With a plethora of citizenship by investment (CBI) options scattered throughout the globe, investors now have more options than ever to consider. As citizenship by investment has rapidly grown as a global trend, more scrutiny goes into deciding which particular citizenship is the most suitable for any given individual and their family members. “Family members” being the operative noun.
Most investors look for a second citizenship as a contingency plan for themselves and their loved ones, while ensuring a brighter future for their children. While global mobility and expanded business opportunities accompany a second citizenship, the goal of paving a road purged of obstacles for future generations will always remain at the forefront of any investor’s mind.
In This Article
Investing with the aim of obtaining citizenship is a capital-intensive affair, so any investor will want to make sure the return on that citizenship by investment is sufficient to warrant the capital outlay. Instead of making more than one investment to cover the entire family, savvy investors look to incorporate as many members of their family into just one application, thereby saving money. The sheer variety of options they have, however, makes pinpointing the most rewarding citizenship by investment program a bit trickier. Therefore, we will address this matter in detail.
In some regions, large families are the norm. In the Middle East and North Africa (MENA) region, for example, the average household size amounts to more than 5 members. At the same time, neighbouring countries such as Afghanistan and Iran have averaged higher than 8 people per household. For investors from these regions, therefore, choosing a citizenship by investment program that is cost-efficient for large families is crucial.
There are 3 main routes to citizenship through investment:
– By direct contribution to the granting government.
– By the acquisition of real estate within the country.
– By investments in government bonds.
Each option has distinct advantages and disadvantages, and investors tend to choose between them based on economic factors such as risk, financial return, and ease of resale.
Best Deals Under Government Contribution
Since donating a non-refundable amount to a government does not bring with it any financial returns, programs offering this route have made it cheaper than its alternatives. A One-time payment with no subsequent hassle guarantees investors and their family members obtain citizenship through a cost-effective solution.
The Caribbean states Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia all offer citizenship through investment by way of government contribution. While similar at first glance, the minor details can have major effects depending on family composition as the investment amount increases in tandem with the increase in the number of dependents included in the application.
When assessing the total outlay of any given option, we will consider the investment amount, due diligence fees, government fees, processing fees, application fees, passport fees, and naturalization fees.
Antigua & Barbuda lead the pack with their current offerings; having launched a reform to its “University of the West Indies (UWI) Fund” by setting a contribution amount of USD150,000 for a family of 6 or more. Any additional dependent added after the fifth, making it a family of 7, will incur an additional cost of USD15,000 in processing fees.
This is by far the most cost-efficient contribution option for investors; for a family of as many as 8 people including husband, spouse, four dependents below 11 years of age and 2 dependent parents would incur a contribution and processing fee cost of a mere USD205,400. This compares quite favourably to other options; the second most affordable option would be that of St. Kitts & Nevis, at USD214,380, followed by St. Lucia at USD241,900. Both Dominica and Grenada are set significantly higher, exceeding the USD300,000 mark.
While Vanuatu also offers citizenship by investment through government contribution, the price for a family of 4 is set at USD220,000, rising as the number of qualifying dependents increases, making it significantly higher than what Antigua & Barbuda offers.
Best Deals Under Real Estate
A long-time favourite of investors, real estate is considered a safe investment in a tangible asset, granting risk-averse investors a dependable and easy-to-understand route to a second citizenship.
No citizenship by investment country offers its nationality at a lower overall cost than Turkey. Through the purchase of one property or properties amounting to USD250,000, an investor can gain citizenship with their spouse and as many qualified dependents as they want, all at the same price, regardless of family size. Turkey does not require significant additional outlays beyond the property acquisition, as a total investment of USD251,024 is sufficient for a family of 8, making it the most cost-effective option.
Turkey Citizenship by Investment Program, however, falls behind its Caribbean counterparts in terms of adding dependents; while Turkey only allows applicants to add their spouse and children aged 18 or younger, the Caribbean states permit the inclusion of a spouse, dependent children up to 30 years of age, dependent siblings, and dependent parents in a single application. This makes the Caribbean states a better opportunity for larger families, as the investment amount has the potential to cover entire families.
The return on investment in Citizenship by Investment Programs is the citizenship itself, and in this area as well, Turkey Citizenship by Investment Program falls short compared to its peers. Caribbean passports offer more visa-free and visa-on-arrival destinations in absolute numbers, as well as considerably more attractive visa-free destinations than those the Turkish passport can provide.
For those concerned about the Turkish passport’s lack of visa-free access, however, the Caribbean states – all of which offer far more mobility than Turkey – offer an array of real estate investment options. Antigua & Barbuda, Dominica, Grenada, and St. Kitts & Nevis all require an investment of $200,000 which makes applicants eligible for citizenship by investment. St. Lucia requires an outlay of $300,000. The real estate value remains constant with the increase of family members in any given application.
Still, the contribution amount increases proportionally to the included family members. For larger families, again using the same example of a family of 8 members and taking into account the additional financial requirements, Dominica emerges as the unequivocally most cost-efficient option with a $292,860 total, while the other jurisdictions each require an expenditure exceeding $315,000.
None of Europe’s citizenship by investment programs offer entry at anything below $300,000.
Best Deals Under Government Bonds
Only three countries offer citizenship through investing in government bonds, St. Lucia, Turkey, and Cyprus. Since the latter starts at a seven-figure minimum investment requirement, we will focus on St. Lucia and Turkey.
St. Lucia recently introduced a COVID-19 Relief bond option, slashing the investment requirement to $250,000 for a family of five. The investment requirement increases by $15,000 for each additional dependent, making the required investment for the before mentioned family of 8 people $347,900. This amount places St. Lucia significantly lower on the outlay-scale than its Turkish counterpart, which asks for a minimum investment of $500,000.
Turkey’s main advantage is the return on investment associated with government bonds as the sheer variety of securities on offer gives investors the chance to create an investment portfolio, making money while gaining citizenship. The $500,000 requirement, however, does not compare favourably with that of St. Lucia.
Understanding the fine print of any given program is critical to citizenship by investment investors. Without intimate knowledge of the detailed requirements, applicants risk incurring far higher costs than necessary. These costs can easily be avoided by choosing a more suitable option befitting of the particular family’s composition. Our consultants at Savory & Partners are committed to helping investors to not only gain citizenship for themselves and their families but to do so in the most cost-efficient fashion possible.
Book A Free Consultation
As a British Government Authorized Agent, Savory & Partners has granted second citizenship and passport for a high number of High-Net-Worth investors from the Middle East and far beyond. You can also book a free consultation with our team of experts and learn about all the benefits of Citizenship by Investment Programs, find out your eligibility and proceed with your citizenship application.
We are available on every channel convenient for you.