Economic citizenship: a new perspective on business immigration and its advantages

Economic Citizenship

Economic citizenship is a process through which foreign individuals obtain citizenship of a specific country in exchange for investments in its economy. Such investors, who are not residents, have the opportunity to acquire a passport from another country without renouncing their original nationality.

Second citizenship can serve as a kind of insurance in case of unforeseen circumstances, although its use is not always necessary. Many Russians who have made investments to obtain a second passport do not intend to emigrate, as they have a successful business back home.

The Influence on Travel Opportunities

Nevertheless, having a successful business or significant financial assets does not make the process of obtaining visas and the ability to travel abroad any easier. For example, even a minor offense, such as failing to pay a parking fine in Spain, can lead to long-term consequences for entering the Schengen Area.

In such conditions, the possibility of obtaining a residence permit or citizenship in other countries becomes quite relevant.

Simplification of Immigration Regulations

The simplification of immigration regulations for entrepreneurs is contributing to an increased interest in the real estate market, and during periods of economic downturn, easing requirements can prove to be an effective tool in combating the crisis. For example, in the USA and Cyprus, authorities have begun to expand opportunities for foreign investors in real estate by implementing initiatives to improve conditions.

Cyprus Initiatives

New rules have been introduced in Cyprus, allowing foreigners who purchase property worth more than 300,000 euros to apply for an expedited immigration permit of category E. This permit is essentially equivalent to the status of a permanent resident in the country.

This innovation affects citizens of all countries outside the European Union. It is expected that many buyers from Russia, Ukraine, Belarus, Kazakhstan, and the Middle Eastern countries will actively take advantage of the offered opportunity, as assured by Andreas Khuludis, the director of the Russian office of the Cypriot company Pafilia.

Other Countries and Future Prospects

In addition to Cyprus, several other countries also offer various business immigration schemes. For example, the United States, known for its strict visa requirements, has opened its doors to investors interested in real estate.

However, it is important to note that the opportunities for such investments may be temporary and could close with the recovery of the U.S. economy.

EB-5 visa in the USA

In the United States, an immigration program for investors with the EB-5 visa has been in operation for almost twenty years. According to the initial conditions, to obtain a green card, a non-resident had to invest a minimum of $500,000 in a business project in one of the targeted areas and create at least ten jobs in the process.

Conclusion

Thus, economic citizenship and business immigration schemes are becoming important tools:

• For investors looking to expand their opportunities.
• For countries looking to attract foreign investment.
• To improve the economic situation and raise the standard of living for the population.

New opportunities for investors

The expansion of the number of regions opens up new opportunities for investors, providing a chance to use their funds to purchase commercial real estate. Initially, the investor receives a visa, and later, after about two years and upon meeting all the program's conditions, they have the opportunity to obtain a green card.

Property status

Let me point out that participants in this program do not become full owners of the property, but act as co-shareholders within a limited liability company (LLC). The number of co-shareholders can vary and range from 20 to 30 people, depending on the scale of the project.

This is discussed by Stasislav Zingel, the president of Gorden Rock. He also notes that specific projects are created by regional centers, which serve as a link between businesses and government agencies.

Reasons for investing

Although the income from such investments may not be the highest, the main motivation for investors considering the EB-5 program is not material gain, but the current opportunity to legalize themselves in the U.S.“Even if the expected return is around 5% per year, that is not the main factor.”“Zingel notes. He also adds that there are more effective methods for obtaining good dividends from investments in the U.S. economy.”

Visa application process

The visa application process can usually be done remotely; however, starting from the moment you receive the EB-5 visa, you need to be in the U.S. for more than 180 days a year. According to the expert, the minimum stay does not require you to be in the country continuously—you can travel, as long as you accumulate enough days in total.

In general, it is also possible to stop at the stage of obtaining a green card, which will provide legal status for living and working in the USA or for periodic visits to the country.

The necessity of a visa for property owners

A person who has become the owner of a luxurious mansion worth 10 million pounds still has to go through the standard visa application process. There is a chance that at some point he may face a denial, which, in turn, would deprive him of the opportunity to see his magnificent home again, shares his opinion Peter Kovalenko.

Among his clients, there are many who dream of permanent residency in England and want to take advantage of the medical and social benefits that are intended for residents of a country that was once a colony. For example, the children of such clients have the opportunity to enroll in British universities at local rates, rather than paying significantly more as international students.

Advantages of Saint Kitts and Nevis

Saint Kitts and Nevis is becoming the perfect option for both those who wish to obtain citizenship (which can be done without leaving Russia by selling existing real estate after five years) and for those who hope for investment profits or simply want to enjoy life in the Caribbean.

On these small islands, which cover a total area of 261 square kilometers, unique real estate properties are being developed, while the quality of the residential complexes remains high.

Changes in legislation

Very soon, the minimum investment amount for obtaining citizenship will increase to $400,000.“This will undoubtedly lead to an increase in real estate prices,” explains Pyotr Kovalenko. “Currently, a 72-square-meter one-bedroom apartment in the Ocean's Edge complex costs $359,000, and there are already people interested in renting such apartments for $1,800 a month.”

The process of obtaining citizenship in the Dominican Republic

As for the Dominican Republic, the process of obtaining a passport here turns out to be less complicated compared to other Central American countries. A foreigner who purchases real estate worth at least $200,000 can expect expedited naturalization – which is quite fast by local standards.

“Local citizens value bureaucracy, so to expedite the collection of all necessary documents, it is advisable to consult local lawyers,” advises Alexey Vedenin from the agency “Apex Real Estate.” “This way, it is possible to obtain a residence permit in about four months, and after another year, citizenship.”

He also noted that self-registration can take a longer time.

Physical presence and document processing

Fortunately, even if the citizenship application process takes a long time, there is no need to be physically present in the country during this entire period. However, all documents will need to be processed and received in person. The standard procedure looks as follows:

• The citizen acquires real estate and immediately submits documents for a residence permit.
• During his second visit, he applies for permanent residency.
• On the third visit, he applies for citizenship and eventually receives a passport.

According to current legislation, a property owner whose property is valued at over $200,000 has the right to obtain citizenship just six months after the transaction. However, it is not advisable to rely on this timeframe, as it is still necessary to first obtain a temporary residence permit and then a permanent one.

Conclusion

In conclusion, economic citizenship represents a promising opportunity for those looking to broaden their horizons and protect their capital. Serving as a kind of financial policy, second citizenship can act as a sort of "backup airstrip" in a world where political and economic instability can suddenly impact everyday life.

Especially for Russians, many of whom already have successful businesses and do not plan to leave their homeland, having a second passport opens doors for unhindered movement and trade.

Real estate investments

Investing in real estate seems to be a good option for obtaining second citizenship. For example, the program in Cyprus offers foreign citizens who have invested...300,000 eurosthe opportunity to obtain permanent residency. This opportunity will undoubtedly be actively utilized by citizens not only from Russia but also from the CIS countries and the Middle East.

Business immigration schemes

Business immigration schemes also exist in other countries, such as the USA, where there is a program.EB-5Although there are downsides to this approach, such as the requirements for the length of stay in the country, the advantages of legalization and obtaining a green card significantly outweigh the potential risks.

Island nations

In addition, island nations like St. Kitts and Nevis attract the attention of Russian investors with their unique economic citizenship program. This makes them an appealing destination for those looking for a straightforward and possibly even expedited process for obtaining citizenship.

The future of economic citizenship

With the growing interest in economic citizenship, it is important to stay informed about changes in legislation and market trends. The future of risks and returns may be volatile, but the opportunity to become a citizen of another country opens up many new prospects — both for investment opportunities and for personal security. Ultimately, the choice is up to each individual, and a well-informed approach to these issues can yield significant dividends in the long run.