In the search for freedom of movement and safety, more people are considering a second citizenship. The citizenship by investment industry has rapidly been gaining more awareness. Political instability is one driver. Brexit is another. Aggressive changes to taxation policies also play a role. So do new political leaders inclined toward restrictive immigration policies. These pressures have encouraged more people to seek a second nationality. Many want protection from these radical changes.
In the past couple of years, several governments across the world have carefully restructured their citizenship by investment programmes. Affluent investors can financially contribute to a country’s economy. In return, they obtain residency status or a second nationality. Increasingly, governments analyze investors’ needs. They tailor citizenship programmes to fit those demands. This has helped attract more investors into these programmes. It has also created more awareness of the citizenship by investment industry.
Here we highlight some of the most recent changes to the citizenship by investment programmes.
The Cypriot Citizenship by Investment programme is currently the only European programme which allows an applicant to obtain citizenship in six months. The passport allows visa free travel to over 140 countries. Most importantly, it gives the right to study, work, and live in any country which is part of the European Union.
Major changes within the Cypriot Citizenship by Investment programme have helped attract a greater number of investors. In September 2016, the government reduced the price of the required real estate investment from EUR2.5 million to EUR2m.
Also, applicants can now include their parents in their application. That requires an additional real estate investment of EUR500,000. Along with this change, the government has enhanced their due diligence process in light of the growing number of applicants.
In addition, the government will now first issue a residency card. Six months later comes citizenship. Such amendments have been reflected in an increased number of investors flocking to Cyprus to explore this opportunity.
‘Fast track’ citizenship programmes such as the Cypriot programme do not require the applicant to reside in the country. They also do not require proof of residency to obtain or maintain their new nationality.
The Caribbean citizenship by investment programmes have the same characteristics, hence their popularity. Some of these countries have also recently made changes to their citizenship legislation. They are adjusting to what has become a very competitive industry.
The Commonwealth of Dominica has a buoyant citizenship programme. On December 1, 2016, it reduced government application fees for the real estate investment option.
To apply for the citizenship of Dominica via real estate, a minimum investment of $200,000 is required in a Government approved project.
In addition to this investment, the applicant must pay government application fees. Those fees have recently been reduced considerably. With the new amendments, fees for a family of four fell from $115,000 to $75,000. For a family of six, fees fell from $155,000 to $100,000. This change has increased investment in Dominica’s real estate sector.
Cabrits Resort Kempinksi; Tranquility Beach – CURIO – A Collection by Hilton; and Silver Beach Marriot are three of the top world-renowned hotel brands approved by the Dominica government for citizenship. These developments play a key role in supporting the country’s economy. That support covers both real estate and tourism.
The government has also introduced changes to the age of dependent children and parents. Applicants can now include children up to 28 years of age, instead of 25. They can also include parents over 55 years of age, instead of 65.
Grenada’s citizenship programme has also proven to be a major player within the citizenship by investment industry in the Caribbean. It reopened its citizenship by investment programme in 2014. The country’s passport offers visa free access to over 120 countries. That includes the UK, Schengen, and China.
Grenada is the only Caribbean country with a fast track citizenship programme which signed a Commerce and Navigation Treaty with the United States of America. In return, the USA allows Grenada’s citizens to fall under the E-2 non-immigrant classification. Therefore, a Grenada citizen can obtain U.S residency by making an investment of approximately $100,000 in a business in the U.S. They must also employ a minimum of three people.
Ever since the increase of the citizenship application costs passed in January 2012 by former Prime Minister of St. Kitts & Nevis, Denzil Douglas, the legislation has not undergone any further changes in its costs.
On the other hand, Antigua & Barbuda has a similar required entry level to St Kitts & Nevis. It has slightly decreased their application costs. Announced back in June 2016, the government now allows two dependent children to be included under the National Development Fund option at no additional cost. The total financial contribution is $300,000 for a family of four.
Saint Lucia is the last country to have launched its citizenship by investment programme on January 1st, 2016. It also passed significant amendments to their legislation only a few weeks ago.
On January 1, 2017, St Lucia aggressively decreased their costs. It became the most affordable citizenship programme in the industry. The Financial Contribution to the National Fund of St. Lucia came down from $200,000 to $100,000 for a single applicant. For a family of four, it fell from $250,000 to $190,000.
The country offers a second citizenship in a period of three months. It allows visa free access to over 120 countries including the UK and Schengen states. With this amendment, St. Lucia is set to see a radical impact in the number of applications submitted during 2017.
Although some prefer faster citizenship programmes, others do not mind the wait. They opt for longer term European residency programmes.
One of the most popular residency programmes is the Portuguese Golden Visa. Through a real estate investment of EUR500,000 the applicant obtains Portuguese residency status. Six years later, if no amendments to the legislation take place, they have the right to apply for citizenship.
The programme is attractive because Portugal’s passport is ranked highly. It allows visa free access to over 150 countries. Investors can also get a genuine return on their real estate investment. The property market is currently soaring. The property investment can be sold once citizenship is granted.
Furthermore, the applicant does not have to reside in the country at any point in time. They must only make periodical short visits to the country.
Also within Europe, in July 2015, Greece introduced further amendments to their law. Investors who purchase a property worth Euros 250,000 in Greece and reside in the country for seven consecutive years can apply for citizenship.
The Greek residency by investment programme was launched on April 18, 2013. Before the recent change, investors were not able to qualify for citizenship. Now this is a great opportunity to invest in the weakened Greek real estate market. It is also a path to European citizenship while seeking a good return.
Such adjustments aim to enhance citizenship by investment programmes and make them more attractive. They result in a significant increase of direct foreign investments into these nations.
Over the course of the year, further citizenship by investment programmes are expected to face amendments. Countries want to become more competitive. One thing is certain. The citizenship by investment industry is rapidly growing. It is gaining the attention of affluent investors who appreciate the multiple benefits of obtaining a second nationality.
(By Veronica Cotdemiey, CEO of Citizenship Invest)
