Citizenship by Investment

The concept of citizenship has a long historical foundation, dating back to ancient Greek city-states like Athens, which were among the first to establish the formal practice of granting citizenship. In Athens, citizens enjoyed a range of privileges, including the right to own property, participate in political processes by running for office, and vote on matters of governance. Additionally, they played an active role in shaping the economic landscape through their contributions.

In modern times, citizenship continues to confer a comprehensive set of rights, granting individuals full legal standing within their country. However, along with these rights comes the obligation to fulfill certain duties, such as adhering to the law, actively contributing to the economy, and, importantly, upholding the rights and freedoms of fellow citizens.

Acquiring multiple citizenships is often perceived as a complex process due to the lengthy and stringent requirements associated with most pathways to dual citizenship. The following are the primary routes through which individuals can obtain a second citizenship:

1. Naturalization: This is the most common, albeit the longest, method of obtaining a second citizenship. It typically requires an individual to reside in a country for a specified number of years before becoming eligible to apply for citizenship under the host nation’s laws.
2. Citizenship by Marriage: In many countries, marrying a citizen of that nation provides a pathway to citizenship. This can be achieved either directly or through an intermediary step, such as obtaining a residence permit, followed by naturalization.
3. Citizenship by Descent: This route is relatively straightforward but limited to specific individuals. Countries such as Austria, Ireland, Italy, Poland, and Portugal allow individuals with ancestral ties to their nation to apply for citizenship. However, the process of proving ancestry can be complex and typically applies only to a small segment of the global population.
4. Exceptional Citizenship: This is a highly rare and prestigious form of citizenship granted to individuals who have made significant contributions to a country. For example, actor Tom Hanks was awarded Greek citizenship in recognition of his charitable work in the country.
5. Citizenship by Investment: This is one of the simplest and fastest ways to acquire a second nationality. Many countries offer citizenship to individuals who make significant investments in their economy. This pathway often allows the inclusion of family members as dependents and provides an expedited process for acquiring citizenship.

The concept of Citizenship by Investment (CBI) can trace its roots back to ancient times, with the Roman Republic being among the first to formalize this pathway to citizenship. In the Roman system, individuals who made economic contributions under specific conditions were granted citizenship, along with all the rights and privileges it entailed—a principle that still resonates in modern CBI programs.

Today, numerous countries offer CBI programs, which provide a legal route to obtaining citizenship and a passport through financial contributions to the nation’s economy. The rationale behind these programs is that by making a substantial investment, an individual fulfills part of the responsibilities of citizenship, justifying their eligibility for it. Additional responsibilities, such as abiding by the law and respecting the rights of fellow citizens, are essential components of the process. These countries typically perform thorough due diligence to ensure applicants meet the required standards.

Notable CBI programs, such as those in Grenada, Malta, St. Lucia, and Türkiye, also grant the right to vote in elections. Moreover, passports from these nations often offer favorable travel benefits, including visa-free or simplified access to countries within the European Union and the United States.

Economic citizenship offers substantial benefits to the countries that grant it, as it provides governments with significant amounts of unrestricted foreign direct investment. These funds can be strategically allocated to support the development and growth of various national projects, enhancing both infrastructure and public services.

For instance, the Commonwealth of Dominica has successfully leveraged funds from its Citizenship by Investment (CBI) Program to finance key initiatives, such as the construction of affordable housing for its citizens. Additionally, the program is helping to fund the development of the country’s international airport, a project poised to greatly improve the quality of life for residents while also stimulating economic growth through increased tourism and international connectivity.

Citizenship by Investment (CBI) programs vary across countries, but the most common types of investment options generally fall into five key categories:

1. Donations or Contributions: Many countries offer citizenship to individuals who make a direct financial contribution to the nation’s economy. This option is often the simplest and most cost-effective route, with minimum donation amounts starting as low as $100,000 in some cases. However, as donations are non-recoverable, investors do not receive their money back. Donations typically go into official government funds designed to support national development projects. Occasionally, countries may create temporary funds for urgent needs, such as the St. Kitts and Nevis Hurricane Relief Fund, established to rebuild after a particularly destructive hurricane season. This fund offered a lower contribution requirement compared to the Sustainable Growth Fund, reflecting the immediate need for capital.
2. Real Estate Investments: Investing in real estate is one of the most popular paths to obtaining citizenship. Most CBI programs include a real estate option, with investors having the flexibility to purchase either physical property or shares in high-end resorts. Real estate investments are attractive because they allow investors to recoup some or all of their investment after a required holding period, during which they may also generate income by renting out the property or receiving dividends. This option is particularly appealing to larger families, as many programs allow multiple dependents to be included.
3. Government Bonds or Securities: Some countries offer citizenship through the purchase of government bonds or securities. Government bonds are considered a safe investment, although they typically yield lower returns. Alternatively, private securities present a higher-risk, higher-reward opportunity for investors looking to maximize their returns while securing citizenship.
4. Hybrid Investments: Unique to Malta’s CBI program, hybrid investments require a combination of multiple investment types. For example, applicants must both purchase real estate and make a financial donation to the government to qualify for citizenship. This multi-faceted approach ensures a broader economic contribution.
5. Establishing a Business or Job Creation: In certain countries, investors can gain citizenship by establishing a business. The criteria may vary, with some countries requiring a specific capital investment, while others focus on the number of jobs created and sustained over a given period. This option is ideal for entrepreneurs who want to expand their business interests while contributing to the local economy.

Many countries worldwide offer their own version of Citizenship by Investment (CBI) programs, providing a pathway to economic citizenship. While the core principle of obtaining citizenship through financial investment remains consistent, the specific requirements and processes vary from one country to another.

In general, applicants for CBI programs must meet the following criteria:

• Possess a clean criminal record.
• Provide evidence of the legal source of funds used for the investment.
• Submit a complete and thorough application.
• Make a qualified investment as specified by the country’s program.
• Be at least 18 years old.

While most countries offering CBI do not require applicants to physically reside in the country, there are exceptions. For instance;

• Malta and Antigua and Barbuda mandate that applicants meet specific residency requirements as part of their citizenship process.

In contrast, countries like;

• Dominica,
• Grenada,
• St. Kitts and Nevis,
• St. Lucia,
• Türkiye,
• Vanuatu

do not require permanent residency to obtain citizenship, allowing applicants to become citizens without living in the country.