Turkish Citizenship through the Turkish Private Pension System (BES)

A Modern Wealth Planning Solution for International Investors

Executive Summary

This guide explains how international investors may obtain Turkish citizenship through the Turkish Private Pension System (BES), one of the qualifying investment routes under the Turkish Citizenship by Investment Programme. It sets out the legal framework, the investment structure, the regulatory institutions involved, the range of available pension funds, the tax and exit considerations, and the strategic questions that internationally mobile investors should weigh before committing. The central theme is straightforward: citizenship should be the legal outcome of a sound investment decision, not the reason for a poor one.

At a Glance

• Minimum qualifying investment: USD 500,000 (or equivalent in another eligible currency)
• Mandatory holding period: three years
• Residence requirement during the investment: none
• Family included: spouse and dependent children under the applicable framework
• Legal basis: Article 12(1)(b) of Turkish Citizenship Law No. 5901 and Article 20(2)(f) of its Implementing Regulation
• Regulatory oversight: SEDDK (Insurance and Private Pension Regulation and Supervision Agency), the Capital Markets Board, the Pension Monitoring Centre (EGM) and Takasbank as custodian
• Exit tax: withholding on the investment gain only (not the principal); 15% applies to exits before ten years of participation
• Investment nature: market-linked; returns are not guaranteed

For decades, investment migration has been associated primarily with real estate. Across many jurisdictions, investors seeking a second citizenship or residence permit have been required to purchase residential or commercial property, often committing significant capital to assets that may not align with their broader investment objectives. Today's high-net-worth individuals, however, rarely make decisions on immigration benefits alone. They evaluate every opportunity as part of a wider wealth management strategy, weighing portfolio diversification, liquidity, regulatory certainty, long-term growth, succession planning and international mobility. As those expectations have evolved, so have the programmes designed to attract such investors.

Türkiye offers several government-approved investment routes rather than limiting applicants to a single asset class, which makes its Citizenship by Investment Programme broader than jurisdictions built around one mandatory investment type. Real estate remains the most recognised pathway, but it is no longer the only option. Among the more distinctive alternatives is the Turkish Private Pension System (Bireysel Emeklilik Sistemi, BES), a government-regulated route that allows eligible foreign investors to obtain Turkish citizenship while participating in one of Türkiye's largest professionally managed long-term investment ecosystems.

Rather than purchasing a single apartment or commercial unit, investors allocate capital to a regulated pension system where their contribution is managed through professionally administered funds. Depending on the chosen pension company and strategy, these funds may invest across equities, government bonds, corporate debt, precious metals, participation (Sharia-compliant) instruments and sector-focused portfolios. For internationally mobile families, entrepreneurs and private investors, this combination of wealth planning and immigration planning is an increasingly attractive proposition.

Why International Investors Are Looking Beyond Real Estate

For many years, real estate was regarded as the default route to Turkish citizenship. Property ownership offers a tangible asset, potential rental income and the possibility of long-term capital appreciation, and it remains an excellent solution for many investors. Preferences have shifted over the past decade, however. Many successful entrepreneurs, family offices and high-net-worth individuals already hold substantial international property portfolios, where additional real estate may not meaningfully improve diversification and can add administrative complexity.

Owning overseas property inevitably involves legal due diligence, title registration, maintenance, insurance, taxation, property management and eventual disposal. These responsibilities are entirely acceptable for investors who actively manage property, but less attractive to those seeking a more passive structure. As a result, a growing number of investors are exploring financial investments that integrate more naturally into modern wealth management. BES addresses precisely this demand: instead of concentrating capital in a single physical asset, it lets investors participate in a diversified environment managed by licensed professionals within a comprehensive regulatory framework. For those already familiar with pension funds, mutual funds and institutional asset management, the structure will feel both familiar and reassuring.

What is the Turkish Private Pension System (BES)?

The Turkish Private Pension System, commonly known as BES (Bireysel Emeklilik Sistemi), is a voluntary long-term savings and investment system governed by the Individual Pension Savings and Investment System Law No. 4632. Established to encourage private retirement provision while supporting the development of Türkiye's capital markets, it has grown since its introduction into one of the country's largest domestic savings pools: according to Pension Monitoring Centre (EGM) data, the voluntary system held around 10.3 million participants and a fund size of approximately 2.25 trillion Turkish Lira as of 30 June 2026. These assets are managed through licensed pension companies and professional portfolio management firms.

BES is often misunderstood as a simple retirement account. It is better described as a regulated investment ecosystem that channels long-term capital into professionally managed funds under the supervision of the relevant Turkish authorities. Participants enter into a pension agreement with a licensed company, and their contributions are then invested according to the funds they select, managed within diversified portfolios built around different objectives and risk profiles rather than left idle. For foreign investors applying under the Citizenship by Investment Programme, the mechanism is identical; the difference is that the same investment also satisfies one of the qualifying categories for citizenship, provided all statutory requirements are met.

A Regulated Institutional Investment Framework

One of the route's principal strengths is its institutional structure. Rather than concentrating responsibility in a single organisation, the system divides it among specialised institutions, creating layered governance and oversight. Licensed pension companies administer investor accounts and provide access to available funds. Professional portfolio management companies make day-to-day investment decisions within defined strategies and regulatory limits. Assets are held by Takasbank, the central securities depository, segregated from the pension company's own balance sheet. The system as a whole is supervised by several public bodies: the Insurance and Private Pension Regulation and Supervision Agency (SEDDK), established under Presidential Decree No. 47; the Capital Markets Board, which oversees the pension investment funds; and the Pension Monitoring Centre (Emeklilik Gözetim Merkezi, EGM), which monitors compliance with the three-year holding requirement and reports it to SEDDK and the citizenship authorities. This separation of duties reflects investment governance principles widely adopted across developed financial markets, and for international investors it provides added confidence that assets are managed within a regulated environment rather than through informal or discretionary arrangements.

A Wide Range of Investment Opportunities

Unlike programmes that require a single property or a fixed-term deposit, BES lets investors build diversified portfolios across multiple asset classes, from Turkish equities and government bonds to corporate debt, money market instruments, gold, participation (Sharia-compliant) funds and thematic strategies covering sectors such as technology, defence and agriculture. The specific universe depends on the chosen pension company. Investors can generally revise their allocation during the mandatory holding period, so the strategy can evolve with market conditions rather than remaining fixed. The available fund categories are set out in more detail below.

Obtaining Turkish Citizenship through the Turkish Private Pension System

The Turkish Citizenship by Investment Programme was introduced to encourage foreign direct investment and strengthen Türkiye's long-term economic development. Since its launch it has become one of the most recognised investment migration schemes worldwide, attracting thousands of investors and their families from across the globe. Foreign nationals may now qualify through several government-approved routes, including real estate acquisition, fixed capital investment, bank deposits, venture capital investment funds and the Turkish Private Pension System.

Each option satisfies the same legal objective but represents a different financial strategy. BES is particularly attractive for investors who prefer professionally managed financial assets over direct ownership of real estate. Under the current framework, an eligible foreign investor may apply for Turkish citizenship by making a qualifying contribution of at least USD 500,000 (or the equivalent in another eligible currency) into an approved BES contract and maintaining that investment for a minimum of three years.

The route rests on a clear legal footing. A 2022 amendment to the Regulation on the Implementation of the Turkish Citizenship Law added contributions to the private pension system as a qualifying category. Applications are made under Article 12, paragraph 1(b) of Turkish Citizenship Law No. 5901, together with Article 20, paragraph 2(f) of the Implementing Regulation, and the qualifying threshold is a contribution of at least USD 500,000 held in the system for a minimum of three years.

Unlike many residence-by-investment programmes, the Turkish route does not require investors to relocate permanently or satisfy ongoing physical residence requirements during the investment period. Once the qualifying investment has been verified and the relevant Certificate of Conformity issued, applicants may proceed with the residence permit and citizenship applications. Subject to the successful completion of security checks and administrative procedures, both the principal applicant and eligible family members, including a spouse and dependent children under the applicable framework, may acquire Turkish citizenship.

Processing times vary with each applicant's circumstances and the workload of the authorities. Some promotional material cites very short timelines, but the security and due-diligence checks introduced in recent years mean that a period of several months from a complete submission to the citizenship decision is a more realistic expectation. Because these checks are the main determinant of the overall timeline, accurate documentation at the outset is the single most effective way to avoid delay. For internationally mobile families, the combination of investment flexibility and the absence of a residence requirement remains one of the programme's most practical attractions.

Why Sophisticated Investors Are Increasingly Choosing BES

Experienced investors seldom frame the decision around the passport itself. Their starting question is how a given investment fits an existing portfolio and serves the family's long-term objectives, with citizenship as the legal outcome rather than the motivation. Modern wealth planning extends well beyond acquiring additional assets; it involves balancing growth, liquidity, diversification, governance and risk across a globally diversified portfolio. Viewed this way, the Turkish Private Pension System is less an immigration route than a regulated investment opportunity that happens to satisfy a citizenship requirement.

Several structural features explain its appeal. Investment decisions rest with licensed portfolio managers who monitor markets and rebalance within each fund's mandate, rather than with the investor personally. Pension funds hold diversified portfolios across sectors and asset classes, reducing the concentration risk inherent in committing an entire investment to a single property in one location. Allocations can be revised during the mandatory holding period, subject to the applicable rules, so a strategy can adapt to changing conditions instead of remaining fixed for three years. And because day-to-day management sits with financial professionals once the investment is established, BES avoids the continuous administrative load of direct property ownership, from taxes, insurance and maintenance to tenant management and eventual exit planning. For investors who prefer institutional management to administering overseas assets themselves, this combination is a meaningful advantage.

Investment Opportunities within the BES Ecosystem

A common misconception is that investors buy a single pension product and simply wait three years. In practice, BES offers access to one of the country's most diverse institutional investment environments. Depending on the chosen pension company and the available universe, investors can allocate across a broad range of professionally managed funds, which commonly include:

• Turkish Equity Funds
• Government Bond and Treasury Funds
• Corporate Bond Funds
• Money Market Funds
• Gold and Precious Metals Funds
• Participation (Sharia-Compliant) Funds
• Technology and Artificial Intelligence Funds
• Defence Industry Funds
• Food and Agriculture Funds
• Balanced Multi-Asset Funds

Each category serves a different purpose within a diversified strategy. Some investors prioritise capital preservation, others seek long-term appreciation, some favour precious metals as an inflation hedge, and others prefer innovation-focused sectors such as technology or defence. There is no universally best pension fund; the most appropriate strategy is the one that reflects the investor's objectives, horizon and tolerance for volatility. Ketenci & Ketenci works closely with licensed pension companies and financial institutions to help clients understand the available options. Regulated investment advice is provided exclusively by authorised financial professionals, but we help clients coordinate the process, compare fund categories and ensure the chosen structure complies fully with the requirements of the Turkish Citizenship by Investment Programme.

Historical Performance of Turkish Pension Investment Funds

A frequent question from investors considering BES is whether the investment can generate meaningful returns during the three-year holding period. Unlike a fixed-term deposit, BES is a market-linked environment: returns are neither predetermined nor guaranteed, and the value of a portfolio depends on the performance of the selected funds and the markets in which they invest. Over the past decade Türkiye's pension fund industry has expanded considerably, giving investors access to a wide range of professionally managed strategies across asset classes and sectors, including equity, government bond, money market, precious metals and participation funds, alongside increasingly specialised thematic funds in areas such as technology, artificial intelligence, defence, healthcare and sustainable investment. Performance has varied considerably between categories and across market cycles.

Publicly available Turkish pension fund performance tables show that certain equity-oriented, gold-focused and thematic funds have produced very strong Turkish Lira returns over selected past periods, particularly during phases of strong domestic market growth, elevated inflation and rising global precious metal prices. These figures vary considerably by fund, date range and currency, and should not be interpreted as expected or guaranteed performance. Because they are expressed in local currency, they should also be read alongside the currency considerations discussed later in this guide, as the return in an investor's home currency can differ materially.

Such historical results illustrate the potential within Türkiye's professionally managed pension ecosystem, but they should never be read as a promise of future performance. Markets are cyclical: strong growth is often followed by consolidation, higher volatility or more moderate returns, and economic conditions, inflation, monetary policy, exchange rates and geopolitical developments all shape outcomes. Experienced investors therefore rarely select an investment on historical returns alone. They weigh long-term objectives, expected holding period, risk tolerance, diversification, portfolio volatility, investment philosophy and the consistency of a fund's management over time. Historical performance is one input into a full assessment, not the basis for a decision on its own.

Investment Strategy Matters More Than Individual Fund Performance

Another common misconception is that investors should simply choose the fund with the highest historical return. Professionals generally take a different view. Rather than chasing yesterday's best performer, they build a portfolio capable of performing across a range of market conditions. Within BES, investors can allocate across multiple fund categories, creating diversified portfolios that better reflect their objectives. A growth-oriented investor might weight equity and technology funds more heavily, while a conservative investor might favour government bonds, money market instruments and precious metals. Others may prefer a balanced allocation that combines growth assets with lower-volatility holdings to reduce fluctuation during the holding period. This flexibility is one of the defining strengths of the system: rather than committing an entire investment to a single asset, investors participate in a professionally managed and diversified environment that can evolve alongside changing conditions and objectives.

The Ketenci Private Wealth Approach

At Ketenci & Ketenci, we do not view obtaining Turkish citizenship as an isolated legal transaction. For many international families it forms part of a broader strategy encompassing investment diversification, international mobility, family succession and long-term asset protection. Our role extends beyond the legal mechanics of the programme: we work with licensed pension companies, portfolio management firms and financial institutions to help clients understand the framework and coordinate each stage of the process. We do not provide regulated investment advice or guarantee performance; we ensure the legal and investment aspects are structured efficiently and in full compliance with the applicable legislation, so investors can focus on their broader objectives with comprehensive legal support behind them.

Practical Considerations: Currency, Tax and Exit

Beyond fund selection, three practical questions tend to matter most to internationally mobile investors, and each deserves a clear answer.

Currency. The qualifying investment is measured against a USD 500,000 threshold, but contributions are ultimately held and invested within a Turkish Lira system. Investors converting hard currency into Lira are therefore exposed to exchange-rate movements over the holding period, and this exposure works in both directions. It is also the reason that headline returns quoted in Lira should always be read with the currency dimension in mind: a strong nominal return in Lira is not the same as a strong return once converted back into the investor's home currency. Some investors mitigate this by weighting allocations towards gold or hard-currency-linked strategies, subject to the funds a given pension company offers and the programme's eligibility rules.

Tax. The tax treatment follows the framework of the Individual Pension Savings and Investment System Law No. 4632 and the Income Tax Law. Pension investment funds are themselves exempt from income and corporate tax at the fund level, and no tax is levied on the principal contributions. Tax arises only on exit, and only on the investment gain: when a participant leaves the system, a withholding charge is applied to the gain, at a rate that falls the longer the participant remains in the system. For those who exit before ten years of participation, the rate on the gain is 15 percent; it falls to 10 percent for those who complete ten years without qualifying for retirement, and to 5 percent for those who retire from the system. An investor who exits after the three-year citizenship holding period but before completing ten years in the system should therefore generally plan around the shorter-period withholding treatment, subject to the rules in force at the time and individual tax advice. This compares favourably with instruments taxed on gross income rather than on the gain alone, but it is not a blanket exemption, and the outcome depends on the investor's overall position. Cross-border investors should also weigh the tax rules of their country of residence, since the Turkish position is only one side of the picture.

Exit after three years. Once the statutory three-year requirement is met, investors are generally free to redeem, transfer or restructure the investment under the ordinary rules of the pension system. Because BES is market-linked, the amount available on exit reflects fund performance over the period and is not fixed in advance. Redeeming or withdrawing before the three years have elapsed, by contrast, may breach the holding requirement and jeopardise eligibility, so any change during the period should only be made with legal advice.

Looking Beyond Citizenship

For many investors, Turkish citizenship is the initial objective, but the investment itself should not be overlooked. Unlike programmes that require investment in a single illiquid asset, BES provides access to a dynamic, professionally managed ecosystem that continues to operate throughout the holding period. For investors who already maintain globally diversified portfolios, the route can therefore represent more than an immigration solution. It can serve as a valuable addition to a broader international wealth management strategy, combining regulatory certainty, professional management and access to one of the region's largest private pension markets.

BES, Real Estate or Bank Deposit? Choosing the Right Investment Route for Turkish Citizenship

One of the first questions prospective investors ask is simple: which option is best? There is no universal answer. The programme deliberately offers several qualifying routes because investors themselves differ in financial objectives, experience, liquidity requirements and tolerance for risk. The most suitable route depends not only on the legal requirements but also on the investor's wider wealth planning strategy. These options are best regarded not as competing products but as different financial solutions designed for different investor profiles.

Real Estate Investment

Real estate has long been the most recognised pathway to Turkish citizenship. Buying residential or commercial property gives investors direct ownership of a tangible asset with potential rental income and long-term appreciation, and for those already active in international property markets it is often a familiar structure. Ownership also carries ongoing responsibilities, however: legal due diligence, valuation reports, title deed procedures, property management, maintenance, insurance, taxation, tenant matters and future exit strategy. Performance is closely tied to the local property market and the characteristics of the specific asset. For investors who enjoy building international real estate portfolios, these responsibilities may be entirely acceptable; others may prefer a more passive approach.

Bank Deposit

The bank deposit option tends to suit investors who prioritise capital preservation and simplicity. The qualifying investment is placed with an eligible Turkish bank for the mandatory holding period, and investors typically value the straightforward, predictable structure. Bank deposits generally offer limited growth potential compared with market-based investments, with returns largely determined by prevailing interest rates and monetary conditions. As with any fixed-income investment, investors should also weigh inflation and the opportunity cost of holding a large cash position over an extended period. For conservative investors seeking stability and administrative simplicity, this route may be appropriate.

The Private Pension System (BES)

BES occupies a distinctive position between traditional real estate and fixed-income products. Rather than buying a single physical asset or holding capital in a fixed-term deposit, investors participate in a professionally managed environment with access to diversified pension funds. Depending on the chosen pension company and the available universe, portfolios may include equities, government bonds, corporate bonds, money market instruments, gold, participation (Sharia-compliant) investments and thematic funds covering sectors such as technology, defence and agriculture. Unlike direct property ownership, BES removes many of the administrative responsibilities of real estate, and it offers considerably greater flexibility than a fixed-term deposit. Investors can also adjust fund allocations during the investment period, subject to the applicable rules, adapting the strategy as conditions change rather than remaining committed to a single static investment. For internationally diversified investors already familiar with pension funds, mutual funds or institutional portfolio management, BES is often a natural extension of their existing philosophy.

Which Route Is Right for You?

The answer depends on your objectives. If you value tangible asset ownership, want rental income and are comfortable managing overseas property, real estate may be appropriate. If your primary goal is capital preservation and you prefer a straightforward structure, a bank deposit may suit you better. If you prefer professionally managed investments, portfolio diversification, exposure to multiple asset classes and greater flexibility throughout the period, BES may be the more attractive alternative. There is no universally superior option; the most suitable investment is the one that aligns with your financial goals, risk profile and long-term wealth planning strategy.

Our Perspective

At Ketenci & Ketenci, we do not believe every client should follow the same route. Our role is to help each investor understand the legal framework, the characteristics of the available options and the practical implications of each before deciding. With more than twenty years advising international investors and globally mobile families, we combine immigration law with private wealth planning, working closely with licensed pension companies, financial institutions and other professional advisers to help clients select the structure that best supports both their citizenship objectives and their long-term financial strategy. Turkish citizenship is the legal outcome; the investment itself should remain a sound financial decision in its own right. That principle has guided our advice to international investors for more than two decades.

Why Ketenci & Ketenci? Legal Expertise Combined with Private Wealth Thinking

Choosing the right legal adviser is about far more than completing an application. A Turkish Citizenship by Investment application involves significant financial decisions, cross-border legal considerations and long-term planning for both the investor and their family. The legal process is clearly defined, yet every investor approaches it with different objectives, investment preferences and wealth management priorities. Successful investment migration therefore requires more than legal knowledge alone; it requires an understanding of how legal structuring, financial planning and international mobility intersect.

At Ketenci & Ketenci, we have spent more than twenty years advising entrepreneurs, business owners, high-net-worth individuals and internationally mobile families on complex cross-border matters. Our practice combines immigration law, corporate law, private wealth advisory, real estate transactions and international investment structuring, allowing us to offer a comprehensive perspective rather than a purely transactional service. Our international team advises clients across the Middle East, Europe, North America, Asia and Africa, supporting them through every stage of the Turkish Citizenship by Investment Programme and a wide range of residence and citizenship solutions worldwide.

More Than a Citizenship Application

For many firms the process begins once the client has chosen a route; our involvement starts earlier. Before any investment is made, we work with clients to understand their objectives, family circumstances and long-term plans. Some prioritise wealth preservation, while others seek growth, international diversification or succession planning for future generations. Understanding these priorities lets us determine whether BES genuinely represents the most appropriate route or whether another option would better serve the client's overall objectives. In our view, citizenship should never drive the investment decision; the investment should stand on its own commercial merits while satisfying the legal requirements of the programme.

An Integrated Investment and Legal Approach

BES is unlike many traditional investment migration routes. The legal framework is well established, but investors are also entering a regulated financial ecosystem involving pension companies, portfolio management firms, custodians and multiple public authorities, which requires careful coordination. Drawing on our experience and longstanding relationships within the Turkish financial and legal sectors, we work closely with licensed pension companies, portfolio management firms, banks and other advisers to ensure each stage is properly structured from both a legal and procedural perspective. We do not provide regulated investment advice, recommend specific funds or guarantee performance; we help clients understand the framework, compare fund categories and coordinate with appropriately licensed financial professionals. This approach enables clients to make informed decisions while keeping the legal aspects fully compliant with the applicable legislation.

End-to-End Representation

A principal advantage of working with Ketenci & Ketenci is a single point of contact throughout the process. Our team manages every legal stage of the application, including:

• Initial legal consultation and strategic planning
• Assessment of the most appropriate investment route
• Coordination with banks and licensed pension companies
• Preparation and review of legal documentation
• Establishment of the qualifying investment structure
• Obtaining the Certificate of Conformity
• Residence permit application
• Turkish citizenship application
• Passport and identity card procedures
• Ongoing legal support throughout the mandatory holding period

For clients unable to travel frequently to Türkiye, much of the process can be managed through a carefully structured Power of Attorney, significantly reducing the administrative burden while ensuring every legal requirement is satisfied.

A Long-Term Relationship

For many of our clients, obtaining Turkish citizenship marks the beginning rather than the end of our relationship. After the citizenship process is complete, we continue to assist with corporate structuring, real estate acquisitions, tax and succession planning, family office support, business expansion and other cross-border legal services. Many of the families we advised years ago still rely on our team as their trusted legal advisers for new investments and international business opportunities. We believe this continuity reflects the confidence our clients place in our advice and our commitment to practical, commercially focused solutions.

Our Philosophy

Every investment tells a different story. For one client, Turkish citizenship may open new business opportunities; for another, it may provide greater global mobility, educational opportunities for children or long-term family security. Whatever the objective, our role remains the same: to ensure that every investment is structured correctly, every legal requirement is satisfied and every client receives clear, independent and practical advice throughout. At Ketenci & Ketenci, we believe successful investment migration is measured not solely by the issuance of a passport but by the confidence with which our clients make a significant international investment decision.

Conclusion

The Turkish Private Pension System represents a significant evolution in Türkiye's Citizenship by Investment Programme, offering international investors a modern alternative to traditional routes. Rather than focusing solely on property ownership or fixed-term deposits, BES lets investors participate in a professionally managed, government-regulated ecosystem while meeting the legal requirements for citizenship. For many internationally mobile families, entrepreneurs and high-net-worth individuals, this offers more than a second passport; it provides a way to integrate immigration planning with broader wealth management through a flexible structure designed for long-term participation in Türkiye's financial markets.

Every investor's circumstances are different. There is no universally superior route, and the most appropriate solution always depends on financial objectives, investment experience, risk tolerance and long-term plans. A carefully structured investment supported by experienced legal guidance is often the key to achieving both a successful immigration outcome and a sound financial decision. We believe citizenship by investment should never be viewed as a standalone legal process; it should form part of a comprehensive international wealth planning strategy that considers not only today's objectives but also future generations, global mobility and long-term asset preservation. Whether you are exploring Turkish citizenship for business expansion, family security, portfolio diversification or international mobility, our multidisciplinary team is committed to guiding you through every stage with professionalism and discretion.

Discuss Your Investment Strategy with Our Team

If you are considering Turkish citizenship through the Private Pension System, we would be pleased to discuss your objectives and help you determine whether this route is the most suitable solution for you and your family. Our legal team provides comprehensive, end-to-end assistance throughout the process, including:

• Assessing the most appropriate citizenship investment route
• Structuring the investment in compliance with the applicable legislation
• Coordinating with licensed pension companies, financial institutions and public authorities
• Managing the residence permit and citizenship applications
• Advising throughout the mandatory holding period
• Providing ongoing legal support after Turkish citizenship has been obtained

With more than 20 years of experience, an international client base spanning over 70 countries, and offices serving clients across multiple jurisdictions, Ketenci & Ketenci advises on investment migration and international private wealth planning as a core practice area.

Arrange a Confidential Consultation

If you are considering Turkish citizenship through the Private Pension System, or would like to explore the most suitable investment route for your personal and financial objectives, our team would be pleased to assist. We offer confidential consultations to discuss your eligibility, explain the available options and provide strategic legal guidance tailored to your circumstances.

Ketenci & Ketenci International Law Firm
Telephone / WhatsApp: +90 532 133 92 33
Email: [email protected]

Frequently Asked Questions

Can I change my pension investment funds during the three-year holding period?

Yes. Subject to the applicable legislation and the operational rules of the selected pension company, investors are generally permitted to change their fund allocation during the mandatory holding period. This flexibility allows the portfolio to be adjusted in response to changing market conditions, financial objectives or risk preferences while maintaining compliance with the programme.

Do I need to live in Türkiye after obtaining Turkish citizenship through BES?

No. Turkish citizenship acquired through the Private Pension System does not create a general obligation to reside permanently in Türkiye. Once citizenship is granted, Turkish citizens enjoy the same legal rights and obligations as any other citizen. Tax residency and other legal considerations depend on individual circumstances and should be assessed separately.

How many times do I need to visit Türkiye during the application process?

In many cases, only a limited number of visits are required. Much of the legal and administrative process can be carried out through a properly executed Power of Attorney, allowing our team to manage the investment and application procedures on your behalf. Depending on the circumstances and the availability of biometric appointments, many investors complete the process with only one short visit.

Can the entire process be completed through a Power of Attorney?

A significant portion can. This includes opening bank accounts where applicable, coordinating with pension companies, making the qualifying investment, obtaining the Certificate of Conformity and managing the citizenship application. Applicants are generally required to attend in person for biometric procedures and certain official formalities, depending on the regulations in force at the time of application.

Can I withdraw or redeem my investment after the mandatory three-year holding period?

Yes. Once the statutory three-year requirement has been fulfilled and all applicable conditions satisfied, investors are generally free to manage, transfer or redeem the investment in accordance with the rules governing the Turkish Private Pension System and the relevant pension company.

What happens if I withdraw my investment before the three-year period expires?

Early withdrawal, or any action that breaches the statutory holding requirement, may affect compliance with the programme and could jeopardise eligibility for citizenship or lead to other legal consequences. Investors should always seek legal advice before making any change to a qualifying investment.

Can my investment be inherited by my family?

As with other financial assets, pension investments generally form part of an investor's estate and may pass to legal heirs in accordance with the applicable inheritance laws and the contractual provisions governing the pension arrangement. Estate planning considerations vary by nationality, domicile and family circumstances, and professional advice should be obtained where appropriate.

Can I invest entirely in Gold Funds?

Depending on the options offered by the selected pension company and the applicable regulatory framework, investors may allocate all or part of their portfolio to gold and precious metals funds. The suitability of such an allocation depends on the investor's objectives, horizon and risk tolerance.

Are Sharia-compliant investment options available?

Yes. Many Turkish pension companies offer Participation Funds managed in accordance with Islamic finance principles. These funds invest in Sharia-compliant instruments and provide an alternative for investors seeking faith-based solutions while remaining eligible under the programme.

Who chooses the pension investment funds?

The investor ultimately decides how the investment is allocated among the available funds, subject to the options offered by the selected pension company. Before deciding, investors are encouraged to understand the characteristics of each category and, where appropriate, seek advice from licensed financial professionals.

Does Ketenci & Ketenci provide investment advice?

No. Ketenci & Ketenci is an international law firm and does not provide regulated investment or financial advice. Our role is to advise on the legal aspects of the programme and to coordinate closely with licensed pension companies, portfolio management firms and financial institutions, enabling clients to make informed decisions while ensuring the investment is structured in full compliance with the applicable legislation.

Besides the USD 500,000, what other costs should I expect?

The qualifying contribution is the principal cost, but investors should also budget for the ordinary costs of any citizenship application, which may include government and administrative fees, legal fees, notarisation, sworn translation and apostille of documents, and any deductions applied within the pension system for fund management and administration. The exact figures depend on family size, documentation and the pension company, and we provide a clear breakdown at the outset of each engagement.

How long does the process take?

Timelines depend on documentation and on the security and due-diligence checks carried out by the authorities. Rather than the very short periods sometimes advertised, investors should plan for a process measured in several months from a complete submission to the citizenship decision. Well-prepared documentation is the most effective way to keep the timeline predictable.

How does currency risk affect my investment?

The threshold is expressed in USD, but contributions are held and invested in Turkish Lira, so investors who convert hard currency are exposed to exchange-rate movements over the holding period. This affects the value of the investment when converted back into a home currency and is an important reason to read Lira-denominated returns with the currency dimension in mind. Some investors weight their allocation towards gold or other strategies for this reason, subject to the available funds and the programme rules.

How is the investment taxed?

Pension investment funds are exempt from tax at the fund level, and no tax applies to the principal. On exit, a withholding charge applies to the investment gain only, at a rate that decreases with length of participation: 15 percent for those exiting before ten years, which typically applies to a citizenship investor, falling to 10 percent at ten years and 5 percent on retirement from the system. Because tax outcomes also depend on the investor's country of residence, we recommend obtaining independent tax advice alongside our legal support.

Is the BES route suitable for every investor?

Not necessarily. Every investor has different financial objectives, experience and risk tolerance. While BES offers a flexible, professionally managed framework, the most appropriate route should always be determined following a comprehensive legal and strategic assessment of the investor's individual circumstances.

Disclaimer

The information in this article is provided for general informational purposes only and does not constitute legal, financial, tax or investment advice. Although every effort has been made to ensure accuracy at the time of publication, legislation, administrative practice and investment conditions may change over time. The Turkish Private Pension System is a market-based investment and performance is not guaranteed. References to historical fund performance are provided for illustration only and should not be interpreted as an indication or guarantee of future results. Past performance is not a reliable indicator of future performance. Prospective investors should obtain independent legal, financial and tax advice based on their individual circumstances before making any investment decision or commencing a Turkish Citizenship by Investment application.