Which Investment Option Is Right For You?

In a globalized world, it is no longer necessary – or desirable – to be tied to the country of your birth. In fact, savvy high-net-worth individuals are beginning to realize the value of a second citizenship. Whether you desire a second passport to reduce your tax burden, diversify your portfolio, or simply set up a second home, there are many reasons to consider obtaining a second citizenship.

By far, Citizenship by Investment is one of the best ways to obtain that second passport. Considering there are many forms of these investments under this umbrella program, selecting the one that will meet your needs can be tricky.

During the course of this article, we will take a look at each of the investment options typically offered in Citizenship by Investment programs. In particular, we will discuss the requirements, strengths, and weaknesses of each option and which one will suit you best.

What Different Citizenship by Investment (CBI) Options Are There?

When it comes to Citizenship by Investment options, there are usually a number of options. Note that this is not universally the case. However, some countries only offer a few options while others such as Malta require a combination of investments.

Without further ado, let us look at the investment options typically offered in Citizenship by Investment programs.

Donation

The most common and straightforward way to satisfy the ‘investment’ part of a Citizenship by Investment application is to simply make a donation. The amount you will need to contribute depends on the country’s requirements and the number of applicants attached to your citizenship application.

Here are the common donation funds in Citizenship by Investment programs:

Country	Fund	Minimum Donation
Antigua and Barbuda	National Development Fund	$230,000
Dominica	Economy Diversification Fund	$200,000
Grenada	National Transformation Fund	$235,000
St. Kitts and Nevis	Sustainable Island State Contribution	$250,000
St. Lucia	National Economic Fund	$240,000
Vanuatu	Development Support Program	$130,000

As we have seen, the amount required to donate depends on the country. Nevertheless, you can expect to make a donation on the higher end of the $130,000 – $250,000 range.

Donation Pros

Here are the benefits of using the donation option:

• Lower cost: A benefit of donations is that they tend to be the least expensive path to a second passport. There are also fewer incidental costs than other investment methods.
• Less paperwork: They require less paperwork compared to other investment options.
• Increased development: While it does require a non-recoupable payment, you will indirectly benefit from the increased development of the country.

Donation Cons

Before you choose to donate to complete your citizenship application, you should consider the following risks:

• No returns: With this option, you are not making an investment that you can recoup – all donations are non-refundable.
• No control: You will not be able to control how these national funds will use your donation.

Real Estate Investment

Another popular pathway to citizenship by investment is purchasing real estate. Almost all Citizenship by Investment programs allow the purchase of real estate in order to obtain a second passport. Yet the value of the real estate you must purchase varies from country to country – as does the length of time you must hold the property.

Here are the details of these real estate programs:

Country	Minimum Cost	Minimum Holding Years
Antigua and Barbuda	$235,000	5 years
Dominica	$200,000	3 years
Grenada	$270,000	5 years
Malta	$757,200 (€700,000)	5 years
St. Kitts and Nevis	$400,000	7 years
St. Lucia	$300,000	5 years
Türkiye	$400,000	3 years

With the exception of Türkiye and Malta, all properties must be government-approved. However, that does not mean that you can simply buy any real estate in order to qualify for this Citizenship by Investment program. Besides, there are still a number of governmental requirements and regulations to satisfy.

Note: Malta requires physical residency.

Pros of Real Estate Investment

Here are the main advantages of this type of investment:

• Possible reselling: Unlike a donation, real estate is not a sunk cost. You can resell the property after the holding period and retain your citizenship.
• Possible profit: If you purchase the right property, you may even make a profit.

Cons of Real Estate Investment

The following are the disadvantages of this type of investment:

• Multiple fees: Compared to a donation, real estate investment involves more additional fees, such as property taxes and legal fees.
• Possibly low profit: The restrictions on qualifying properties may exclude prime options. Therefore, you may not be able to make as much profit as if you purchased this property purely for speculative reasons.

Government Bonds

Another method of obtaining Citizenship by Investment is through the purchase of government bonds. This route requires you to hold onto these bonds for a predetermined period of time, and then redeem them.

Citizenship by Investment countries that offer government bond purchases are St. Lucia at $300,000, which you will hold for 5 years, and Türkiye at $500,000.

Pros of Government Bonds

Here are the pros of using the government bonds route:

• No appreciation: These government bonds cannot depreciate. Thus, they cannot lose value – unless the currency loses value.
• Simple Process: You will not need to find a buyer to regain your investment after the minimum holding time.

Cons of Government Bonds

Here are the cons of selecting government bonds as an investment in your citizenship application:

• No depreciation: These government bonds have the disadvantage that they cannot appreciate since they offer no interest.
• Long holding period: They have a wait time before you can redeem them. This restricts your wealth’s liquidity.

Business Venture

Two countries permit Citizenship by Investment applicants to invest in a specific business. This type of investment has restrictions and requires a larger investment than other investments. In particular, the following countries offer a business investment path for citizenship:

• Antigua and Barbuda: If you select this country, you will need to invest $1.5 million as a single investor. As a group, you may each invest a minimum of $400,000 so long as the total is at least $5 million.
• Türkiye: To receive citizenship, you must invest in this country. You have two options: You can either invest $500,000 or create 50 new positions. Then, you may sell your shares after 3 years.

Pros of Business Ventures

When you use this citizenship route, you have the following advantages:

• Increased control: This type of investment allows you to decide how to spend your funds. Even if you have to select businesses from an approved list, you have the ability to influence the business.
• Possible profit: By investing in a business, you will have the chance to earn a profit.

Cons of Business Ventures

The following are the main cons of the business venture route:

• High fees: The process of investing in a business may have more and higher fees – especially compared to donations.
• Long process: From due diligence to the approval of your investment, it may be longer than other routes.