The citizenship by investment industry has rapidly been gaining more awareness. Political instability plays a role. Brexit plays a role. Aggressive changes to taxation policies play a role. New political leaders inclined toward restrictive immigration policies also play a role. More people seek a second nationality to protect themselves from these radical changes. In the search for freedom of movement and safety, more people are increasingly considering a second citizenship.
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 their country’s economy. They obtain residency status or a second nationality in return. Increasingly, governments analyze investors’ needs carefully. They tailor citizenship programmes to fit those demands. This has significantly helped attract more investors into these programmes. It has also created more awareness of the citizenship by investment industry.
Some of these countries grant instant citizenship. Others require years later to show proof of residency before applying for citizenship. Through “fast track” programmes, applicants seeking an alternative nationality can obtain it in only a few months. Timing depends on the country’s legislation. 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 for 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 in the first instance 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. That helps explain 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 is one of the Caribbean countries with a buoyant citizenship programme. It reduced government application fees for the real estate investment option on December 1, 2016. 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 is required to pay government application fees. Those fees have been recently reduced considerably.
With the new amendments to the legislation, these fees for a family of four have now been decreased from $115,000 down to $75,000. For a family of six, fees fell from $155,000 down 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. Real estate benefits. Tourism benefits too. The government has also introduced changes to the age of dependent children and parents. This gives applicants the possibility to include in their application children up to 28 years of age, instead of 25 years of age (previously). Parents over 55 years of age can be included, instead of 65 years of age (previously).
Grenada’s citizenship programme has also proven to be a major player within the citizenship by investment industry in the Caribbean. That has been true ever since reopening the doors of their citizenship by investment programme in 2014. The country’s passport offers visa free access to over 120 countries including 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 and employing 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, with a similar required entry level to St Kitts & Nevis, Antigua & Barbuda 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 down 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 experience a radical impact in the number of applications submitted during the course of 2017.
Although some prefer to go for 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 not only attractive because Portugal’s passport is ranked highly. It allows visa free access to over 150 countries. The investor could 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. Although the Greek residency by investment programme was launched in April 18, 2013, before the recent change to its legislation, investors were not able to qualify for citizenship.
Therefore, this is now a great opportunity to invest in the weakened Greek real estate market. It is also a path to obtain European citizenship while seeking a good return. Such adjustments to the regulations aim to enhance citizenship by investment programmes. They aim to make them more attractive. The result is a significant increase of direct foreign investments into these nations.
Over the course of the year further citizenship by investment programmes are expected to be subject to amendments in the search for becoming 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)
