2nd Passport: The World’s Best Citizenship through Investment Programs
You’re not alone if you’re looking to buy a second passport with the increasing number of people who want the ability to travel and live outside their country for extended periods. In exchange for an investment of money or assets, these citizenship-by-investment programs offer residency, citizenship, and/or a passport. While they may seem like a good option if you would like to move abroad but don’t have the means or opportunity to do so permanently, these programs are often fraught with hidden risks and implications that may be difficult to escape.
Fortunately, buying a second passport is easier than it seems, and there are many ways in which you can safely acquire one without ending up on the wrong side of the law.
What is a Second Passport?
A second passport is a way to travel or live outside your home country without the limitations imposed by your passport’s country of origin. There are few legal restrictions on obtaining a second passport, and most countries allow people to have another citizenship. Many countries have agreements that allow people from other countries to get a second passport. In many cases, a second passport can ease trade and travel between countries.
While a second passport will allow you to travel more freely, it may also be useful for financial reasons. Some people buy a second passport so they can get the benefits of being a citizen (like being able to live and work abroad) without going through the long process of naturalization. Others get a second passport so they can easily travel between two countries. A second passport can also be a great way to protect yourself and your family from future dangers, such as war or political unrest in your home country.
What is Citizenship by Investment Programs?
Citizenship by investment program (CIT program) allows you to purchase a piece of citizenship with various economic and residency benefits. You can buy citizenship through several channels, including governments, international investment firms, and private individuals. Some programs offer a discounted price if you buy multiple “units” of citizenship, but some sell citizenship in one transaction.
The “invest in your own country” model is the most popular form of citizenship by investment. In this model, an investor pays the government for the right to become a citizen. The investor gets the benefits and rights of citizenship right away without waiting to become a citizen. The investor may also get other benefits, such as a permanent resident visa or the right to live there.
Safe and secure second passport buying options
There are a lot of different ways to buy a second passport, but it’s important to know that some of these ways are illegal and may fail or have serious consequences for the buyer. Before you go on a trip to get a second passport, you should know exactly what to expect. – Purchase a second passport from a private individual – Purchase a second passport from a CIT broker – Purchase a second passport from a government – Acquire a second passport through citizenship by investment program – Other options
The Best Citizenship by Investment Programs
INVESTMENT COUNTRIES’ CITIZENSHIP
Each country with citizenship-by-investment has a government-approved program.
These programs streamline the application process, provide a path to citizenship in months, and are open to (almost) anyone with a clean record.
Citizenship by investment programs requires either $1 million or $100,000. Regardless, you’ll get a second passport.
We grouped programs by region. Europe first.
EU IMMIGRATION PROGRAMS
If you ask, Europe has two or three citizenship programs.
Malta, Montenegro, and Turkey are considered European for simplicity’s sake. (Cyprus canceled its program on November 1, 2020, and Montenegro will on December 31, 2022.)
Malta is in the European Union, meaning that people willing to do good tax planning can become citizens of both the EU and Malta.
Montenegro wants to join the EU. A small part of Turkey also wants to join, but not as soon. Cyprus’ citizenship-by-investment program was canceled on November 1, 2020.
MALTA
Malta’s Citizenship by Investment program is harder to understand than its options for living there, especially the Global Resident Program.
Malta’s citizenship-by-investment program is the world’s most desirable. It’s the only program that grants access to both the EU and Schengen.
It’s the only passport that grants visa-free entry to all six major English-speaking nations, including the U.S.
Before Cyprus’ program was shut down, Malta was a better deal for many people, especially if they wanted to donate less and invest the difference.
Malta is a great example of “you get what you pay for” It’s expensive.
Maltese citizenship by investment has several parts. First, a €600,000 donation gets you citizenship after three years. Donating €750,000 reduces the wait time to one year.
That’s not pocket change.
Then add dependents. Your spouse, children, and dependent parents need an additional €50,000 donation.
The government invests your donation in projects that help Maltese citizens, so you can feel good about it.
At least €600,000 is lost. Before applying, make sure you have a six-figure budget.
You must also donate €10,000 to a Malta-approved charity.
As proof of a connection to Malta, buy or rent a home. To do this, buy a property worth at least €700,000 or sign a five-year lease worth at least €16,000 per year, totaling €80,000.
If you rent, you’ll lose money, even though it’s less.
Unlike Caribbean citizenship by investment programs, Malta requires you to spend time in the country to show the connection.
Even with a higher donation, you must spend much of your first year in Malta. Due to the requirement to live in the country, getting citizenship through investment takes at least 12 months. This is the longest time of any CBI program.
Not to mention the new three-year timeline for those who donate less, which turns this program into a fast-track Golden Visa.
Malta has more groups to please now that it is a member of the EU, has access to Schengen, and doesn’t need a visa to visit the US. This means you must prove a country connection.
Malta’s passport is great and gives you many privileges, but there are strings attached. If you can spend €700,000, this program covers everything. If you’re a six-, seven-, or eight-figure global citizen running a business, you may be better off going elsewhere, saving money, and getting the few extras, Malta could give you elsewhere.
Malta’s citizenship-by-investment program is explained.
MONTENEGRO
Montenegro investment citizenship. Buying a summer home here gives you a second passport.
The beautiful European country launched a citizenship-by-investment program a few years ago.
Montenegro had a short-lived CBI program in the early 2000s, but the government finally brought it back.
How much is Montenegrin citizenship worth?
Montenegro is a riskier option for an EU passport than Malta. If you’re willing to pay more, go ahead.
We’d rather Montenegro stay independent from the EU. Montenegro has some of the lowest tax rates in Europe at just 9%, which we imagine would be scrutinized if they joined the EU.
Montenegro’s passport has many benefits. It grants visa-free access to Europe, Macedonia, and the UAE.
Montenegro is one of five CBI programs with visa-free access to Russia.
You won’t get visa-free access to the UK, Ireland, the US, and other countries. If you plan to make Montenegro your main passport and want to visit those countries, keep that in mind.
We like Montenegro overall. Andrew enjoys spending his summers in this tax-friendly, easy-to-do-business location.
It’ll be interesting to see how this new CBI program works.
Renting a summer home in Montenegro may be a better option than purchasing a summer home in Montenegro. You must pay a premium for government-approved property and donate. It’s also good for doing business in the UAE or Russia.
Montenegro’s citizenship-by-investment program is explained here.
TURKEY
Turkey’s Investment Citizenship
Turkey’s citizenship-by-investment program lets you buy any real estate. We’re fans. Some say Turkey isn’t fully European, but we’ll give it the benefit of the doubt.
It won’t give you Schengen access or EU residency, but Istanbul’s standard of living is similar.
Turkey introduced economic citizenship in January 2017 to boost its economy. This was after the Turkish lira hit a record low against the dollar, and terrorism drove down Istanbul’s real estate sales.
Turkey’s government decided to offer $1 million in citizenship to attract investors.
Turkey lowered their standards quickly. You can become Turkish by investing $250,000 in real estate and holding it for three years. All properties must be purchased on the same day and in the same office, so you can’t buy an Istanbul apartment and an Antalya beach house.
You’re also at the mercy of the lira exchange rate and an appraisal that may not value cheap resale properties as highly as new construction. You can buy any real estate, but you need a plan. You can deposit $500,000 in a bank for three years. $500,000 can be invested in a working company as venture capital or bonds.
You can skip the investment by hiring 50 Turks. We knew this program was aimed at Arabs seeking an Islamic haven, but the price cut has made it more appealing.
Mandatory military service in Turkey won’t affect you unless you’re young or plan to pass citizenship to your children. Turkey’s economic citizenship program is interesting because you can get your money back and make a profit. Its low minimum investment and easy access to the US and UK make it a good passport (something we help people create). We still don’t think it can replace a Tier A passport.
S.K.N.
St. Kitts and Nevis’ economic passport program began in 1984. Other Caribbean programs have copied it, and it’s been successful. The two-island nation boasts a “platinum” citizenship program. Donate to a government development fund or buy “approved” real estate. As our clients have told me, the real estate is overpriced and not even nice.
Donations started at $250,000 until recently. Then hurricanes hit in 2017, and St. Kitts rolled out a controversial Hurricane Relief Fund that lowered the price to $150,000. No longer available, but the lower price remains. St. Kitts offered $150,000 for a family of four in response to COVID-19, but the price has since reverted to $195,000. Single applicants pay $150,000.
The minimum investment in real estate is $200,000, and you can buy anything from a shack to a timeshare in a five-star hotel. You can resell your investment in a few years, but you won’t make much. Real estate has extra government fees.
St. Kitts offers a rush option to get approval within 45 days and visa-free travel to Russia. St. Kitts and Nevis was the only game in town until 2014 when it lost visa-free access to Canada. They’ve made price adjustments due to recent price wars, but it’s still overpriced. If you want the oldest, most stable program, this could be it.
St. Kitts and Nevis offer citizenship by investment.
DOMINICA
Dominica CBI Programs
You can get automatic citizenship in this English-speaking Caribbean paradise for a $100,000 donation to the Dominican government. Dominica began offering the best-value passport in the 1990s. Since Belize ended its $40,000 program years ago, Dominica had the world’s cheapest passport.
The program is simple. You can get a passport in two to three months if you donate (or invest in real estate). Coming in at $100,000, Dominica now has competition at this price point for solo applicants, but unlike other CBI programs, it does have a longer track record of being in operation to show for itself.
Award-winning. Financial Times’ Professional Wealth Management magazine, which publishes a CBI index, named Dominica’s program the best in the world.
But remember, there is no universal “best citizenship by investment” program – only the one that’s best for YOU.
What could Dominica offer in 2021?
Dominica announced a slew of post-COVID changes to attract foreign investors. The difference in Dominica is that they did not put a deadline on the discounts, which means that they are still in effect. Dominica’s COVID discounts are especially interesting if you have a large and extended family that you might want to add to your citizenship application.
Here’s who is eligible to get Dominican citizenship now:
- Parents (biological or adopted; must be single and childless)
- Adult children (not living with parents or studying)
- Financially dependent parents and grandparents of both the main applicant and spouse (don’t need to be living with the main applicant)
- Children born and spouses married after the applicant has received citizenship
That’s a set of really flexible rules. Plus, Dominica has also lowered its prices for all family sizes:
- Single applicants will continue paying $100,000
- Married couples will pay $150,000 (down from $175,000)
- A family of 4 will pay $175,000 (down from $200,000)
- Additional dependents will still cost $25,000 per person, and adult siblings $50,000
Just don’t forget that Dominica has additional fees that apply when one chooses the donation investment route.
Conclusion
For the best chance of success in purchasing a second passport, you’ll want to follow a careful and thorough plan. This can help you ensure you don’t make any mistakes or miss any risks with buying a second passport.
– Research different second passport options and find the one that best suits your needs, financial situation, and risk tolerance. There are many different ways to buy a second passport, so be sure to research and find the one that best suits your needs and financial situation.
– Make sure you have enough money to buy a second passport. This may sound obvious, but many people don’t realize how expensive it can be to buy a second passport. Some programs have a cost of up to $4 million. If you don’t have enough money, you may be forced to borrow or sell something valuable to pay for the purchase. – Understand the risks and implications of buying a second passport.
Source: How to Buy a Second Passport: The World’s Best Citizenship through Investment Programs