What Is Citizenship By Investment (CBI)?

What Is Citizenship By Investment (CBI)

Have you ever heard of citizenship by investment (CBI)? It’s a term that’s been gaining traction in recent years, but many people are still unfamiliar with what it actually means. CBI is a program that allows individuals to obtain citizenship in a foreign country by making a significant investment in that country’s economy. It’s a popular option for those looking to expand their global mobility and access new opportunities. But what exactly is citizenship by investment, and how does it work? In this article, we explore the basics of CBI, including the benefits, the different types of programs available, and what you need to know if you’re considering pursuing citizenship through investment.

Definition Of Citizenship By Investment

Citizenship by investment is a process by which individuals can obtain a second citizenship and passport by investing in the economy of the host country. It offers the opportunity for foreign nationals to acquire dual citizenship without having to meet any residency requirements or go through a lengthy application process.

Countries typically offer several routes for citizenship by investment, which may include making a donation to a national development fund, investing in real estate, setting up a business, or purchasing government bonds. The specific requirements, including the minimum investment amount, vary by country.

History Of CBI Programs

Citizenship by Investment programs have a long and interesting history. The first CBI program was established by St. Kitts and Nevis in 1984, and it remains one of the most popular programs of its kind. The program was established as a means to attract foreign direct investment and stimulate economic growth following a decline in the sugar industry, which was the country’s main source of income. In return for a significant investment or donation, foreign nationals were granted citizenship and a passport, which provided visa-free travel to many places.

Other countries soon followed suit. Dominica launched its CBI program in 1993, and several other Caribbean countries have since established their own programs, including Antigua and Barbuda, Grenada, and St. Lucia. These programs are particularly popular among high net worth individuals from countries with limited visa-free travel opportunities, as they offer a way to acquire a second citizenship that provides greater global mobility. In addition to the Caribbean countries, several European countries, including Malta, Cyprus (no longer in operation), and Montenegro (no longer in operation), have also launched CBI programs. These programs typically require a large investment but offer the advantage of residency or citizenship in the European Union.

Types Of CBI Programs

There are different types of citizenship by investment programs offered by various countries, often including options like: 

  • Real estate investment: The applicant invests a significant amount in property as defined by the host country. Under this option, it not only grants citizenship but also provides a tangible asset to the investor. Countries like Saint Kitts and Nevis, Dominica, and Grenada have such programs.
  • Business investment: The applicant invests in a business or starts a new business that creates jobs and stimulates the economy. This is common in countries that are trying to boost a particular sector of their economy. For example, the United States’ EB-5 Immigrant Investor Program falls under this category.
  • Donation to a National Development Fund: This option involves a non-refundable donation to a government fund. This is often the cheapest and fastest way to obtain citizenship. All Caribbean Countries such as Antigua and Barbuda, Saint Lucia, Saint Kitts & Nevis, Dominica and Grenada offer this type of program.
  • Government bond investment: The applicant buys government bonds for a specified amount. The bonds must be kept for a defined period, after which they can be sold. The advantage of this option is that it requires less capital, and the investment is guaranteed by the government. St.Lucia is the most popular country for the government bond option. 
  • Investment in public projects: These programs involve investment in infrastructure or other public projects. For example, Turkey has a program where citizenship can be obtained through investment in real estate, banks, or government bonds.

Benefits Of CBI Programs

Citizenship by investment programs offer a wide range of benefits, such as:

  • Access to a new passport: One of the most significant benefits of obtaining citizenship through investment is that it provides access to a new passport. This can be especially valuable for individuals who come from countries with limited travel options. With a dual passport, individuals can travel more freely and potentially gain access to countries that were previously off-limits.
  • Ease of travel: In addition to providing access to a new passport, citizenship by investment programs can also make travel easier. Many places that offer these programs have established visa-free travel agreements with other countries. This means that individuals with an alternative passport can often travel to these countries without having to obtain a visa.
  • Access to education and healthcare: Citizenship by investment programs can also provide access to education and healthcare in the new country. Many places that offer these programs have high-quality education and healthcare systems. This can be especially valuable for families with children who want to provide them with the best possible education and healthcare.
  • Business opportunities: Obtaining citizenship through investment can also provide individuals with new business opportunities. Many countries that offer these programs have business-friendly environments and offer incentives for foreign investors. This can be especially valuable for individuals who want to start a new business or expand an existing one.
  • Tax benefits: Finally, citizenship by investment programs can provide tax benefits. Some countries that offer these programs have favorable tax policies for foreign investors. This can include lower tax rates, tax exemptions, and other incentives. This can be especially valuable for individuals who are looking to reduce their tax burden.

Eligibility Requirements For CBI Programs

Eligibility requirements for CBI programs can vary widely depending on the specific country, but generally include the following:

  • Investment requirement: The applicant must make a substantial investment in the country. This could be in the form of a donation to a national development fund, investment in real estate, a business investment, or purchase of government bonds.
  • Due diligence checks: Most countries will conduct thorough background checks to ensure the applicant has not been involved in criminal activities. This usually involves verifying the source of the applicant’s wealth and might also include checks for political exposure.
  • Application fees: There will usually be application and processing fees for the citizenship by investment file to be processed by the citizenship by investment unit. 
  • Residency requirements: Some countries require the applicant to have been a resident for a certain period before they are eligible for citizenship. Others do not have this requirement. Most citizenship by investment programs do not require residency to do the CBI program. 
  • No criminal record: The applicant should have a clean criminal record. *please consult us if you have a criminal record. 
  • Good health: Some countries require a health check to ensure the applicant does not have a communicable disease.
  • Oath of allegiance: In some cases, the applicant may be required to swear an oath of allegiance to the country. Antigua & Barbuda is an example of a country where you must do an oath to the country. 

If you’re interested in the requirements for a specific country, feel free to contact JH Marlin. We are experts in this area. We have built an impressive reputation as knowledgeable and experienced professionals who can provide legal advice to ensure that your transition into a foreign country is smooth and efficient.

With the help of our immigration attorneys, you will be able to quickly identify whether or not you meet the criteria for citizenship or residency in the new country. Our team provides personalized guidance throughout every step of your journey so that nothing stands between you and achieving your dreams. We want to make sure you get through the process without hassle or difficulty.  

Countries Offering CBI Programs

Some of the countries that offer citizenship by investment programs are:

  • Malta: Malta offers a citizenship by investment program that requires a minimum investment of €650,000. Applicants must also make a contribution to the National Development and Social Fund and purchase or rent property in Malta.
  • St. Kitts and Nevis: St. Kitts and Nevis offers a citizenship by investment program that requires a minimum investment of $150,000. Applicants can choose to make a donation to the Sustainable Growth Fund or invest in real estate.
  • Grenada: Grenada offers a citizenship by investment program that requires a minimum investment of $150,000. Applicants can choose to invest in real estate or make a donation to the National Transformation Fund.
  • Antigua and Barbuda: Antigua and Barbuda offers a citizenship by investment program that requires a minimum investment of $100,000 with US$30,000 government processing fees.. Applicants can choose to invest in real estate or make a donation to the National Development Fund.
  • Dominica: Dominica offers a citizenship by investment program that requires a minimum investment of $100,000. Applicants can choose to invest in real estate or make a donation to the Economic Diversification Fund.
  • Saint Lucia: Saint Lucia offers a citizenship by investment program that requires a minimum investment of $100,000. Applicants can choose to invest in real estate or make a donation or alternatively invest in government bonds. 

Tax Implications Of CBI Programs

Tax implications are an important consideration for immigrants investing in citizenship by investment programs:

  • Tax residency: When you become a citizen of a foreign country through investment, you may also become a tax resident of that country by living in that country. It is important to be considered a non-resident of your home country and a resident of your new country. By establishing tax residency, this would mean that you will be subject to that country’s tax laws, including income tax, capital gains tax, and inheritance tax if any. It’s important to seek professional advice regarding tax matters. 
  • Double taxation: If you become a tax resident of a foreign country, you may be subject to double taxation. This occurs when you are required to pay taxes on the same income in both your home country and your new country of citizenship. To avoid double taxation, many countries have entered into tax treaties that provide for the elimination or reduction of double taxation.
  • Reporting requirements: As a tax resident of a foreign country, you may also be required to report your foreign income and assets to your home country’s tax authorities. Failure to do so could result in penalties or even criminal charges. It’s important to understand the reporting requirements of both your home country and your new country of citizenship.
  • Estate planning: Obtaining citizenship through investment can also have implications for your estate planning. Depending on the country, you may be subject to inheritance tax on your worldwide assets. It’s important to work with a qualified estate planning attorney to ensure that your assets are distributed according to your wishes and that any tax liabilities are minimized.

Obtaining citizenship through investment can offer many benefits, but it’s important to understand the tax implications that may come with it if any. Most countries offering citizenship by investment have minimal taxation or no taxation. 

Apply For Citizenship By Investment

Are you interested in becoming a citizen of another country? At JH Marlin, we have extensive experience helping individuals apply for citizenship by investment. Our expertise helps guide our clients through the complexities of foreign residency and second citizenship programs, providing the legal advice needed to make an informed decision about their new country.

We understand how difficult it can be to navigate the process alone. That’s why we offer personalized first-class service that allows us to provide tailored solutions for each individual case. With us, you don’t just get access to experienced attorneys, you get peace of mind that your application will move forward smoothly with industry knowledge on your side.

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