South African investors are setting their sights outwards due to apprehension and lack of confidence in the local economy. Most notably, the South African economy is struggling to stabilise itself, shrinking by 2.2% in the first quarter of 2018, following a 1.3% GDP growth in 2018. Widespread political uncertainty is furthermore aggravated with the problem of corruption in all sectors of society. Adding this to South Africa’s vastly volatile currency, investors face sizeable risk when investing within the country. This stands in contrast to rewards to be gained when diverting South African investment towards Europe. The continent presents a lucrative option with numerous countries to choose from offering attractive returns on investment, stable economies and political systems, and comfortable standards of living.

The EU and South Africa have a strong bilateral economic and cultural relationship which has been cemented through a long history of cooperation. The EU is in fact the biggest source of foreign direct investment in South Africa, while the latter is also the economic bloc’s largest trading partner in Africa. South African exports to the EU have been growing over the years and becoming more diverse, ranging from fuels and mining products, to machinery and transport equipment, and other semi-manufactured goods. On the other hand, South African imports from the EU include mainly machinery and transport equipment, chemicals and other semi-machinery. This is reflective of South Africa’s gradual shift from a heavily commodity-based industry to manufacturing.

In the strategic partnership that exists between the two, South Africa has been investing its fair share in the EU, mainly in the areas of manufacturing and property. While investing in the EU is auspicious to the South African economy in itself, there are particular push factors which prompts South African investment in the European market.

South African investment in the European property market

While the South African property market is robust, there is also a voracious drive for property investments within Europe, for an array of reasons. Firstly, there is a general oversupply of property relative to local demand in South Africa. Furthermore, though household rates in the country appear to be looking up in 2018, in real terms rates in the local residential market have dropped significantly over the last ten years. Annual house price growth registered at only 4.8% in 2016, and 3.7% in 2017. While the country’s economy has emerged from the recession, the kernels of growth it might be seeing in other sectors have yet to seep into the local property market.

According to IP Global’s Global Real Estate Report, European cities top the list for the most popular international real estate locations for South African investment. London, in particular, holds a particular draw due to its economic stability and robust rates-on-return. Vienna is also one of the cities with an increasing interest when it comes to South African investment- the city has seen a 10.5% average property price increase per year over the past five years. Central and Eastern Europe has also been popular among South African property investors, largely because of the high yields and low interest rates the region offers. As regards to investment type, buy-to-let international residential properties are the more common purchase among South Africans, mainly for diversification and capital protection motives, as well as being income-producing assets due to their tangibility. The South African listed-property sector today nearly has half of its value in overseas markets, with offshore exposure for property stocks having more or less doubled since 2014.

South African investment in European residency and citizenship

While countries like the UK are more conventional among South African investors when it comes to business preferences, their citizenship attainment prospects are relatively limited. South African HNWIs have therefore developed an acute appreciation for the merits of residency and citizenship by investment programmes. While some of them invest in these programmes for purely relocation reasons, other South African investors look into them as a way to broaden their options or secure a backup plan in their personal/business life.

The main attractions of such programmes among South Africans are the vast visa-free mobility they offer, the favourable business prospects, and the advanced standard of living. Among the investment migration programmes that have been high in demand amongst South African HNWI, there are the Golden Visas for Portugal and Spain, and the citizenship by investment programmes offered by Malta and Cyprus which open up a more direct route to citizenship.

The Portugal Golden Visa, for instance, has issued 254 approvals to South African HNWIs since its inception in November 2012. The market now represents 4% of all successful applicants for the programme. Apart from having minimal stay requirements, qualifying property investments range from €280,000 to €500,000, making the programme a flexible and attractive option for investors.

Malta is another sought-after option, offering its own variety or residency and citizenship programmes. The Malta Citizenship Programme not only grants investors visa-free access to 182 different countries, but, similar to the Cyprus citizenship programme, following the granting of citizenship, it also gives applicants the right to live, work, study, and do business in any of the EU member states. This makes the Malta Citizenship Programme the ultimate gateway to the EU. To add to this, the Maltese economy has been enjoying constant economic growth, and witnessing great strides in sectors including financial services, information technology, advanced manufacturing, and real estate.

The Maltese property market is undoubtedly a profitable one- different property sectors have been undergoing sustained price increments, amidst the unwavering demand of both locals and foreigners. The buy-to-let market has also been expanding, offering the potential of a steady stream of income and stable appreciations in property prices in the long-term. The thriving real estate market makes Malta an excellent candidate for South African investment, in particular South African HNWIs looking into offshore property investment, especially when considering their keen interest in the buy-to-let market.  

Malta GDP growth and economic success 

According to macroeconomic forecasts published by the European Commission, Malta can expect its economic growth to moderate, yet remain dynamic over the coming years. Current account and budget balances are predicted to remain in surplus according to the latest economic forecast. This corresponds with the fact that the Maltese economy is one of the fastest-growing in the EU, currently claiming record-low unemployment along with solid wage growth.

The above average economic growth is expected to be maintained by the Maltese economy even throughout 2019. The Maltese economy has outperformed that of the EU ever since 2014. With animated economic activity in the services sector, exports saw a boost in growth, and as a result not only has this empowered the country’s external position, but it has also brought about a current account surplus and the resulting GDP growth.  

Real GDP saw a 6.6% growth in 2017. Along with this, the Maltese economy also saw a substantial increase in the fiscal surplus to 3.9% of GDP for 2017, following a 1% increase in 2016 and government deficits in the previous years. This could be explained with the high growth rate of current revenue, including tax revenue as well as proceeds from Malta’s citizenship programme which had a lively contribution of 2.6% to the country’s GDP. Furthermore, the government debt-to-GDP ratio fell to 50.8% in 2017. With the predicted growth in GDP and the following surplus, the deb-to GDP ratio is expected to diminish further to 43.4% by 2019.

Maltese Economy projected growth

Despite experiencing a minor relaxation in growth rates, compared to 2016 and 2017, the Maltese economy is forecast to continue on its vigorous growth pattern. Real GDP growth is forecast at 5.8% and 5.1% in 2018 and 2019 respectively. The heightened domestic demand is expected to be one of the main drivers of change as a result of an increase in disposable income, expenditure related to national projects and a vibrant growth in the services sectors. Emerging opportunities in up and coming areas such as those of blockchain and cryptocurrency, could also prove to be highly propitious for the Maltese economy.

The strong economic momentum should further boost employment and deduct the already low unemployment rate, which currently stands among the lowest in Europe at 3.5% as of February 2018. The labour supply itself has seen an increase due to inflows in foreign workers and increased participation of women in the labour force. Foreign direct investment reached a total of €165 billion in 2017, leaving its fair impact on both the Maltese economy and employment. So far, the economy has managed to maintain its grip on inflation, which stood at 1.37% in 2017. However, price pressures in the coming years are expected to instigate price increases, resulting in a higher, yet moderate inflation rate of 1.8% in 2019.

Malta Citizenship Programme Contribution to Maltese Economy

Recent statistics on the Malta Citizenship Programme’s performance serve as evidence to the beneficial input the programme has had to the Maltese economy. In the latest report issued by the office of the regulator of the Individual Investor Programme of the Government of Malta, statistics were provided for period between July 2016 and June 2017. In this 12-month period, 377 new applications were submitted. While this shows a decline from the 451 applications recorded during the previous period, it also means that a total of 1101 applications have been submitted since the programme’s inception in 2014.

Since being launched, the Maltese Citizenship Programme has left wide-ranging positive direct and indirect effects on the local economy. In terms of property investments for the period July 2016 -June 2017, the vast majority of applicants (88% or 340) opted for the leased option, whereas the remaining 12% (46) purchased property. The amount invested on property purchases averaged at around €868,173 per property which is notably higher than the minimum €350,000 specified under the programme. Similarly, the annual average rental value for leased property stood at €21,128 compared to the stipulated minimum of €16,000.

During the same period, the amount invested in Government stocks totalled up to €58,371,279. The financial contributions to the National Development and Social Fund amounted to €194 million, while €83 million went into the Consolidated Fund. Concurrently, €16 million in contributions were received by the Identity Malta Agency, which manages the administration of the programme. According to the forecasts published by the European Commission the Malta individual Investor Programme contributed 2.6% of the country’s GDP in 2017.

Is Canadian Dual Citizenship allowed?

Canada has recognized and allowed dual citizenship since February 15, 1977, with the effectiveness of the Citizenship Act, a testament to the country’s commitment to diversity and multiculturalism. The Canadian law in fact allows persons to hold two or more citizenships, meaning any original citizenships does not need to be given up when attaining Canadian citizenship. Canadian dual citizenship as well as multiple citizenships, are therefore allowed under Canadian law- it is not solely restricted to two as there is technically no actual limit to how many other citizenships a Canadian may hold.

Holding Canadian dual citizenship might impose complications when it comes to legalities, taxation, and compulsory military service, amongst others. Canadian taxation obligations are based on residency status rather than citizenship. Individual residency is on a case-by-case basis, and there are no strict rules. The Canada Revenue Agency reviews residential ties to Canada, normal residency status, and various other factors to determine whether a Canadian dual citizen is to be taxed or not.

It is prudent to note that as not all countries allow dual citizenship, some countries might revoke citizenship once an individual acquires a Canadian passport. Canadian citizens cannot lose their citizenship unless they renounce it voluntary via a complex legal procedure. To be eligible to renounce Canadian citizenship, an individual must:

• Be a citizen of another country or become one following renunciation approval;
• Not live in Canada;
• Be at least 18 years old;
• Not be a threat to Canada’s security or form part of any criminal activity;
• Not be prevented from understanding the significance of renouncing Canadian citizenship by reason of having a mental disability and;
• Not be subject to revocation of citizenship proceedings

Travelling with a Canadian Dual Citizenship

When travelling or transiting through Canada, however, nationals with Canadian dual citizenship need to be carrying their Canadian passport. When boarding the flight to Canada, Canadian dual citizens would need to present airline check-in staff and border officials with a valid Canadian passport to confirm their Canadian citizenship.

The valid Canadian passport acts as the only substantial and reliable travel document providing proof that an individual is a Canadian citizen and is allowed to enter Canada without being subjected to immigrant screening. These regulations concerning travelling were introduced on November 10, 2016 following the implementation of a new government electronic system which verifies that all passengers boarding a flight to Canada have the appropriate travel document. The change in regulation was part of a broader measure in ensuring that all Canada-bound passengers are in possession of the proper travel documents.

Acquiring Canadian dual citizenship- for Canadian citizens

A Canadian citizen may obtain a foreign citizenship without any risk of losing his/her Canadian citizenship, and vice-versa, as granted through the Canadian Citizenship Act. This, however, is also subject to the citizenship laws of the country issuing citizenship.

Canadian dual citizenship for individuals who are originally Canadian citizens may be acquired in several ways, including:

Birth

Also known as the principle of ius soli or the law of the soil. Should an individual be born in a foreign territory, he/she may be entitled to said country’s citizenship. Therefore, a child born to at least one Canadian parent in a foreign territory may acquire Canadian dual citizenship. Nevertheless, conditions pertaining to ius soli vary according to each country.

Descent

Otherwise known as ius sanguinis, this implies the inheritance of citizenship from parents or ancestry. Should a person be born on Canadian territory to at least one immigrant person, he/she may acquire Canadian dual citizenship if the country of the second citizenship allows it. The citizenship by descent laws of the concerned country must be taken into consideration, as well as whether they do or do not allow dual citizenship.

Adoption

Minors holding Canadian citizenship may attain Canadian dual citizenship if adopted by foreign parents.

Marriage

The process of attaining citizenship might be accelerated in some countries in the circumstance of a foreigner marrying a citizen of the country. Canadian dual citizenship may therefore be acquired by a Canadian citizen in the case of marrying a foreign citizen. This is however, once again, subject to citizenship laws in each separate country.

Naturalisation

Naturalisation entails a process whereby a Canadian citizen may obtain citizenship in a foreign country. Citizenship is granted on the basis of a number of legal requirements which must be met, and which vary according to each country. 

Citizenship by Investment Programmes

Citizenship by investment programmes are one type of naturalisation which have increased in popularity in recent years. Through such programmes, a Canadian may obtain Canadian dual citizenship by fulfilling specific investment and eligibility criteria. The benefits and details of what countries in particular offer the option of citizenship by investment will be delved into further below.

Acquiring Canadian dual citizenship- for foreign citizens

Foreign individuals seeking to acquire Canadian dual citizenship should consult the citizenship laws of their own country to evaluate any repercussions on their current citizenship status should they obtain Canadian citizenship.

Foreign citizens may attain Canadian dual citizenship in a number of ways, primarily:

Birth

As a general rule, almost everyone born in Canada is granted Canadian citizenship. Hitherto, a child born to a foreign citizen on Canadian soil might be entitled to Canadian dual citizenship. Exceptions to this include cases where a child is born to a diplomat or consular officer or other representative/employee of a foreign government in Canada; or if neither of the parents was a Canadian citizen or Canadian permanent resident at the time of birth.

Descent

Individuals born after February 15, 1977 to a Canadian parent outside Canada automatically obtain Canadian citizenship. This is however restricted up to one generation born outside of Canada, meaning that if the Canadian parent was also a citizenship by descent, the child would not be eligible for Canadian citizenship.

Adoption

Following an amendment to the Citizenship Act on July 22, 2007, children born in a foreign country who are adopted by a Canadian citizen are entitled to apply for immediate citizenship. If successful, the adopted child would become a Canadian dual citizen, subject to his/her native country’s citizenship laws.

Naturalisation

Foreign citizens may attain Canadian dual citizenship through Canada’s naturalisation process. In order to qualify for Canadian citizenship through naturalisation, applicants need to abide by a number of conditions, including:

• Permanent residency: Regardless of age, in order to apply for Canadian citizenship, applicants need to have an unquestionable Permanent Residency (PR) status. Applicants must not be under review for immigration or fraud reasons, not have certain unfulfilled conditions related to your PR status, and not be under a removal order.
• Time lived in Canada: Applicants must have been present in Canada for 1095 days during the five years preceding the date on which the application is submitted. Time spent in Canada as a temporary resident or protected resident could also contribute to the 1095 days, however under this condition each day spent in Canada is counted as a half day, with a maximum of 365 days towards physical residence.
• Income tax filing: If required under the Income Tax Act applicants must meet personal income tax filing obligations in three tax years that are fully or partially within the five years right before the date of application.
• Language requirements: To become a Canadian dual citizen, an applicant must be able to speak or listen to one of Canada’s official languages, that is, either English or French.
• Canada citizenship test: Applicants must display sufficient knowledge on Canada by taking a citizenship test. Questions deal with topics including Canada’s values, history, symbols and institutions.
• Prohibitions: Individuals who have committed a crime inside or outside of Canada might not be eligible to become Canadian citizens for a period of time. Time spent serving a sentence of imprisonment, parole, on probation does not count as time lived in Canada.

Programme Alternatives to Canadian Dual Citizenship

• Immigrant Investor Venture Capital (IIVC) Pilot Program

The federal Immigrant Investor Venture Capital Pilot Program provides a route for Canadian permanent residency to high-net-worth individuals. Qualifying candidates must have a net worth of at least $10 million CAD, and must make an at-risk investment of $2 million CAD, which must in turn be held for 15 years with no return guarantee. With regards to the $10 million CAD net worth of the individual, inheritance money does not count, nor does the value of the primary residence. Instead, the money must be earned through lawful private business activity and/or investment. There is also an Education requirement to the programme- applicants must have completed a Canadian post-secondary degree, diploma or certificate of at least one year; or the foreign equivalent, as verified by an Educational Credential Assessment (ECA). Furthermore, applicants must be proficient in either English or French. Naturally, Canadian dual citizenship may be attained down the road through the programme.

• Quebec Immigrant Investor Program (QIIP)

Similar to the Immigrant Investor Venture Pilot (IIVC) Program, the Quebec Immigrant Investor Program (QIIP) grants permanent residency to high-net-worth individuals who make a significant investment. Out of the two programmes, however, the QIIP asks for a smaller investment and has fewer requirements. For the new round of applications of September 2018-March 2019, a quota of 1900 applications has been set. Candidates will be required to invest $1.2 million CAD interest-free for a period of five years. As opposed to the QIIP, the original investment is guaranteed and paid back to the applicant following a period of 5.5 years. Once again, there is a net-worth requirement, this time of $2 million CAD. Successful applicants also need to have a minimum of two years of management/business experience within five years preceding the application submission. Lastly, applicants must have the intention of settling within the province of Quebec. By achieving permanent residency, this can serve as a way to eventually attain Canadian dual citizenship.

• Start-Up Visa Program

The Start-Up Visa Program (federal) provides a more feasible option for some. It is targeted towards immigrant entrepreneurs with the ability of bringing innovation and global competitiveness to Canada, as well as creating jobs for Canadians. In order for the business to qualify, an applicant must be in possession of 10% or more of the voting rights attached to all shares of the corporation, and the applicant and the designated organization together must jointly hold more than 50% of the total voting rights. Applicants must be able to communicate and work in English or French. There are also monetary requirements where applicants must prove they have enough money to support themselves and their family since the Canadian government does not provide financial support to new Start-up Visa immigrants. The amount of money needed depends on the size of the applicant’s family. Since it offers permanent residence, the program can also serve as another way to attain Canadian dual citizenship.

• Quebec Entrepreneur Program

The Quebec Entrepreneur Program, in contrast, is targeted more towards experienced business persons rather than start-ups. It is a highly competitive programme with strict quotas and a rigorous application process, that allows applicants to live in Quebec on a Canadian permanent residency after developing or purchasing a business in the province. Applicants must firstly prove that they hold net assets of at least CAD $300,000 between them and their spouse. Successful business management experience must be demonstrated, meaning at least two years in the preceding five years running a profitable business where the applicant held at least 25% of the capital equity with a value of at least CAD $100,000 between himself/herself and the spouse. Investors must hold at least a 25% share of capital equity of the purchased or new business, between them and their spouse. Proficiency in either English or French is also a requirement. This program is yet again one other alternative which can lead to Canadian dual citizenship as time goes by.

• Citizenship by Investment Programmes

Foreign citizens applying through any of the aforementioned programmes may then proceed to eventually apply for Canadian citizenship through naturalisation. The programmes however, more often than not, involve a lengthy and highly competitive process.

Nowadays, several countries internationally have introduced what are known as Citizenship by Investment Programmes. These reward applicants with citizenship should they meet the specific investment and eligibility criteria of the programme. Some of these programmes boast of many of the benefits that attract immigrants and investors to Canadian dual citizenship.

Successful citizenship by investment programmes include of distinguished European programmes, such as those offered by Malta and Cyprus, which give successful applicants the option to enjoy the quintessential European lifestyle, and reside, live, and do business anywhere in the EU, while travelling freely within the area. For those who value facilitated global mobility yet desire more flexibility in their investment options, Caribbean programmes such as those offered by St Kitts and Nevis, Saint Lucia, Antigua, Grenada, and Dominica, all over viable alternatives.

Among the benefits of citizenship by investment programmes, there are the following:

• Visa-free travel: Most of the countries offering citizenship by investment programmes enjoy an extensive list of visa-free travel countries. This would particularly be attractive to investors who originate from countries that are relatively restrictive when it comes to global mobility. Successful new citizens would for the most part find it easy to travel almost anywhere internationally, whether for business or personal reasons.
• Tax incentives: Citizenship by investment programmes are particularly enticing since they offer a route to citizenship in a country with attractive fiscal benefits. All of the citizenship by investment countries have some sort of taxation benefit, including exemption of taxation on foreign income, wealth, inheritance, or capital gains.
• Personal Security: High-net-worth individuals looking for more security in their personal lives can very easily find it by investing in citizenship by investment programmes. By attaining a dual citizenship, investors can rest easy that in times of crises they have their own haven in a sheltered, stable and peaceful country.
• Better quality of life: Investment through one of the citizenship by investment programmes could instantly boost the quality of life of any high-net-worth individual. Not only can successful applicants benefit from superior levels of education and healthcare, but they can also enjoy the bliss of either an advanced European, or tropical Caribbean way of life.

Obtain a Dual Citizenship

Numerous countries have sought to take advantage of the growing demand for second citizenships amongst High-net-worth individuals (HNWI), by introducing or refining their own Citizenship by Investment programmes. Countries have varying reasons for incorporating citizenship and residency programmes into their economies. These include wanting to attract foreign investment into the country, boosting the property market, diversifying and fuelling the economy, generating funds for social projects and progress in the public sector, and attracting HNWI and highly skilled workers that further stimulate business.

Attract foreign investment

For countries with limited resources, citizenship by investment programmes present an enticing opportunity for attracting foreign direct investment. These programmes require direct investment from the applicant in the form of a fiscal contribution, property or government bonds/equities, or a combination of the latter. Therefore, they are an important vehicle for incentivizing investment, generating revenues for the country and boosting economic growth.

The first citizenship by investment programme launched by St. Kitts and Nevis was aimed at attracting foreign investors to its economy. Over the years, four other Caribbean countries introduced similar investment programmes to diversify their economies, boost the real estate sector with investments in high end resorts and developments and attract wealthy investors to their economies. Whilst, accurate data is not generally available, citizenship by investment programmes generate a significant contribution to the GDP of these islands.

Malta, for instance, has seen increased foreign investment since the start of the programme in 2014. Since its inception, and up to June 2017, there were 1101 applications submitted, 566 of which were successful. Statistics shows that through the Individual Investor Programme (IIP), Malta has attracted investment from an untapped market for the island. The programme has left a positive impact on the GDP, having a combined total of a 3.72% contribution to the GDP from 2015 to 2017. Nevertheless, the country does not rely heavily on it in terms of maintaining economic growth as industries such as financial services, igaming and tourism contribute towards a much large portion of GDP.

Cyprus is another example where the investor programme has been beneficial in terms of foreign investment. Interior Minister Socratis Hasikos noted that the scheme had brought in close to €3.5 billion in foreign investment by the end of 2016, equating to around 25% of the total GDP. Overall, Cyprus has seen significant improvements in its GDP with the introduction of its Citizenship by Investment Programme, along with the help of other financial measures. This is a consequence of not only the investment itself, but also of the subsequent indirect secondary and tertiary activity that it generates.

Boost the real estate market

For some countries, a substantial motivator in introducing such programmes is to revamp the real estate industry.

A prime example is the Cypriot Citizenship by Investment programme which mainly involves an investment in property and has significantly stimulated the country’s property market both directly and indirectly. As of April 2017, 2,000 applications have been approved, with an investment of €4 Billion.

As the property market in Cyprus is struggling to reach pre-recession pricing, the current low prices still have the opportunity of being advantageous to investors while at the same time, helping Cyprus boost the market. The programme has been instrumental in saving the Cyprus real estate market following fears that the 2013 economic crisis had irrevocably impaired it, and this is substantiated by the steadily increasing property prices in recent years. The Property Price Index shows promising developments for Cyprus, with average gross yields for the second quarter of 2017 coming in at 4.1% and 2.1% for apartments and houses, respectively.

In Malta, from the launch of the IIP, till June 2017, a total of 80 properties were purchased, while 483 were leased. On average, property purchases have been of around €867,520 and property leases of €114,542. One can also see a steady increase in the Property Price Index, with a 12% price increase in Q3 2017 since 2015. Whilst the introduction of Malta’s IIP has contributed to the boost in real estate market, such an increase in prices is mainly attributed to the spike in foreign nationals working and living in Malta as a result of a buoyant economy and a very low unemployment rate. 

Diversify and re-stimulate the economy

Some countries, most notably those in the Caribbean, utilise Citizenship by Investment programmes as a way of growing, diversifying and further stimulating their economy.

The economy of St Kitts and Nevis has traditionally been dependent on the growing and processing of sugar cane; however, decreasing world prices have hurt the industry. Instead, tourism, export-oriented manufacturing, and offshore banking activity have assumed larger roles. Citizenship by Investment was introduced to both diversify the economy in terms of attracting direct investment and re-invigorating the sugar cane industry. One option of the country’s citizenship by investment programme is investment in the Sugar Industry Diversification Fund which was established in 2006 with the aim of helping the government reduce reliability from sugar as the main industry, and instead focusing on diversifying the economy by shifting the attention to funding alternative or new industries, with the ultimate aim of stimulating growth and development. In 2014, the IMF reported that 14% of St Kitts GDP, equal to US$11.9 million, came from Direct programme contributions, as a result of 2329 applications that year alone.

Having an economy largely dependent on tourism, and with its infrastructure often destroyed through hurricanes, Antigua and Barbuda also introduced its citizenship by investment programme to supplement its faltering economy and introduce diversification. In 2017, the Citizenship by Investment Unit of Antigua and Barbuda processed a total of 321 applications, yielding an estimated $64 million in direct revenue to the central government and capital injection of $198.7 million into hotels, residential developments, and other business interests – amounting to 20% of GDP.

In the case of St Lucia, the citizenship by investment programme was introduced in the hope of making up for the loss of income from the more traditional economic activities. These had lost their significance in the 1990s due to increasing globalisation and liberalisation, and loss of preferential trading arrangements, heightening the need to find novel and alternative sources of investment.

Generate funds for social projects

Another motivation of establishing a citizenship  by investment programme is to finance projects aimed specifically towards the well-being of society and the standard of living. 70% of monetary contributions received under the Malta IIP go towards the National Development and Social Fund (NDSF) with the aim of improving public services, contributing to major projects of public interest, supporting the advancement of education, research, innovation, justice and the rule of law, employment and public health and investing in social projects like housing, gender equality, prevention of discrimination, and respect for human rights. As of June 2017, €249,328,799 have been transferred into the NDSF.

After the disastrous effects of the 2017 Atlantic hurricane season, St. Kitts opened the temporary Hurricane Relief Option (was valid until March 2018) which offered a cheaper contribution to investors in order to raise funds to help the islands and its citizens recover. This alternative was established with the mindset of benefiting the country and its people by aiding in the quick recovery of infrastructure and homes after the brutal hurricane season, as well as ensuring ongoing prosperity.

Attract HNWI, highly skilled workers and businesses

Citizenship by Investment programmes can also improve the workforce of the countries as they introduce and open avenues for the migration of highly skilled workers and professionals and their families without the bureaucratic and lengthy processes of gaining work visas. This is especially true for individuals who come from countries where acquiring a work visa is very difficult. 

Citizenship by investment programmes are not solely a way of attracting investment, but also of alluring investors themselves into the country, thereby enriching the local pool of talent and entrepreneurs. High net worth individuals living in the country further contribute to economic activity due to their higher levels of consumption both in terms of personal and corporate expenditure.

A citizenship by investment programme does not necessarily cater to all these motives. In fact, the different features offered by the various programmes available reflect the priorities of the countries in which they are established. Therefore, it comes as no surprise that more and more countries are looking into the possibility of introducing similar programmes or seeking to fine-tune existing ones to make them more attractive to investors.

Inquire on Citizenship by Investment Programmes

Nested between Guadeloupe and Martinique, Dominica is the only country in the Eastern Caribbean still home to an impressive population of indigenous people, the Kalinago who’ve been inhabitants of the island since the 13^th century. Being dubbed the ‘natural island’, Dominica defies the Caribbean normality. Although there is no mass tourism or rum-fueled festivities, the island lures in individualists and eco-adventures with its Boiling Lake, Champagne Reef, sulfurous hot springs and the Caribbean’s first long-distance hiking trail.

The island vaunts English, French, African and Caribbean roots which, together, blend into a unique way of life and culture. Dominica, nonetheless, offers a stable political and economic climate and enjoys one of the lowest crime rates in the Eastern Caribbean.

Dominica Citizenship by Investment Programme

Introduced in 1993, the Dominica Citizenship by Investment programme has been legally entrenched in the Dominican Constitution and the Citizenship Act. This programme attracts applicants of good character to make an investment in Dominica in exchange for them and their family to become eligible to obtain full citizenship of the country, within the strict guidelines of the law.

Investors, in exchange for citizenships, are to make an investment in a national fund or real estate. The programme goes on to grant citizenship for life, with the possibility of transcendence to future generations.

Obtain Dominica Citizenship by Investment

Benefits of the Dominica Citizenship by Investment Programme

The Dominican Citizenship by Investment Programme offers numerous benefits. As a favourable tax jurisdiction, investors in the programme are not taxed on any income earned outside of Dominica, unless they decide to live there. New citizens, additionally, are also exempt from tax on wealth, inheritance or capital gains.

The processing time for a Dominican citizenship by investment is a swift period of 3 months. Following this, applicants would be granted in-principle approval and subsequently be issued the certificate of naturalisation. Apart from being expedient, the programme allows applicants to retain their primary citizenship as the Dominican government allows dual citizenship. The application process, nonetheless, is extremely confidential and the privacy of the applicants is respected.

Increased international mobility is well-known to improve a person’s quality of life. Traveling with a Dominican passport empowers an individual to visit an expansive list of countries without the added-on stress and hassle of having to apply for a visitor visa. The Dominica citizenship by investment programme grants access to 127 visa-free destinations. Such destinations incorporate the likes of the EU, the UK and even, Hong Kong.

Furthermore, even when visiting a jurisdiction that requires Dominican citizens to first attain a tourist visa, Dominican passport holders have an advantage – they usually face much less stringent visa application conditions. Holding citizenship in a Commonwealth country such as Dominica makes it easier to procure a business visa or residence permit in many other Commonwealth countries, such as Canada and Australia.

Eligibility for the Dominica Citizenship by Investment Programme

Clean Background Check and Good Health

An applicant, to be eligible for the Dominica Citizenship by Investment Programme, must be at least 18 years of age. The programme goes on to legally grant eligible persons instant citizenship in the country with the issuing of a Certificate of Naturalisation. Applicants must undergo a ‘fit and proper test’, which obliges applicants to demonstrate a clean criminal record verified by INTERPOL and other international authorities. The programme will only accept individuals of outstanding character and repute. This ensures that only credible persons of impeccable standing are given citizenship. Moreover, applicants should also have excellent health and must go on to show that they do not suffer from any contagious diseases.

Family Members

An unlimited number of eligible dependents can be included in the Dominica Citizenship by Investment Programme. An investor may include their whole family regardless of how many children they have. While there is no numerical limit on the number of dependents that can gain citizenship together, only people fully supported by the principal applicant are considered as suitable. The maximum age for dependent children has been increased to that of 28 years – this threshold distinguishes this programme from any other Eastern Caribbean citizenship by investment programme, as it is one of the highest ages for dependents in the industry. The minimum age for dependent parents and grandparents, moreover, has been reduced to 55 years of age.

Dominica Citizenship by Investment Programme Investment Requirements

There are two investment options that an applicant may choose to proceed with when applying for the Dominica Citizenship by Investment Programme.

Investment in Real Estate

Having perfectly unspoiled nature, Dominica boasts emerald green mountain sides, which precipitously cascade down to sensational coastlines and the mild Caribbean ocean.  To qualify for citizenship under the real estate option, an applicant must buy approved real estate in the country for at least US$200,000. From thereon, the applicant would maintain ownership for a minimum of three years. If the applicant maintains ownership for five years, they would furthermore be eligible to re-sell the property under the Dominica Citizenship by Investment Programme.

A single applicant is required to pay a non-refundable fee of USD $25,000, while a family application with up to four members- including the main applicant and three other dependants- requires a government fee payment of US$35,000. Additional fees, nonetheless, apply for any other additional dependents.

Contribution to the Economic Diversification Fund (EDF)

The Economic Diversification Fund was established through the Dominica citizenship by investment programme as one component of a national capital mobilisation portfolio. The government of Dominica, with these contributions, aims to improve the island’s national development. These funds are utilised for public and private sector projects – encompassing hospital renovations, the building of schools as well as the promotion of the offshore sector. The government, with respect to the private sector, aims to improve the tourism, information technology and agriculture sectors.

The minimum contribution requirements for the fund option, call for a non-refundable contribution of US$100,000 for a single applicant. For spouses, the main applicant and the spouse are required to invest a non-refundable contribution of US$175,000. A family application, which includes the main applicant, a spouse and two children under the age of 18, would then require a non-refundable investment of US$200,000. An additional US$25,000 would also be required for any other dependent in the family.

Inquire on Dominica Citizenship by Investment