The Top 10 Mistakes to Avoid When Applying for a Citizenship by Investment Program

Published: 12 February 2025

Obtaining a second citizenship through a Citizenship by Investment (CBI) programme is an exciting opportunity.

Whether it’s for greater global mobility, tax benefits, or securing a future for your family, the advantages are undeniable. However, navigating the application process can be tricky, and making mistakes could cost you time, money, or even your approval.

To help you avoid common pitfalls, we’ve put together a list of the top 10 mistakes people make when applying for a CBI programme—and how you can steer clear of them.

1. Insufficient Research and Due Diligence

Not all CBI programmes are created equal. Some offer visa-free access to more countries, while others have different investment thresholds, processing times, and requirements.

If you don’t do your homework, you could end up with a citizenship that doesn’t serve your needs.

How to Avoid This Mistake:
Compare different programmes carefully. Look at the benefits, costs, and obligations of each. If global mobility is your priority, check the visa-free access list. If it’s tax efficiency, consult a financial expert.

2. Choosing Non-Qualifying Investments

Each CBI programme has specific approved investment options. Investing in real estate or businesses that don’t qualify can put your entire application at risk.

How to Avoid This Mistake:
Ensure that any investment you make meets the government’s requirements. Work with authorised agents or professional advisers who can confirm whether your chosen investment qualifies.

3. Incomplete or Inaccurate Documentation

Paperwork is a crucial part of the application process. If you submit missing or incorrect documents, your application could face delays or rejection.

How to Avoid This Mistake:
Double-check every document before submission. Ensure translations are certified if needed and all forms are correctly completed. Having an expert review your paperwork can help avoid costly mistakes.

4. Neglecting Due Diligence Requirements

All applicants undergo rigorous background checks to verify their integrity and financial sources. If you try to hide or misrepresent information, your application will likely be rejected.

How to Avoid This Mistake:
Be transparent about your financial history and personal background. Ensure that your source of funds is clear and well-documented. Working with an expert can help you prepare for these checks.

5. Underestimating Financial Commitments

Many applicants focus only on the initial investment amount, but there are additional costs, such as processing fees, legal fees, and potential tax obligations.

How to Avoid This Mistake:
Understand the full financial picture. Request a detailed breakdown of all costs from your adviser so there are no surprises later.

6. Ignoring Tax Implications

While second citizenship can bring financial benefits, it can also impact your tax obligations. Depending on your home country’s tax laws, your new citizenship may affect your liability.

How to Avoid This Mistake:
Consult a tax advisor to understand how your new citizenship could impact your financial situation. Some countries have tax treaties, while others may require you to pay taxes on worldwide income.

7. Overlooking Residency or Physical Presence Requirements

Some CBI programmes require you to visit or even reside in the country for a certain period. Failing to meet these requirements can put your citizenship status at risk.

How to Avoid This Mistake:
Check if your chosen programme has any residency obligations. If there’s a mandatory visit, plan accordingly to ensure compliance.

8. Not Considering Family Eligibility

Many people assume that all family members automatically qualify under their application. However, each programme has specific rules about which dependants can be included.

How to Avoid This Mistake:
Check the age limits, financial dependency rules, and other eligibility criteria for including family members. If you’re applying for your children, spouse, or parents, confirm they meet the requirements before proceeding.

9. Applying to Unofficial or Unrecognised Programmes

With the growing popularity of CBI, fraudulent schemes have emerged. Some applicants fall prey to unofficial programmes that do not offer legally recognised citizenship.

How to Avoid This Mistake:
Only apply through government-approved programmes. Verify the official government website or work with licensed agents to ensure legitimacy.

10. Underestimating the Importance of Professional Guidance

The application process can be complex, with legal and financial considerations that are easy to overlook. Many applicants make costly mistakes simply because they don’t have the right guidance.

How to Avoid This Mistake:
Engage with experienced professionals who specialise in CBI applications. A reputable agent or lawyer can guide you through the process, help with documentation, and ensure compliance with all requirements.

Best Practices for a Smooth Application Process

To maximise your chances of success:

• Work with a trusted advisor who understands the nuances of different programmes.
• Stay updated on any changes in CBI laws and requirements.
• Prepare your documents meticulously to avoid unnecessary delays.
• Ensure your chosen investment is government-approved to prevent complications.

Conclusion

Applying for a Citizenship by Investment programme is a life-changing decision that requires careful planning.

By avoiding these common mistakes and seeking expert guidance, you can ensure a smooth and successful application process.

Are you considering a CBI programme but unsure where to start? Get in touch with Holborn Pass today and take the first step towards securing your second citizenship.