Citizenship by Investment Programs (CIP) are becoming increasingly popular with families who are looking to travel more often and dream to build a life in a country that offers more than their current one. People who come from countries that have a below standard education and healthcare and possibly have a volatile economic and political status dream of dual citizenship that can give them and their families an opportunity to increase their standards of living for generations to come.
The programs are obviously beneficial to individuals but if you have wondered why countries would open their doors to people from around the globe, the answer is simple. CIP programs give the economy a huge boost. The foreign investments received fund projects and create jobs that are much needed in the smaller poorer countries. Most CIP programs require an investment in real estate or funding of government projects. In some cases, this helps decrease poverty.
The Caribbean Islands of St. Kitts & Nevis were the first to develop and promote the CIP concept in 1984. There, the funds entered into the public sector from the economic citizenship program grew to nearly 25% of GDP in 2013.
In most cases, CIP programs are developed to assist the government and country to build a more diverse economy. The positive impact of these programs has been seen across many Caribbean countries. A recent study estimated that in 2014 investors were spending around two billion USD a year from around the world through foreign investments.
In Grenada, who recently restructured its program to facilitate obtaining a residency saw more than 25% grown in Q4 in 2018.
While poorer countries benefit from CIP programs immensely, well established thriving economies do as well. European nations like Portugal reported around 13% of its country’s GDP is from foreign direct investment. And reports have been published that the cumulative Foreign Direct Investments received in the U.S totaled $3.1 trillion as of 2015.
Economic growth is certainly an advantage but not the only one. When Dominica suffered severe hurricane damage the citizenship-by-investment program was used to restore its infrastructure. The CIP is a major source of the country’s income now.
Although these investments are attractive to countries and can truly boost the economy, governments are not giving them away easily. There is a rigorous vetting process and large investment numbers. Applicants undergo background checks and full financial and criminal evaluations. The process is simplified when using authorized agents like Citizenship Bay to help navigate the process and ensure the correct program is chosen. When choosing a second country for citizenship, due diligence must be done in order to get the application approved in a timely matter without unnecessary expenses.