Economic Citizenship Basics
While being a citizen of one country, you may feel the need to acquire a citizenship and passport of another country. An alternative citizenship and passport of a decent country with a good international reputation may bring you a number of advantages, such as easy travel to certain first world countries with no visa requirements, more personal safety when traveling to specific countries, insurance for you and your family against unexpected personal, political or economical strife, better choice of places to live and much more.Second citizenship and passport can also become a good business instrument for expansion of your investment and entrepreneurial abilities, improvement of your taxation regime, asset and privacy protection.
Most countries have in place the according laws for regulation of granting citizenship to aliens. You can normally qualify for citizenship of a foreign country on the grounds of birth on its territory, marriage, lineage or religious affiliation. If none is the case, there is an option of naturalization. The latter normally requires several years of permanent residence in the country (3 to 10 years).
However, there exist quicker options. Some countries maintain economic citizenship or citizenship-by-investment programs. Governments of those countries utilize the program to attract investors of good character to make a substantial contribution to the development of the country’s economy. These investors can then apply for citizenship and passport within the relevant regulations. The latter includes a rigorous vetting process with a detailed criminal background check. None of such countries issues passports to criminals.
At the present moment, only three countries in the world provide for official economic citizenship. Those are the Commonwealth of Dominica, St. Kitts & Nevis and Austria. Dominica requires a non-refundable donation of US$ 75,000 for a single person and US$ 100,000 for a family option. St. Kitts & Nevis require an investment in the amount of at least US$ 350,000 or a donation of US$ 200,000 for a single person and at least US$ 250,000 for a family. Austria has much more substantial financial expectations from its investors. There is no statutory minimum, but US$ 3-4 million would be reasonable, plus significant achievements are to be brought along with the investments. It’s not that easy to qualify for a citizen’s status in Austria, and in general this program is not really encouraged and promoted by the Austrian government.
Economic Citizenship Program in Dominica
Dominica established its economic citizenship program in 1993. The governing laws are Constitution, Section 101 and Citizenship Act, Sections 8 and 20(1).Qualification requirements set by the Government changed several times since the launch of the program. Currently, the economic criteria is a non-refundable donation to the Government of Dominica in the amount of US$ 75,000 for a single option and US$ 100,000 for a family of 4 members – 2 spouses and 2 minor children, with an extra fee of US$ 15,000 for every additional child under 18 and US$ 25,000 for every dependent child between 18 and 21.
Additionally to the above, the following fees apply: application fee (US$ 200), agent fee (US$ 1,000), registration fee (US$ 1,000), stamp fee (US$ 50). Promoting agency fees (which often include the mentioned extra fees) are US$ 15,000 to 25,000. Fees of the due diligence agency vary in between US$ 3,000 to US$ 10,000 depending on the case.
The main applicant (head of the family) is to visit the country at least once for a personal interview as one of the steps, before the application is approved and citizenship is granted.
Benefits of Citizenship in Dominica
The country has a good international image. With Dominican passport you can travel to more than 100 countries and territories with no visa or visa upon arrival requirements, including Ireland, UK and most British Commonwealth countries , as well as China, Hong Kong, Singapore and South Korea (the list does not include Canada and the United States). Schengen States visa is easy to obtain within days. Being a citizen of Dominica, you can reside in most of CARICOM states. Investors and their families receive a full irrevocable citizen’s status for the lifetime, no matter if the program operation will be stopped in the future. There is no residence requirement to keep citizen’s status. There are no taxes on foreign income (unless you reside in Dominica), capital gains, gift, wealth and inheritance. Dominica recognizes dual citizenship - no need to renounce the current citizenship(s). There are procedures for legal change of name.Citizenship-by-Investment Program in St. Kitts and Nevis
The Citizenship-by-Investment Program of St. Christopher (St. Kitts) and Nevis was established in 1984, making it the longest established program of this kind in the world.To qualify for citizenship of St. Kitts and Nevis under its Citizenship-by-Investment Program, the Government requires either a contribution to the Sugar Industry Diversification Foundation (a public charity) in the amount of between US$ 200,000 and US$ 400,000 depending on the number of dependents included in the application, or an investment of at least US$ 350,000 in a designated real estate project. The real estate cannot be re-sold during 5 years after the purchase, and it will not qualify the next buyer for citizenship.
Additional expenses associated with the real-estate option involve fees for real estate closing, land and property tax and property insurance. The registration fees related to application for citizenship under this option are US$ 35,000 for the head of the household (male or female) or any other adult, US$ 15,000 for either spouse, US$ 15,000 for each child under 18 years, and US$ 35,000 for unmarried dependent child of the applicant between the ages of 18 and 25.
Service and legal fees of the promoting agent also apply extra with each option.
The above programs are instant in their character, since the investor is being granted a citizenship with no requirements of permanent residence in the country during a certain period. Besides instant programs, some countries may from time to time offer so-called fast-track naturalization programs with substantially shorter residence time and smaller contribution requirements.
Some countries run specific programs known as passport programs, which have nothing in common with naturalization and citizenship. For example, in Panama a person who has deposited a certain amount with the National Bank of Panama on a timely basis for a minimum period of five years, and that deposit is bringing him a certain amount of monthly interest, can apply for a passport. That passport gives the investor a non-immigrant residence status only, expires in five years and does NOT lead to citizenship. Upon expiration, the investor may renew it, if the program still exists at that moment.
There are a number of providers offering diplomatic passports, banking passports and similar options. Note that the only passport worth of acquisition is the one you acquire on the grounds of your citizen’s status following your naturalization. All other variants though being legal still may appear useless in practice and even troublesome. Please see the reference to citizenship and passport scams below.
Note that to be a citizen of two and more countries, each of them should recognize dual citizenship. If one of the countries does not recognize it, you are to renounce the previous citizenship to leave only one.
If you plan to use second citizenship and passport for asset and privacy protection purposes, you should be aware that building of the according scheme may involve years. It is also important to understand that instant citizenship or fast-track citizenship programs, unlike the official citizenship programs, are not guaranteed from being stopped or suspended any time. That is why it is recommended to start acting in this direction as soon as possible. The earlier you get this instrument in your possession, the more effective it may appear for your further planning.
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The applicants are NOT required to visit the country personally.
Benefits of Citizenship in Saint Kitts and Nevis
The country has a good international image. Investors and their families receive a full irrevocable citizen’s status for the lifetime. There is no residence requirement to keep citizen’s status. You can travel to 125 countries with no visa (or visa on arrival) requirements including Canada, Schengen States, United Kingdom, Switzerland, Hong Kong and most British Commonwealth member countries (the list does not include the United States). Where visa is required, you can normally obtain it with minimum formalities on a common basis. Being a citizen of St.Kitts & Nevis, you can reside in most of CARICOM states. There are no taxes on income, capital gains, gift, wealth and inheritance. St.Kitts & Nevis recognize dual citizenship – no need to renounce the current citizenship(s). With the St.Kitts & Nevis citizenship-by-investment program, investors get not only citizenship and passport, but also a piece of property worth to invest.The above programs are instant in their character, since the investor is being granted a citizenship with no requirements of permanent residence in the country during a certain period. Besides instant programs, some countries may from time to time offer so-called fast-track naturalization programs with substantially shorter residence time and smaller contribution requirements.
Some countries run specific programs known as passport programs, which have nothing in common with naturalization and citizenship. For example, in Panama a person who has deposited a certain amount with the National Bank of Panama on a timely basis for a minimum period of five years, and that deposit is bringing him a certain amount of monthly interest, can apply for a passport. That passport gives the investor a non-immigrant residence status only, expires in five years and does NOT lead to citizenship. Upon expiration, the investor may renew it, if the program still exists at that moment.
There are a number of providers offering diplomatic passports, banking passports and similar options. Note that the only passport worth of acquisition is the one you acquire on the grounds of your citizen’s status following your naturalization. All other variants though being legal still may appear useless in practice and even troublesome. Please see the reference to citizenship and passport scams below.
Note that to be a citizen of two and more countries, each of them should recognize dual citizenship. If one of the countries does not recognize it, you are to renounce the previous citizenship to leave only one.
If you plan to use second citizenship and passport for asset and privacy protection purposes, you should be aware that building of the according scheme may involve years. It is also important to understand that instant citizenship or fast-track citizenship programs, unlike the official citizenship programs, are not guaranteed from being stopped or suspended any time. That is why it is recommended to start acting in this direction as soon as possible. The earlier you get this instrument in your possession, the more effective it may appear for your further planning.
References:
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