Turkish Citizenship by Investment: Bank Deposit vs. Pension Fund (BES) Which Option Is Better in 2025?

INTRODUCTION

As Turkish Citizenship by Investment (TCBI) continues to attract international investors, two financial routes stand out as the most secure and predictable options in 2025:

• USD 500,000 Bank Deposit

• USD 500,000 Private Pension Fund (BES) Investment

Both paths lead to the same outcome:

Full Turkish citizenship for the investor and eligible family members.

However, these two investment methods differ significantly in terms of:

• Tax (withholding) impact

• Profitability

• Currency risk

• Flexibility

• Operational management

• Long-term financial outcomes

This detailed guide compares both options and helps you identify the most suitable path for your profile in 2025.

Option 1 — Bank Deposit Route

How It Works

• Investor deposits USD 500,000 in a Turkish bank.

• The bank performs the mandatory USD→TRY sale to the Central Bank (TCMB) and issues DAB.

• Funds remain blocked for 3 years in TRY fixed-term accounts.

• Investor receives annual interest income.

Updated Withholding (Stopaj) Tax Rates for 2025

The Ministry of Finance increased withholding tax rates on interest income:

Account Type	Previous Rate	New Rate (2025)
Up to 6 month maturity	15%	17.5%
Up to 1 year maturity	12%	15%

These adjustments reduce the net yield for investors choosing the TRY deposit route.

Advantages

• Simple and easy to understand structure

• Predictable TRY based returns

• Suitable for conservative investors who prefer traditional banking

Disadvantages

• Increased withholding tax reduces profitability

• TRY returns depend on Central Bank rates

• Requires regular maturity renewals (IGA Law Firm handles these for clients)

• High exposure to Turkish Lira depreciation

Option 2 — Private Pension Fund (BES) Route

How It Works

• Investor contributes the USD equivalent of USD 500,000 into a BES plan.

• Funds remain invested for 3 years (same as deposit).

• Investments are held in Takasbank, Türkiye’s central custody institution.

• Money can be placed in various funds:

  • Gold & Precious Metals Funds

  • Fixed Income Funds

  • Mixed Funds

  • Short-term Money Market Funds

• Investor can change fund allocation up to 12 times per calendar year, allowing flexibility based on market conditions.

Withholding Tax

• Fixed 15% witholding tax on profits only, not on the principal.

Advantages

• Ability to invest in gold and precious metals, historically more stable in USD terms

• Lower exposure to TRY volatility

• Takasbank custody ensures high level security

• No maturity renewal burden

• More flexible portfolio management (12 re allocations per year)

Disadvantages

• Returns vary depending on fund performance

• May feel less familiar to very traditional investors

Bank Deposit vs. BES: Side by Side Comparison

Feature	Bank Deposit	BES Pension Fund
Minimum Investment	USD 500,000	USD 500,000
Holding Period	3 years	3 years
Currency Risk	High (TRY based)	Low (gold/precious metals options)
Withholding Tax	15%–17.5% (increased)	15% fixed
Security	Bank + TCMB	Takasbank
Management Effort	High (renewals)	Low
Profit Potential	TRY interest	Depends on fund (often gold based)
Popularity in 2025	Decreasing	Rapidly rising

Which Option Is Better in 2025?

Bank Deposit is suitable if:

• You prefer a traditional banking structure

• TRY interest rates are attractive at the time of investment

• You prioritize simplicity over profit maximization

  
  

BES Pension Fund is better if:

• You want to minimize exposure to the Turkish Lira

• You prefer gold/precious metal-backed funds

• You want stable USD-aligned performance

• You want less operational complexity

• You want lower, fixed stopaj tax

Conclusion:

BES has become the preferred route among Chinese, Hong Kong, Taiwanese, Middle Eastern, and Southeast Asian investors in 2024–2025 because it offers:

• Greater long-term stability 

• Better protection against currency risk 

• A simpler investment structure 

• Stronger overall financial performance

How IGA Law Firm Supports You

At IGA Law Firm, we have supported hundreds of families from China, Hong Kong, Taiwan, Vietnam, Iran, Pakistan, Europe, and the Middle East in both investment routes.

Our services include:

• Full bank account opening & onboarding

• FX sale (DAB) coordination

• Customized BES portfolio planning (gold/precious metals/fixed income)

• Complete TCBI application filing and follow-up

• Post-citizenship support including fund exit strategy

  
  

We ensure your investment is secure, compliant, and optimized for financial growth while achieving fast citizenship approval.