Citizenship by Investment

Citizenship by Investment

Citizenship is a term that defines a relationship between the state and the individuals in which individuals are granted certain rights as the citizens of the state. Right to vote, work and owning assets is known as the citizen’s rights and as return citizens have the responsibility of sustaining the laws by state.

-> Citizenship by invesment Grenada

-> Citizenship by investment Dominica

-> Citizenship by investment Canada

-> Citizenship by investment Cyprus

-> Citizenship by investment Malta

What is citizenship by investment?

The common grounds y citizenship of a state is obtained are succession from a citizen parent, birth within the territory of the state, marriage with a citizen and also naturalization. The grant of citizenship by the state on the basis of investment means individuals obtaining a second citizenship by investing a certain amount of money in the host state.

The procedure of obtaining citizenship by investment is mostly practiced by wealthy individuals. The investments for citizenship is considered as a major contribution by the government and so those individuals are awarded permanent residence in return.

The transfer of citizenship through this method is way much faster than the general immigration tradition.

What are the reasons that people invest in citizenship?

The reasons why people invest in economic or second citizenship are many. This process of obtaining citizenship gives the investors wide range of possibilities from the global mobilization to the personal safety measures of living.

Security reasons cause many investors to invest in citizenship. The invested citizenship could be a lifesaver if some political issues happen to take place in one’s homeland. If investment for citizenship is made in a peaceful state, then there are no security issues at all.

Global mobilization is another factor which compels individuals to invest in the second passport. Passports offered by many states have a restriction on a free visa, which constrains individuals to obtain a new passport every time they need to travel abroad. For example, in Pakistan, the free visa entry is only allowed in 26 countries whereas in Cyprus free visa entry is in 145 countries. Investment on the second passport gives individuals the opportunity to increase their global mobilization.

Business opportunities for individuals increases for the who have invested in citizenship.

People who invest in citizenship always have the chance to get advantage from a tax point of view in the host state. There are many countries that tax the earned income of people and do not tax the assets owned by the individuals. So this point goes in the favor of the investors.

The family is the main reason every person strives for. Citizenship by investment offered by many countries is also for the family members of the main applicant. The host state ensures a bright future for the applicant’s family by providing a healthy and prosperous lifestyle.

Education nowadays is important as any other living necessity in life. Investing in the economic citizenship gives bright opportunities for education for the applicant’s children.

 

What does the host state gain from this program?

The countries which offer citizenship by investment gain a lot from such programs. Citizenship investment programs are offered for attracting some major investments in the host country. Countries that attract such investments made by individuals use the investments in several projects like real estate, job opportunities and development of business models. The investments made through citizenship program gives the government the opportunity to diversify the economic patterns of the society.

Best citizenship investment programs of 2017:

Wealthy individuals can obtain citizenship of other countries through investments or donations. There are many programs offered by different countries for obtaining citizenship by investment within one year or even less. It’s all about how much you put in to get the citizenship of a country. Here are some best citizenship investment programs of 2017;

Bulgaria

According to some claims, Bulgaria offers its citizenship by investment within one. But in reality, it takes almost takes two years for the transfer of citizenship to the investors.

Cyprus

Cyprus is one of the well-known countries in the world which is known for making its way to the lands of Arab. Cyprus is not the number of the European Union and it is mainly known for the fast transfer of the citizenship by doing investment in only 57 days which is the best and very effective program of the transfer of citizenship.

Euro to millions is the investment required by the government of Cyprus which can be made in the real estate government treasury bonds which can be used for creating a deposit in banks of Cyprus. In the year of 2016, the amount of the investment was less as compared to the recent one as the program offered by Cyprus is always pricier than others.

One of the main things which force the investors to this program is that they have a choice to invest rather than to donate, And that is why they can have their money back in near future. At the start, this program was offered to only Russian and about 1500000 euro luxury home can be earned by the investment of investor is willing to make a model of business.

Cyprus Village

Malta

The information regarding the Maltese citizenship by investment program is quite conflicting due to the vagueness of government policies earlier. The Maltese citizenship program is the only program which gives access to its applicants to the European Union and the borderless Schengen Area. So at this point, Malta is a good option as compared to Cyprus citizenship by investment program.

But unlike Cyprus, Malta requires donations as an investment in its citizenship program. The donation amount for the main applicant is €650,000 and for family members €25,000 each. If the members of the applicant’s family are above the age of 25 years, then the fee is €50,000 per member.

In addition to the donation investment, investors also have to invest €150,000 in government bonds and occasionally on Maltese stocks. The investments in stocks and bonds for five years time period. And as the last condition for this program, the investors need to buy a home for €350,000 or they could rent for five years of the lease with the cost of €16,000 per year. If you can invest the heavy amount of €650,000 with ease, then this is a good option for you.

Nevis and St. Kitts

The original economic citizenship program is regulated by St. Kitts and Nevis since 1984. This citizenship program has enjoyed a lot of success until now and many Carribean programs have followed them as well.   

The requirements for this program are quite simple. You can make a donation to the state’s Sugar Fund or you can buy the approved real estate. But as compared to the real estate investments, a donation is a much better option. Because real estate is highly priced and according to many claims it isn’t very nice either.

The investment in the real estate is up to $400,000 and even more. You’ll find many providers, there which are ready to sell you everything like from a shack to a noticeable share in a luxury hotel. You can sell your real estate property in years, but in the loss, as you won’t get your exact invested amount back. Along with the investment amount of the real estate, it also includes government fees for the applicant.

The donation investments involve the amount of $250,000 for the main applicant and for 8 family members, the cost is up to $450,000. As compared to the real estate, there are fewer government fees because the applicant is already investing in return for nothing as a matter of fact. Ever since the free visa access to Canada in 2014, St. Kitts and Nevis program has lost its attraction. The overpricing factor of this program makes it inferior to other programs.

Dominica

If you want the lowest possible priced citizenship by investment program, it’s going to be by Dominica. Since Belize ended its program in $40,000 many years ago, Dominica offers the lowest price to its investors. In 2016, the price of Dominica citizenship by investment program was $75,000 and there were claims of an increase in it. But it remained constant and still is.

Recently, Dominica started to offer real estate investment options to its investors. But like all other programs, the cost of real estate is high. So the right option is to invest in donations.

A few years back, Dominica had limitations in visa for traveling abroad. But there has been a modification from limited visa to a free visa that also has the access to Europe’s Schengen Area. The feature of this program makes it valuable just like St. Kitts and Nevis. Due to the diverse passport option, more people are attracted towards Dominica citizenship by investment program and almost takes nearly 6 months for the transfer of citizenship.

The program has a compulsory requirement of speaking English as a language. If you want an affordable citizenship and don’t need to require a European one, then this program is the right choice.

Dominican Republic Beach

Antigua

The start of the citizenship program in Antigua was in 2012. The citizenship by investment program of Antigua has a unique requirement for its applicants that they must live there for 35 days for the first five years.

The investments made in this program are quite basic for the Caribbean citizenship programs. The amount invested for the government donation is $250,000 and the real estate has the cost up to $400,000. Another option is the business investment which requires the amount of $1.5 million. This program also provides their applicants an interesting option regarding business investment. The applicants only have to give the amount of $400,000 in a business investment if they are in a group and the group is making a collective investment of $5 million. If the easy travel to Canada is not on your requirement list, then this program is worthy of your investments.

Turkey

Recently in January 2017, the government of Turkey introduced its newly established citizenship by investment program for supporting its blockaded economic structure. This step was taken due to the fall of the Turkish lira against US dollar in the market. To attract investors in the country, Turkish government made the decision of offering citizenships by investment.

The easiest and cheapest way of obtaining Turkish citizenship is to buy real estate property for $1 million. To maintain the citizenship by investment in Turkey, the applicant has to hold the property for at least 3 years.

If the investor doesn’t want to invest in real estate, the alternative is to deposit the amount of $3 million in any Turkish bank or investing $2 million in capital cost.

If larger employers are interested in this program, they can obtain citizenship by creating 100 jobs for the local residents. This citizenship program is interesting as you can get your money back like in the citizenship program offered by Cyprus. But the mediocrity of Turkish visa, passport, it makes it less attractive especially for western investors.

St. Lucia

In the Caribbean programs, St. Lucia is the newest one for the investors. But as compared to other Caribbean programs its requirements are more rigid. Initially, it was compulsory for the investors to have the total amount of $3 million for the whole procedure cost, it is a new requirement by St. Lucia citizenship by investment program which was introduced recently in January 2017. A donation is also an option for the investors for the citizenship and the cost of the donation is up to $100,000.

The best option for the investors is to make a donation in the Caribbean citizenship programs. St. Lucia citizenship by investment program also gives its investors the opportunity to invest in a business or through real estate. The route of donation investment is quite easy as the cost is low up to $100,000 for the main applicant of the program.  The cost of the donation is same as that of Dominica citizenship by investment program.

Few benefits for the family of the main applicant are also offered in this program. Like the cost of donations and government, fees are quite reasonable. This citizenship program also allows dependent parents of the applicant for the program. In the past few years, the way that was considered as the easiest one for obtaining the citizenship of St. Lucia was to invest $500,000 in the government treasury bonds, only if they are held for the time period of 5 years.

According to the latest amendment of donation cost in the donation by the St. Lucia citizenship by investment program, it’s a good option just like Dominica program. It is definitely worthy for the western investors as they are always in the need of a free visa and this program definitely has one.   

What’s the difference between residency and citizenship by investment?

Second passport, economic citizenship or citizenship by investment is becoming compulsory for many people nowadays. But if you are not a US citizen, then citizenship by investment is not compulsory for you to avoid the taxes. But as a matter of fact, having a citizenship by investment is not a bad idea at all.

Citizenship by investment is specifically for those people who are interested in avoiding tax obligations, business purpose and traveling around the globe.

But residency in comparison to citizenship by investment is a completely different thing. Just like the Golden visa program by Spain and Portugal, these states offer passport within a short period of time, but residency matter takes almost 6 years to settle.

The Friendly Nation Visa by Panama also gives its investors residence offers but it takes years for the permanent one.

The citizenship by investment program is great for tax, travel and business point of view, but residency takes years and many years.

The citizenship by investment programs that are offered by different countries are specifically valuable for two kinds of individuals;

  • The first kind is the US citizens which are always ready to abandon their citizenship quite easily. The abandoning of the existing citizenship requires a new citizenship, which needs a new passport. If your income is high in the US, then the reasonable cost of a new citizenship would much affordable as compared to the tax obligations you have to face as a US citizen.
  • The citizens of known and wealthy countries like Arab are most likely to develop an interest n citizenship by investment programs. The wealth rate of people of such countries allows them to obtain a second passport which they require for traveling purposes mainly.

The citizenship by investment program has a lot of benefits and drawbacks from different perspectives of different individuals in society. One thing is for sure, that if you want to obtain citizenship by investment you should be capable of meeting the requirements of different programs accurately. This process is regulated and is structured for the wealthy mainly who also have their interest lies in it. If you have the ease and comfort of tossing a huge amount of bucks for obtaining a new citizenship or passport, then all you have to do is to look for the right citizenship by investment program.