According to Forbes, in 2019, revenues from Golden Passport programs worldwide were more than $10.328 billion. Due to various circumstances, more and more people are looking for a second home, which means there will be more demand.
Along with filling the budget and investing in the economy, the number of companies that cut the path to the second passport is growing. Thanks to modern technologies and the experience of qualified specialists, the applicant can partially or completely solve all the tasks online, thanks to which migration becomes not only easier, but also more in demand.
Why buy citizenship?
Most of the countries where you can get passports with sufficient funds are offshore, however, it is not only the tax regime that attracts the buyer to international supermarkets of citizenship.
A billionaire with no real estate, yachts or business interests abroad is nonsense. It is quite often to consider the country where all this is located the second home. For many, citizenship of another country or even several is even convenient, because a pleasant bonus is the good tax legislation of the new homeland.
However, there are more reasons. All rich people are concerned about the safety of their capital. That is why accounts in Swiss banks, for example, are today a sign of stability and the future.
How do analysts explain the current boom in golden passports?
As Christian Kaelin, one of the world's foremost experts (Henley & Partners) told Bloomberg, wealthy people put safety first. According to him, they want peace in case of any troubles in their country, be it revolutions, economic crises or changes in the fiscal system.
In the context of the COVID-19 pandemic, residents of some countries are in an extremely difficult situation. Government measures to prevent the COVID were ineffective. Local clinics were unable to deal with the flow of patients and were unable to provide them with good treatment. Individuals with dual citizenship were able to move to countries with a well-developed healthcare system, while other people, due to closed borders, were not able to apply for any visas.
Who of the rich people would refuse to show off to their “colleagues” a passport with a luxurious Maltese coat of arms or even a whole collection of passports that simplify movement around the world and reliably protect capital? It is prestigious and convenient.
Another reason is the opportunity to have a second home if, for economic or political reasons, the first one becomes not very comfortable. The freedom of movement around the world, given by many passports, is also worth a lot, without spending time and nerves in obtaining visas. High-quality prestigious education, safety, stability and provision of decent starting conditions for children. There are many reasons.
How to buy a second home?
1. Naturalization
Obtaining citizenship by naturalization is a long process that takes 5 - 10 years. At this time, it is advisable to stay in the country for a certain amount of time, to comply with the requirements of the migration legislation. As a rule, a temporary residence permit is issued first. Residence permit for foreigners is usually provided on the basis of an employment contract with a local company, registration of their own business, investment or receiving passive income from abroad. After living in the country for a certain time, the applicant gets the status of a permanent resident, and then submits an application for citizenship.
The most popular states for naturalization:
- Portugal
- Spain
- Greece
- United Kingdom
- Germany
- USA
- Argentina
- Chile
- Singapore
- Hong Kong.
2. Investment citizenship
If you have money, a lot becomes easier. The waiting period is reduced to one year or several months, for this you need to invest in the local economy or real estate. The amount depends on the conditions of a specific program and is more than $100 thousand. An important advantage of investment citizenship is the absence of requirements such as language proficiency and social adaptation.
Today, among foreign investors, passports of the following countries are in high demand:
- Austria
- Malta
- Turkey
- Saint Lucia
- Antigua and Barbuda
- Saint Kitts and Nevis
- Vanuatu
- Grenada
- Dominica.
It's unusual not to see Cyprus on this list
3. Right of the soil (Jus Soli)
Some countries grant their citizenship to every child born in their territory, regardless of the nationality and immigration status of the father and mother. That is why people from poor countries are striving to give birth in the United States or Canada. A baby born in a developed country automatically becomes its citizen.
The most demanded states, in whose Constitution there is an article on the "right of the soil":
- USA
- Canada
- Mexico
- Chile
- Argentina
- Brazil.
How did it all start?
The program is not that many years old. A small island nation in the Caribbean, Saint Kitts and Nevis launched a Citizenship by Investment Program. You need to invest at least 400 thousand dollars (about 340 thousand euros) in the purchase of real estate or contribute 250-350 thousand dollars (210-300 thousand euros) into the economy. To become a citizen you don't even need to live on the islands permanently.
Then some countries adopted this idea, but there are two permanent programs which work without any pausa. The first was launched in Saint Kitts and Nevis for more than three and a half decades and has been working without interruption. The second one, the Dominica program, it has been in existence for over a quarter of a century.
All other working programs are less than ten years old. Over the past two decades, many countries have adopted and then stopped the program. A year ago, Cyprus left the market and most likely Malta will do the same soon. Some other countries, such as Montenegro and Turkey, have only recently entered the citizenship trade market.
Today, citizenship of the Caribbean countries has become more popular - it costs much less, and in terms of opportunities it is practically not inferior to the Maltese and Cypriot ones.
Another surge in demand for Caribbean passports was facilitated by the suspension of Cyprus citizenship by investment program. In particular, representatives of the business environment began to pay attention to Saint Lucia. In May 2020, the country's authorities halved the minimum investment threshold, and this contributed to an increase in the number of applications.
The problem is that almost nothing is permanent in this industry. But, if we take the current situation, they it looks like this:
Malta Citizenship by Investment
- Passport issuing time: more than 12 months (first year - residence permit)
- Minimum investment amount: 880 thousand euros (the price is valid until October 2021)
- Financial options: hybrid model: donation and investment in bonds + residential real estate (housing can also be rented)
- Visa-free access to more than 180 countries, including the USA
- The best passport for visa-free travel around the world and the most affordable citizenship by investment of an EU country
Montenegrin citizenship by investment
- Passport processing time: 3-6 months
- Minimum capital investment: $350,000
- Financial options: business investment or hybrid model: donation and real estate investment
- Visa-free access to more than 120 destinations, including the Schengen area
- The best passport for living in Europe
Commonwealth of Dominica Citizenship by Investment
- Passport processing time: 3-4 months
- Minimum capital investment: $100,000
- Financial options: donation, real estate
- Visa-free access to 139 countries, including the Schengen area
- Best Passport for Singles Applicants
Saint Lucia Citizenship by Investment
- Passport processing time: 3-4 months
- Minimum capital investment: $100,000
- Financial options: donation, real estate, bonds or business project
- Visa-free access to 145 states, including the Schengen area
- The most affordable passport for bachelors and the cheapest citizenship by investing in buying government bonds
Antigua and Barbuda Citizenship by Investment
- Passport processing time: 3-4 months
- Minimum capital investment: $130,000
- Financial options: donation, real estate or business
- Visa-free access to one and a half hundred countries, including the Schengen area
- The best passport for a family and tax cuts (there is no NFDL for fiscal residents in the country)
Saint Kitts and Nevis Citizenship by Investment
- Passport processing time: 1.5-4 months
- Minimum capital investment: $150,000
- Financial options: donation or real estate
- Visa-free access to one and a half hundred countries, including the Schengen area
- The best passport to reduce taxes (there is no NFDL for fiscal residents in Saint Kitts and Nevis) and the fastest way to get a second passport
Grenada Citizenship by Investment
- Passport processing time: 3-6 months
- Minimum capital investment: $150,000
- Financial options: donation or real estate
- Visa-free access to more than 14 dozen countries, including China and the Schengen area
- Accessing an E-2 visa to the United States of America
Vanuatu Citizenship by Investment
- Passport processing time: 1.5-3 months
- Minimum capital investment: $145,000
- Financial options: donation
- Visa-free access to 125 countries, including the Schengen states
- The fastest way to get a second passport, liberal requirements for candidates
Turkish Citizenship by Investment
- Passport processing time: 2-4 months
- Minimum capital investment: $250,000
- Financial options: real estate, bank deposit, investment in securities or business (hiring locals)
- Visa-free access to over a hundred countries
- Best Passport for Real Estate Investors and E-2 Visa Access to the United States of America
In Cyprus, the investment program is still closed, but if you want to become the owner of the EU permanent residence (and later a EU citizen), then there are options!
Are you interested? Visit the DOM Real Estate website. The portal has the largest database of real estate in Cyprus - both residential and commercial. Choose and contact professionals who will help you make the right choice!
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