Recap of Citizenship by Investment 2018

Global citizenship and residence by investment industry has experienced unprecedented growth, while CBI/RBI schemes has grown into $13 billion dollar industry

Some $80 billion foreign investment have flown into countries operating golden visa schemes with US EB-5 leading from the front receiving $35 billion investment alone, while CBI schemes have attracted around $10 billion.  Both CBI/RBI schemes will surpass $100 billion investment in 2019.

A remarkable set of events happened in the CBI/RBI industry in 2018. Let us take a quick recap of what happened in 2018 in the CBI/RBI industry.

St Kitts and Nevis

• St Kitts is the oldest and most respected platinum standard citizenship program in the Caribbean
  St Kitts and Nevis opened Sustainable growth fund (SGF) in April, 2018 after expiry of Hurricane Relief Fund (HRF) for $150,000. More than 1200 applications received under Hurricane Relief Fund,
• St Kitts cuts real estate fee for family by 50% from USD 400,000 to USD 200,000 under the condition that real estate cannot be sold for 7 years.
• Six Senses Hotels Resorts Spas and Range Developments sign for the construction of Six Senses Luxury Hotel in St Kitts
• St Kitts signs 9 mutual and diplomatic visa waiver agreements with Moldova, Belarus, Montenegro etc.
• St Kitts officially announced the country issued 16,544 passports as of 2018 under citizenship by investment scheme. Economic citizens constitute one third of the population of the St Kitts and Nevis . St Kitts and Nevis received record number of CBI applications in 2018
• St Kitts CBI program continues to be significant contributor to government revenue
• St Kitts CIU cautions agents  on no Government discounts and agents not to sell outside regulations. CIU would not accept any real estate applications for processing that reflect prices that are contrary to the current regulations.  Proposed Additional changes to enhance the CBI programme  to strengthen its integrity such as escrow bill to setup before letter of approval and funds be released based on a payout schedule,  depending on completion of construction

Vanuatu

• Vanuatu cuts prices for its citizenship by investment from $220,000 to $160,000.
• Vanuatu Government officially announced bitcoin is not accepted by Government and Real estate option is not attached to its CBI program (DSP or contribution program)
• Vanuatu citizenship program revenues estimated VUV 5 billion, 3.7% of GDP
• Vanuatu revoked 30 passports for illegal activities

Malta

• Malta individual investor program will be extended after 1800 limit is reached. Over 1,200 families have applied for Malta IIP
• Identity malta becomes three separate agencies as IIP Agency, MRVA Agency and Identity Malta
• Malta has the 7th powerful passport in the world according to H&P Passport Index 2018
• Malta organizes the first due diligence conference for the CBI industry.
• Malta IIP sets the gold standard for the industry and  IP applicants donated €3.5 million for philanthropic purpose.
• Changes announced to Malta residency scheme such as debts or equity securities listed in stock exchange will be accepted as qualifying EUR 250,000 investments in addition to Government stocks. Malta received over 1000 applications for residency visa scheme which brought EUR 250 million investments in Malta.
• Malta received over EUR 1 billion investment through its citizenship and residence by investment (CRBI) schemes.
•  Malta officially announces Due diligence process and IIP Risk matrix, one of the best in due diligence
• Malta government officially announced Bitcoin and other cryptocurrencies not accepted for IIP or MRV schemes
• Malta refusal rate averages 19% as of 2018 ORIIP report.
• Malta granted citizenship to 3,673 foreigners (approx 850 families) under individual investor program since 2013 according to IIP 2018 report.
• Malta is pushing for the common standard of due diligence across all CBI jurisdictions said IIP agency
• Malta becomes the blockchain island and Malta to explore the world’s first citizenship test to robots.

Grenada

Grenada CBI program rated as Gold standard in the region. In 2018, Grenada reduced  under Section 10 (contribution to the National Transformation Fund) — would now make a reduced contribution of USD 150,000.00. All other charges and fees remain unchanged. The age of dependent children from 26 years to 30 years and parents/grandparents can be included from above age 55 years

Grenada in late 2018 appointed Mr. Thomas Anthony as New CEO for the Citizenship by Investment Unit (CBIU) and some new changes to the CIP announced such as

• Siblings and spouse of main applicant, who are not married and do not have children may be included in the application.
• Parent dependents will not be required to be financially dependent on main applicant
• Children above 18 years not be required to have enrolled in College/University
• Secondary buyers of real estate in approved CBI approved projects will be eligible to obtain citizenship in accordance to regulatory conditions.
• Grenada received 50% increase in CBI applications for 2017
• Grenada government announced to issue e-passports from July 2018
• 98% of Grenada CIP Applications are from China. Grenada also signed extradition treaty with China for criminals.
• Grenada’s much touted E-2 visa scheme under CBI fails to make its mark. It appears only 1 E-2 visa issued for Grenada in 2017 and this route is not used by CBI citizens.
• Grenada calls to adopt common standards for countries with CIP schemes. Over 98% applying for Grenada’s economic citizenship programme are chinese families

Australia

• Australia becoming investment destination for the world’s wealthiest millionaires and some AUD 10 billion invested in australia through investor visa schemes by rich families.
• Australia granted significant investor visas to mostly 97% of chinese, who invested USD 1.5 million.  Australia offers three types of golden visa schemes starting from USD 1 million (AUD 1.5 million)
• Australian citizenship waiting time is 16 months. Some 133,126 persons received Australian Citizenship during 2015-2016

New Zealand

New Zealand enacts bill prohibiting non-resident foreigners buying home or land.  New Zealand offers golden visa for High net worth investors

New Zealand attracts very wealthy billionaire americans and chinese.  New Zealand ranks high on the most desirable places to live, placing among the top 10 for democracy, lack of corruption, peace and satisfaction.

• Investor 2 Resident visa seekers must have NZ$ 3 million (approximately $ 2 million USD) invested in New Zealand for four years. Additional requirements such as 3 years business experience and english requirements apply
•  Investor Plus (investor 1) Resident visa requires  applicants  to invest NZ$ 10 million (US$6.8 million), not subject to language, age, or experience requirements.

Ireland

• Ireland grants visa free entry to UAE nationals

Ireland announced new changes to golden visa scheme (immigrant investor scheme) and the changes include

• Raising the minimum investment to EUR 1 million
• No loans or debts
• Tightening of due diligence checks
• Data sharing in complying with OECD CRS
• Ireland becomes the best country ranks first for immigrant integration in Europe

United States

• EB-5 remains the world’s popular immigration program and more desired countries to immigrate to for high net worth families.
• EB-5 has been extended several times in 2018 and will continue to operate despite shutdown after Dec 21, 2018. Regional center applications for EB-5 suspended
• President Donald Trump signed an Executive Order that banned foreign nationals from seven predominantly Muslim countries from visiting the country for 90 days, suspended entry to the country of all Syrian refugees indefinitely, and prohibited any other refugees from coming into the country for 120 days.
• I-526 petition wait times are 20-25 months with USCIS. Over 24,000 EB-5 petitions pending with USCIS.
• EB-5 declines, petitions fall 60% in third quarter due to extremely long waiting times for chinese (15 years) and frauds concerned with EB-5
• Some 48,190 Green card applications pending with USCIS
• US government pursuing denaturalization cases increases and sets up a task force.
• IRS to revoke passports of non-tax payers

Portugal

• Portugal’s golden visa scheme investment passes €4 billion euros. One in four homes bought by foreigners in Portugal
• Portugal ranked as the third peaceful country in the world.
• Portugal  reduces citizenship time for citizens of countries where Portuguese has been an official language for at least 10 years and have resided in Portugal for 5 years, know the Portuguese language, exempting them from the Portuguese language proof of knowledge.
• Golden visas boosted property prices in Lisbon. Portugal has the 4th powerful passport in the world
• 94% of Golden visas in Portugal issued for property investment, Portugal real estate purchases average €585,000 per golden visa well above EUR 500,000 limit.
• Refusal rate: One in 10 Golden visas rejected by Portugal

Jordan

Jordan Announces New Citizenship  and Golden visa scheme on Feb 20, 2018. The citizenship scheme requires $1.5 million in bank deposit, government bonds and residence visa requires $280,000 in real estate.

Jordan receives 130 requests for citizenship by investment

Czech republic

New investor visa scheme launched in Czech Republic  for the purpose of investment activity. This scheme is for investors or entrepreneurs who can invest $1.5 million and create atleast 20 jobs and intend to stay in the Czech Republic for longer than 90 days and plan to make a “significant investment” in the Czech Republic

Greece

Greece emerges as one of the biggest and most popular golden visa schemes in Europe. Greek property prices remains low and attractive for Golden visa investors. Greece has received over 2.2 billion euros inflows through golden visa scheme

Greece is the sixth most popular destination in the world for Chinese property investors
Demand for Greece Golden visas soar by 40%

Greece is expanding its golden visa scheme and more options set to be introduced in 2019 other than real estate.

1. Greek companies: A capital injection of a minimum amount of € 400,000 to a company having its registered office or establishment in Greece, except for Portfolio Investment Companies and Real Estate Investment Companies, subject to the acquisition of shares in a share capital increase or bonds issued on a bond loan, which are admitted to trading on regulated markets or multilateral trading facilities operating in Greece.
2.  Real estate investment companies: Capital injection, amounting to at least EUR 400,000, to a Real Estate Investment Company (REIC), which aims to invest exclusively in Greece, to acquire shares in an increase in its share capital.
3.  Equity Investment Funds: A capital injection of a minimum amount of € 400,000 to a Equity Investment Fund (EICC) to acquire shares or to an Equity Investment Fund (ACCR) to acquire units if the above Alternative Investment Institutions (AIF) are intended to invest exclusively in companies with headquarters and / or establishment in Greece.
4.  Government bonds: Purchase of Greek government bonds with a minimum acquisition cost of 400,000 euros and a residual maturity of at least three years at the time of purchase through a credit institution established in Greece, which will also be the custodian of these bonds.
5.  Bank Deposit: Deposit of a minimum amount of EUR 400,000 to a domestic credit institution, at least a year, with a standing order for renewal.
6.  Shares, Corporate or Government Bonds: Purchase of shares, corporate bonds or Greek government bonds that are admitted to trading or traded on regulated markets or multilateral trading facilities operating in Greece with a minimum acquisition value of 800,000 euros.
7. Mutual Funds: Purchase of units of minimum 400,000 euros in a mutual fund, which is incorporated in Greece or another country and which aims to invest exclusively in shares, corporate bonds or Greek government bonds, which are admitted to trading or traded in regulated markets or multilateral trading facilities operating in Greece.
8.  Alternative Investment Fund in EU: Purchase of units or shares with a minimum 400,000 Euros of value in an Alternative Investment Fund (AIF) established in Greece or another country of the European Union and intended to invest exclusively in immovable property in Greece if (i) the amount of the assets of the AIF is at least EUR 3,000,000 and (ii) the AIF and its manager are licensed by the authority that oversees the capital market of the country in which it is located.

Greece has issued over 9000 golden visas to property investors since 2013. Chinese, Russians and Turkish are the biggest investors in property in Greece due to low property prices prevailing in Greece, lowest in the EU zone. Athens and Piraeus are the top property investment locations for foreigners buying golden visas.

Cyprus

Cyprus tightened the CBI program announced citizenship program limited to 700 per year and CIP registry to be setup for agents, after Guardian exposé of Russian oligarchs buying citizenship in cyprus.  No changes proposed for the minimum investment, which still remains at EUR 2 million. From July 2018, only citizenship applications can be submitted through approved agents. Promotion and advertising of CIP scheme also regulation.

• CIP Naturalization by exception scheme named a as ‘Cyprus Investment scheme’
• The scheme limited to 700 applications per year
• Establishment of CIP registry of Government approved service providers
• Tightening of checks introducing enhanced due diligence checks

Cyprus citizenship and golden visa schemes boosted property transactions by 43%, says EU study

• Cyprus received over €6.5 billion euros, biggest in Europe through citizenship by investment scheme. We believe another €1 billion euros invested through cypriot golden visa scheme, although official statistics is unknow.
• A total of 3,336 foreigners mostly from Asia, Europe and Arab countries obtained cyprus citizenship/passport through investment scheme between 2014 to 2018.
• As of Dec, 2018, there are 453 citizenship service providers in Cyprus, authorized for promotion of citizenship scheme by the Ministry of Interior.
• Cyprus proposes increasing CIP by €50,000 to use revenues for subsidizing rents
• Cyprus allocates €1.5 million for due diligence of the CIP

United Kingdom

• United Kingdom announced review of tier1 investor visas issued to Russians prior to 2015 for money laundering. UK issued 3000 investor visas on Blind faith prior to 2015
• 63% increase in UK Tier 1 Investor visas issued in 2017. Over 15,000 UK tier1 entrepreneur visas issued
• UK passports to become blue after brexit
• UK announced launch startup visa scheme in 2019
• Post Brexit, UK announced single immigration system for non-EU and EU nationals alike. UK to revealed proposals to introduce electronic travel authorization  post exit from the EU
• In December, UK announced suspension of tier1 investor visas due to concerns on money laundering. Within two days the Home office made a U turn and said £2 million investor visa scheme still remains open and not suspended..

Cryptocurrency

Antigua parliament approved acceptance of bitcoin and other cryptocurrencies for its CBI program, however the implementation is still in pipeline.

Citizenship coin launched as first ever cryptocurrency for the CBI/RBI industry.

Due diligence

• CIU’s urged for data sharing of refused applications through blockchain or DLT  with Malta leading the way. Malta in favour of adopting industry wide regulation and standardisation in due diligence practices
• EU upgrades Visa Information System (VIS) to add long stay visas and residence permits
• European commission says Member states responsible for background checks. EU study calls for improving due diligence and transparency with CBI/RBI schemes
• EU to introduce ETIAS authorisation for visa waiver countries entering the Schengen area from 2021
• EU launched GDPR data protection rules came into effect in May 2018
• Vanuatu becomes the latest CBI country to become a member of Interpol in Nov 2018.  With this all CBI jurisdictions that offer citizenship by investment programs are members of INTERPOL.

OECD

OECD first announced consultation process and in November blacklisted CBI/RBI schemes for non-compliance of for CRS.

OECD listed Malta, Cyprus, Vanuatu and other five caribbean CIP schemes but did not list Portugal, Greece, Spain, Latvia and spared these countries which have the biggest golden visa schemes in Europe.

Dual Citizenship

• Norway parliament approved dual citizenship.
• Netherlands to legalize dual citizenship from 2020 onwards.

Robot Sophia

Robot Sophia was the first robot to deliver a keynote speech in Henley Global Citizenship Conference in Dubai in Nov 2018.

Spain

Spain announced new changes Golden Visa program in 2018 amending the Law 14/2013. These changes include

• Inclusion of additional dependents,
• The validity of residence permit issued under golden visa increased to five years
• Initial D visa validity increased to six months.

The Golden visa investment over reaches over €3 billion euros with more foreigners buying property in Barcelona, Madrid, Valencia and other sea side areas.

Spain gets 54 golden visa applications per month for property investment in 2018

Dominica

• Dominica ranked as No.1 CBI program in the world.
• Dominica signs visa waiver with Russia.
• Anichi Resort begins construction with a ground breaking ceremony in Dominica
• Cabritts Resort Kempinski scheduled for opening in 2019

Dominica CBIU issued notice to agents to follow the guidelines and restrict aggressive marketing of CBI program. These guidelines were

• No special offers or discounts with CBI program
• Restrict use of prominent display of passport images.
• Misrepresenting the cost of investment

Antigua and Barbuda

• Antigua announced extension of limited time discount offer for one more year until Oct 2019.
• Antigua also launched UWI university fund option for $150,000 as a new option for CIP.
• Ukraine signs visa waiver with Antigua and Barbuda
  Choksi obtains passsport in Antigua through CBI scheme and is on wanted list.
• 42% of Antigua CIP applications are from China

Moldova

Moldova announced public tender for design and implementation of citizenship by investment program (CIP). Henley and partners won the tender for the Moldova citizenship by investment program (CBI) and the scheme was officially launched in Nov 2018 with EUR 100,000 donation to Public Fund.

Moldova citizenship scheme expected to bring some €1.3 billion euros FDI over next five years

Montenegro

Montenegro officially announced the launch of citizenship by investment program from 2019 onwards. Foreigners are required to invest EUR 250,000 (outside capital Podgorica)  or EUR 450,000 (capital or main cities) in real estate development in Montenegro. The CIP will be designed and implemented by government and agents are required to pay EUR 50,000 for mediator license.  The economic citizenship scheme is limited to 2000 applications and will only run for three years until Oct, 2021. Montenegro announced it will join EU in 2025 and will be a part of schengen area. Montenegro CIP will only accept applications from credible persons with funds of legal origin

Saint Lucia

St Lucia strips citizenship of 8 individuals under CIP in march 2018.  The Citizenship by Investment Unit of Saint Lucia announced today on Aug 10 2018,  applications from in and out of Iran will not be accepted under the citizenship by investment scheme, due to due diligence providers unable to validate documents from Iran.

The St Lucia CIP Board made an annoucement that CIP unit does not issue passports and only responsible for Granting or Denying Applications for Citizenship by Investment. The board also announced The Desert Star Holding (“DSH”) Project is not at this time an approved CIP project

Saint Lucia planned to introduce new Residency Programme for High Net-Worth Individuals

Canada

• Canada opened quebec investor scheme in 2019 for 1800 applications (1200 for China). The investment was raised to $1.2 million from $800,000 and net assets increased to $2 billion and the new changes were published in quebec official gazette.
• Canada reduced citizenship time from five years to just three years.
• Canada announced collect biometrics for visitor visa and permanent residence applicants
• Only 10% of Quebec IIP millionaire investors live in Quebec
• Quebec investor program application fee increases to CAD15,496 as of Jan 2019

Turkey

Turkey cuts the price of citizenship by investment program from $1 million to $250,000 in real estate. Other investments also cut by 50% to $500,000 in bank deposit or government bonds or capital investment in businesses. Turkey is also popular country for Iraqis, buying property.

Turkey received 210 citizenship by investment applications

Malaysia

Malaysia also offers one of the cheapest golden visa schemes in Asia. Over 35000 applications approved for Malaysia residency program.

MM2H program only requires liquid wealth of RM500,000 ($120,000) and offshore income of RM10,000 ($2400) per month with clean background record.

Malaysia MM2H program received over 1 million applications contributed over RM 12.8 billion to economy

MM2H scheme was opened in 2002 to attract foreigners to come and stay in Malaysia, especially those who have already retired or some for business purposes. The Social Visit Pass issued under the scheme is initially for a period of ten (10) years, and is renewable.

Cambodia

Cambodia offers citizenship to foreigners against USD 250,000 donation to country  or USD 350,000 in investments. Some 1,068 Foreigners obtained Cambodian citizenship by investment

Latvia

• Latvia emerged as the cheapest and most popular golden visa schemes in Europe starting from EUR 100,000 or EUR 250,000 (property/government bonds).
• Latvia offers over 10,000 residence permits for investment activity annually.
• Latvia launched Golden Visa in 2010, scheme brought €1.44 billion from property deals

Italy

Italy’s new golden visa scheme came into effect in 2018 with special tax regime for HNW investors.

The investment minimums to qualify for italian golden visa are

€ 500,000 in an Italian innovative startup company
€ 1 million in an Italian limited company
€ 1 million in a philanthropic initiative
€ 2 million in Italian government bonds

Bulgaria

The Ministry of Justice of Bulgaria has announced new changes for obtaining Bulgarian citizenship through investment.  The new changes effective from Jan 1, 2019. Bulgaria’s citizenship by investment programme was introduced with amended rules in late 2013.

• Certificate of No criminal record: Foreign investors must present no criminal record certificate from competent authorities at the time of applying for citizenship. The criminal record certificate shall state that it has been issued for the procedures related to the Bulgarian citizenship.
• Mix of investments: Government will not allow mix of investments. In some cases increase in investments not possible
• Buying of Bonds: Foreigners due to bank restrictions will be required to buy bonds through their local bank outside Bulgaria.
• Financing: Financing of bonds will be difficult and will be more expensive for foreigners. Bulgarian banks wont be able to provide financing to foreigners.
• Interview: Citizenship acquisition through investment procedure have been tightened and applicants have to appear for interview at the Ministry in Bulgarian language.
• Bank account: Due to bank regulations, foreigners must declare tax residence and citizenship when opening a bank account with bulgarian banks for investment.

Bulgaria issued Golden visas to 296 foreigners

Bulgaria’s citizenship by investment programme was introduced in its current form in late 2013 with  permanent residence leading to citizenship based on an investment of BGN 1,000,000 (approx €512,000) and expedited processing of 2 years where an investment of BGN 2,000,000 (approx €1.02m) was made.

As of September 2018, the cumulated total of applications for citizenship by investment in Bulgaria stood at 193. 95 of these were Standard Track and 98 – Fast Track with average of 18 applications were submitted via Fast Track annually between 2013-2017

Bulgaria CIP became more popular as it offers EU passport and Bulgaria receiving visa waiver with Canada as of Dec 2017.

UAE

UAE offers 10 year residence visas to Investors and Entrepreneurs.

UAE approved 100% foreign investment in companies and also launched permanent residency for retirees above 55 years of age

Retired expats aged over 55 can avail of the new visa once they fulfill one of three criteria:

own a real estate investment of AED 2 million, or
has financial savings of not less than AED 1 million, or
has proof of income above AED 20,000 per month.
The law, which will be in effect as of 2019.

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UAE also launched investor visa scheme for expats who invest in property or business

Property Investment: AED 5 million  ($1.36 million) will receive five year residence visa
Business Partnerships: AED 10 million ($2.7 million) will receive ten year residence visa renewed every ten years
Entrepreneurs: AED 500,000 ($136,000) will receive five year visa

Bahrain

Bahrain to offer 10 year investor visa to foreigners

Qatar

Qatar approves permanent residency for foreigners.  The Permanent residency is capped to 100 applicants per year and requires 20 years of living in the country for foreigners eligible to become permanent residents.

Luxembourg

Luxembourg offers Golden visa scheme for €500K

Hungary

Hungary closed its residency bond scheme (RBI) in 2017 since then the scheme remains closed and unlikely it will remain in the future. Hungary also revoked 16 golden visas mainly chinese and russians.

Austria

Austria has no official citizenship by investment program. It was revealed some 303 foreigners received citizenship by exception of special interest of the austrian government

Anguilla

The British overseas territory of Anguilla, opens new residence by investment (golden visa) scheme for USD 150,000 (donation) or USD 750,000 in real estate with a full path to BOTC citizenship after five years.