There has been a steady increase in the number of people who have opted to become citizens of other countries by investment. While the benefits are many, there are a few potential drawbacks that should be considered before making the decision. Below is an analysis of the pros and cons of this approach to citizenship-by-investment.
May require military service in another country
For foreigners who may not want to join the military, Citizenship by investment programs may require investors to embrace mandatory military service in the country they want to live in. This allows the investor to acquire a passport in just a few months, and they can maintain their previous nationality while pursuing the CBI. Some countries even do not require military service at all, including small Caribbean nations like Belize. There is also no need to renounce your previous citizenship, although in some cases you may be required to serve a certain number of years in the military.
Can be overpriced
Many countries, such as Canada and several Caribbean small states, have citizenship by investment programs. These are designed to attract new talents to a nation and increase revenue. In many cases, citizens of wealthy nations invest in the citizenship by investment program, which is more convenient for them and often yields a fast ROI. Some countries allow the use of cryptocurrency to pay for citizenship by investment, such as St Kitts and Nevis. But many people with an urgent need for a passport might want to look at another option that is less costly and bureaucratic.
While there are some positives and drawbacks to citizenship by investment, the benefits are usually disproportionate to the costs. In addition to the costs, citizens often have no financial resources to spend on living expenses. For example, Maltese citizenship offers access to the Schengen Zone. While Maltese citizenship is likely to appeal to non-premium passport holders, it may spur other nations to follow suit. And once more states enter the citizenship market, competition will increase, and quality control will become a problem.
May takes 60 to 90 days or longer
Citizenship by investment programs has become increasingly popular in recent years. In many cases, you can apply for citizenship without first relocating, and processing times are relatively fast. However, some countries require you to first reside there for at least six months. Among these, Cyprus and Malta require you to have at least a year of residency before applying. Likewise, the passports of nationals of Russia and China are not recognized by the EU, and the citizenship by investment scheme in Bulgaria is closed. The European Commission has also imposed stricter requirements on these schemes, which are meant to combat money laundering, tax evasion, and abuse by oligarchs.
While the process of becoming a citizen by investment takes a minimum of sixty to ninety days, it is also worthy to note timing may be longer depending on the situation with evaluation.
Cost
Citizenship by investment programs is an increasingly popular option for high-net-worth individuals looking to travel the world. With a second passport comes greater mobility and visa-free travel. The market for CBI passports is now worth $2 billion per year and the Golden visa industry is worth more than $22 billion. Those who want to invest in global real estate markets have found that citizenship by investment is the best way to accomplish both.
To become a citizen by investment, you must invest at least $200,000 depending on some countries. You can easily check the investment cost for different countries with the free tool provided by CTrustGlobal. The government offers government bonds that can earn you a second passport for 5 – 10 years. While these programs may be expensive, they are risk-free investments that will be fully repaid after five years. While the process can be lengthy, it is a rewarding experience and a fast track to having dual citizenship.
Benefits
Becoming a citizen by investment can be a lucrative, flexible, and convenient way to immigrate to a new country. It enables you to invest in a new business in your chosen country and receive citizenship in exchange. This program requires a certain amount of investment and can take several years to complete. Citizenship by investment is not for everyone, but many individuals benefit from this opportunity. If you have the financial resources, citizenship by investment can be a lucrative option.
There are many benefits of becoming a citizen by investing in Malta. For instance, Cyprus has a longstanding investment program for foreign nationals and offers an easy process for getting citizenship. You do not need to be physically present in the country to qualify, and the minimum investment is EUR2 million for a single applicant or a €100,000 donation to the Cypriot Government Research and Development. You can also invest in alternative investment funds or luxury real estate projects. Cyprus’ citizenship by investment program is one of the easiest to complete among EU countries.