Recent global developments, whether social, economic, and/or political, have led to an increasing number of investors to explore alternative options for relocating their businesses and families. One such option that is becoming more and more popular is the possibility of being able to get a second passport through investing in a country.
The desire for these so called ‘Golden Passports’ present an opportunity for both investors and the host country. For example, investors gain citizenship, while host countries benefit from economic investment.
The good news is that the availability of a second passport through economic citizenship is becoming more and more accessible. Many countries now offer fast-track citizenship in exchange for financial investments allowing investors and their families to obtain citizenship without lengthy residency requirements or complex application processes.
In this blog we will explore some of the countries that are giving away citizenship with relatively easy citizenship pathways. We will focus on their citizenship by investment programs and the benefits and potential drawbacks these programs offer applicants.
What is Citizenship by Investment?
Citizenship by Investment (CBI) is a pathway to citizenship for foreign investors offered by some countries. In exchange for receiving citizenship, investors are required to make a significant financial contribution or investment in the host country.
CBI programs offer significant advantages for both the host country and the investor. The host country will be able to receive investment for their economy and also access potential technology and skill transfer through companies and businesses who move there. Investors on the other hand will be able to receive citizenship for their chosen country and the benefits that come with that.
Qualifying investments usually include investing in approved projects such as:
Real estate
Purchasing real estate as a method to qualify for CBI often requires the investor to meet a minimum investment threshold and a required holding period before resale.
Purchasing government bonds
Another popular option is investing in non-interest-bearing government bonds. Using this method as a qualification requires the applicant to hold the bonds a fixed period before
redemption.
Business
Establishing or investing in a local business that creates jobs and contributes to the country’s economy. Please note that some countries require job creation as part of the qualification criteria.
Contributions or donations to charity
A non-refundable donation to a government fund that supports infrastructure projects, healthcare, education, and other public initiatives can also be an option for CIB.
What are the Advantages of Citizenship by Investment?
Citizenship by Investment (CBI) programs offer investors a fast-track path to acquiring a second passport, as well as the associated benefits. Golden Passport programs are designed to help develop economic growth for the host country while also granting investors the benefits of economic citizenship.
One of the most significant benefits of giving out citizenship through Citizenship by Investment (also known as a Golden Passport) programs for investors is the immediate access to full citizenship rights. Receiving full citizenship allows the holder to apply for a passport, vote, and enjoy the same privileges as native-born citizens. Fast-track citizenship is an attractive option for investors who are looking for greater global mobility and security.
Examples of the main advantages of receiving a new or second passport include:
Global Mobility & Visa-Free Travel
Many of the countries who offer a golden passport are eligible for visa-free or visa-on-arrival access to numerous countries, making international travel easier for both business and leisure.
Financial & Tax Benefits
Many economic citizenship programs provide very attractive tax regimes for investors. Commonly found tax benefits often include no wealth, inheritance, or capital gains taxes.
Business & Investment Opportunities
A second passport provides the holder with greater access to new markets, giving investors the opportunity to expand their business operations, which in today’s environment is a welcome benefit.
Security & Stability
Economic citizenship programs offer a safe option for individuals from politically or economically unstable countries. For example, if you are an American citizen with a business that relies on exporting goods, the new tariffs could have a significant knock on effect for your business. By investing in another country by relocating your business there, could be an option to overcome this.
Opportunities for Families
Many CBI programs allow investors to include family members in their application, which means their family members are able to access the same rights and benefits as the holder of the golden passport.
Which Countries Giving Out Citizenship to Investors?
More and more countries are starting to introduce Citizenship by Investment or Golden Passport programs for investors. Some of the more popular and establish programs are as follows:
Dominica
Dominica’s CBI program, established in 1993 is one of the most affordable options in the Caribbean. Dominica’s golden passport offers citizenship through two main investment routes:
- A non-refundable donation starting at $200,000 (for a single applicant) contribution to the Economic Diversification Fund or
- An investment of at least $200,000 in approved real estate projects.
Citizenship from Dominica offers to holder the following benefits:
- Visa-free travel to over 140 countries.
- No residency requirement.
- Ability to include family members.
- Dual citizenship allowed.
St. Kitts and Nevis
St. Kitts and Nevis was the first country to introduce a CBI program back in 1984. It offers several investment options for interested inventors including.
- Making a non-refundable contribution to the Sustainable Growth Fund. The amount required for the donation starts at $150,000 for a single applicant plus fees.
- Invest at least $400,000 (residential) or $200,000 (shared ownership) in approved real estate.
The benefits of receiving citizenship from St. Kitts and Nevis include:
- Visa-free access to over 160 countries including EU Schengen states and the UK.
- No tax on foreign income if not residing there.
Malta
Malta’s Individual Investor Programme (IIP) offers citizenship to investors who have met specific residency requirements as well as certain financial contributions. The requirements to apply for for the IIP are as follows:
Residency Requirement
One year of residence is required before applying for citizenship. Please note, applicants can start the process earlier with a residence permit application.
Investment:
The following investment requirements must also be met:
Financial Contributions
An investment of €600,000 (€750,000 if the applicant chooses the fast-track citizenship route after 12 months) is required for the main applicant plus €25,000 per dependent child under 18 years old; €50,000 per dependent aged between 18–26 years old; €50 per parent above the age of majority living with you. This contribution can be in the form of government bonds or business.
Please also note, Health insurance covering all applicants must be maintained throughout the residency period.
Property Purchase
Investors must buy a property worth at least €750k. Alternatively it is possible to rent a property instead. For a rental property to qualify as an investment a minimum annual rent of €16,000 is required. The property must also have been rented by the investors for a minimum of five years.
Charitable Contributions
Investors are also required to make the following charitable donations in order to be eligible for the program:
- Donate €10k to a Maltese registered NGO(s).
Benefits from having Maltese citizenship include:
- Visa-Free Travel within the EU (including the UK)
- Access To High-Quality Education And Healthcare Systems
- Dual citizenship allowed
Türkiye (Turkey)
The Turkish Citizenship by Investment Program allows foreign nationals to acquire Turkish citizenship through various investments such as:
- purchasing real estate valued at least TRY 400k (~USD ~$20k),
- investing USD ~$500k into fixed capital contributions or,
- creating jobs for ten Turkish citizens.
Benefits of qualifying for the Turkish CIB include:
- Fast processing times are for applications, with most applications being completed Within three months.
- Access to travel within Europe.
- Potential future EU membership, which offers potential to free movement of people, capital and services.
Vanuatu
Vanuatu offers one of the quickest and most efficient options for fast-track citizenship through its Development Support Program. The Development Support Program offers the following investment options:
- Making a donation to Government development funds. The minimum donation is $130,000 (USD).
The benefits of obtaining citizenship from Vanuatu through its Citizenship by Investment (CBI) program include:
- Fast processing time, typically taking between 1 to 4 months to complete=.
- Vanuatu passports offer visa-free or visa-on-arrival access to over 100 countries, including the UK, Schengen Zone, Russia, South Korea, and Turkey.
- No residency requirements, which means there are no obligations for the holder to reside in or visit Vanuatu to maintain citizenship=.
- Vanuatu has no personal income tax, capital gains tax, inheritance tax, or other wealth-related taxes.
- Dual citizenship permitted.
