While some people take pride in their stamp collection or expensive coins, many wealthy people with millions of dollars in income collect passports.
Thanks to citizenship by investment programs enshrined in legislation in several countries, wealthy people can secure a "alternate airfield" for thousands or even millions of dollars.
Are common types of investments include: buying real estate, building a business, or making significant donations to a country's foundation - all of which are not cheap. While the six-figure cost of buying a passport by investment can vary, it is typically around $ 200,000, Business Insider reports.
But for those who buy citizenship, such amounts are not something prohibitively expensive. For them, a second passport is much more than a "travel document" to another country. It also symbolizes their high status.
Bloomberg has compiled a ranking of countries selling citizenship in 2018. This is who entered the top ten.
10 countries officially trading citizenship
| The state | Citizenship cost | Personal income tax persons | Corporate income tax | Sold with |
|---|---|---|---|---|
| Austria | $23 750 000 | 28% | 25% | 1986 |
| Cyprus | $2 375 000 | 20% | 12.5% | 2002 |
| Malta | $1 065 000 | 12% | 35% | 2014 |
| Turkey | $1 000 000 | 35% | 22% | 2017 |
| Vanuatu | $226 500 | 0% | 0% | 2017 |
| Grenada | $208 250 | 12% | 30% | 2013 |
| Saint Kitts and Nevis | $150 000 | 0% | 35% | 1984 |
| Saint Lucia | $100 000 | 0% | 30% | 2015 |
| Dominica | $100 000 | 0% | 25% | 1993 |
| Antigua and Barbuda | $100 000 | 0% | 0% | 2013 |
Eight countries from this top 10 are classified by the IMF as offshore financial centers... However, according to Christian Kelin, who heads Henley & Partners, the stability and security of most of these states, and not tax evasion, is the decisive motive for most passport buyers. And another important factor is bragging. “If you have a yacht and two planes, the next thing is a Maltese passport,” he said.
Armand Arton, president of Arton Capital, a major financial advisory firm specializing in investor residency and citizenship programs, is of the same opinion.
“The cosmopolitan citizen has become a status symbol for the global elite,” he told Business Insider.
But there are more compelling advantages to owning multiple passports. Investors are mainly looking to increase their mobility globally, improve security, get better education, expand business opportunities and tax planning strategies, and improve the quality of life.
“People who invest in citizenship are people who come from countries with disabilities. possibilities of visa-free entry, for example, from Pakistan, India or China, ”says Nuri Katz, president of the international financial company Apex Capital Partners. “This (buying a passport) provides a certain freedom that citizens of some countries do not have. This is freedom of movement. "
Costs and benefits of buying citizenship for money
Many countries need foreign direct investment and thus use citizenship as a fundraising tool. However, obtaining citizenship by investment is not an easy process. And it's not just about money. The future citizen is carefully checked for reliability by studying his biography and sources of income.
Each country selling citizenship has different investment cost requirements.For example, those seeking citizenship of the island nation of Saint Lucia must donate one hundred thousand dollars to the National Economic Fund of Saint Lucia, or contribute at least 300,000 dollars to purchase government-approved tourism properties. There is also a third option - to invest $ 3.5 million in an approved business project.
For their money, the new citizen of Saint Lucia will receive a legal tax residence to submit a package of documents to European banks, and will not pay taxes on capital and income received outside the country. In addition, the island is very low crime rate and excellently developed infrastructure.
“The Caribbean islands of Antigua and Barbuda, Saint Kitts and Nevis and Saint Lucia are in high demand due to their relatively low cost-benefit ratio,” Nuri Katz told Business Insider. “Meanwhile, Europe, Cyprus and Portugal are gaining the trust of most investors due to their significant impact on real estate investment. Thanks to this, they can potentially get an interesting return on their investment along with the newly acquired residence or citizenship. "