 in instruments issued by the Turkish Treasury, held for three years, certified by the Ministry of Treasury and Finance. This article explains how it works and where its risks actually lie.
The rule
Article 20 of the Regulation implementing Law No. 5901 permits exceptional citizenship for a foreign national who purchases at least USD 500,000 — or the equivalent — in government debt instruments and undertakes to hold them for three years. Compliance is certified by the Ministry of Treasury and Finance.
The instruments are those issued by the Turkish Treasury: lira-denominated domestic bonds and bills, and foreign currency denominated issues. Corporate bonds do not qualify, nor do the securities of other states. The counterparty is the Republic of Türkiye.
How the purchase is made
Government securities are not bought directly from the Treasury by retail investors. The chain runs through an authorised intermediary — a bank or a licensed brokerage — and the instruments are held in a securities account in the investor's name at the Central Securities Depository.
The practical sequence:
- Obtain a Turkish tax identification number.
- Open an account with a bank or licensed intermediary institution, and a securities account.
- Transfer the funds from your own account abroad, through the banking system. Where currency is converted, retain the foreign exchange purchase document.
- Purchase the instruments to a value of at least USD 500,000 equivalent.
- Apply to the Ministry of Treasury and Finance for the certificate of conformity, supported by the intermediary's confirmation and a blocking or holding undertaking for three years.
The holding is recorded and monitored. As with the deposit route, the undertaking is a condition of the certificate rather than a private arrangement.
What "held for three years" means here
You may not dispose of the instruments below the threshold during the period. Coupon payments — the periodic interest the bonds pay — are yours, and receiving them does not breach the undertaking.
A question specific to this route: what happens when a bond matures before the three years are up? Government instruments have fixed maturities, and a bond bought today may redeem in eighteen months. The redemption proceeds must be reinvested so that the holding remains at or above the threshold for the full period. This is a manageable requirement, but it is an active one — it needs to be planned at purchase, by selecting maturities that fit the three-year window or by arranging reinvestment in advance.
Investors who assume this route is entirely passive are usually the ones who are surprised by a maturity date.
Currency: the decision that matters
The threshold is measured in US dollars. The instruments may be lira-denominated or foreign currency denominated, and the choice drives the risk profile more than anything else in this route.
Lira-denominated instruments have historically offered substantially higher nominal yields. They also carry exchange rate risk across a three-year horizon, and that risk cuts in a specific way here: if the lira weakens, the dollar equivalent of your holding falls, and it may fall below USD 500,000 even though the lira value has grown. That is both a financial loss and a compliance problem.
Foreign currency denominated issues — Türkiye's eurobonds and domestic foreign currency instruments — pay lower yields and remove the currency mismatch between the investment and the threshold.
Most investors using this route for citizenship purposes choose foreign currency instruments, accept the lower yield, and treat the return as secondary to the certainty. Those who prefer lira yields generally invest meaningfully above the threshold to absorb movement.
Comparison with the other financial routes
| Bank deposit | Government bonds | Investment funds | |
|---|---|---|---|
| Minimum | USD 500,000 | USD 500,000 | USD 500,000 |
| Counterparty | Commercial bank | Republic of Türkiye | Fund and its assets |
| Certifying authority | BDDK | Ministry of Treasury and Finance | SPK |
| Return | Interest / profit share | Coupon | Fund performance |
| Active management needed | Minimal | Maturity planning | Fund selection |
| Principal risk | Deposit insurance limits apply | Sovereign risk | Market risk |
The honest summary: the bond route is the choice of an investor who is comfortable with Turkish sovereign risk and wants no operational involvement beyond maturity management. It is not obviously superior to a deposit, and the sensible way to choose between them is on the yield and risk terms actually available at the time, not on general principle.
Tax
Income from government securities is subject to withholding at source in Türkiye, with rates that vary by instrument type and by whether the holder is resident. Your own country of residence may also tax the income, and a double taxation treaty between that country and Türkiye may allocate or relieve it.
This is a question for a tax adviser rather than a lawyer, and it should be asked before the investment rather than at the first coupon payment.
Where these files go wrong
- Funds sent from a third party. Same problem as every other route: the money must come from the applicant.
- Maturity inside the three-year window with no reinvestment plan. The holding drops below the threshold and the undertaking is breached.
- Lira instruments held at exactly the threshold. Currency movement takes the dollar equivalent below the line.
- Buying through an unauthorised intermediary. Certification depends on records from a licensed institution.
- Assuming corporate bonds qualify. They do not. Only Treasury instruments.
- No source-of-funds documentation. Compliance departments will ask, and the answer should exist before the question.
After the three years
The undertaking expires. The instruments can be sold or held to maturity as you prefer, and proceeds transferred abroad through the ordinary banking channels. Citizenship already granted is unaffected — it was not conditional on the holding continuing.
Frequently asked questions
Can I mix bonds and a deposit to reach USD 500,000? Each route is certified by a different authority against its own threshold. Combining across routes is not the intended structure; take advice before attempting it.
Do I have to hold the same bond for three years? No — the requirement is that the qualifying holding is maintained. Instruments can be replaced, provided continuity is documented.
Can I receive the coupons abroad? Coupons are paid into your account and can be transferred in the ordinary way.
Is there deposit insurance? No — this is sovereign debt, not a deposit. The risk is the Republic's creditworthiness.
Can my lawyer do this under power of attorney? Account opening and instruction can be handled by an attorney where the power of attorney contains explicit banking and securities authority. Intermediaries apply their own compliance requirements.
Does this route cover my family? Yes — spouse and children under eighteen, as with every route.
Which currency should I choose? A financial decision, not a legal one. The compliance consideration is that the threshold is measured in dollars.
Before you invest
The bond route is administratively clean and financially specific. Its two genuine pitfalls — a maturity falling inside the holding period, and a currency mismatch between the instrument and the threshold — are both solved at the point of purchase by choosing the right instruments, and neither is solvable comfortably afterwards.
Dural Hukuk structures these files with the client's intermediary, prepares the source-of-funds documentation, manages the certification with the Ministry of Treasury and Finance, and carries the file through the residence permit and citizenship application. 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, investment or tax advice. Yields, instruments and administrative practice change; obtain advice on your own circumstances before investing.