Amendments have been made to the “Implementation Instructions For the Communique on Deposit and Participation Scheme for Non-Resident Turkish Citizens (YUVAM) Accounts” published by the Central Bank of the Republic of Türkiye on December 23, 2024.
What is a YUVAM Account?
A YUVAM account is a type of Turkish Lira account regulated to enable individuals residing abroad and their foreign-based companies to manage their savings in banks operating in Türkiye. These accounts are protected against exchange rate fluctuations and provide additional return guarantees under the assurance of the Central Bank of the Republic of Türkiye.
According to Article 20, paragraph 2, subparagraph (ç) of the Regulation on the Implementation of the Turkish Citizenship Law, individuals could apply for Turkish citizenship by depositing at least 500.000 US Dollars or an equivalent amount in foreign currency in banks operating in Türkiye, with the condition of keeping the deposit for three years. The deposited foreign currency would be converted to Turkish Lira by being sold to the Central Bank, and the acquired Turkish Lira amount had to remain in the account for three years.
With YUVAM accounts, returns were based on the interest rate offered at the time of account opening. The account was protected against potential exchange rate fluctuations during the term, and if the interest yield at maturity was lower than the increase in the exchange rate, the increase in the exchange rate would be reflected in the account.
AS OF JANUARY 2, 2025, NO YUVAM ACCOUNT WILL BE OPENED WITHIN THE SCOPE OF ACQUISITION OF TURKISH CITIZENSHIP AND ACCOUNTS OPENED BEFORE THIS DATE WILL NOT BE RENEWED AT MATURITY.
With the amendment dated December 23, 2024, it has been decided that, as of January 2, 2025, YUVAM accounts can no longer be opened for the purpose of acquiring Turkish citizenship. Additionally, YUVAM accounts opened before this date will not be renewed upon maturity.
This amendment eliminates the possibility of applying for Turkish citizenship through YUVAM accounts in banks operating in Türkiye starting January 2, 2025. Furthermore, it has been decided that YUVAM accounts opened prior to January 2, 2025, will not be renewed at the end of their terms.
For Example:
- A YUVAM account opened on August 21, 2023, with a 2-year maturity will not be renewed upon maturity on August 21, 2025. The Turkish Lira equivalent of the deposited amount of 500.000 US Dollars or its equivalent in foreign currency will be kept in the bank for the last 1 year without interest.
- Similarly, a YUVAM account opened on April 21, 2024, with a 1-year maturity will not be renewed upon maturity on April 21, 2025. The Turkish Lira equivalent of the deposited amount of 500.000 US Dollars or its equivalent in foreign currency will be kept in the bank for the for the remaining 2 years without interest.
Applications for Turkish Citizenship through the Bank continue for investment purposes and only the interest returns provided by the YUVAM account have been abolished. Which means that if the applicants would like to open turkish lira deposit accounts and keep their money in Turkish Lira for 3 years, the bank deposit option is still avaiable but there will be no YUVAM account anymore which is there will be no gurantee of the exchange protection.
Currently, applicants who have blocked their accounts for 3 years but initially opened a YUVAM account with a 2-year term will have their funds protected for the duration of the 2-year term. However, for the third year, the funds will be held in Turkish Lira, and banks will apply interest on the Turkish Lira balance.
For the foreigners and Turkish citizens live abroad, still can open YUVAM accounts. Only citizenship purposes, the YUVAM account is cancelled. Amendments to Implementation Instructions For the Communique on Deposit and Participation Scheme for Non-Resident Turkish Citizens (YUVAM) Accounts are listed in the table below.
| 20/07/2024 Old Instruction | 23/12/2024 New Instruction |
| General provisions regarding YUVAM accounts ARTICLE 4 (Previous Regulation) (1)YUVAM accounts could be opened with maturities of 3 months, 6 months (maximum 180 days), 12 months, or 24 months. Deposit banks were allowed to set the interest rate, provided it was not lower than 70% of the one-week repo auction interest rate determined by the Central Bank. (2) YUVAM accounts with a 24-month maturity could be opened with annual interest/profit share payments. If requested by the account holder, the bank would pay the annual interest/profit share to the account holder. (3) The Central Bank pays additional returns in Turkish Lira, calculated at the rates specified below for each maturity group, in accordance with Article 6. The stated rates represent annual return percentages. 3-Month Maturity: %1 6-Month Maturity: %2 12- Month Maturity: %3 24- Month Maturity: %4 Opening a YUVAM account ARTICLE 5 (Previous Regulation) (2) Foreign currencies transferred by the bank to the Central Bank’s account are purchased by the Central Bank at the conversion rate, and the corresponding Turkish Lira amount is transferred to the relevant bank. Maturity-End Transactions ARTICLE 6 (Previous Regulation) (7) Within the scope of account renewals, the account holder shall be able to make use of the incentive with a chosen term, only for an amount up to the foreign currency equivalent of the Turkish lira balance at the end of the maturity as converted at the exchange rate at maturity. | General provisions regarding YUVAM accounts ARTICLE 4 (Amended Regulation) (1) YUVAM accounts can now be opened with maturities of 3 months, 6 months (maximum 180 days), or 12 months (maximum 365 days). Deposit banks may set the interest rate, provided it is not lower than 50% of the one-week repo auction interest rate determined by the Central Bank.. (2) For 24-month YUVAM accounts opened before December 23, 2024, under this implementation directive, the bank will pay the annual interest/profit share to the account holder upon their request. 3) The Central Bank pays additional returns in Turkish Lira, calculated at the rates specified below for each maturity group, in accordance with Article 6. The stated rates represent annual return percentages. 3-Month Maturity: %1 6-Month Maturity: %2 12- Month Maturity: %3 Opening a YUVAM account ARTICLE 5 (Amended Regulation) (2) Balances of foreign currency deposit accounts and foreign currency participation fund accounts in a minimum amount of 500 units in US Dollars, Euros, British Pounds, or Swiss Francs can be converted into Turkish Lira at the conversion rate upon the account holder’s request to open a YUVAM account. Maturity-End Transactions ARTICLE 6 (Amended Regulation) (7) The account holder may continue to benefit from support under the renewed account, provided that: The amount is at least 500 units (US Dollars, Euros, British Pounds, or Swiss Francs), and At most, the foreign currency amount equivalent to the Turkish Lira balance at maturity, calculated at the maturity-end exchange rate, is selected based on the chosen maturity. |
Comparison of YUVAM Account Application Instructions
| Aspect | 20/07/2024 Old Instruction | 23/12/2024 New Instruction |
| Account Maturities | 3 months, 6 months (max 180 days), 12 months, 24 months | 3 months, 6 months (max 180 days), 12 months (max 365 days) |
| Minimum Interest Rate | 70% of the one-week repo auction rate | 50% of the one-week repo auction rate |
| Renewal of Accounts | Allowed for all accounts | Not allowed for accounts opened before 02/01/2025 |
| Citizenship Eligibility | YUVAM accounts could be used for citizenship application | Citizenship application via YUVAM accounts not allowed from 02/01/2025. It is still possible to apply for Turkish citizenship by opening a bank for investment purposes. only the interest returns of the YUVAM account will not be available. |
| Annual Interest/Profit Payments | Offered for 12- month and 24-month accounts | Offered only for 12- month and 24-month accounts opened before 23/12/2024 |
| Minimum Deposit | At least USD 500,000 or equivalent foreign currency amount | At least 500 units in USD, EUR, GBP, or CHF required for account opening |
| Maturity-End Transactions | Account holders can renew their accounts at maturity | Account holders will not be able to renew their accounts at maturity |
It is still possible to apply for Turkish citizenship by investment through the purchase of a property worth a minimum of 400.000 USD. Please don’t hesitate to contact our office if you are interested in applying for Turkish citizenship by property investment.