Unlocking Citizenship By Investment: A Guide To Second Passport

Citizenship by investment (CBI) is a process of obtaining a second citizenship and passport by investing in the economy of a host country. CBI programmes are often favoured by individuals and families seeking a more time-efficient path to global mobility, financial stability, and physical security. While CBI rarely comes with residence requirements, it usually requires much higher investment thresholds than residence by investment programmes. CBI programmes also have rigorous security checks and require applicants to have a clean criminal record and demonstrate the legal source of their investment funds.

The relationship between an individual and a nation state

Citizenship by investment is a way for individuals and families to obtain global mobility, better healthcare, and a secure future. Citizenship is a status of 'belonging' to a country, as recognised under the law of that country. It is a relationship between an individual and a nation-state, a social contract where citizens obey the law and are granted rights and responsibilities in return. These rights include property ownership, voting, and work opportunities. Citizenship unites different people under a common identity.

The traditional means of acquiring citizenship include birth within a nation's territory, descent, marriage, or long-term residence. However, citizenship by investment is a faster route to obtaining a second citizenship and passport. It is a legal status that confers the right to live and work in a country, without the requirement to reside there. It also provides increased mobility and consular protection while abroad, as well as the right to vote and pursue political opportunities.

The process involves investing in the economy of the host country, typically through government-approved options such as real estate, government bonds, or national economic funds. The specific requirements vary across countries, with some requiring medical examinations and proof of good health, while others focus on due diligence checks, including police certificates, source of funds analysis, and biometric data collection.

Citizenship by investment is particularly attractive to those seeking an alternative citizenship as a backup plan due to political or economic instability in their home country. It offers a sense of security and protection, along with the potential for global mobility and exclusive opportunities. For citizens from emerging countries, it can serve as insurance against corruption and instability.

While it provides a faster route to citizenship, it is important to note that citizenship by investment programmes also have rigorous security checks and require fulfilling certain obligations to the host nation.

The rights and responsibilities of citizenship

Citizenship by investment programs (CBI) allow individuals to contribute to a country's economy through an initial investment or donation. In return, they gain citizenship status, along with the associated rights and privileges. While the specific rights and responsibilities vary across different countries, there are some common themes.

Rights of Citizenship by Investment

Citizenship by investment provides individuals with the right to travel freely and settle in the country of their investment. This includes visa-free access to the country and, in some cases, to other countries as well. For example, Maltese citizenship offers visa-free travel to over 180 destinations. CBI programs also provide the right to own property in the country, which contributes to the sense of freedom and global mobility that comes with alternative citizenship.

In addition to travel and property rights, CBI programs often offer expanded business opportunities, better quality of life, and access to healthcare and education. The ability to live and work in a stable country is particularly appealing, providing security and flexibility for individuals and their families. Some countries, like Austria, grant visa-free access to a large number of destinations, enhancing global mobility even further.

Furthermore, CBI programs may provide political rights, such as the right to vote and participate in the host country's political system. This enables individuals to have a say in important decisions and shape the policies of their adopted country.

Responsibilities of Citizenship by Investment

While the responsibilities of citizenship by investment are less frequently discussed, they are an integral part of the social contract between the individual and the state. These responsibilities typically include upholding the laws and customs of the host country. Respecting and adhering to the legal framework of the country is an essential aspect of this relationship.

In addition to legal compliance, there may be other requirements or responsibilities associated with citizenship by investment. For example, some countries may have residency requirements, such as a minimum number of days that individuals must spend in the country each year. It is important for investors to carefully consider the potential responsibilities and complexities that come with CBI programs, as they vary across different countries.

The different types of citizenship

Citizenship is a legal status that grants individuals certain rights, privileges, and responsibilities within a nation-state. It provides a sense of national belonging and identity, allowing individuals to participate in the political, social, and cultural life of a country. While the traditional routes to citizenship include birth within a nation's territory, descent, marriage, or long-term residence, there are now alternative routes to acquiring citizenship, such as citizenship by investment (CBI).

CBI is a pathway to citizenship for those seeking a faster and more convenient solution compared to traditional immigration processes. It is particularly attractive to those who do not want to deal with the often-exhausting citizenship-by-descent paperwork and those who wish to retain their current citizenship while enjoying the benefits of another. CBI programs rarely have residence requirements, allowing individuals to obtain citizenship without physically relocating. This makes CBI a popular option for international business people and global families.

One of the most well-known types of CBI is the EB-5 Immigrant Investor Program in the United States. This program was created to stimulate the US economy through job creation and capital investment by foreign investors. Participants in this program receive an EB-5 visa, which is an employment-based fifth preference visa. To obtain this visa, individuals must invest a minimum amount, currently set at $1.8 million, or $900,000 for investment in a high-unemployment area.

Another type of CBI is economic citizenship, which offers citizenship in exchange for significant financial contributions. This type of program attracts foreign investment and stimulates economic growth while providing individuals with greater mobility and facilitating travel, work, and investment opportunities across different countries.

In addition to CBI, there are other types of citizenship that serve different purposes. For example, temporary citizenship or citizenship by special arrangement is designed to provide legal recognition and protection to vulnerable populations such as refugees or stateless persons. Dual citizenship allows individuals to hold citizenship in more than one country simultaneously, offering advantages in travel, work, and investment opportunities, but also comes with the responsibility of managing obligations in multiple nations.

The benefits of citizenship by investment

Citizenship by investment (CBI) programmes are the ultimate plan B for you and your family and open up a world of opportunities. CBI is a legal process that allows foreign nationals to gain second or dual citizenship by making a significant financial investment in the host country. St. Kitts and Nevis launched the world's first CBI programme in 1984. Today, numerous countries around the world offer CBI schemes.

• Enhanced global mobility and visa-free travel: One of the primary benefits of CBI is enhanced global mobility. Holding a second passport grants visa-free access to more countries, making travelling for business or pleasure far more seamless.
• Business opportunities: CBI programmes open doors to new markets and opportunities for business owners. Investors can enjoy the benefits of the host country's economic policies, tax regimes, and trade agreements.
• Social benefits: CBI can provide several social benefits, including access to education and healthcare systems. This often applies to both the applicant and their family.
• Safety net: CBI can offer a safety net to those who live in countries with less stable political and social environments. It provides peace of mind, knowing you can relocate to a country with more security and stability if needed.
• Tax advantages: Dual citizenship can help reduce one's tax burden. Some countries have more favourable tax systems and offer tax advantages, such as tax exemption on income generated abroad or the possibility of paying reduced taxes.
• Quality of life: Obtaining residency and citizenship in another country can offer a better quality of life in terms of safety, education, and medical care. It also provides the opportunity to experience new cultures and lifestyles.
• Financial protection: CBI can be an excellent financial protection strategy. By diversifying your assets and investments in different countries, you can protect your wealth from potential economic and political crises in your home country.
• Family planning: CBI can also be an effective family planning strategy. By providing a safe environment, quality education, and growth opportunities, you will be investing in the future and well-being of your children.

The requirements of citizenship by investment programmes

Citizenship by Investment (CBI) programmes allow individuals to obtain citizenship in a country by making a financial investment. CBI programmes are often favoured for their speed and simplicity, allowing applicants to obtain a second passport without undergoing typical visa and passport application processes.

While the specific requirements of each CBI programme differ, there are some general requirements that are common across most programmes. Firstly, applicants must be 18 years of age or older and have a clean background. They must also be able to fund the investment requirements, which can vary significantly depending on the country and the specific programme. Some countries, like Malta, are known for their high investment and documentation requirements. In contrast, countries like Grenada and North Macedonia are known for their relatively low investment thresholds.

The types of investments accepted also vary. Many countries accept real estate investments, which can involve purchasing or renting residential or commercial properties. Some countries may require investments in government-approved properties only. Other common investment types include purchasing government bonds, contributing to national development funds, depositing funds into local banks, or creating jobs through investments in local businesses.

It is important to note that CBI programmes rarely include residence requirements, meaning individuals can become citizens without having to physically relocate. However, some countries, like Malta, may require applicants to obtain a residence permit for a certain period before applying for citizenship. Additionally, while CBI programmes do not facilitate tax evasion, individuals should be aware of the tax implications of obtaining citizenship in a new country.

Frequently asked questions