What is citizenship by investment?
Citizenship by investment (CBI) programmes are the ultimate plan B for you and your family and open up a world of opportunity. Discover everything you need to know about CBI.
Free ConsultationThe first citizenship by investment (CBI) programme was launched 40 years ago on a small Caribbean island.
Today, countries around the world offer similar schemes, providing investors with opportunities that were once out of reach.
n this guide, you will find a complete overview of citizenship by investment (CBI) programmes. We will examine what they are, how these schemes work, and their benefits.
What is citizenship by investment?
Citizenship by investment (CBI) offers a pathway to legal citizenship and has existed for some time.
St. Kitts and Nevis launched the world’s first CBI programme in 1984. The scheme continues to this day, making it both the world’s oldest and longest-running CBI programme.
Over the years, the demand for CBI programmes has increased as people seek greater global mobility and a secure plan B. As a result, numerous countries around the world now offer CBI schemes.
But what is citizenship by investment?
Simply put, it is a government programme that allows foreign nationals to gain citizenship in exchange for a financial contribution or investment in the host country.
How do citizenship by investment programmes work?
A citizenship by investment programme aims to promote economic growth in a country through foreign direct investments. Due to the high investment amount needed, these schemes are often marketed towards high-net-worth applicants.
Foreign investors must meet specific requirements and make a qualifying investment. Once the programme criteria are met, citizenship is granted.
You should be aware that the type of investment and the minimum investment amount will vary depending on the chosen scheme. To learn more about how a specific programme works, speak to one of our experts.
Citizenship by investment vs residency by investment
Citizenship programmes fall into two categories: citizenship by investment (CBI) and residency by investment (RBI).
The two terms are often used interchangeably. However, they are very different, and so is what they offer.
CBI programmes allow foreign investors to become citizens in a country. Citizenship is permanent and grants full rights, such as the right to vote, and the investor can apply for a passport.
Meanwhile, RBI programmes allow successful applicants to live, work and study in a country. Residency can be permanent or temporary, depending on the programme in question.
Residents and citizens have different rights. However, residency can lead to citizenship in the future. RBI programmes such as the U.S. EB-5 Visa program and the Portugal Golden Visa both provide a route to citizenship.
Read our article to learn more about the difference between residency and citizenship by investment programmes.
What are the benefits of citizenship by investment?
Citizenship by investment programmes offers a range of benefits. While each programme’s offering is different, some of the typical advantages of CBI schemes include:
Visa-free travel
One of the primary benefits of CBI is enhanced global mobility. Passport holders gain visa-free access to more destinations, making travel for business or pleasure far more straightforward.
Tax benefits
Dual citizenship can help reduce one’s tax burden. Some countries have more favourable systems and offer tax advantages. This means that, in some cases, citizens do not pay income tax, capital gains, wealth tax, or inheritance tax on worldwide income or assets.
Social benefits
Becoming a citizen in another country opens the door to several social benefits. For example, you can access the healthcare and education system in the host country. This often applies to both the investor and their family.
The ultimate plan B
CBI schemes can offer individuals and their families greater security and stability. A second citizenship provides a safe haven and an alternative residence option. This can create a more secure environment for you, your family, and future generations.
CBI investment options
Collectively, CBI programmes offer a wide range of investment options. While the investment criteria for each scheme are different, some of the common types of investments include:
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Real estate investment options such as:
- Residential property
- Commercial property
- Bank deposits
- Investment in job creation
- Non-refundable donations
There are many more options, and the minimum investment requirement differs between schemes. In addition to the investment amount, government fees may also apply to some programmes.
To learn more about a specific scheme, visit our CBI page and choose a programme.
Some schemes offer refundable investments. The time required to hold an asset depends on the option and the scheme’s criteria.
What is the citizenship by investment application process?
The application process and processing times will vary from country to country.
Caribbean countries tend to offer the cheapest citizenship programmes and some of the fastest processing times. However, the length of time the entire process takes will vary depending on various factors, such as the country and the investment option.
Typical steps in the process include:
- Submitting specific documents
- Undergoing due diligence checks
- Meeting the specified investment requirements
- Obtaining approval from the government
It’s not only the process that differs between CBI programmes; each also has different investor criteria. Some of the standard requirements include:
- Have no criminal record
- Be at least 18 years of age
- Not be from a prohibited nation
Finding the right citizenship by investment programme with Holborn
There are several factors to consider when choosing a citizenship by investment programme. Finding a scheme that aligns with your goals and preferences is essential.
Each CBI programme offers different benefits, investment options and criteria. Potential investors should seek professional advice to make an informed decision.
Holborn Pass is an international leader in investor visas and a part of the wider Holborn Assets Group. Our experienced team offers a bespoke, end-to-end service and tailored advice to support your needs.
We have successfully helped hundreds of people and their families secure golden visas and citizenship. Book a consultation with one of our advisers to find out how we can help you secure yours.
Frequently asked questions
The CBI process varies depending on the programme. The Caribbean nations that offer CBI programmes, such as St. Kitts and Nevis and St Lucia, typically offer faster processing times than European countries.
Most CBI programmes allow the investor’s immediate and dependent family members to become citizens. This includes spouses and dependent children. In some cases, parents and grandparents can also be included.
In most cases, the investment made in real estate is not refundable. However, the property can often be sold after a specific holding period.
The minimum stay requirements to maintain citizenship vary between countries, as each has different rules. Some require a minimum number of days of physical presence over a specified period, while others have no residency requirements.
Countries offering CBI programmes often allow dual citizenship. Be aware that dual citizenship also depends on the rules of your country of origin.