Insights
When considering citizenship by investment (CBI), the passport and citizenship is a major focus. You could simply make a donation to any sustainable economic growth fund suggested by the local government. However, the return on investment is of equal importance.
In fact, an increasing number of citizenship by investment applicants also wish to know what kind of return they will realize through their investment. This is only possible – ostensibly – if you opt for the investment route rather than the donation one. For the majority of CBI programs, this means investing in real estate. Alternatively, it can mean investing in a business.
In this article, we will examine the return on investment you should expect from citizenship by investment programs. Then, we will discover the best routes for the greatest return on investment.
When you seek a citizenship, you have the following investment options:
By far, the most commonly offered investment option is real estate. Usually, in this citizenship by real-estate investment programs, you will have to wait 5+ years before you can resell your property.
The table below offers a more detailed exploration of the requirements of these investment programs:
| Country | Minimum Required Investment Amount | Minimum Investment Period |
| Antigua & Barbuda | $200,000 | 5 years |
| Dominica | $200,000 | 3 years |
| Grenada | $220,000 | 5 years |
| Saint Kitts & Nevis | $400,000 | 5 years |
| Saint Lucia | $200,000 | 5 years |
| Türkiye | $400,000 | 3 years |
Another route to citizenship by investment in some countries is investment in a business. However, this is a less common investment option.
The following countries offer business investments:
| Country | Minimum Required Investment Amount | Minimum Investment Period |
| Antigua & Barbuda | $400,000 | Unspecified |
| Saint Lucia | $1 million | Unspecified |
| Türkiye | $500,000 (or establish a business employing 50 Turkish citizens minimum) | 3 years |
When you are unsure which option you should select, the experts at Vancis Capital can guide you toward the best investment option. They help you understand these requirements and limitations concretely to reassure you of your sound choice.
Through these types of programs, you may receive profits. For example, you may rent out these properties to begin recouping your investment. Alternatively, you could wait until your property's value increases to resell it. Meanwhile, the business investment option allows you to receive dividends if your business is profitable.
However, it may take time to realize a profit directly from these investments. This is partly due to the limitations set by local governments that restrict when you can sell these assets. Moreover, these programs may select specific real estate properties and businesses that may not be as profitable as you desire.
An exception is Türkiye. Their program allows you to purchase any real estate you wish. Plus, you can opt to establish your own company in any legal sector you desire so long as you meet their employee requirement.
Moreover, while you may be required to make a donation to buy a property or invest in a business, you are also free to participate in the local economy. Therefore, you can use your new citizenship to freely do business within your new country and perhaps even liaise with businesses in your country of origin.
Tax planning can help you profit from your new citizenship. The countries that offer these investment programs often have generous tax regimes that you can utilize to lower your overall taxes. In particular, inheritance, capital gains, corporate and even personal income taxes are typically reduced compared to your home country – particularly if you come from Western countries such as the USA.
For example, let us say you earn $1 million a year while living in New York. You may face up to 46% taxes. However, as an Antigua and Barbuda citizen, you would face zero personal income tax. Therefore, in this particular case, you would save around $460,700.
Though your home country may allow such business transactions, it would be best to avoid such strategies. In particular, you should avoid using them to illegally hide assets.
Conversely, opting to gain a new citizenship is fully legal and automatically gives you access to your new country's tax regime. Therefore, using the citizenship route to quickly transfer your assets is a safer option for you and your family.
If you receive citizenship by descent in one of these nations with beneficial tax policies, you will have access to these favorable taxes. However, receiving citizenship through descent may take longer than via investment.
Moreover, unforeseen political or even pandemics and epidemics may affect your application. According to reports, the Australian government rejected citizenship by descent applications during the COVID-19 pandemic. In such a situation, you may have to begin the process anew.
Meanwhile, citizenship by investment programs usually have shorter wait times. Usually, these applications take a year for governments to process them. Notably, St. Lucia has a 3-month processing period. In this regard, this citizenship route is a faster option that ensures you quickly gain access to your return on investment.
In this article, we discussed the investment options you can utilize to receive a return on that investment. Through these programs, you will benefit from a direct return from renting out real estate property, selling your property, or receiving dividends from your company. Moreover, you may increase your savings by using the local tax regime and tax planning. Yet whichever option you select, you should consider using the economic opportunities of this new country to quickly increase your wealth with greater margins.
With Vancis Capital, you can identify the citizenship option that will best suit your financial interests. With their guidance and impeccable internal due diligence process, you will secure the right investment option for you and your family.
Get in touch to discuss how we can help you with your citizenship or residency by investment goals. One of our investment migration experts will contact you to discuss your case. With over 16 years of combined experience our team has helped hundreds of families achieve freedom.
