When addressing investment migration specialists, many people act as if they are talking to rocket scientists. The information below may actually sound like the contents of a beginner's rocket science textbook.
But nobody is going to send you to the moon. Instead, we have made it our mission to help you navigate where you will be best treated to increase personal freedom and grow and protect capital.
One of the most powerful tools that can be used to achieve this goal is an additional passport. Many people think that possession of a passport collection is possible only in the reality of spy novels, in which characters like Jason Bourne and James Bond move around the world with a dozen such documents and a lot of money.
Nowadays, passport collections are no longer the prerogative of the heroes of fictional spy stories - they are increasingly appearing in the pockets of successful businessmen, investors and other quite ordinary people with a global mindset.
There are many ways to get a second passport, but the fastest way is to simply “buy” it. Yes, you read that right. This process can be called “buying a passport”, “economic citizenship” or “citizenship by investment” - all of these terms mean the same thing.
Certain governments are willing to grant you citizenship and a passport in just a month and a half or a year (depending on the host state) in exchange for significant investment or donations in their economy. Sounds interesting? Read on! This article will cover the following topics and provide answers to the following questions:
- What is Economic Citizenship?
- How to determine if a country is offering citizenship by investment?
- What does a second passport give an investor?
- Citizenship by Investment should not be confused with this ...
What is Economic Citizenship?
Before applying for a second passport and citizenship for money, you need to figure out the basics. First, what is citizenship? Essentially, citizenship is the embodiment of a social contract: an agreement between individuals and society to work together to achieve mutual benefit.
In this symbiotic relationship, the citizen assumes certain responsibilities, such as obeying the law, paying taxes, and serving in the military. In return, the state grants him a variety of rights, including the right to vote and work on its territory.
In the last century, an additional right fell under the jurisdiction of states: the right to restrict the cross-border movement of people. As the world developed and became more interconnected, states began to rely on passports to control who was allowed to enter and leave their territory.
Because of this, the passport has become one of the most valuable things that the state can offer a citizen in exchange for his contribution to the development of society. Passports of different states differ in their usefulness for travelers, prestige and other parameters - just as the rights and obligations of a citizen differ to some extent depending on the state.
Traditionally, citizenship has been granted through birth, naturalization, and marriage. Sometimes it was awarded for special services in the field of culture, sports or science. But in 1984 everything changed: it became possible to quickly obtain citizenship by investment.
One of the main duties of a citizen is to contribute to the economy of the country of his citizenship. Many Western Bloc states tend to abuse the right to impose such a duty by demanding high taxes.
But not all countries are like that. Low-tax states that offer economic citizenship have determined that individuals who make a major contribution to their economy through returnable multi-year investments or one-time subsidized donations fulfill this responsibility and therefore deserve citizenship.
Thus, economic citizenship is a special mechanism by which a person can apply for a second passport by investing in another jurisdiction. It is intended for wealthy people who want to quickly acquire dual citizenship and a second passport, or even several citizenships and a whole passport collection.
How to determine if a country is offering citizenship by investment?
Not all economic citizenship programs are created equal. This can often create confusion as to which schemes are legal. Let's clarify. There are just 5 criteria you need to keep in mind in order to determine if a particular jurisdiction is legitimately offering citizenship for money:
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- Simplicity : Most of the states granting economic citizenship do not oblige candidates to move or reside in their territory (except Antigua, Malta, Cyprus and Turkey). No such state obliges candidates to speak their official language, pay taxes to their coffers, or comply with any other requirement besides the contribution of capital and proof of law abidance.
What does a second passport give an investor?
Now let's look at the benefits that can be obtained by applying for economic citizenship.
- Second passport for life : Alternative citizenship can be guaranteed to be used for life, if you do not commit any serious crimes and do not worsen the image of the new homeland in any way.
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Citizenship by investment should not be confused with this ...
Not all of the above benefits may be of interest to this or that candidate, but unscrupulous immigration agents do not pay attention to this, forgetting about a personalized approach and trying to sell their “product”.
That being said, bad references are just the tip of the iceberg when it comes to misconceptions about what, where, why, and how you can get if you need a new passport and citizenship for money. Let's put an end to this here and now! Let's find out what documents should not be confused with the investor's passport.
1. Passport for exceptional merit
There are many programs that look like investment citizenship schemes because they involve financial requirements and grant citizenship when they are executed. But they are usually not structured or commoditized. And also do not differ in high speed.
It is best to use the category of exclusive citizenship to describe these hybrid schemes. You may be able to buy property in Cambodia or donate € 3 million to Austria and get a second passport through the transaction, but these programs are highly subject to political whims and are not available to every applicant who wants to. This is not real citizenship by investment.
2. Golden visa
Residency (residency / permanent residence) by investment or a golden visa is not the same as economic citizenship. Numerous states are ready to provide residence permits to those foreigners who invest in their economy, but this residence permit does not guarantee that the candidate will eventually receive citizenship. The Golden Visa gives only the right to enter the country in question and reside in its territory all year round.
Different states have different criteria that a person can meet in order to apply for a residence permit, from a job offer and starting a company to getting married with a local citizen. Some countries have decided to add an additional option and allow those foreigners who make investments to reside in their territory without resorting to other criteria.
But in this case, we are only talking about permission to become a resident. Once a person becomes a resident, he can be naturalized in the same way as everyone else. Of course, we are not talking about any citizenship by investment.
This is the case with many golden visa schemes in Europe. Similar programs, for example, operate in Greece and Spain. While you may eventually get a second passport through an investor deal, it will take at least five years of residency and you will need to learn the language of the host jurisdiction.
In addition, you will have to live on its territory for most of each year during the naturalization period, thereby acquiring certain tax obligations to the host jurisdiction. The only exception is Portugal, where you don't need to live permanently.
Compare this to Caribbean economic citizenship schemes where there is no waiting period for naturalization (other than waiting for a due diligence verdict and processing procedures that take only a few weeks). You invest and get citizenship.
3. Passport through a ghost program
Due to the abundance of misinformation and the activities of many incompetent immigration agents, some people want to obtain a passport through investment citizenship schemes that never existed or existed for a certain time, but were then canceled.
For example, in recent years the programs of Moldova and the Comoros have been suspended. Previously, it was also possible to obtain Irish citizenship by investment, but the corresponding scheme was again suspended, and its work was not subsequently resumed.
There are also situations where a country announces an investment citizenship program, but then never fulfills its promises. Not so long ago there were rumors that Armenia was going to introduce such a scheme. However, after the change of power in the state, it was decided to abandon this idea.
Documents processed through fraudulent schemes
There is also the problem of fraud. We receive many questions from readers about this or that program, and we have to admit that these are scams. No need to be surprised if sites advertising these scam schemes suddenly disappear.
The key to using a second passport effectively and safely is obtaining this document legally. Avoid any programs that involve paying money to corrupt officials. The legal scheme of investment citizenship must be described in the laws of the host jurisdiction. If the person promoting the program cannot point you to its legal basis, just stop communicating with him.
Remember that economic citizenship is commoditized and structured, and is simple, legal and fast. Anything that does not meet these five requirements is not citizenship by investment. This does not mean that other immigration routes will not work for you (unless, of course, they are illegal), but it is important to know what you are getting yourself into.
To be continued. If you liked the first part of this guide, stay tuned. The second part will consider the countries that grant citizenship by investment, as well as the requirements for applicants for economic citizenship.
Still have questions? Ask them in the comments!