Citizenship by Investment - 06.10.2013

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Road to citizenship Investing in a foreign passport comes with a host of benefits Sadiq Shaban

I

f you have the moolah, the world is your oyster. Citizenship by investment is a form of economic arrangement whereby one can gain citizenship of a country through capital investment.

While smaller nations such as Antigua and Barbuda, Montenegro, Dominica, and St. Kitts and Nevis are known to dole out citizenships in lieu of investments, some bigger countries like US, Canada, Australia, Bulgaria and the UK also offer options for investors to become residents through various immigrant investor programmes.

Since countries that allow for such a dispensation do not follow the same set of rules, therefore the regulations applicable may vary by state.

A lot of high net worth individuals can obtain a second passport and dual nationality in a short time frame by opting for selected property or business investments approved by the government in several countries. Citizenship can be obtained in St. Kitts in 120 days, without a residence or visitation requirement. You will also have the ability to travel to 139 countries around the world including the European Union, UK, Canada and Africa and Asia without the need for a visa. Applicants are subject to very thorough due diligence investigations to confirm the accuracy of the information and documents submitted in support of application, to ensure that they have not been involved in any criminal activities (including money laundering and terrorist financing). Only after the authorities deem a person fit and proper for citizenship, the process is initiated.

Image courtesy: Range Developments Big countries also are not too far behind.

Those seeking a UK passport can opt to apply for an investor or entrepreneur visa.

Both visas come with the option to apply for “Indefinite Leave to Remain” in the UK, an important prerequisite to obtaining citizenship. British law stipulates that the applicant has to invest a minimum of £1 million into either UK government bonds or share capital in UK-registered companies. Applicants are encouraged to spend more than 180 days per year in the UK during the qualifying period. After living in the UK for five years, the investor visa holder can apply for permanent residence. The country offers an attractive tax regime for individuals who are classed as UK resident, nondomicile which includes visa-free travel to 189 countries.

Foreigners can obtain citizenship in Canada within three years of residency, with business owners having the option to fast track their investment option with C$180,000 and participate in the Federal

or Quebec Immigrant Investor programmes. The country’s aim is to attract experienced business people with a minimum net worth of C$1,600,000 that was obtained legally. Applicants need to make an investment of C$800,000, which is administered by Citizenship and Immigration Canada (CIC) and is guaranteed by the Canadian provinces that use it to create jobs and help their economies grow. The catch here is that CIC will return the C$800,000 investment, without interest, about five years and three months after payment.

Citizenship by investment is a huge attraction even in the US which has an EB-5 Investor programme that allows people to obtain a green card, provided that they invest a substantial amount in the US. As a business applicant, one must invest $1,000,000 in a business, or $500,000 in a targeted employment area, or invest in a regional centre in the US. After a stipulated period — usually five years — you can apply for US citizenship.

Enticing investors with investment shares Enticing investors to St. Kitts with Park Hyatt and citizenship eligibility

Latha Krishnan Range Developments, a leading hospitality developer operating in niche, profitable markets around the world, is enticing investors with investment shares in their luxurious hotel Park Hyatt St. Kitts in the beautiful Caribbean country of St. Kitts and Nevis, which qualify eligible investors to apply for citizenship of St. Kitts and Nevis.

“We are promoting Park Hyatt St. Kitts as well as economic citizenship in St. Kitts and Nevis, a British Commonwealth country, to clients all over the world. Anyone who is financially sound enough to invest $400,000, who has a pristine standing in the community and is ready to undergo the due diligence scrutiny of the Government of St. Kitts and Nevis, can invest in our hotel and become a citizen of this beautiful island country,” informs Munaf Ali, CEO of Range Developments.

Businessmen, sports stars, film artistes and many well-to-do individuals and families from countries in Africa, Europe, the Indian

Munaf Ali CEO of Range Developments Subcontinent, Far East and Middle East appreciate the value of the visa-on-arrival status, which they can enjoy in 140 countries, if they become citizens of St. Kitts.

Having a passport of St. Kitts allows them to travel freely whenever they want, be it for business, education or leisure. In addition, the income they earn from their investment in St. Kitts is not taxed making the programme a very attractive one indeed. Such people are ready to invest in St. Kitts and avail of the Citizenship by Investment Programme that started in 1984 and offers citizenship (after an exhaustive and thorough due diligence process) to those who invest in real estate on the island or make a contribution to the St. Kitts and Nevis Sugar Industry Diversification Foundation (SIDF).

“We also run a pre-screen on our clients and ask them several probing questions before we accept them. Thereafter, extensive

checks are conducted by the St. Kitts and Nevis’ CBI Unit. Around July 2012, when we launched Park Hyatt St. Kitts, we were also subjected to the approval process of the Government in St. Kitts. We are receiving very encouraging response from clients around the world for this project,” says Ali. The Ground Breaking Ceremony, held in June 2013 followed by mobilisation of the contractor to the site this month, is a testament to the rapid progress of the project. Range Developments recently awarded the construction contract to a world-renowned group.

Park Hyatt St. Kitts will enhance St. Kitts’ hospitality offerings, as the island has an increasing need for five-star hotels to host close to a million tourists per year (including cruise-ship arrivals). An architectural masterpiece, the resort hotel will be situated on the picturesque landscape of Banana Bay and promises an unrivalled hospitality experience.

This luxury resort hotel will boast 125 rooms in phase 1, with further phases expected to come on line in coming years.

Standard Chartered Bank is the escrow account bank for Park Hyatt St. Kitts. All the other eminent partners further add to the attraction of investing in the project. “Investors will receive regular dividends, benefit from the profitability of the hotel, and subject to government approvals be granted with citizenship. The hotel will also create many jobs for the local population, thus allowing us to give back to the community as per our corporate policy,” explains Ali.

Countries such as Bulgaria offer a unique citizenship for investment programme that allows people to gain citizenship in exchange for making an investment in the country’s economy. After an investor meets all the requirements and agrees to invest more than €500,000 in the country, he or she is entitled to be granted residency and subsequently the citizenship.

Interestingly one doesn’t even need to live in Bulgaria or pay any taxes on wealth, inheritance or income outside of the country under the programme.

The latest to join the club is Hungary which offers foreigners the chance to attain the citizenship of the country if they invest at least €250,000 in the economy. Investors have to buy special government bonds, leading to preferential immigration treatment which allows a foreigner to travel freely within the Schengen zone countries for up to 90 days every six months besides other benefits.

— sadiq@khaleejtimes.com

We have created a nation, and society of very high standards — complete respect for human rights; no political prisoners; free, fair, and regular elections; 98 per cent literacy; world-class air, sea, and telecommunications infrastructure. In other words, we have put a great deal of effort into ensuring that our country has a sterling reputation. In light of that, therefore, because we have so much to protect and preserve, we are especially vigilant where our due diligence responsibilities are concerned vis-à-vis our economic citizenship programme. We simply cannot allow the negatives that any particular individual may have built up over a lifetime to compromise the positives that we have worked so hard, and so successfully, to establish and maintain.”

— Denzil Douglas Prime Minister of St. Kitts and Nevis

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Citizenship by Investment

Henley & Partners

Specialists in residence and citizenship planning With more than 23 offices globally, the firm offers wealthy clients an opportunity to invest in nearly two dozen countries and get citizenship Latha Krishnan For over two decades, Henley & Partners, the global leader in residence and citizenship planning, has been providing its expertise and experience in this specialised area to wealthy individuals and families, as well as their advisors worldwide.

“We have been here the longest time and offer truly international propositions for our clients wishing to relocate by way of completing a substantial investment and acquiring residency or citizenship privileges. We are not an immigration law firm that provides visas by way of work permits or business visas. We are very specialised in providing advisory services to what we call an immigrant investor industry,” explains Eric Major, CEO of Henley & Partners.

With over 200 people and in more than 23 offices around the world, the firm offers wealthy clients the opportunity of investing in nearly two dozen countries in exchange of which these countries provide them residence or citizen-

ship privileges. The highly qualified professionals of Henley work together as one team to serve their clients, who also include governments of some countries, who consult them and avail of their assistance in the design and operation of investment-related immigration programmes.

“Our government advisory arm has been growing steadily in importance. It is allowing us to create new opportunities for our clients wishing to acquire residence and citizenship privileges of the countries in which they are investing.

This is interesting also because governments are calling us to help them either create or launch such types of programmes, or if they have one already, to improve it,” informs Major.

A recent example of such services of Henley is one it has provided to Antigua and Barbuda, a Caribbean island country, where the firm helped most recently to establish a Citizenship-by-Investment programme, which officially launches on October 7.

Henley & Partners already has a

St. Kitts and Nevis Malta

Austria

very important mandate with St. Kitts and Nevis, which has one of the most successful Citizenshipby-Investment programmes in the world. The firm was responsible in assisting that government to relaunch the programme in 2006 and helped establish the Sugar Industry Diversification Foundation (SIDF) and developing global market awareness about it.

“But the most exciting opportunity of our firm was recently awarded to us, following a public tender, and that is a mandate to help the government of Malta to establish a new Citizenship-by-In-

vestment programme. Malta, a European Union member country, will launch this programme later this year. This is a continuation of our firm’s global success to create products that our clients ultimately wish to avail themselves of the privileges these programmes provide,” says Major.

Henley & Partners provides its residence and citizenship advisory services to wealthy clients of several nationalities in the UAE from its office in Dubai. As yet the firm does not offer inbound services into the UAE but will develop it by next year.

Citizenship by Investment

Unique approach to immigration

Second Home Businessmen Services finds the best solutions to apply for Canadian visas Second Home Businessmen Services is part of a group and has many branches in Canada, Kuwait, KSA and Jordan. Mainly it offers immigration consulting to more than nine countries all over the world, and provides job offers in Canada.

Immigration through investment Second Home is experienced in providing clients with a full spectrum of Canadian business investment and immigration services that will facilitate a quick and efficient relocation of themselves, their employees across the Canada/US border, either temporarily or permanently. This includes Investor and Business Immigration Visa, non-immigrant visas, such as NAFTA-related applications, as well as intra-company transferees, and Skilled Worker Immigrant visas. Following its initial evaluation of the client’s short or long term Canadian immigration requirements, it recommends the most suitable visa category and provides extensive assistance and guidance on the documentation required, the drafting of employment letters, the review of corporate documents; the preparation of a complete submission package for the directors and employees, setting up business, buying existing or

new business sites or operations.

It also counsels each individual to the procedure for applying for the visa upon their initial entry into Canada. As per Canadian government requirements both provincial and federal Immigration considerations are invariably a facet of any overall business strategy.

Professionals are readily available to coordinate immigration advice with your tax, legal, financial, and HR professionals in coordination with the GITC investments and trading Canada.

Consultation services Second Home’s individual clients approach at various stages of the application process. There tends to be some individuals who have not yet received an offer of employment in Canada or are not certain what type of jobs they should be looking for. For these individuals, it schedules a consultation and comprehensively reviews the individual’s resume, education background, and family situation to determine the available options that ensure the best chance of obtaining Canadian resident visa. For those individuals with a valid job offer, or who are ready to begin a sponsorship application, it provides a

thorough review of the company and individual’s goals in order to determine the best visa category to apply under, as well as assist the individual with document collection, application preparations and submission.

Processing timeline As the processing times vary for each Canadian Immigration visa matter, the firm investigates the quickest and least demanding post to approach prior to filing the visa application. Its ongoing liaison with Canadian Authorities, embassies, and Visa Processing Centres and immigration offices keeps its team of professionals apprised of recent changes to immigration regulations and trends at different visa offices. This helps ensure that every application is dealt with in a time-efficient and reasonable manner. Second Home takes extra care in the process of your application or setting up a business in Canada since for many it will be a generational change. It does its best to deliver to each individual who lands at our doors to seek help. Its services are monitored for best customer service to ensure the successful outcome of each application.