The Republic of Moldova has opened a new economic citizenship program granting citizenship to highly qualified foreign investors, who bring wealth, talent and highly qualified skills to Republic of Moldova.
Launched in Q2 2018, the Moldova Citizenship-by-Investment (MCBI) program is being developed by the Government of Moldova in partnership with its service provider Henley & Partners and the Moldovan Investment Company (MIC).
The MCBI program requires applicants to make a defined economic contribution to the country through the Public Investment Fund. In exchange, and subject to a stringent vetting and due diligence process, including thorough background checks, applicants and their families can become citizens of Moldova.
Moldova is a landlocked country in eastern europe with a 4 million population, pursues actively for EU membership. The country does not participate in the schengen zone, but Moldova passport is a valuable passport with visa free travel to Europe, Russia and 121 countries. The service sector has grown to dominate Moldova’s economy and currently composes over 60% of the nation’s GDP. Moldova is a member state of the UN, the Organization for Security and Co-operation in Europe, the World Trade Organization.
The Moldova CBI program is expected to generate 1.3 billion euros over the next five years according to Moldova Ministry of Economy. A number of chinese, russians and families from middle east are expected to apply for Moldova CBI scheme.
The Moldova CBI program investment requirements almost the same like Caribbean CBI schemes in Antigua, St Lucia, Dominica with $100K threshold. The Moldova citizenship program is 10 times cheaper than Malta and also cheaper than St Kitts and Grenada CBI passports which cost $150K.
Benefits
- Cheapest CBI program from Eastern Europe.
- Visa-free access to 121 destinations around the world, including Russia, Turkey, and the countries in Europe’s Schengen Area
- Citizenship in a country that has a continental climate, a world-class wine industry, and picturesque, varied terrain, including forests and rocky hills
- A reasonable contribution amount and a highly efficient application process
- Full citizenship, with passport rights, for the applicant and included family members
- Dependent children up to 29 years of age and parents (of either the main applicant or the spouse) from 55 years of age can be included
- Lifetime citizenship transferable to future generations without restrictions
- Dual citizenship allowed.
- No language tests, business experience or military service.
- World class due diligence and vetting process for screening applicants.
- Newly launched second passport program.
To qualify for citizenship, the main applicant must be over 18 years of age, meet the application requirements, and make the primary qualifying contribution:
Public Investment Fund Contribution (PIF)
A minimum non-refundable contribution to the PIF starting from
- EUR 100,000 for a single applicant.
- EUR 115,000 is required for a couple,
- EUR 145,000 for a family of four, and EUR 155,000 for a family of five or more.
- Additional service fees total EUR 35,000 per application.
Government fees
In addition, applicants are required to pay government fees of
- EUR 5,000 for the main applicant,
- EUR 2,500 for a spouse,
- EUR 1,000 for a dependent child, and
- EUR 5,000 for a dependent parent. Dependent children can be up to 29 years of age, and dependent parents — of the main applicant as well as the spouse — who are 55 years of age or older can be included.
Due diligence fee
Due diligence fees are
- EUR 6,000 for the main applicant and
- EUR 5,000 for a spouse, dependent children older than 16 years, and/or dependent parents.
Passport fee
Biometric passport fees amount to EUR 300 per individual
Due diligence
Moldova has developed a four-tier due diligence system, which is considered the most thorough in the world for this kind of program.
All applicants must have good economic and financial reputation, free from criminal record, fraud, malpractice, financial fraud or indemnities and poses no risk to Moldova,.
First Level Verifications will be performed by global diligence companies (eg Binder Dijker Otte (BDO), Risk Advisory Group or Thomson Reuters) and will focus on background checks and validation of the information contained in the application forms. The last level of verification will include the rigorous verification of applications to the Program through competent authorities of the Republic of Moldova such as: Interpol, SIS, MAI, CNA.
It is important that main applicants and their dependents have entirely clean personal backgrounds and no criminal records. The MCBI program regulations further stipulate that a person who has been denied a visa to a country or territory with which Moldova has visa-free or visa-on-arrival travel arrangements and has not subsequently obtained a visa to that jurisdiction shall not be accepted to the MCBI program.
Processing time
The regulations stipulate that the issuance of a certificate of naturalization under the MCBI program shall take a maximum of three months from the date on which the complete application is submitted, provided that the due diligence processes are carried out without difficulties.
Before an application is submitted to the government, all the relevant information provided (including the background of the applicant and any dependents) will be verified by one or more specialized due diligence agents. Furthermore, the specific fees must have been received, and the source of all funds must have been verified.
Once all the above requirements have been satisfied and the final payments have been made, a certificate of naturalization will be issued, enabling the passport to be issued immediately thereafter.
EU and Moldova Relations
Relations between the European Union and the Republic of Moldova (hereinafter “Moldova”) have intensified in the past years. Moldova joined the EU’s Eastern Partnership in 2009 and the EU-Moldova Association Agreement entered into force on 1 July 2016. This includes the introduction of a Deep and Comprehensive Free Trade Area (DCFTA).
The Deep and Comprehensive Free Trade Area between the European Union offers Moldova privileged access for goods and services to the EU market. The European Union’s imports from Moldova increased by 23% in 2017, to the value of €1.6 billion. The European Union is Moldova’s first trading partner and the first investor in the country, accounting for over 55% of total trade.
Since 28 April 2014, Moldovan citizens with a biometric passport can travel to the Schengen area without a visa. In the period from April 2014 to April 2018, more than 1.4 million Moldovan citizens have benefitted from the visa-free regime. The EU has provided support to Moldova for reforms in the areas of justice and security, including in the fight against corruption, which are related to visa liberalisation.
The Republic of Moldova actively pursues EU membership.
Source/credit: Henley & Partners
