Citizenship-by-investment is the process of acquiring a legal second citizenship in exchange for making an investment in a government-approved programme.
In recent years, Ultra-High-Net-Worth Individuals and High-Net-Worth Individuals have been increasingly investing in second citizenship to access its many benefits, including enhanced freedom to travel, tax incentives, global business opportunities, having a Plan B and more.
Although each country offering second citizenship has their own unique investment requirements, the most common are real estate investments and government donations.
Here, we take a closer look at these two investment options to help you decide which one may be best suited to you.
Real Estate Investment
Real estate is generally considered as a safe and lucrative investment, since its value tends to increase over time. Furthermore, it can yield significant profit for investors, if they decide to sell the property later on.
Real estate investment is also ideal for investors who want to diversify their asset portfolio, as well as for those who want to secure investments that may generate passive income for them, such as through leasing the property.
One of the top tourist destinations in the Caribbean, Grenada’s real estate market can be a profitable option, especially during peak season. To obtain a Grenadian citizenship, investors are required to invest a minimum of USD 220,000 into an approved real estate project.
Additionally, Grenada does not require applicants to travel to or live in the country to complete the application.
Another popular option is Portugal’s Golden Visa Programme, which includes real estate investment options – ranging from EUR 280,000 to EUR 500,000 – in premium urban locations in Lisbon, Porto and The Algarve.
By 1st July 2021, however, the programme will limit investments to remote, countryside properties. Investors who want to secure European residency through the Portuguese Golden Visa Programme are advised to start their applications before these changes are implemented.
At present, limited real estate units are available in The Algarve, starting from EUR 250,000, after an initial return.
Under this option, applicants make a non-refundable donation to a government-held fund, which finances development projects in the country offering the relevant CBI programme.
These projects may be intended to improve public infrastructure, healthcare, tourism, agriculture, manufacturing and other sectors that help boost the country’s overall growth.
Antigua and Barbuda’s National Development Fund (NDF) is the most cost-effective for families, as it only requires an investment of USD 100,000 for a family of up to 4 and only USD 125,000 for a family of up to 5 or more.
Another Caribbean programme with a similar investment option is Dominica, which requires the main applicant to invest only USD 100,000 into its Economic Diversification Fund (EDF), making it a suitable option for individual investors.
On the other hand, Grenada offers investors the option to make a minimum contribution of USD 150,000 to its National Transformation Fund. Upon securing their Grenadian passports, investors can easily apply for the United States E-2 non-immigrant visa, which permits them to live and work freely in the US.
Which investment option should you take?
Investing in second citizenship is a life-changing decision. Hence, it is highly recommended that you seek assistance from experts and proceed with the application only with the help of government-approved firms.
This ensures that you will receive objective advice from qualified consultants and that your application will be processed through legal channels.
Next Generation Equity is one of the leading, trusted and government-approved facilitators of second citizenship applications across Europe and the Caribbean.
We specialise in delivering proven solutions, sound advice and practical support for clients from around the world, guiding them into investing in the right second citizenship or alternative residency.