Home · Turkish citizenship by investment · Government bonds, USD 500,000
Buy USD 500,000 of Turkish government debt, hold it for three years, and you and your family can apply for citizenship. Of the four routes this is the one that pays you while you wait: the bonds carry coupons every six months, and what you do with those coupons decides how much of the return survives in dollars.
The threshold for this route is USD 500,000. If your budget is between USD 400,000 and USD 500,000, the property route is open to you instead and we will tell you so.
At a glance
| Item | Government bonds, USD 500,000 |
|---|---|
| Minimum investment | USD 500,000, or the equivalent in another currency, in Turkish government debt instruments |
| Holding period | Three years, with the instruments held in a blocked account |
| Legal basis | Turkish Citizenship Law no. 5901, article 12/B; Regulation article 20; Presidential Decision no. 5042 |
| Certifying authority | Ministry of Treasury and Finance |
| Income during the term | Coupon payments, normally every six months |
| Typical timeline | Eight to nine months from application to presidential decree, in our files |
| Who is included | Spouse and children under 18 |
Thresholds and tax rates are set by regulation and have been revised before. Confirm the figures in force on your filing date before any transfer is made.
The law
Government debt instruments are a qualifying category under article 20 of the implementing regulation, at the amount fixed by Presidential Decision no. 5042. The instruments are bought through a bank or licensed intermediary, held in a blocked account for three years, and certified by the Ministry of Treasury and Finance.
Withholding on interest income from government debt has been set at zero by Presidential Decision for instruments acquired within a defined window. That window has been extended repeatedly, and it is the single most valuable feature of this route while it lasts. Its status on your purchase date should be confirmed before you buy, because a change in the rate changes the arithmetic materially.
Fit
The bond route suits an investor who wants a defined maturity, a known coupon and a counterparty that is the Turkish state rather than a developer or a bank's balance sheet. It suits investors who already hold fixed income and are comfortable reading a yield.
It suits you less well if you want to forget about the investment for three years. Coupons arrive every six months and each one is a decision: convert it to dollars now, or leave it in lira. Made carelessly, that decision costs more than the difference between this route and the next one.
Process
Our files typically run eight to nine months from application to decree. The purchase itself takes days once the accounts are open; the calendar is set by compliance and by document preparation abroad.
Documents
Children are included on the file up to the age of 18. A child who turns 18 while the file is pending falls out of it, which is why the birth dates of teenage children change the order in which we do things.
On top of these, the bond route needs the source-of-funds evidence, the investment account documentation, the trade confirmations, proof that the instruments are blocked, and the certificate of conformity from the Treasury.
Costs
Two costs dominate this route and neither is a fee in the ordinary sense.
| Item | What to expect |
|---|---|
| Currency conversion spread | Roughly 1.5 per cent on entry, and again on every coupon you convert and on the exit. On USD 500,000 the entry conversion alone is around 7,500 dollars |
| Withholding on coupon income | Zero for instruments acquired inside the current window under Presidential Decision no. 11444. Confirm the position on your purchase date |
| Intermediary and custody fees | Charged by the bank or brokerage holding the account |
| Notary, translation and apostille | Per document, for every family member |
| Residence permit and application fees | Per applicant, set annually |
| Legal fee | Quoted for your family once we have seen the file |
The spread appears on no quotation you will be given. Ask your bank for it in writing before the trade.
Risks
Coupons paid in the first year are converted at a stronger lira than coupons paid in the third. Converting each coupon to dollars as it arrives therefore produces a materially better dollar result than holding the lira to the end, on any path where the lira continues to weaken. The opposite is true if it strengthens.
The version of this arithmetic you will see in marketing material usually assumes the coupons are reinvested in the same instrument at the same yield. In practice that is not available to you, and the assumption flatters the result.
Every conversion costs. Entry, six coupon conversions and the exit add up to real money, and a quoted yield that ignores them is not the yield you will receive.
Unless the instrument matures exactly at your exit, you sell at the market yield of the day. If rates have risen, the price has fallen.
We rebuild this calculation on the actual trade confirmation from your own bank, not on a generic model. It is the only way the spread and the real coupon dates are in the numbers.
In numbers
A three-year bond position bought with USD 500,000 in September 2026, with coupons paid every six months:
| Element | Effect on the dollar outcome |
|---|---|
| Entry conversion spread | Around 1.5 per cent of the capital, paid once at the start |
| Six coupon payments | Paid in lira; converted as received, the early ones convert at the more favourable rate |
| Withholding on coupons | Zero inside the current window |
| Sale at year three | At the market yield on the day, converted at the rate on the day |
| The variable that matters most | Where USD/TRY sits in year three |
The bond calculator models the actual coupon dates, the conversion of each coupon along a depreciation path, the spread on every conversion, and the sale at exit. It also shows the break-even exchange rate.
Built on Turkish Treasury semi-annual compounding, with the bank spread on every conversion and a choice between converting each coupon as it is paid or holding lira to the end. It returns the dollar outcome and the break-even exchange rate.
Open the calculatorQuestions
USD 500,000, or the equivalent, in Turkish government debt instruments held for three years in a blocked account and certified by the Ministry of Treasury and Finance.
Yes. Turkish government bonds normally pay a coupon every six months, and the coupons are paid into your own account as they fall due.
Withholding on interest from government debt instruments has been set at zero for instruments acquired within a defined window under Presidential Decision no. 11444. The window has been extended before, and the position should be confirmed on your purchase date.
The instruments are lira-denominated, so foreign currency is converted on the way in. That conversion carries the bank's spread and puts the exchange rate at the centre of the result.
The price of the instrument falls. If your bond does not mature at your exit date, you sell at the market yield of the day, which may be above or below the yield you bought at.
On a path where the lira continues to weaken, converting each coupon as it arrives is better, because the early coupons convert at a stronger rate. Our calculator shows both and lets you compare.
No. The instruments are held in a blocked account for the three-year period and cannot be sold before it ends.
The Ministry of Treasury and Finance issues the certificate of conformity for the bond route.
The counterparty is the Turkish state rather than a commercial bank, and the coupon is defined in advance. Both routes are held in lira and carry the same currency risk.
Usually not. The accounts and the purchase can be handled under a power of attorney. One short visit is normally needed for fingerprints.
Our files typically run eight to nine months from application to presidential decree.
The bank's currency conversion spread, charged on entry, on each coupon conversion and on exit. It appears in no brochure and on USD 500,000 it is thousands of dollars at each conversion.
Each route returns a different amount of money at the end of the three years, and the gap between them is larger than most investors expect. Our comparison tool sets one exchange rate and one gold price, then shows the after-tax dollar outcome of the bond, deposit and gold fund routes side by side. Compare what each route returns.
Start here
Within one business day you get a written answer from the lawyer who would run your file: whether this route suits you, what it costs in total, and what could go wrong. No brochure, no sales call.
Your details are used only to respond to this enquiry. We do not sell or share enquiry data.
Written and reviewed by Av. Arda Şardağ, Istanbul Bar Association no. 70004 · last updated 22 September 2026. Thresholds, processing times and tax rules change; this page is checked periodically.
Tell us your budget and deadline. Within one business day the lawyer who would run your file writes back personally — whether it is realistic, what it costs in total, and which districts fit. No brochure, no sales call.
Your details are used only to respond to this enquiry.