Citizenship By Investment
Citizenship-by-Investment
The concept of Citizenship-by-Investment (CBI) started gaining popularity in 1990s. Over the past two decades, several countries across the world have incentivized foreign investment by launching CBI programs. These programs are a win-win for the issuing countries as well as global investors. While foreign investment contributes to economic growth in the host country, investors benefit from alternative citizenship which entails free movement to many different parts of the globe. With due diligence and careful planning, they can expect good returns on their investment along with a second passport.
The conditions and investment threshold vary from country to country. The investment starts at $100,000 and can go up to €2.2 million for countries such as Cyprus and the USA. When choosing a CBI program, it’s extremely important to take into consideration the specifics of each program. Some countries offer residency but it doesn’t actually lead to citizenship. Some others offer both the options - citizenship as well as residency. You need to weigh the value of the second passport against the required minimum investment and other criteria.
Citizenship-by-Investment: An Overview
CBI is a way for investors to obtain second citizenship by investing in a foreign country (other than the country of their origin). Some ‘economic citizenships’ are hereditary which means you can pass it on to your children. St. Kitts & Nevis was the first country to introduce a CBI program in 1984.
Citizenship-by-Investment: Factors to Consider
Some countries require you to first obtain a residency permit (mostly European countries). You can apply for permanent residency and eventually citizenship after a certain number of years. Some others allow the investment to be the direct route to citizenship. The investment holding period also varies from country to country. Some countries allow you to sell off the investment within 3-5 years, while others require you to stay invested for life. The application processing time can range from 60 days to 2 years. These factors make it important for you to carefully consider your investment and travel goals before choosing a country for second citizenship. Here is a round-up of some of the most important factors for you to consider:
· Investment threshold: it can be anywhere from $100,000 to $2 million
· Types of investment: Real estate is the most common type of investment; however, many other options are available: enterprise investment, non-refundable contribution, stocks/bonds, and investment funds.
· Passport value: Passports of some countries are more valuable than others. Find out which countries you will be able to travel visa-free or visa-on-arrival
· Application processing time: Ranges from 60 days to 2 years, and even more in some cases
· Type of citizenship: is it hereditary?
· Timeline: Is it direct citizenship? If you will first get a residency, how long before you can apply for citizenship
· Return on investment: Are you investing in a country with some kind of assurance of a good return on your investment.
· Host country’s economy: Is the economy of the host country resilient?
· Minimum stay period/visitation requirement: Will you need to stay in the host country for a minimum number of days per year to qualify for citizenship? Will you need to visit in person when the host country is processing your application.
· Taxes: Will you be taxed on your world income? How much are inheritance and capital gains taxes?
· Family: Can you include your and your spouse’s family in a single application? Is there any additional fees or contribution required for additional applicants?
· Holding period: How long will you need to hold the investment? Is the exit strategy allowed by the host country in line with your investment?
· Language proficiency and other requirements: will you need to pass tests including language proficiency?
· Your objective: What’re your primary objectives behind second citizenship? For example, do you want the freedom to travel across Europe? Do you want access to the USA for expanding your enterprise?
· Dual citizenship or naturalization: Does the host country allow dual citizenship?
Some CBI programs can be more complex and time-consuming than others. For example, a US immigration visa can take several months and involves a huge amount of investment, but if your goal is to establish a business in the US, you can consider low-cost citizenship programs offered by countries that have a E2 Visa treaty with the USA such as Turkey (min investment $250,000) or Grenada (min investment $150,000). You can then apply for a non-immigration US Visa which allows extended stays for you and your family.
If you’re unsure which CBI program is best for you, get in touch with Global Investor Advisors for a consultation based on your individual situation.
Why Citizenship by Investment
Second citizenship can be beneficial in many ways. Here are a few reasons why you should consider investing in it:
· A sense of security that you can derive from second citizenship in a country with better economic and political stability
· Increased freedom of movement that you can utilize for a variety of purposes – business growth, recreational travel, or world-class education for your children
· A better wealth management that comes with second citizenship of a country that offers a more flexible tax regime. Many countries don’t tax inheritance, capital gains, or world income.
· With careful planning and due diligence, you can even make your investment in a foreign country financially profitable. You can potentially get good returns on your real estate and other types of investments. You can sell off your investment after a certain number of years if allowed by the host country and realize your profits. Second citizenship becomes a byproduct of your investment.
Common Citizenship-by-Investment Requirements
While various factors such as investment threshold vary from country to country, there are some common requirements that individuals seeking second citizenship should meet in most cases:
· No criminal record
· Main applicant must be in good health
· Main applicant must be at least 18 years of age
Why Golden Visa Advisors
Golden Visa Advisors create opportunities for alternative citizenship after a thorough analysis of each client’s individual circumstances and investment goals. We remain up to date with the latest legislations, rules and regulations introduced by the host countries from time to time. While planning and designing a CBI program for clients, we ensure compliance with laws of the host country.
In many instances, we don’t hesitate to advise against citizenship if we feel that the client doesn’t meet required criteria set out by the issuing country. We believe this approach is far better than sending an individual and his/her family down a wrong path, taking unnecessary risks with their investment, and wasting their precious time and resources. We provide these clients consultation on alternative options and programs that are best suited in their particular situation.
We believe in getting the best solution for clients as quickly as possible. While we are always mindful of how important time is for our wealthy clients and their advisors, we never skip the due diligence process.
We will analyze each client’s attitude to risk, lifestyle, and investment goals. We take these factors into consideration when our Citizenship-by-Investment specialist offer tailored counselling.
We take pride in our solution-oriented and methodical approach, attention to detail and eagerness to prioritize our clients’ best interests above anything else. This has made us the global leader in citizenship and residency planning.
Antigua & Barbuda
· CBI Established: 2013
· Location: The Caribbean
· Min Investment/contribution: $100,000
· Real Estate Investment Option: Available
· Time to citizenship: 3-4 months
· Key Benefits: Low-cost investment, Visa-free travel to 150+ countries, little to no minimum stay period requirement, no taxes on world income, Dual citizenship
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Cyprus
· CBI Established: 2018
· Location: Europe
· Min Investment/contribution: €2.2 million
· Real estate option: Available
· Time to citizenship: 6 months
· Key Benefits: Free movement across Europe, direct citizenship unlike many other European Golden Visa programs, dual citizenship, no minimum stay requirements, no inheritance tax
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Dominica
· CBI established: 2015
· Location: The Caribbean
· Min Investment/contribution: $100,000
· Real estate option: Available
· Time to citizenship: 3-4 months
· Key benefits: Visa-free or visa-on-arrival travel to 120+ countries, no tax on world income or inheritance, low-cost investment, dual citizenship
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Grenada
· CBI established: 2013
· Location: The Caribbean
· Min Investment/contribution: $150,000
· Real estate option: Available
· Time to citizenship: 2-3 months
· Key Benefits: E2 visa treaty with the USA that entails non-immigration residency permit, visa-free or visa-on-arrival travel to 144+ countries, no inheritance, capital gains, or wealth taxes, dual citizenship, no minimum stay period requirements
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Malta
· CBI Established: 2020
· Location: Europe
· Min Investment/contribution: €1.3 million
· Real estate option: Available
· Time to citizenship: 3-4 months
· Key Benefits: Direct citizenship of a European country, dual citizenship, free movement across Europe
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Montenegro
· CBI Established: 2019
· Location: Europe, but not part of EU yet
· Min Investment/contribution: €250,000-€450,000
· Real estate option: Available
· Time to citizenship: 3-4 months
· Key Benefits: Possibility of Montenegro being part of EU in the near future, visa-free or visa-on-arrival travel to 137+ countries
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St Lucia
· CBI Established: 2016
· Location: The Caribbean
· Min Investment/contribution: $100,000
· Real estate option: Available
· Time to citizenship: 2-3 months
· Key Benefits: Low-cost investment threshold, fast application processing, dual citizenship allowed, no inheritance and wealth taxes, no minimum stay period requirements, visa-free travel to 144+ countries, dual citizenship
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St Kitts & Navis
· CBI Established: 1984
· Location: The Caribbean
· Min Investment/contribution: $150,000
· Real estate option: Available
· Time to citizenship: 2-3 months
· Key Benefits: Affordable real estate, low investment threshold, visa-free or visa-on-arrival access to 155 countries, no inheritance or wealth taxes, dual citizenship
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USA
· Immigration by investment program established: 1990 (EB-5 Immigrant Investor Visa)
· Location: North America
· Min Investment/contribution: $900,000 to $1.8 million
· Real estate option: Not available
· Time to citizenship: 5 years (6 months for immigrant visa)
· Key benefits: EB-5 leads to Green Card and citizenship, plenty of investment opportunities, best infrastructure, Green Card for family including spouse and children
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Turkey
· CBI established: 2017
· Location: Transcontinental (Europe and Western Europe)
· Min Investment/contribution: $250,000
· Real estate option: Available
· Time to citizenship: 3-6 months
· Key benefits: E-2 visa treaty with USA which allows Turkey citizens to get a residency permit by investment in the USA, visa-free or visa-on-arrival travel to 110 countries, possibility of Turkey joining the European Union
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Vanuatu
· CBI established: 2017
· Location: South Pacific Ocean
· Min Investment/contribution: $130,000
· Real estate option: Available
· Time to citizenship: 1-2 months
· Key Benefits: Only country to offer citizenship by investment in South Pacific, visa-free or visa-on-arrival travel to 148+ countries, dual citizenship, no wealth, capital gains or inheritance taxes, English and French-speaking population
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Germany
· Location: Central Europe
· Min investment/contribution: €350,000
· Real estate Investment option: Available
· Time to residency: 3 years
· Key benefits: visa-free travel to Europe’s Schengen area eligibility to apply for permanent residency in 3 years and citizenship in 8 years, resilient economy