Investing in a second citizenship or residency abroad is one of the most fruitful ventures any high net worth individual (HNWI) can pursue. It unlocks the doors for global travel while simultaneously providing its holder with an elevated investment status.
HNWIs tend to consider obtaining a second citizenship or residency not only for themselves but their family members as well; providing their children with a platform upon which to build their success. This approach means adding as many family members to an application as possible, maximizing the return on investment.
However, with the addition of other family members to an application, the investment, or more accurately, the associated fees could increase. We at Savory & Partners always highlight the exact amount applicants have to consider when choosing their residency or citizenship by investment program, and in tune with that philosophy of transparency, we want to share with you the most important fees and taxes to take into account when budgeting for your application.
Any additional fees are payments alongside the investment, which do not go into the investment itself.
These fees can come in various shapes or sizes, such as taxes, stamp duty, government fees, application processing fees, due diligence fees, or otherwise.
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Each residency or citizenship by investment program has its own set of particular fees, many of which coincide with the nation’s tax regime. To understand the nature of these fees better, we will look into some of the most popular residency and citizenship by investment programs in the world.
Three of the most popular residency by investment programs globally are the Portuguese, Spanish and Greek golden visas. These pathways require applicants to invest in real estate for a minimum of €280,000, €500,000 or €250,000, respectively. There are, however, other fees associated with each program, and we will dive deeper into both.
Investors wishing to obtain a Portuguese golden visa have a wide array of investment options, ranging from investment funds, capital investments, or the creation of jobs. However, it is the real estate option that achieves the overwhelming majority of applications (over 90%), and the minimum investment threshold for real estate starts at €280,000.
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Additional fees within the scope of the Portuguese golden visa come in the shape of taxes, processing fees, as well as residency issuance and renewal fees.
Here is the breakdown of the fees:
It is worth noting that acquiring a property in the €280,000 bracket of the golden visa can significantly lower taxes, as properties eligible at this price are found in rural development areas, which induce low or no taxes.
Much like Portugal, Greece has a golden visa that has a high focus on real estate. For €250,000 an applicant and their eligible family members can obtain a Greek residency, but there are some extra fees in the shape of taxes, application fees, and residency fees.
The third EU country with a golden visa scheme, Spain’s investment migration route also focuses on the acquisition of real estate. Investors who purchase a property, or a multitude of properties, for no less than a combined €500,000 can apply for a Spanish residence permit.
The additional fees in terms of the Spanish golden visa are limited to property transfer tax (which depends on the location of the real estate), stamp duty, and the fee for issuing a residence permit. Here is the breakdown of the additional fees for the Spanish golden visa:
The property transfer tax and stamp duty mean that investors should take into consideration an additional fee ranging between 7.25-12.5% of the total property value.
The most popular citizenship by investment programs are clustered in the Caribbean region. All of these programs have a donation option as well as a real estate investment option that allow investors to obtain their citizenship. However, there are some additional fees, especially with real estate options, that one should consider before choosing their preferred investment route. We will take a look at each country and its additional fees below.
The twin-island nation of Antigua & Barbuda has three investment options:
The additional fees in Antigua's citizenship by investment program are as follows:
Dominica is home to the second oldest citizenship by investment program in the world, having launched its version in 1993.
The Dominican government provides applicants with two investment options: donation or real estate. Both have additional fees attached to them as follows:
As for the real estate option, the applicant will have to pay additional government fees as follows:
Want to have an effective tax strategy through your second citizenship? Watch our video for more details:
The island of Grenada offers two investment options to applicants, buying real estate and donating to a government fund. Both come with additional fees, but much like Dominica only the real estate option comes with government fees. Here is a breakdown of the fees:
Home to the oldest citizenship by investment program, St. Kitts & Nevis has been perfecting its program since 1984 and currently has two investment options: donation or real estate investment.
Both options come with additional fees, but, like the other programs, the real estate option also requires extra government fees. The breakdown is as follows.
The island nation offers three routes of investment:
The real estate also has an extra government fee, which is not applicable in other options. The breakdown is as follows:
Real estate government fees are paid as follows:
Turkey’s citizenship by investment program has various investment options, the majority require investments in securities or long-term deposits for half a million dollars, but the most popular option is investing in real estate for US$250,000. However, while all investment options require applicants to pay residence permit and passport issuance fees, only the real estate option requires a property transfer tax. Here are the additional fees to keep in mind:
There is also the matter of military service, as male children below 18 years may be required to serve in the military once they finish school. However, this requirement can be waived for a payment of ₺31,000 (as of 2022), which can be paid in instalments as well.
At Savory & Partners, we take pride in providing transparent, comprehensive consultations to our clients. Our experts will help you budget your investment and avoid any unwelcome surprises. All you need to do is contact us today for a comprehensive consultation.
We are available on every channel convenient for you.
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