Investing in Turkey has become increasingly attractive for foreign investors, especially with the opportunities provided by YUVAM accounts. Recent amendments to the YUVAM account interest rates and the introduction of new regulations have made these investment options even more beneficial. In this blog post, we will explore the significant changes and their impact on foreign investors.
Understanding YUVAM Accounts
YUVAM accounts are a popular method for foreigners to gain Turkish citizenship through investment. By depositing USD 500,000 in a Turkish bank and committing to keep it there for three years, investors can secure citizenship. The deposited amount must be converted into Turkish Lira, and the investor receives the original USD 500,000 plus interest in dollars after three years, protecting them from exchange rate fluctuations.
YUVAM Account Interest Rate Changes: Old Practices
Previous Interest Rates
Before the new regulations, the interest rates for YUVAM accounts were:
3-month term: 3% (per annum)
6-month term: 4% (annualized)
12-month term: 5% (annual)
24-month maturity: 6% (annualized)
Account Opening Procedures
Previously, account openings could be conveniently made through internet or mobile banking channels. At the end of three years, investors were to receive the USD 500,000 deposit plus 17% interest.
YUVAM Account Interest Rate Changes: New Regulations
Revised Interest Rates
Effective July 22, 2024, the Central Bank of the Republic of Turkey (CBRT) issued a communiqué revising the interest rates for newly opened or renewed YUVAM accounts:
3-month maturity: 1% (annually)
6-month term: 2% (annually)
12-month term: 3% (annually)
24-month maturity: 4% (annually)
With the new regulations, at the end of three years, investors will receive the USD 500,000 deposit plus 11% interest.
Updated Account Opening Procedures
Under the new regulations, YUVAM accounts can now only be opened at bank branches. Additionally, if the foreign currency is brought in cash, a document certifying that the amount has been received by transfer from abroad is required. This ensures a more controlled and orderly process for transferring foreign currency to Turkey.
Benefits of the New YUVAM Account Regulations
Increased Control and Security
The new regulations offer increased control and security for both investors and the Turkish financial system. By requiring account openings at bank branches and certification for cash deposits, the process becomes more transparent and reliable.
Continued Protection Against Exchange Rate Fluctuations
Despite the reduced interest rates, YUVAM accounts continue to protect investors from exchange rate fluctuations. Investors still receive the original USD 500,000 plus interest, ensuring their investment's value remains intact.
Attractive Citizenship Option
YUVAM accounts remain an attractive option for foreigners seeking Turkish citizenship through investment. The new regulations do not change the fundamental benefits of the program, making it a viable path for many investors.
Secure Your Investment with Expert Legal Guidance
At Kurucuk & Associates, a leading law firm in Turkey originating from Istanbul, we specialize in helping foreign investors navigate the complexities of YUVAM accounts and other investment opportunities. Our experienced lawyers in Turkey provide comprehensive support to ensure your investments are secure and compliant with the latest regulations.
Ready to Invest in Turkey? Contact Kurucuk & Associates Today!
Don't navigate the changes alone. Our expert lawyers in Turkey are here to guide you through every step of the process. Secure your future with professional legal assistance from Istanbul's premier law firm.
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