What is a Citizenship by Investment Programme?
A citizenship by investment programme is a unique way of receiving citizenship of a country by making a considerable investment to said country’s economy, in accordance with any investment and eligibility criteria laid out in the law. Same as with any other modes of obtaining second citizenship, such as birth, marriage, and naturalisation, a citizenship by investment programme calls for a genuine link to be established with the country issuing the citizenship. Today, several citizenship by investment programmes exist around the world, all with distinguishable characteristics that cater to the different needs and priorities of investors.
As of now, eight successful citizenship by investment programmes are currently actively operating. Three prestigious programmes are available in Europe from Malta, Cyprus and Austria. These three programmes are optimal for high-net-worth individuals who covet access to the Schengen area and desire to reside and do business more comfortably in any country in the EU. Otherwise, for investors who would prefer further flexibility in investment options, five other countries in the Caribbean also offer their own citizenship by investment programme- St Kitts and Nevis, Saint Lucia, Antigua and Barbuda, Grenada, and Dominica.
Below is a comparison of the available citizenship by investment programmes, excluding the Austria citizenship by investment programme which is less clear-cut and conventional than the others. Numbers displayed in the table indicate the minimum investment requirement for a single applicant.
|
|
Malta Citizenship by Investment Programme |
Cyprus Citizenship by Investment Programme |
St Kitts and Nevis Citizenship by Investment Programme |
Saint Lucia Citizenship by Investment Programme |
Antigua and Barbuda Citizenship by Investment Programme |
Grenada Citizenship by Investment Programme |
Dominica Citizenship by Investment Programme |
|
Investment Model |
Contribution + Bonds + Property |
Investment or combination; + Property valued €500,000 |
Contribution or Property |
Contribution or Property or Bonds |
Business Investment or Property or Contribution |
Business Investment or Property or |
Contribution or Property |
|
Contribution |
€ 650,000 |
N/A |
USD $150,000 |
USD $100,000 |
USD $200,000 |
USD $150,000 |
USD $100,000 |
|
Government bonds |
€ 150,000 |
Optional |
N/A |
USD $500,000 |
N/A |
N/A |
N/A |
|
Real estate |
Min. Rent €16,000 p.a. or Min. purchase €350,000 |
€ 2 million |
USD $400,000 |
USD $300,000 |
USD $ 400,000 |
USD $350,000 |
USD $200,000 |
|
Dependants: Spouse Parents Children |
Yes Yes Up to 28 yrs |
Yes Yes > 55 yrs Up to 26 yrs |
Yes Yes > 55 yrs Up to 30 yrs |
Yes Yes >65 yrs Up to 25 yrs |
Yes Yes> 58 yrs Up to 26 yrs |
Yes Yes >65 yrs Up to 25 yrs |
Yes Yes> 65 yrs Up to 25 yrs |
|
Physical residence per year (before passport) |
Minimum 15 days |
1 visit |
No requirement |
No requirement |
5 days in the first 5 years |
No requirement |
No requirement |
|
Time to Passport |
12 months |
6 months |
3-4 months |
4 months |
3-4 months |
3-4 months |
3 months |
|
Dual Citizenship |
Allowed |
Allowed |
Allowed |
Allowed |
Allowed |
Allowed |
Allowed |
Malta Citizenship by Investment Programme
The Malta Individual Investor Programme (MIIP) was launched in 2014 and has now become one of the most successful and reputable EU programmes, setting an example for all other citizenship by investment programmes, particularly with regards to impeccable due diligence standards. The processing time for the programme is that of four months, and the passport is granted after a period of 12 months. Maltese citizenship offers visa-free travel to over 173 countries, an excellent international reputation, attractive business conditions, high-quality education, and the opportunity to live, work and do business in any country within the EU- all of which can be attained through the Maltese Citizenship by Investment Programme. Under the Maltese programme applicants are required to invest in three different ways; in the form of a contribution, property purchase or rental and in government bonds.
Cyprus Citizenship by Investment Programme
The Cyprus Citizenship by Investment Programme, known as the Cyprus Investment Programme, was launched in 2013 and is now considered to be one of the most attractive citizenship investment programmes. Cyprus citizenship is granted with a 6 months processing time through a simple and straightforward process. Applicants are not required to live in Cyprus, making it ideal for applicants who wish to invest in the country, while residing elsewhere. Cyprus allows for visa-free travel to 163 countries and also permits dual citizenship. The Cyprus Investment Programme offers two main investment routes- property or a combination of different investments- granted that a minimum of €2 million is invested and the applicant purchases residential property of a minimum value of €500,000.
St Kitts and Nevis Citizenship by Investment Programme
The St Kitts & Nevis Citizenship by Investment Programme, established in 1984, is the first and longest running economic investment programme in the world. The application process is between four to six months, making it relatively fast, and an Accelerated Application Process (AAP) is also available. Some of the benefits of the programme include zero residency requirements, visa-free travel to over 141 countries, and a favourable tax regime that exempts new citizens from on worldwide income, wealth tax and inheritance in St Kitts. The two qualifying investments for the programme are either an investment in real estate or a monetary contribution to the Sustainable Growth Fund (SGF).
Saint Lucia Citizenship by Investment Programme
Saint Lucia’s Citizenship by Investment Programme, introduced in 2015, offers a variety of investment options for high-net-worth individuals. St Lucian Citizenship through the programme comes with a swift processing time of three months and offers visa-free travel to more than 132 countries. There are also no physical presence requirements and successful applicants would not be subject to tax on worldwide income. The Saint Lucia citizenship by investment programme provides a number of investment options which an applicant may choose from, namely through a contribution, real estate, government bonds and an entrepreneurial investment.
Antigua and Barbuda Citizenship by Investment Programme
Antigua and Barbuda set up its citizenship by investment programme in 2014, grating citizenship through sufficient investment following a short three-month processing time. Other benefits of attaining citizenship through the country’s programme include visa free access to 140 countries and exemption from taxation on foreign income, wealth, inheritance, gifts or capital gains. In order to gain citizenship in Antigua and Barbuda an applicant must invest in one of the three following options; a donation to Antigua’s National Development Fund (NDF; an investment in real estate which must be kept for a minimum of 5 years, or an investment towards establishing a business in the country.
Grenada Citizenship by Investment Programme
Established in 2013, the Grenada Citizenship by Investment Programme was introduced so as to further diversify the island’s economy and attract foreign investment. The processing time for the programme is that of 3 months and there are no residency requirements before, during or after the application is finalised. Grenadian citizenship comes with unrestricted right to live, travel and study in the CARICOM, as well as visa free travel to 131 countries, and may be passed down to any future descendants. The two main investment options available through the programme are real estate investment, or a contribution to the Grenada National Transformation Fund (NTF).
Dominica Citizenship by Investment Programme
Dominica’s Citizenship by Investment Programme is one of the longest-established of its kind, having been introduced in 1993. The programme boasts of a number of benefits, including a swift three-month processing time, favourable tax system whereby new citizens are exempted from tax on wealth, inheritance, capital gains, no minimum residency requirement, and 127 visa-free travel destinations around the world. The two investment options that an applicant may choose to proceed with involve a contribution to the Economic Diversification Fund (EDF) or an investment in real estate.
Why seek second citizenship through a citizenship by investment programme?
Attaining a second citizenship offers an unprecedented amount of freedom, augmented opportunities and extended global reach. For those who find themselves unjustly restricted by the bounds of their citizenship, obtaining a second citizenship, or a dual citizenship if possible, would expose them to a newfound wealth of options. Because of the investment requirements, citizenship by investment programmes are targeted towards high-net-worth individuals, whether their primary aim for investing is for personal or business intentions.
Among the benefits of attaining dual citizenship through one of the citizenship by investment programmes, there are the following:
- Visa-free travel: Attaining citizenship in a country with an extensive list of visa-free access countries can considerably widen mobility options for high-net-worth individuals who routinely face visa restrictions based on their country of original citizenship. This enhanced mobility would serve as a treasured asset both for the smooth operation of business transactions and for personal-motivated travel.
- Tax benefits: The different jurisdictions which offer citizenship by investment programmes all offer their own tax incentives to prospective investors, which would allow them to better safeguard and maximise their wealth, particularly in a way that the attainment of US citizenship would not.
- Haven from political and economic insecurity For high-net-worth individuals that originate from politically or economically unstable countries, investing in a citizenship by investment programme can prove to be particularly invaluable as it offers an unparalleled peace of mind. By attaining dual citizenship in a relatively short period of time, investors can conveniently evade fall-outs in their personal and business lives in times of conflict, political turmoil, local economic recession or environmental catastrophes.
- Optimized quality of life: By investing in one of the CBI programmes, main applicants and their families can enjoy a life which they had only dreamed of in their choice of country. Furthermore, if an applicant were to invest in one of the European programmes, any country in the EU may serve as their living and business destination. Investors can also benefit from excellent levels of healthcare and education, while also passing down this lifestyle to future generations.