Second Citizenship: A Toy for the Rich? by Arkady Bukh, Esq
From Bond to Bourne, the typical spy image is someone with a suitcase filled with money and several passports to aid in a quick escape. More frequently though it is not spies that are seeking a second citizenship, instead it’s a growing number of “economic citizens.”
Every year, several thousand people spend a total of over $2 billion to add a second or third passport to their collection. Already popular with Chinese and Russians as well as individuals from the Middle East, a growing number of Americans are diversifying their passport portfolio along with their investment portfolio.
Countries strapped for cash are noticing. Antigua, Barbuda, Grenada, Malta, the Netherlands and Spain are a few of the countries who recently introduced programs that either allow citizenship by investment or offer other routes to citizenship for investors with deep pockets.
Detractors, including Viviane Reding, vice president of the European Commission claim that “Citizenship must not be for sale.” For awhile, people with money to spare are in luck. At least a half dozen countries are offering direct citizenship by investment and with no strings, such as residency requirements, attached.
The Cheapest Places
St Kitts and Nevis
St Kitts and Nevis can claim the longest running investment immigration program globally. The cheaper of two options for citizenship is a $250,000 donation to the St Kitts and Nevis Sugar Industry Diversification Foundation, a public charity. If someone has deeper pockets, they can invest a minimum of $400,000 in real estate in exchange for the coveted status.
Dominica
With a population of just over 70,000, the small country claims 3,000 investor-citizens. The small Caribbean island is the cheapest spot for citizenship. An investment of $100,000 plus a personal interview can get an investor recognized as a citizen. The down side is that the interview committee meets just once a month and actually getting a Dominican passport in hand can eat up anywhere from five to fourteen months.
Most Expensive Places
Malta
When the small island nation of Malta decided to allow foreigners to obtain a passport for $830,000USD with no residency requirement, all hell broke loose. Even though it cost over three-quarter of a million dollars, Malta’s program was still the cheapest European Union nation where a person can buy citizenship.
To calm the uproar, Malta officials change the rule to require potential citizens to live in Malta for a year and cover an investment of almost $1.5 million dollars.
Cyprus
The investment-citizen program in Cyprus will set a person back about $6.3 million dollars; that’s a discounted price. The going rate was over $35 million when the program was first introduced. However, an individual hoping to get a Cypriot passport still has to invest at least 5 million euros in real estate or banks on top of covering the required investment.
Scams
Investing in any of these countries in exchange for citizenship — and that additional passport — is legal. However, there are some passport scams around which anyone seeking to obtain a second citizenship should be aware of.
Too Cheap
Most of the countries offering investment-citizenship programs suggest an initial investment of at least $100,000. There are scammers though who are offering to get you citizenship in the country of your choice for as little as $30,000 USD. Remember the old adage, “If it sounds too good to be true…”
Too Quick
No matter what anyone tells you, a genuine citizenship will not be obtained in a week or two. Usually, the waiting period is measure in months.
No Travel
Be on extra alert here. The only official program which does not require a person visit is the one provided by St Kitts and Nevis. Another exception is Dominica which has an option of arranging to send a Dominica authorized official to your country-of-residence, for an extra fee. Those are the only jurisdictions that will allow you to bypass visiting the country. Every other no-need-to-travel program is a fraud.
Arkady Bukh, Esq
Bukh Law Firm