Turkish Citizenship by Investment via BES (Private Pension System) – Secure State-Backed Funds

Introduction

Turkey’s Citizenship by Investment program now includes an option that is gaining popularity: Turkish Citizenship by Investment via BES (Private Pension System). This route offers flexibility, professional fund management, and full state-backed security.

This article explains everything you need to know about obtaining Turkish Citizenship through BES funds: eligibility, fund security, investment rules, withdrawal procedures, and the role of IGA Law Firm in guiding investors through the process.

I. BES Fund Security and Management

Fund Structure and Investment Focus

BES funds are designed to manage long-term savings, provide retirement income, and adapt to investor risk profiles. Through the BEFAS platform, investors can choose from 50 eligible funds operated by Türkiye Hayat Emeklilik.

Transparency and security are ensured by Takasbank, the state-owned custody bank supervised by the Turkey Wealth Fund. All funds are listed on TEFAS and traded via BEFAS. Importantly, foreign-currency-indexed funds (e.g., Eurobond) are excluded from the program.

Single Contract Rule

Each investor may open only one BES contract for citizenship purposes. Within that contract, multiple funds can be freely combined.

Investor Control vs. Fund Management

• Investors decide fund selection and allocation (up to 12 reallocations per year).

• Licensed fund managers execute daily strategies within regulatory limits.

• Orders are processed once per day at 11:00 a.m. (+1 settlement day).

• Türkiye Hayat Emeklilik offers a mobile app with live account access and optional AI-driven portfolio advisory.

  
  

Risk Control and Past Performance

• Portfolio diversification is mandatory (no more than 80% in a single instrument).

• Assets are fully segregated at Takasbank, safe from company liabilities.

• If a manager underperforms, Türkiye Hayat Emeklilik can transfer the mandate.

• Investors may access performance reports (1M–5Y) via Fund Turkey.

  
  

II. Investment and Holding Period

Three-Year Holding Requirement

Citizenship approval requires maintaining the investment for at least three years. Early withdrawal results in the cancellation of citizenship eligibility, although technically funds can be withdrawn at any time with a 15% tax on profits.

Exit After Three Years

• Investors submit a withdrawal request to Türkiye Hayat Emeklilik.

• Takasbank completes the transaction within a maximum of five business days.

• Only a 15% withholding tax on profits applies.

  
  

Returns and Fees

• Returns are calculated daily.

• Annual management fee capped at 1.09%.

• No taxes on buy/sell/switch transactions.

• BES funds do not distribute dividends; all gains are reflected in the unit price.

Post-Three-Year Options

Investors who remain in BES may access state contributions (30% bonus on contributions, subject to vesting: 15% after 3 years, 35% after 6 years, 60% after 10 years, and 100% at retirement).

III. Fund Security and Regulation

All BES funds eligible for Turkish Citizenship by Investment via BES are listed on TEFAS and traded via BEFAS, ensuring full transparency and compliance.

• Account Opening: Strongest with Ziraat, VakıfBank, and Halkbank; possible with other banks.

• State Guarantee: Bank deposits insured by SDIF; BES funds fully safeguarded at Takasbank.

• Insolvency Protection: Assets segregated, safe even if the company fails.

• Oversight: SEDDK (main regulator), CMB (Capital Markets Board), EGM (Pension Monitoring Center), MASAK (AML compliance).

  
  

IV. Investor Services

• Monthly Reports: Delivered via email, showing contributions, balance, and performance.

• Digital Access: Mobile app with 24/7 real-time portfolio monitoring.

  
  

V. Türkiye Sigorta and Türkiye Hayat Emeklilik

• Both institutions are 100% owned by the Turkey Wealth Fund, representing the Republic of Turkey.

• Türkiye Hayat Emeklilik is the sole state-owned intermediary for BES, ensuring investor security.

• While the contract is identical whether signed directly or via an intermediary, IGA Law Firm adds value by providing:

  • Bank account opening,

  • Document preparation,

  • Residence permit for main applicant and spouse,

  • Citizenship applications for the entire family,

  • Post-citizenship support, including fund withdrawal and overseas transfers.

    
    

Conclusion

For investors seeking a reliable and transparent pathway, Turkish Citizenship by Investment via BES (Private Pension System) combines legal security, professional fund management, and state guarantees. Unlike real estate or bank deposit investments, it allows investors to diversify across multiple funds, benefit from professional management, and ensure full custody of assets.

With the guidance of IGA Law Firm, investors can complete the process smoothly, from bank account opening to final citizenship approval, and secure their exit strategy after three years.