Abu Dhabi, the capital of the United Arab Emirates, recently introduced citizenship by investment program to attract wealthy expats. And this is great news for those who would like to reap the long term benefits of living in this Middle East country. But the United Arab Emirates is not the only country to boost investment initiatives in the COVID-19 era.
Citizenship-by-investment programs are increasingly sought-after since the past months, perhaps since the beginning of the pandemic. But we all agree that these programs are particularly intended for wealthy expatriates or, at least, those who can afford them. Indeed, to have a second passport or a second nationality, you need to meet certain criteria. Still, these programs provide such a wide range of benefits that many expats don't even feel the need to think twice, as the pandemic is creating havoc around the world.
In January 2021, the United Arab Emirates announced its new Golden Visa program intended for foreign investors and certain professionals. The special thing about this visa is that it allows have dual nationality. You are perhaps aware that the Emirati passport is among the world's 20 most powerful passports, according to the Henley & Partners index. Besides, who has never dreamed of settling in the United Arab Emirates, whether in Dubai or Abu Dhabi, to enjoy its quality of life, its high standard of living and all the benefits that it confers?
But citizenship by investment progams, such as the UAE Golden Visa, have certain objectives. It's not just about opening borders to foreigners and supporting immigration. The global health crisis has made many countries realise the importance of immigration not only for the labour market but also for the economy as a whole. Indeed, these programs mainly aim at stimulating the economy by encouraging foreign investment while offering a set of benefits. And in the COVID-19 era, not a single country can say no to foreign investment. So foreigners are the most welcome to set up companies or start-ups, buy property, or even make donations. It's worth noting that many of the countries offering citizenship by investment programs are insular nations or are cribbled with debt. Foreign investment is, therefore, the ideal way for them to survive.
Who is interested?
According to Henley & Partners, there's a significant rise in the interest in citizenship-by-investment programs since the start of the year. Most of the requests for information come from developed countries such as the United States, Canada, the United Kingdom, or even India and South Africa. But this is not surprising, given the impact of the pandemic on their economies and labour markets and their health systems and societies in general. With Brexit, the growing interest of the British in such programs is even less surprising.
Besides the British, Americans and Canadians are also interested in citizenship by investment programs. But what are their motivations besides having a second residence and a second passport? With the COVID-19 crisis, priorities have shifted. The financial crisis resulting from the pandemic made it clear that it's important to diversify your finances, investments and activities. For many, it's also about having a better quality of life, which includes a low cost of living, a relaxed lifestyle, safety, security, stability, access to education, and health care, etc.
Which are the most sought-after programs?
Caribbean islands stand out for their citizenship-by-investment programs, but according to the latest Global Residence Index, Saint Lucia has the best so far. Having the citizenship of Saint Lucia means that you can stay visa-free in 141 countries, including the European Union, for 90 days within a period of 180 days. Besides, foreign-earned income is tax-exempt. Another special thing about this program is that applicants have no obligation to travel to Saint Lucia once they have been naturalised. But that's not all! Saint Lucia's recently introduced a special COVID-19-related benefit. Foreign investors are eligible for citizenship by investing in 5-year government bonds and, and the capital will be refunded at the end of this period.
Antigua and Barbuda's citizenship by investment program is equally popular with a range of benefits. The most important part, perhaps, is that there is no income tax on the island. Also, once citizenship has been granted after five years, you are only required to spend a minimum of 5 days in the country. Antigua and Barbuda citizenship allows you to travel visa-free to 149 countries for 90 days over a period of 180 days.
But Vanuatu probably has the simplest and arguably the most attractive program. What's special about this program is that citizenship can be granted in 45 days maximum, provided you invest a certain amount of money in a development and support program. The investment amount varies according to your social status, that is to say, if you are single, a couple, or you have dependents. What's more, you don't have to be physically present to apply for Vanuatu citizenship. As in many of these insular nations, there's no income tax. So it's not hard to understand why these investment programs look so appealing to expats.
Several European countries, including Montenegro, Bulgaria, Malta, or even Portugal, also offer similar programs. Portugal, for example, is famous for its Golden Visa, thanks to which many expatriates of various origins have become residents and citizens over the years. But since the Brexit, the British seem keener about relocating to Portugal. This program is especially intended for non-European citizens, which is a good thing since the United Kingdom is no longer part of the EU. With the Golden Visa, Britons would be able to live, work and study freely in Portugal for an indefinite period.
