Citizenship by investment – the ultimate guide
Obtaining a second passport through citizenship by investment (CBI) programs is becoming an increasingly popular option among high net-worth individuals looking to diversify their citizenship portfolio. With over 20 different programs to choose from globally, citizenship by investment offers a legal and efficient pathway to getting dual citizenship and the powerful benefits that come with, for example having a second passport.
In this comprehensive guide, we’ll cover everything you need to know about citizenship by investment including:
- What is citizenship by investment?
- Countries offering citizenship by investment
- Benefits of a second passport
- Qualifying investment options
- Application process and timelines
- Cost analysis of programs
- Who is best suited for citizenship by investment (CBI)?
- CBI versus residency by investment
- Choosing the right program
By the end, you’ll have all the information you need to make an informed decision about pursuing citizenship by investment as part of your offshore strategy.
What is citizenship by investment?
Citizenship by investment, also known as economic citizenship, refers to special programs run by certain countries that allow high net-worth individuals to obtain citizenship and a second passport through making a substantial economic investment in that country.
Unlike traditional immigration which can take years, citizenship by investment offers a fast-track route to dual citizenship, typically within 3 to 6 months. There is no residence requirement and applicants can get their new passport while continuing to live and work anywhere in the world.
Countries offer these programs as a way to attract foreign investment capital into their economies. Real estate, government bonds, businesses, infrastructure development and simple donations are some of the approved investment options.
In return for the large capital injection, successful applicants gain visa-free travel access, the right to live and work in their new country, governmental protections and financial security.
The first citizenship by investment program was launched in 1984 by the island nation of St Kitts and Nevis in the Caribbean. Since then over 20 countries have followed suit by establishing their own programs.
Countries offering citizenship by investment programs
Let’s take a look at some of the most popular citizenship by investment programs available in 2024:
Caribbean programs
- St Kitts and Nevis – The longest running program. $250k donation or $400k real estate.
- Antigua and Barbuda – Citizenship from $100k donation. Allows dual citizenship.
- Dominica – Official citizenship from $100k. Most affordable Caribbean option.
- Grenada – E-2 investor visa to the US. From $150k donation.
- St Lucia – Visa-free access to 146 countries. From $100k donation.
European programs
- Malta – Only CBI program in the EU. Invest €600k for citizenship.
- Cyprus – Suspended but re-launching soon. Previous investment from €2 million.
- Montenegro – Hybrid program, no citizenship available anymore in 2024, but residency is still possible by investment.
Other notable programs
- Turkey – Citizenship from $400k real estate investment. Allows dual citizenship.
- Vanuatu – Fastest program globally. Citizenship from $130k donation.
This list represents only a selection of the most popular options. There are over 20 active citizenship by investment programs globally from countries in the Caribbean, Europe, Asia and Oceania.
Benefits of a second passport
So why are wealthy individuals willing to invest hundreds of thousands of dollars to obtain a second passport through these programs?
A second passport unlocks a host of benefits including:
- Visa-free travel – Access over 140 countries without needing a visa in advance, saving time and money.
- Increased travel freedom – No more being denied entry or flagged for additional screening.
- Live and work abroad – Right to live, work and study in your new country of citizenship.
- Business opportunities – Invest and own real estate abroad without restrictions.
- Lower taxes – Some countries have no taxes on worldwide income or capital gains.
- Asset protection – Protect your wealth by investing worldwide and reducing exposure to a single government.
- Plan B – Insurance policy against volatility in current home country.
- Family security – Children gain citizenship rights and future education options.
This enhanced freedom, security and global mobility is why more high-net-worth individuals are seeing value in attaining a second citizenship.
Qualifying investment options
Let’s take a look at the main investment options used by countries to qualify you for citizenship.
1. Donation
This is the simplest route. You make a one-time non-refundable donation to a government fund or public project. Donation amounts start around $100k.
Pros: Straightforward, guaranteed approval, no return or management needed.
Cons: No return on capital, full amount is lost.
2. Real estate investment
Investing a minimum amount into government approved real estate. Typically needs to be held for 3-5 years before resale.
Pros: Potential for capital appreciation, can be rented out.
Cons: Some investment risk, illiquid asset, may need to be held long term.
3. Government bonds
Purchasing qualifying government bonds for a minimum period of time, typically 5 years.
Pros: Very safe investment, bonds eventually repaid in full.
Cons: Locks up capital for years, low or no bond yield.
4. Private enterprise
Investing in an approved private business venture meeting certain conditions such as local job creation.
Pros: Can generate good investment returns, benefit local economy.
Cons: Higher risk, active management and local partnerships required.
The chosen investment route depends on your risk profile, expected returns and how quickly you want your citizenship approved.
Application process and timelines
The application process for citizenship by investment programs typically follows these main steps:
- Choose program – Select your desired country based on needs, benefits and qualifying investment options.
- Engage agent – Work with a licensed professional agent familiar with the specific programs.
- Due diligence – Undergo background checks to verify identity, source of funds and any criminal history.
- Make investment – Transfer the minimum investment amount to the government fund or approved project. Sometimes the donation can be done after approval of the application.
- Submit application – Provide supporting documents including passport, birth certificate, police certificate.
- Approval – Receive approval in principle within 2-4 months in most cases.
- Oath ceremony – Take oath of allegiance to finalize citizenship, either in person or remotely.
- Passport issuance – Citizenship certificate received, apply for passport from embassy/consulate.
The total time to obtain citizenship is typically between 3 to 6 months for most programs. More complex programs in Europe can take 6-18 months in some cases.
Having an experienced agent to guide you through the entire process is highly recommended. They will know the required documents, fees involved and potential pitfalls to avoid along the way. Contact us today to find out which country and application process works best for you.
Cost analysis of programs
Pricing for citizenship by investment varies significantly across programs. The total outlay includes:
- Government processing and due diligence fees
- Minimum qualifying investment amount
- Legal and agent fees
- Other government fees (e.g. real estate taxes)
- Passport fees
Caribbean programs generally start around $100k while top-tier programs in developed countries can cost upwards of $1 million+ for citizenship.
Factors that increase costs include:
- Higher minimum investments
- Additional mandatory contributions (e.g. bonds, real estate)
- Higher fees for dependents
- More extensive due diligence requirements
- Limits on dual citizenship, adding complexity
Cheaper programs offer citizenship for lower investment outlays but provide relatively lower quality passports. More expensive Tier 1 programs offer the most prestigious passports but require larger capital commitments.
Conducting a cost-benefit analysis is important to choose the optimal program matching your budget, needs and desired benefits.
Who is best suited for CBI?
While anyone can apply, citizenship by investment programs are best suited for or better to say, on average gives the largest benefit to:
- US citizens – To legally reduce tax exposure by renouncing current citizenship.
- Chinese/Middle East – To access better travel freedom and education/business opportunities in the West.
- Russians – To move money abroad and gain visa-free access to Europe.
- Those from unstable countries – As a safety net and contingency plan.
- Global families – To give children flexibility in future education, residence and careers.
In general, they appeal to wealthy individuals who:
- Highly value time and convenience
- Want to rapidly obtain a Tier 1 passport
- Seek discretion and are willing to pay a premium
- Appreciate confidentiality and privacy
Citizenship by investment fast-tracks second citizenship while removing residency requirements or other bureaucratic hurdles.
Citizenship by Investment versus residency by Investment
Many countries also offer residence by investment (RBI) programs as an alternative pathway to citizenship by investment (CBI). How do they compare?
Timeframe: RBI is slower, often 2+ years. CBI grants full citizenship rights within months.
Cost: RBI is cheaper but requires ongoing living costs. CBI demands higher upfront capital.
Effort: RBI has visa processes and residency obligations. CBI has fewer requirements after approval.
Benefits: RBI leads to future citizenship. CBI confers immediate citizenship rights.
While RBI can offer a pathway to citizenship eventually, CBI provides an accelerated route for those who can afford it and value expedited access.
Choosing the right program
With over 20 active programs worldwide, finding the right citizenship by investment option requires matching your needs to the benefits of each program.
Some key factors to consider are:
- Desired strength of passport
- Speed of process
- Acceptance of dual citizenship
- Tax implications
- Required investment amount
- Future residence or business plans
- Real estate investment opportunities
- Scope of due diligence
- Reputation and longevity of program
Our experienced citizenship planning advisor team at Pallas can assess your situation and guide you towards the most suitable program.
They will also help you navigate the entire application process smoothly and efficiently.
Contact Us for Help with Citizenship by Investment
Citizenship by investment offers a legal shortcut to attaining a second passport and the benefits that come with it.
While not for everyone, it provides an accelerated route for qualifying investors who value their time and want an immediate solution.
We have helped countless clients successfully obtain second citizenship through these programs combined with holistic offshore planning.
Want to know more? Get in touch for a free confidential consultation.
