Investing in a second citizenship for financial reasons is a critical decision to make and candidates are strongly advised to think things through before parting with their cash.
Paul Hymers of Atlas Corporate Services says citizenship-by-investment programmes don’t just take time, they can be very costly and have some negative repercussions.
“These programmes are not to be entered into lightly, and there are many negative consequences, too. The fees involved in these applications can be astronomical, as can the length of time the process can take to completion.”
One consultancy firm advises potential clients to have at least $300,000 at their disposal before applying for a citizenship programme. The amount will cover the required investment, and the necessary fees and charges. The processing time can take about six to 18 months, depending on the country they apply.
Balakrishnan Prabhu of Best Citizenships says that St. Kitts & Nevis allows candidates to invest at least $250,000, so the $300,000 budget will apply to those seeking a second passport in the country. For those eyeing a Belgium residency, however, having at least 400,000 euros is ideal. In other countries, the initial budget can be higher, such as in Austria, where a candidate needs to raise 3 to 4 million euros.
Since you will be required to invest into the new country you’re applying, you need to be absolutely sure your capital will not go to waste. “Some investment schemes are tied into purchasing bonds or property, but what is the liquidity of these assets and if they can be redeemed or sold, when and for how much,” asks Hymers.
Different countries have their own rules about residents acquiring a second passport, so it’s also a good idea for the applicant to check the dual citizenship laws of his home country. Certain nationalities might not be allowed a re-entry should they renounce their birth citizenship. “The potential applicant must think about their future relationship with their home nation,” says Hymers.
Considering the high fees and investment involved, it is likely that con artists are preying on clueless investors and applicants are advised to know exactly who they are dealing with. Hymers says many of such programmes are already being heavily marketed on the Internet, but these are not the only options available.
“Don’t believe everything you read online. And if it sounds too good to be true, it probably is. The fact is that any country in the world can issue a citizenship to anyone they want… With such high fees, these programmes can be susceptible to con artists, so beware of anyone who mentions either that your new passport is going to be couriered to you, or that you are going to obtain your new passport in an embassy. Only by traveling to the issuing country can the process of obtaining a new citizenship be completed,” says Hymers.
