In recent years, the concept of citizenship by investment (CBI) has gained significant traction as an avenue for high-net-worth individuals to obtain second passports and access to various countries around the world. The evolution of CBI programs has reflected changing global trends and the diverse needs of individuals seeking secondary citizenship.
One prominent example of a CBI program is the Portugal Golden Visa program, also known as the residence permit for investment activity (ARI). This residency by investment scheme allows foreign investors to obtain residency in Portugal by making a qualifying investment in the country, such as real estate or job creation.
Citizenship-by-Investment programs, like the one offered in Vanuatu, are attracting individuals from countries like India who are seeking quick and inexpensive passport switches to avoid tax implications or political instability in their home countries. These programs provide a relatively straightforward path to citizenship in exchange for a significant investment in the host country.
In light of recent changes in the CBI landscape, Spain's government recently pulled the plug on its controversial golden visa program. However, another EU country is reintroducing its own scheme, signaling the ongoing popularity and demand for citizenship by investment opportunities.
According to Nuri Katz, founder of Apex Capital Partners, more high-net-worth individuals in the US are engaging in 'jurisdictional arbitrage,' utilizing CBI programs to enhance their global mobility and access to different markets. This trend highlights the growing appeal of investment migration programs, which are offered by more than 80 countries worldwide.
Turkey's citizenship-by-investment program has seen significant growth in recent years, with a reported $1,343 million generated in 2019 compared to $106 million in 2018. This surge in interest underscores the appeal of CBI programs as a means of acquiring secondary citizenship and expanding global mobility.
A joint report from the Financial Action Task Force (FATF) and the Organization for Economic Co-operation and Development (OECD) highlights the potential risks associated with citizenship and residency by investment programs, including the potential for criminals to exploit these schemes for increased global mobility and anonymity.
Many Eastern Caribbean nations have also embraced the CBI trend, offering global citizens the opportunity to purchase local passports and citizenship through various investment schemes. These programs have become increasingly popular among individuals seeking to diversify their citizenship portfolio and gain access to additional travel opportunities.
Overall, the rise of citizenship by investment programs around the world underscores the growing demand for global mobility and access to new markets. As more countries introduce CBI schemes and enhance existing programs, the landscape of second citizenship options continues to evolve to meet the needs of high-net-worth individuals seeking to expand their global footprint.
