During the Tuesday, November 24 edition of the Leadership Matters virtual series, Chief Executive Officer (CEO) of the Citizenship by Investment Unit (CIU), Mr. Les Khan, said the Government of St. Kitts and Nevis continues to implement the necessary measures geared towards improving the brand of the country’s Citizenship by Investment (CBI) Programme and protecting the clients who invest in the country.
One such measure has been the passage of the St. Kitts and Nevis Citizenship (CBI Escrow Accounts) Bill in November, 2017. This piece of legislation provides the guidelines relating to escrow accounts and agreements under the Federation’s citizenship programme.
Mr. Khan stated that, “The Escrow Bill was established to ensure that funds are placed into escrow if a title for property was not available. St. Kitts and Nevis is the only country in the OECS that has drafted and gazetted an Escrow Bill. This legislation continues to be improved, and by the end of the year we will be implementing a payout schedule that all developers must adhere to.”
An escrow account is a bank account opened with an escrow agent in the escrow agent’s name for the benefit of the parties to a principal agreement such as a real estate purchase contract. The escrow agent oversees the management of an escrow account subject to certain conditions based on the principal agreement and the escrow agreement. The escrow agent – who is a neutral third party – temporarily holds the purchase money and supervises the payments (the timing and amounts of disbursements).
Mr. Khan further indicated that the final stages of the St. Kitts and Nevis Citizenship (CBI Escrow Accounts) Bill, which is currently being drafted into regulation, will provide for a payout schedule for funds placed in escrow.
“The schedule is based on completion of certain stages of development and will ensure completion of projects. With this schedule, the Government is ensuring that construction continues, jobs are created, and an overall direct contribution to the economy is achieved,” CEO Khan said.
Through this significant piece of legislation, Mr. Khan said the Government of St. Kitts and Nevis is again solidifying its position as a leader in the economic citizenship industry.
Malta will be implementing new residence regulations that can lead to citizenship and that take into account the recommendations given by the European Commission, as these rules come into force from Nov 20, 2020.
The new legal framework, introduced in November, takes into account the European Commission’s set of recommendations.
• Applicants cannot apply for citizenship immediately after obtaining the status of legal resident in Malta.
• Applicants are only allowed to apply for citizenship after having legal resident status for a period of three years, with the exception of higher investment, where they can apply after one year.
• Applicants are required to undergo a rigorous due diligence exercise before being eligible to apply for Maltese citizenship. This is a new step being introduced to give the Agency enough time to conduct a thorough investigation into a set of criteria. These include controls on the source of wealth, control on individual funds, studies on money laundering risks and controls on security issues.
• Findings of irregularities can be communicated to appropriate networks, such as Egmont and security services for EU-wide cooperation, in order to combat money laundering and all security-related risks.
• The Agency will carry out an appropriate risk assessment exercise related to each application.
• The Agency will ensure that the source of funding of the applicant is legitimate. It will pay due attention to ensuring that there is no money laundering, and that there is no terrorist financing. This is always in accordance with the guidelines issued by the competent authorities.
• The new regulations have eliminated the time limit limiting the time during which the Agency must carry out due diligence.
• This due diligence should be done on all adult family members in the application.
• The number of successful applicants is being limited to 1,500 in total, with no more than 400 per year
The Agency, which was previously in charge of the Individual Investment Program, will cease to operate from January 2021. The Agency, which has operated the IIP since last August, has stopped receiving new applications. The Malta Individual Investor Program Agency has now closed. Accordingly, a new agency has also been set up under the name of Community Malta which will administer matters related to the citizenship of our country and which will replace the previous agency.
Agents are now governed by dedicated subsidiary legislation. Only a limited set of professionals can be licensed as agents, these are: lawyers, auditors, public accountants and licensed financial advisers. This ensures that licensees are well acquainted with money laundering, financial legalism and anti-terrorist financing directives. Agents must present a certificate of clean criminal conduct. The agent shall be subject to due diligence by the Agency, both on application and annually thereafter. If an agent is no longer fit after the set period, the license will not be automatically renewed.
The Agency is banning aggressive advertising and the promotion of regulations conducive to citizenship. Any such activity may lead to the suspension or revocation of the agent’s license.
The Maltese government will continue to publish the names of all applicants who receive Maltese citizenship with both exceptional merit and naturalization. Names of persons who will not be granted Maltese nationality will also be published.
Kyrgyzstan has proposed a scheme that offers foreigners citizenship in exchange for investments. A draft bill was submitted by the government for public discussion calling for amendments in legislation of Kyrgyzstan, according Kabar
The new bill proposes to enable foreign citizens to acquire citizenship of the Kyrgyz Republic in a simplified manner of one time donation of USD 100,000 to a special account for the accumulation of funds to pay off the external debt of the Kyrgyz Republic.
If this Law is adopted, Kyrgyzstan will become one of the first countries in Central Asia to provide citizenship by investment.
By 2019, Kyrgyzstan had an external debt of $3.85 billion USD (about 54% of GDP). In May 2020, the public debt hit $4 billion. Before Covid, Central Asia’s poorest countries managed Chinese debts quite well but now they are asking for help.
Currently foreign citizens can get citizenship if uninterruptedly lived on the territory of the Kyrgyz Republic for the last five years at the moment of filing the application
Article 22 of the citizenship law allows dual citizenship for nationals of Kyrgyzstan if obtaining the citizenship of another state is not in contradiction with the legislation of the Kyrgyz Republic and the legislation of a foreign state and any further agreements exist (dual citizenship not accepted with border states)
Kyrgyz citizens had visa-free or visa on arrival access to 62 countries and territories,
The Bahamas government is looking at the possibility of offering citizenship by investment to foreigners, Minister of Financial Services, Trade and Industry and Immigration Elsworth Johnson said yesterday.
“It is something that we are looking at. No decisions have been made and so right now I’m not able to speak directly to it.” said the minister.
Johnson said, there are benefits to living and working in The Bahamas, which he said is a reason why foreigners find it so attractive.
“In terms of persons wanting to move away from big countries and go into the Family Islands, we present that and they [foreign investors] want that. And we have to get the best bang for the buck and create a symbiotic relationship where we are benefiting just as much as the people who are coming here to The Bahamas.” he added.
Bahamas does not have a citizenship by investment program at the moment. It is possible to get permanent residency (golden visa) under speedy consideration in Bahamas by investing USD 750,000 in properties. As of 2020, Five countries operate a CIP in the Caribbean and have vastly benefited from CBI revenues.
The current legislation grants citizenship being a legal permanent resident who has had the legal status for 10 years, including the 12 months immediately preceding the date of application, and who has resided in The Bahamas for a minimum of 6 years preceding the 12 months mentioned above
The Bahamas is a chain of over 700 islands and keys in the North Atlantic Ocean, southeast of the United States, and northeast of Cuba. It has a population of 377,000, most of it urban and with two-thirds living on New Providence Island where Nassau, the capital, is located
The Bahamas became a British crown colony in 1718, when the British clamped down on piracy, later gained governmental independence in 1973.
The Bahamas is one of the richest countries in the Americas (following the United States and Canada), with an economy based on tourism and offshore finance. Bahamian passport is a very powerful travel document with visa free access to 154 countries and territories, which include United States, Canada, China, United Kingdom, EU schengen area.
Hurricane Dorian caused about $3.4 billion in damages, which is equal to one-quarter of The Bahamas’ GDP. Covid also had effects on Bahamas with around 7,400 cases registered.
COVID has severely affected its tourism dependent economy.
The Russian Ministry of Economic Development has prepared a draft bill to launch golden visa scheme similar to European ones, issuing residence permits to foreigners in exchange for investments, according to latest media reports coming from Russia.
The new scheme is aimed at attracting investors from Africa, Asia and middle east countries to lift the development of the Russian economy and creation of high-productivity jobs.
According to the bill, foreigners making the following investments in Russia, will be eligible for permanent residence rights (right to work, health coverage and other benefits) with exemption of military service.
Own Russian real estate worth 30 million rubles (US$ 400,000) for three years before applying for a residence permit.
Own Russian government bonds worth 30 million rubles (US$ 400,000) for three years before applying for a residence permit.
Open an individual entrepreneur, investing 10 million (US$130,000) in the business and hiring 10 Russians.
Own a Russian company by investing at least 15 million rubles (US$ 200,000) in its capital. You can also own a foreign organization, but then you need to make an investment of 50 million. The company must work for at least three years.
Invest 15 million (US$ 200,000) rubles in a Russian business (not necessarily becoming its shareholder). The company, however, must also exist for at least three years, pay at least 6 million rubles in taxes and employ at least 25 people.
Investors with permanent resident rights can exit and enter the country anytime. Family members are also given residency rights.
It is important to note that investors will not be eligible for any tax breaks for their investments. If the investor spends more than one year abroad outside Russia, the permit may be revoked.
In 2020, Russia has made huge leap in dual citizenship legislation, allowing dual citizenship to naturalised citizens.
Foreigners who have been permanent resident for five years can naturalize to become a Russian national. Persons who speak Russian at a sufficient level or are Russian-speaking can take advantage of the accelerated procedure.
The Government of Grenada is taking decisive action to safeguard funds earmarked for investment in real estate development projects under the Citizenship by Investment Programme.
Prime Minister, Dr. the Right Honourable Keith Mitchell said the intention is to foster greater accountability and prevent misappropriation.
Addressing local agents and other stakeholders in the CBI sector at the recent Investment Migration Round Table, Dr. Mitchell said the integrity of the CBI programme must be protected to ensure its long-term sustainability.
Dr. Mitchell said, “To safeguard the sizeable investments made in CBI real-estate development projects, Government has now stipulated the creation of escrow accounts where developers are required to deposit project funds and provide regular reporting on the use of funds and the progress of projects.”
He noted too that the CBI Unit will improve its monitoring mechanisms to ensure that developers deliver as promised.
He said, “The CBI Unit has now engaged engineers and accountants, whose respective roles will be to visit project sites regularly to track progress and to audit the escrow accounts and ensure that funds are being used for developing the projects. We are confident that the introduction of this requirement will help to avert the misappropriation of funds that are intended to develop CBI projects.”
Managing Director of Grenada Co-operative Bank Ltd., which organised the recent forum, Mr. Richard Duncan said the escrow account is a welcome initiative that will ensure project funds are disbursed according to predetermined criteria.
He said, “An independent audit will take the process a step further to ensure there is full transparency and integrity in the CBI programme. It is a welcome development that ensures that the brand, image and perception of the programme are all protected.”
Grenada’s CBI programme allows qualified individuals to gain citizenship through investment in a CBI-approved real estate development project or by making a contribution to the National Transformation Fund.
BVI Government is working on a new proposal to launch “Invest and Stay” scheme to attract remote workers and investors to contribute to economic activity. The programme will attract potential investors from all over the globe by offering residency.
BVI Invest-and-Stay programme, will allow persons to come to the BVI and stay for an extended period without belonger status. The main target group are persons who are able to do remote working for jobs in their home countries
“We are also working out the details for an Invest-and-Stay programme to attract persons who would like to invest in specific areas of our economy. They would be allowed to live in the BVI but they will not be afforded the benefits that go with Belongership. However, they will be mandated to employ an agreed number of persons in the BVI based on the size of their investment,” said Premier Fahle
BVI is not the only country opening this route due to effects of Covid on its economy. Barbados (welcome stamp), Antigua, Estonia have already opened new schemes to attract digital nomads working remotely and such schemes would mitigate the effects of lost tourism dollars on the economy as a result of the COVID-19 pandemic.
DRP Advisers would like to invite you today to an exciting journey to explore a beautiful city of Evora, the hidden gem of Portugal.
European Residency for the whole family + Real Estate Investments
Having an office in Evora and many profitable real estate opportunities there, we regularly travel to this city with our clients. Did you know that you can get Golden Visa for your whole family only for 280.000 Euros? If you buy a property in low-density areas of Portugal and Evora is one of them, the minimum investment is only 280,000 Euros and not 500,000 Euros.
How to get Portugal Golden Visa for 280,000 €
We usually start our trip in Lisbon where together with our guests we drive about 60 minutes by car to get to Evora. The city is located in Alentejo, a large region on the South of Portugal, bordered on the North by the Tagus River and on the South by the popular region called Algarve.
Once we arrive to our destination, we usually like to start with a short tour for our guests to learn more about the city and local culture.
The city dates back more than 5,000 years. In the Evora old town you will find many historic monuments, stunning architecture, religious sites, museums and buildings within walking distance from each other. With its history, pleasant weather, no wonder it has been named as one of the Most Liveable Cities in Portugal.
From the very first moment when you arrive in Evora, everyone is noticing how many tourists daily visiting the city and some of them are staying for a couple of days to enjoy the good weather, locally produced wine, historical city and long conversations with the Portuguese people, who like to show their beautiful country to guests.
City of Evora, Portugal
Why to invest in real estate in Evora?
Due to its extensive historical and cultural importance, in the past few years Evora has seen a huge increase in the tourism sector, which led to the creation of many hotels, bed-and-breakfasts, Airbnb renting and various other styles of accommodation.
But why we love Evora from the real estate investment point of view? One word: low-risk.
Evora is a relatively small city, so finding a good investment, is like finding a diamond, you need to know the market, region and local prices. That is why we have our own office with team of real estate brokers and analysts. Most of them were born in the city and know every little corner of Evora, so when a new opportunity is coming, our team is the first one to know and informed.
Apart from difficulties in finding the right investments to buy, it is not so easy to find the property to rent, because of the limited options, which is definitely a good reason to buy if you are lucky enough to find a good property.
One of the oldest Universities in Portugal, the University of Evora, is located in the historical part of the city. University is popular not only among Portuguese but also has a lot of foreign students. Currently, there are about 10000 students enrolled. They all need a place to live and unfortunately, there are not so many options in the city for them. That is why many of our clients bought houses in Evora and are currently renting them to students, which brings them a regular stable income and security, as there are always going to be students looking for accommodation. Evora, unlike big cities, has no speculation with prices on the real estate market. Additionally, as we mentioned in the beginning, investment can be only for 280,000 Euros and not 500.000 Euros, as Evora is qualified for a low-density area.
Apart from students, there are many families that are looking for houses to rent and due to the high rate of tourist visitors, Airbnb is also of the options, although Lisbon, Porto and other big cities are still considered a better choice for the Airbnb rental model.
Golden Visa Apartment inside the historical centre of Evora
Why do we recommend to work with a local agency that has a present office in the city? First of all, if you are not planning to live in Evora and consider it exclusively as an investment and way to get Golden Visa, you will most likely rent the property. But who wants to deal with all the overwhelmed paperwork, constant communication with the tenants about the broken chairs or bulbs?
Moreover, when you buy the investment for 280,000 Euros, one of the conditions from the government is to renovate the property (renovation price is included in 280,000 Euros) you will face the problem of communication with the local construction company, that sometimes don’t speak good English. Why would you need to bring additional problems and headaches to your life, when you can just work with the local company, that already been through this process many times and knows all the underwater rocks.
Evora offers a truly unique Portuguese experience, with a distinctive heritage, delicious regional cuisines and an infectious unhurried pace of life, that is so wanted by people from big crowded cities.
About DRP Advisers
DRP Advisers is an expert in Real Estate investments and Golden Visa Program. For many years we have been helping clients to find the right properties in Portugal. We use our extensive connections within the industry to access suitable investment opportunities ahead of the competition.
With a cosmopolitan team, our secure network of lawyers, real estate brokers, property managers, mortgage advisors are here to guide you every step of the way through your investment journey.
The Cyprus government has announced it is shutting down citizenship by investment scheme from Nov 1.
According to Cyprus mail, “The government said Tuesday it was scrapping the citizenship by investment programme in its current form from November 1.”
The decision followed Al jazeera undercover investigations in to the investor citizenship scheme implicating developers and politicians selling passports to criminals.
The official statement released by the Office of the President is below..
The statement said The Council of Ministers approved the proposal of the Ministers of Finance and Interior for the abolition of this investment program from 1/11/20. The proposal was based on the longstanding weaknesses but also on the abusive exploitation of the provisions of the program
To Υπουργικό Συμβούλιο ενέκρινε την πρόταση των Υπουργών Οικονομικών και Εσωτερικών για κατάργηση του παρόντος επενδυτικού προγράμματος από 1/11/20. Η πρόταση βασίστηκε στις διαχρονικές αδυναμίες αλλά και στην καταχρηστική εκμετάλλευση που έτυχαν οι πρόνοιες του προγράμματος.
(Press Unit in the Office of the Prime Minister) – The Team Unity Government of St. Kitts and Nevis is committed to protecting the reputation and gains of the Federation’s platinum-brand Citizenship by Investment (CBI) programme – the world’s oldest and most trusted economic citizenship programme.
Thiswas reiterated by Prime Minister Dr. the Honourable Timothy Harris when he, along with Chief Executive Officer (CEO) of the Citizenship by Investment Unit, Mr. Les Khan, participated in a webinar dubbed, “St. Kitts and Nevis: Taking action to meet investor needs in 2020”.
Thewebinar, moderated by the Ms. Emma Brain of Gulf News based in Dubai, United Arab Emirates, took place earlier today (Tuesday, September 29) and offered prospective investors around the world insight into the history, benefits and operations of St. Kitts and Nevis’ programme, including its strict and robust due diligence procedures.
PrimeMinister Harris stated that after 37 years, St. Kitts and Nevis has much to be proud of with respect to its CBI programme.
“37 years after, we are proud to be considered internationally to have the oldest and the best Citizenship by Investment programme; 37 years after, we have the longest experience in the management of CBI programmes; 37 years after, we have adjusted our legislative framework to ensure that it is stronger than ever before, and with 37 years of experience we have been able to engage investors far and wide to the attractiveness of St. Kitts and Nevis so that we boast among the Caribbean islands of having the largest number of branded hotel properties such as Four Seasons, such as Park Hyatt, such as the Marriott that have been financed through this project,” Prime Minister Harris remarked.
Dr. Harris further noted that with so much history and benefits gained over the years, his Team Unity Government will firmly protect the reputation of the country’s CBI programme.
Headded, “We have a reputation to defend and we have a reputation to protect and the government is committed to being a responsible member of the international community, one in which all states can count on to ensure that those who come to our programme are the most discerning of investors who can appreciate not just the extraordinary beauty of my beloved country of St. Kitts and Nevis, but our great capacity to continue to grow and develop.”
Thesuccessful management of the CBI programme has helped St. Kitts and Nevis rebound and recover from natural disasters, improve the socio-economic standings of citizens and residents and strengthen a number of the Federation’s sectors including tourism.
TheTeam Unity Government recently introduced a limited time offering that allows vetted families of up to four to obtain citizenship for US$150,000 instead of US$195,000 by investing in the programme’s Sustainable Growth Fund.
