An investor-focused legal overview by Tercan Legal
Türkiye attracts Chinese entrepreneurs for two different reasons. Some want to build or expand a business close to Europe and the Middle East. Others are looking for a second citizenship and a new base for their family. Many are interested in both.
Turkish citizenship by investment is one of the best-known programmes of its kind. But it is often presented in a simplified way, as if one investment automatically brought a passport, a business and access to Europe and the United States. This article explains how these elements actually work, and what Chinese investors in particular should know before deciding.
1. Three separate questions
Before choosing a route, it helps to separate three questions, each governed by different rules:
- Investing in Türkiye: setting up or acquiring a business. This does not require citizenship.
- Obtaining Turkish citizenship: making a qualifying investment and meeting the legal requirements.
- Accessing Europe or the United States: governed by separate trade, visa and immigration rules.
A Chinese manufacturer can invest in Türkiye without applying for citizenship. A family can obtain citizenship through property without running a business. The two can be combined, but one does not automatically lead to the other.
2. Investing in Türkiye without citizenship
Foreign investors can set up a company in Türkiye and invest in production or trade without becoming Turkish citizens. The investor and foreign staff may apply for residence and work permits, which are granted only if the applicable conditions are met and are assessed case by case. For many manufacturers this is the most practical route, as the business can benefit from Türkiye’s Customs Union with the EU, its free zones and its investment incentives regardless of the owner’s nationality.
3. Obtaining Turkish citizenship by investment
Under Article 12 of Turkish Citizenship Law No. 5901, a foreign investor may exceptionally acquire Turkish citizenship by decision of the President. The qualifying investments are set out in Article 20 of the Regulation implementing the Law:
| Investment route | Minimum amount | Main condition |
|---|---|---|
| Real estate | USD 400,000 | No sale for at least 3 years (title deed annotation) |
| Fixed capital investment | USD 500,000 | Confirmed by the Ministry of Industry and Technology |
| Bank deposit | USD 500,000 | Kept in a bank operating in Türkiye for 3 years |
| Government debt instruments | USD 500,000 | Held for 3 years |
| Real estate or venture capital fund shares | USD 500,000 | Held for 3 years |
| Private pension system | USD 500,000 | Held for 3 years |
| Employment | 50 jobs | Confirmed by the competent ministry |
The real estate threshold was raised from USD 250,000 to USD 400,000 on 13 June 2022. For the real estate route, the purchase price must be supported by an official valuation report and payment records through Turkish banks. For the fund route, the foreign currency must be sold to a Turkish bank, and a fall below USD 500,000 caused only by exchange rate changes does not affect eligibility. The investor’s spouse and minor children can generally be included in the same application.
The process has several stages: making and documenting the investment, obtaining confirmation from the competent authority that it qualifies, and then the citizenship application itself. Processing times depend on each file, so investors should keep clear records of every transfer from the start. Before any funds are sent for a property, an independent legal check of the title, the seller and the price is strongly recommended.
4. When business and citizenship can be combined
Two routes link citizenship to an actual business: the USD 500,000 fixed capital investment, confirmed by the Ministry of Industry and Technology, and the creation of 50 jobs. For a Chinese manufacturer planning a factory in Türkiye, these routes can allow the same investment to support both the business and a citizenship application. Whether a particular project qualifies must be confirmed with the competent ministry before investing.
5. Accessing Europe
It is important to distinguish between goods and people. Goods produced in Türkiye or put into free circulation there benefit from the EU–Türkiye Customs Union for covered industrial products. People are a different matter: an ordinary Turkish passport does not give visa-free entry to the Schengen area. Türkiye is on the EU list of countries whose nationals need a visa, so Turkish citizens holding ordinary passports must apply for a Schengen visa.
In other words, Türkiye’s main European advantage for a Chinese investor is commercial: a business base with customs access to the EU market.
6. Accessing the United States
Türkiye is a US treaty country for the E-2 Treaty Investor visa (since 18 May 1990) and the E-1 Treaty Trader visa (since 15 February 1933). The E-2 visa allows nationals of treaty countries to live in the US while developing and directing a substantial US business they have invested in. China is not an E-2 treaty country.
The three-year rule. Since a US law of 23 December 2022 (Public Law 117-263, Section 5902), an applicant who acquired their nationality through a financial investment, and who has never held E status before, must have been domiciled in that country for a continuous period of at least 3 years before applying. For a Chinese investor with Turkish citizenship by investment, this means living in Türkiye for three continuous years before applying. Meeting this rule does not by itself guarantee a visa: all the other E-2 requirements, including a substantial investment in a real US business, still apply. US visa questions should be confirmed with a qualified US immigration attorney.
7. Tax: the new 20-year exemption for new residents
Law No. 7582 of June 2026 introduced a significant incentive in Article 20/D of the Income Tax Law, with detailed rules in Income Tax General Communiqué No. 333:
- What is exempt: income earned outside Türkiye is exempt from Turkish income tax for 20 years. Income earned in Türkiye remains taxable.
- Who qualifies: individuals who become Turkish tax residents and had no residence and no tax liability in Türkiye in the previous three calendar years. It applies to people who became resident from 1 January 2026.
- What does not block eligibility: earlier Turkish rental income, securities income or capital gains. Other Turkish tax liability in those three years, such as salary or business income, may prevent eligibility.
- Individuals only: companies cannot benefit from this exemption.
- How to apply: an exemption certificate must be obtained from the competent tax office by the end of the year in which the person becomes resident, or by the end of February of the following year for those who became resident in November or December. Missing this deadline can mean losing the benefit.
- Inheritance: during the exemption period, inheritance is taxed at 1%.
Important. This exemption depends on tax residency, not citizenship. A Turkish passport alone does not trigger it, and not every citizenship investor will qualify.
8. What Chinese applicants should know: dual nationality
Under Article 3 of the Nationality Law of the People’s Republic of China, China does not recognise dual nationality. Under Article 9, a Chinese national who has settled abroad and voluntarily acquires a foreign nationality automatically loses Chinese nationality.
This can affect residence, travel, property and business in China, and should be considered carefully, with advice from a qualified PRC lawyer where needed, before applying for Turkish citizenship. For some investors, a Turkish business with residence permits, without citizenship, may be the better option.
9. Three practical scenarios
A manufacturer investing without citizenship
Mr. Chen sets up a mainland Turkish company to produce parts for European customers. He and his Chinese managers apply for residence and work permits. He keeps his Chinese nationality and benefits from Türkiye’s trade advantages through his company.
A family obtaining citizenship through property
Ms. Liu buys a residential property worth at least USD 400,000, with a three-year no-sale annotation. Her aim is a second base for her family, not a business. Before applying, she considers the effect on her Chinese nationality.
An investor combining a factory with citizenship
Mr. Wang invests USD 500,000 in fixed capital for a new factory. After confirming with the ministry that the investment qualifies, he uses it both for his business and for a citizenship application. If he also moves to Türkiye, he may consider the 20-year tax exemption and, later, the US E-2 visa. These are separate questions, each with its own conditions, and each needs its own assessment.
These scenarios are illustrative and do not describe real clients.
10. How Tercan Legal can help
Tercan Legal is an Istanbul-based law firm that has advised international clients from more than 40 countries since 2013, and our team has handled citizenship-by-investment files for many years. We assist Chinese investors with choosing a suitable route, legal checks on property before purchase, company formation, bank account opening, residence and work permits, and the citizenship application through to completion. We work with Chinese-speaking clients and serve investors throughout Türkiye.
Next step. Contact Tercan Legal to arrange an introductory meeting and find the right route for your business and your family.
Conclusion
Türkiye offers Chinese investors real opportunities: a business base with customs access to the EU, a well-established citizenship-by-investment programme, a possible pathway toward the US E-2 visa, and a new 20-year tax exemption for new residents.
But each of these follows its own rules. Investing does not require citizenship, citizenship does not open the Schengen area, the E-2 route requires three years of residence for those who obtained citizenship through investment, and the tax exemption depends on residency, not on a passport. For Chinese nationals, the loss of Chinese nationality must also be weighed. The best decision comes from looking at all of these together.
Sources
- Turkish Citizenship Law No. 5901 and its Implementing Regulation (mevzuat.gov.tr)
- Capital Markets Board (SPK), Citizenship through fund investment
- Official Gazette, Income Tax General Communiqué No. 333 (4 July 2026)
- Official Gazette No. 33270 (4 June 2026), Law No. 7582
- US Department of State, Treaty Trader and Treaty Investor visas
- US Department of State, Treaty countries
- Public Law 117-263, Section 5902
- Nationality Law of the People’s Republic of China
- European Commission, EU–Türkiye Customs Union
- Regulation (EU) 2018/1806 on visa requirements, Annex I
Legal notice: This article is provided for general information only and does not constitute legal, tax or immigration advice. Reading it does not create a lawyer–client relationship with Tercan Legal. It reflects legislation and official guidance as of October 2026; laws, thresholds and practice change frequently, and citizenship decisions are made by the competent Turkish authorities. Please obtain advice tailored to your situation before making any investment or citizenship decision. Tercan Legal accepts no liability for actions taken solely on the basis of this article.
