From Bank Deposits to Real Estate: Turkey Reshapes Citizenship by Investment Strategy

Turkey Eliminates Currency Protection, Redirecting Citizenship Investment Flow: On August 23, 2025, Turkey’s central bank officially terminated its Foreign Exchange-Protected Deposit Program (known as KKM), marking the end of an unprecedented policy that had shielded depositors from currency volatility while fueling participation in the nation’s Citizenship by Investment (CBI) program.

The decision redefines the risk calculus for investors seeking Turkish nationality through the $500,000 deposit route and is expected to redirect demand toward the country’s booming real estate sector.

KKM: A Unique Chapter in Currency and Citizenship Policy

The KKM program—first introduced in late 2021 to stabilize the lira—operated as a quasi-sovereign wealth guarantee. It allowed depositors to place funds in lira-denominated accounts while enjoying a government-backed promise: if the local currency depreciated more than the interest earned, the central bank compensated depositors for the shortfall.

For CBI applicants, this was especially attractive. Maintaining $500,000 in Turkish lira deposits not only satisfied the investment requirement for citizenship but also mitigated the traditional risks associated with Turkey’s currency volatility.

With the closure of the KKM, that protection has disappeared. While the $500,000 deposit option remains on paper, its risk profile has fundamentally changed—exposing new applicants to direct exchange-rate fluctuations.

Impact on Citizenship by Investment Demand

Despite the loss of currency protection, analysts believe demand for Turkey’s CBI program will remain resilient. Instead of diminishing interest, the shift is expected to rechannel investment flows toward the real estate market, which continues to benefit from Turkey’s accelerating economic fundamentals.

• GDP Growth: Turkey’s economy expanded by 5% in Q2 2025, up from 2% in Q1, outpacing economists’ expectations of 4%.
• Investment Surge: Fixed capital formation jumped from 2% to 9%, underscoring renewed investor appetite across industries.
• Real Estate Thesis: With property prices appreciating steadily in major hubs such as Istanbul, Ankara, and Izmir, real estate has become the default pathway for many CBI applicants.

Transition Period: Grandfathering of Existing Accounts

Current KKM account holders are shielded from immediate disruption. The government has confirmed that all existing accounts will retain currency protection until maturity, effectively creating a segmented investor market:

• Existing CBI applicants with KKM deposits remain protected until their accounts expire.
• New applicants face exposure to lira depreciation, unless they opt for the real estate or other investment pathways.

This grandfathering provision impacts thousands of pending citizenship applications and ensures stability during the transition.

Real Estate as the Strategic Investment Path

For global investors, Turkey’s real estate option is now the most secure and attractive route for acquiring citizenship. Under the program, applicants must purchase property valued at a minimum of $400,000—a threshold that has already drawn significant inflows from the Middle East, Europe, and Asia.

Key drivers include:

• Tangible Asset Security: Unlike lira deposits, property offers insulation against currency depreciation.
• Capital Appreciation: Turkey’s housing market has recorded double-digit growth in recent years, supported by domestic demand and foreign investor interest.
• Rental Yield Opportunities: Investors in Istanbul and coastal resort areas continue to enjoy competitive rental yields, enhancing the return profile.
• Ease of Exit: After three years, properties purchased under the program can be resold without jeopardizing citizenship status.

Strategic Implications

For high-net-worth individuals and global mobility advisors, Turkey’s policy shift underscores the evolving dynamics of citizenship by investment markets:

• Currency Risk Returns: Investors can no longer rely on state-backed guarantees to offset lira depreciation.
• Real Estate as Default Pathway: Property investments are expected to dominate new applications, reinforcing the sector’s role in Turkey’s CBI ecosystem.
• Macroeconomic Confidence: The removal of KKM coincides with strong GDP growth and renewed fixed capital formation—signals that Turkey is seeking to normalize its financial system while maintaining investor appeal.
• Competitive Positioning: Turkey’s CBI program, priced lower than European counterparts such as Portugal or Malta, remains one of the most accessible citizenship options for investors seeking enhanced mobility.

“We do not believe that demand for Turkey’s Citizenship by Investment program will decrease due to the closure of the KKM. Instead, investment will shift toward real estate, which remains the safer and more strategic option,” says Prof. Dr. Amarendra Bhushan Dhiraj, Executive Chair, CEO, and Editorial Director of CEOWORLD Magazine. “My personal advice to clients is simple: go for real estate.”

The Bottom Line

The closure of Turkey’s Foreign Exchange-Protected Deposit Program marks the end of a unique experiment where bank deposits doubled as safe CBI investments. For new applicants, the landscape has changed: the deposit option is riskier, but real estate emerges as the clear and stable path forward.

Turkey’s strong economic performance, coupled with its accessible citizenship thresholds, ensures that investor appetite will remain intact—though decisively redirected toward property markets.

For global investors seeking second citizenship in a strategically located nation bridging Europe and Asia, Turkey remains compelling. The shift from currency-backed deposits to tangible assets is less a retreat than an evolution—one that aligns with both Turkey’s macroeconomic normalization and investor appetite for stability.

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The Citizenship by Investment (CBI) Index evaluates the performance of the 11 nations currently offering operational Citizenship By Investment (CBI) programs: St Kitts and Nevis (Saint Kitts and Nevis), Dominica, Grenada, Saint Lucia (St. Lucia), Antigua & Barbuda, Nauru, Vanuatu, Türkiye (Turkey), São Tomé and Príncipe, Jordan, and Egypt.