The Leading Citizenship-by- Investment Programs of the World

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1 The Leading Citizenship-by- Investment Programs of the World HUBBIS Asian Wealth Management Forum Nichole Barner

2 Content 1 2 Why Obtaining an Alternative Citizenship The Leading Citizenship-by-Investment Programs 2

3 Why Obtaining and Alternative Citizenship

4 Citizenship-by-Investment The term Citizenship-by-Investment describes the policies of countries in which foreign persons may gain citizenship through capital investments or significant capital contributions in the country Several countries have programs in place to attract foreign investors in return for citizenship 4

5 Reasons for an Alternative Citizenship Visa waiver Opens travel to countries previously restricted by timeconsuming visa application processes Retirement The option to retire in a safe country Independence Be able to travel or have the option to relocate after possible political changes Mobility Freedom of movement when some nationals are overly exposed to terrorists threats and other hostility 5

6 Reasons for an Alternative Citizenship (II) Protection Protection against data abuse, identity theft and cyber-crime Tax Planning Citizenship can be relevant in tax planning and is one of the tiebreaker rules in most double tax treaties Security Guarantees a secure and truly permanent alternative place to go if needed 6

7 Dual Citizenship Restrictions Only half of the world s countries allow dual citizenship The acquisition of another citizenship often leads to the automatic loss of the current citizenship Carefully check the legal situation prior to taking any steps to acquire another citizenship 7

8 The Henley & Partners Visa Restrictions Index Every year, Henley & Partners, in cooperation with IATA, analyses and ranks all countries by their freedom of travel 8

9 The Leading Citizenship-by-Investment Programs

10 Citizenship-by-Investment There are currently only six countries which offer citizenship programs that provide a direct, legal route to citizenship based on investment and which have passed Henley & Partners country due diligence St. Kitts & Nevis Antigua & Barbuda Dominica Malta Austria Cyprus Other countries have similar provisions. However, in those countries there is no established or clear practice and/or the programs are not transparent 10

11 Focus in this Presentation There are currently only six countries which offer citizenship programs that provide a direct, legal route to citizenship based on investment and which have passed Henley & Partners country due diligence St. Kitts & Nevis Antigua & Barbuda Dominica Cyprus Austria Malta Other countries have similar provisions. However, in those countries there is no established or clear practice and/or the programs are not transparent 11

12 St. Kitts & Nevis 12

13 St. Kitts & Nevis Introduction Population 54,000 Unrivalled natural beauty Visa free travel to 131 countries Direct daily flights from Miami and bi-weekly direct flights from New York and London 13

14 Citizenship-by-Investment Program It remains the world s most successful program To qualify for citizenship, applicants have two investment options: A contribution to the Sugar Industry Diversification Foundation of USD 250,000 (for a single applicant) An investment in designated real estate with a value of at least USD 400,000 Additional Due Diligence fees of USD 7,500 and Government fees of USD 50,000 apply for the real estate option 14

15 Antigua & Barbuda 15

16 Antigua and Barbuda Introduction Population 80,000 Some of the most beautiful beaches in the world Visa free travel to 129 countries Tourism generates around 60% of the island s income 16

17 Citizenship-by-Investment Program Announced in November 2012 To qualify for citizenship, the Government requires either: A contribution to the National Development Fund of USD 200,000 for a single applicant An investment in an approved real estate project with a value of at least USD 400,000 An investment into a business, known as the Direct Investment route Additional Due Diligence fees of USD 7,500 and Government fees of USD 50,000 apply (for up to 4 people) 17

18 St. Kitts & Nevis vs. Antigua & Barbuda Similar citizenship and residence privileges, although important differences: Processing time Residence requirement St. Kitts & Nevis Established program which usually takes 4-5 months for approvals to be granted No Antigua & Barbuda New program so will potentially be processed more quickly Requires the applicant to spend 5 days in the first 5 years in Antigua Applicant to swear an oath of allegiance Access to countries visa free No 131 countries - visa free travel to Tonga, Israel, Bangladesh and Argentina (Antigua & Barbuda does not) Yes, either on the island or at an embassy or consulate around the world 131 countries - visa free travel to Ukraine and South Africa (St. Kitts and Nevis does not) 18

19 Malta 19

20 Malta Introduction Population 418,000 Among the earliest settlements in the world, 7,500 years of history EU member since 2004, member of the Schengen area since 2007 Visa-free travel to more than 160 countries Citizenship gives right of work and establishment in all 28 EU countries 20

21 Citizenship-by-Investment Program Contribution to the National Economic and Social Development Fund For main applicant Eur 650,000 For spouse Eur 25,000 For dependents under / over 18 years Eur 25,000 / Eur 50,000 each A residence in Malta for at least 5 years Purchase of a property: value over Eur 350,000, OR Leasing of a property: annual rent over Eur 16,000 Investments into approved financial instruments Eur 150,000 For at least 5 years Annual publication of all naturalised citizens Due Diligence fees for main applicant Eur 7,500; for spouse Eur 5,000; for dependents under / over 18 years: Eur 3,000 / Eur 5,000 each 21

22 Cyprus 22

23 Cyprus Introduction Population 1,129,000 Very attractive tourist destination EU member since 2004 Visa-free travel to 151 countries Citizenship gives right of work and establishment in all 28 EU countries 23

24 Citizenship-by-Investment Program An investment in a single residential real estate object of at least EUR 2.5 million To qualify for citizenship, the Government requires either: An investment in multiple or commercial properties of at least EUR 2.5 million AND a single residential real estate object of at least EUR 500,000 A EUR 5 million deposit in a Cyprus bank (loan option available) AND a single residential real estate object of at least EUR 500,000 Government fees, taxes and misc. costs approximately 2% 24

25 The Leading Citizenship-by- Investment Programs of the World HUBBIS Asian Wealth Management Forum Nichole Barner