The $500,000 alternative route now requires Turkish lira. How the deposit, fund and government bond options work, the exchange rate risk, and the three-year holding rule.
The alternative to property is an investment worth $500,000 that must now be held in Turkish lira, as a bank deposit, an investment fund or a government bond, for three years. It involves no property or deed costs, but you carry the lira exchange rate risk for the whole period.
Until 2026 the alternative route to Turkish citizenship was usually described in currency-neutral terms. That has changed. The $500,000 investment must be held in Turkish lira, and the three-year holding period applies. Many websites still describe the old rule. This guide sets out the current position, how each of the three instruments works, and the risk that every family on this route should price before committing.
The principle of the route is unchanged. A foreign investor places the equivalent of $500,000 in a qualifying instrument and holds it for three years. What changed is the currency. The instrument must be denominated in Turkish lira. Earlier files could keep a deposit in a foreign currency, and plans built on that assumption need to be rebuilt.
The amount is stated in dollar terms and converted into lira at the central bank rate on the conversion day. That conversion fixes the amount of lira you must hold. From then on, the lira balance is what the file is tested against.
The simplest of the three. You open an account at a bank operating in Türkiye, convert the dollars into lira at the bank, and place the lira on deposit for three years. The bank issues the documents that evidence the deposit, and you keep every statement.
Instead of a deposit, the investor buys units of an investment fund of the kind the regulation allows, denominated in lira, and holds them for three years. The fund route adds a manager, a strategy and a market price. The unit value moves, and the file must be able to show that the holding continued throughout the three years at the qualifying level.
The fund route fits investors who want a return profile different from a deposit and who accept price movement. The qualifying fund list and the evidence required are set by the authorities, and we check the instrument against the current regulation before the purchase. A fund that looks attractive but does not qualify is the most expensive mistake on this route.
The third option is a Turkish government bond denominated in lira, held for three years. The issuer is the state, the maturity is known, and the coupon or yield is fixed at purchase. For investors who prefer a defined maturity, this is the most predictable instrument.
Two practical points. The bond must be bought in a way that the file can document, through a bank or broker that issues the evidence of ownership. And the maturity should match the holding period. A bond that matures at two years leaves a gap that must be filled by a qualifying reinvestment, so we choose maturities that cover the full term or that can be rolled without breaking the requirement.
This is the point most pages on the topic skip. You convert dollars to lira on day one and you hold lira for three years. If the lira weakens against the dollar over that period, the dollar value of your holding falls. Interest or coupons may offset some or all of that, and in some periods they have, but there is no certainty in either direction.
Think of it as two bets. The first is the return on the lira instrument. The second is the exchange rate between lira and your home currency. The citizenship requirement is satisfied by holding the instrument. The financial result depends on both bets at the end of year three.
Some families hedge part of the exposure by structuring the rest of their balance sheet in dollars or euros, so that the lira holding is a defined slice rather than the whole. Others accept the exposure as the price of citizenship and treat the final value as a cost. Either approach is reasonable if it is chosen deliberately. What is not reasonable is treating the exposure as nonexistent.
The instrument must be held for three years. Releasing, redeeming or selling it earlier puts the citizenship granted on that basis at risk. Before you commit, ask yourself whether you can live without these funds for three years under any scenario you can imagine, including a business setback or a family emergency.
Keep all statements, confirmations and bank letters for the full term. The authority can ask for evidence of continuous holding, and an incomplete record is a problem you will only discover when you need to show it. We set up a simple annual routine for each client so that the evidence file is complete at year three.
For most clients without a strong view, the deposit is the starting point because it is the simplest to document and to explain. The fund is for those who deliberately want market exposure. The bond is for those who want a fixed maturity and a known issuer. All three require the lira exposure, and none changes the three-year requirement.
The decision usually turns on four questions: how liquid must the money be after year three, how comfortable are you with price movement, what is the tax treatment in your country of residence, and which banks or brokers will serve you without friction as a foreign account holder. We answer these in writing.
The property route needs a valuation of $400,000, which is $100,000 less capital than the lira route. It gives you a physical asset, rental income, and exposure to the property market in lira, plus the cost of the deed fee and the valuation report. See the real estate guide and the cost guide.
The lira route needs $500,000, involves no property management or title checks, and has no deed costs. It exposes you to the exchange rate on the full amount. Families that want a hard asset and are comfortable owning Istanbul property tend to choose the first. Families that want to avoid property decisions and can tolerate the exposure consider the second.
Advisory note: program rules are set by the state and can change. We confirm the current text of the regulation, in writing, before any funds are converted.
Yes. Since the 2026 change, the alternative route requires an investment worth $500,000 to be held in Turkish lira, as a bank deposit, an investment fund or a Turkish government bond. The older formulation allowing other currencies no longer applies, so any plan that assumes a dollar or euro deposit should be rechecked.
Three years. The deposit, fund holding or bond must be held for three years, and releasing it earlier puts the citizenship granted on that basis at risk. Plan liquidity so that you do not need the funds during that period, and keep every statement as proof of continuous holding.
You do. The requirement is set in dollar terms at conversion, but the holding is in lira. If the lira weakens against your home currency, the value you get back is lower than the dollar value you started with. Interest or returns may offset part of that, but neither is certain, and the outcome depends on the rates.
The deposit is simplest and the most familiar. The fund adds market risk and manager choice. The government bond has a fixed maturity and a known issuer. All three must be held for three years, so choose on liquidity, tax treatment and how comfortable you are with the instrument. We compare them in writing for each client.
Neither is better in general. The property route needs $400,000 and gives you a real asset and rental income, with deed costs. The lira route needs $500,000, involves no property management, and carries exchange rate risk. Families that want a hard asset choose property. Families that want liquidity and simplicity consider the lira route.
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