Changes Regarding YUVAM Accounts
Important changes have been made in YUVAM accounts, one of the methods used by foreigners to gain citizenship in Turkey.
If a foreign investor deposits USD 500,000 in a bank in Turkey and promises to keep it in the account for 3 years, it is possible for the investor to obtain citizenship. There is a rule that 500,000 US dollars or the corresponding foreign currency must be deposited and converted into Turkish Lira, and in the YUVAM account, the foreign investor receives exactly 500,000 US dollars after 3 years, as well as interest in dollars, in order not to be affected by the exchange rate difference.
Effective July 22, 2024, the new regulations include additional benefits for YUVAM accounts and changes in account opening procedures.
Old Practice of YUVAM accounts.
The interest rates for YUVAM accounts were as follows:
– 3-month term: 3% (per annum)
– 6-month term: 4% (annualized)
– 12-month term: 5% (annual)
– 24-month maturity: 6% (annualized)
Account openings could be made through internet or mobile banking channels.
So, at the end of the 3 years, the investors were going to get the USD 500.000 plus the %17 of interest.
New Regulations:
In accordance with the CBRT communiqué, the additional yields on newly opened or renewed YUVAM accounts have been revised as follows
– 3-month maturity: 1% (annually)
– 6-month term: 2% (annually)
– 12-month term: 3% (annually)
– 24-month maturity: 4% (annually)
New YUVAM accounts can now only be opened at bank branches. In addition, a document certifying that the foreign currency amount has been received by transfer from abroad or as foreign currency is required if the amount is brough in cash to the bank branch.
Which means that with the new regulations, at the end of the 3 years, the investors were going to get the USD 500.000 plus the %11 of interest.
With these changes, investors will be able to transfer their foreign currency to Turkey in a more controlled and orderly manner. For more information on the new regulations, please contact us.