Chinese investors, particularly Hong Kong residents, are increasingly seeking alternative business and lifestyle opportunities overseas, driven towards stability and brand-new opportunities by ongoing economic and social turmoil and the crushing nature of the coronavirus pandemic. The United Kingdom, the US and many other European nations embody an open labour market and a huge investment diversity which is complemented by political and economic stability and advantageous foreign direct investment initiatives.
Whilst following an investment immigration route directly into the UK or the US can be complicated and expensive, Turkey offers a very effective solution through their citizenship by investment scheme which unlocks the doors to migration to the US or UK in a quick and cost-effective manner. By purchasing property in Turkey valued at $250,000 or above, Chinese investors can springboard their investment potential into new markets throughout the US and UK whilst securing capital appreciation, rental income and a clear exit strategy.
Turkey is an integral part of China’s Belt and Road Initiative. The signing of the 2011 strategic Agreement in Ankara included a target of 50 billion US dollars of mutual trade by 2015 rising to 100 billion dollars by 2020. Both countries are working together to revive ancient trade routes through the development of transport links in both countries and Eurasian trans-continental railway lines for freight and passengers to connect Asia to Europe. As a result of this, Chinese Investment has flooded into Turkey paired with the increasing number of Chinese investors taking advantage of Turkey’s CBI programme (and this extends to Arab and Russian investors). Furthermore, as a member of the European Union’s Customs Union, Turkey is ideally placed to become a more efficient base for Chinese production into Europe.
Under the Ankara Agreement (ECAA), once an individual has gained Turkish Citizenship, they may set up a business in the UK with no restriction on commercial nature, profitability or the need to create jobs. Following this, the individual and their family will acquire investor residency which can be upgraded to permanent residency in the UK following 4 years of operating the business. Alternatively, Turkish citizenship offers a route to acquiring an E2 visa in the US which is far more cost efficient than the traditional EB-5 Green Card route.
How are Chinese investors changing the face of Turkey?
- Buying Property: Typically preferring luxury property, beautifully designed, 5-star managed apartments with excellent facilities, Chinese investors are reaping the rewards of Turkish citizenship by investing as little as $250,000 USD.
- Taking More Holidays: Half a million Chinese tourists visit Turkey each year and Turkish tourism is working hard to cater for Chinese Tourists
- Building a Chinatown in Istanbul: Transformation of Istanbul’s ‘Dolapdere’ area by Chinese capital. Chinese owned hotels & restaurants being constructed in the areas.
- Increasing Trade: Last year, bilateral trade between Turkey and China reached $23.6 billion, marking China as Turkey’s largest trading partner after Russia and Germany. Turkey’s location at the intersection of Europe and Asia provides unparalleled global access.
- Chinese Companies are Moving in: Over 1000 Chinese companies are in Turkey with over 8000 Chinese workers based in-country.
- Investing in Every Sector: Expected investment of $6 billion dollars by 2021, in energy, automotive, banking and communication sectors. One prime example is the landmark investment of $1.7 billion in Adana thermal power plant.