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The new CBI index confirms more attraction from investors seeking dual nationality via Caribbean CBI Programmes

As shown in the image above, the Caribbean islands CBI programmes have reached an all-time high with their popularity ratings from investors. With the Caribbean nations leading the current trending and growing citizenship by investment programme industry, investors worldwide – primarily from Russia, China, the Middle East and Africa – are attracted to the concept of acquiring dual nationality via an affordable investment route that suits their needs.

A publication from the Financial Times released the 2018 CBI Index that ranks the world’s most active CBI programmes, crowning the Dominican programme as the most attractive on the market. The Dominican programme exceptionally scored perfect marks in five out of the seven pillars in which each programme is evaluated by. The top five places were allocated to all Caribbean nations confirming that as of 2018, the Caribbean CBI programmes are the most favoured programmes by the investors!

The pillars (areas) that CBI Index measures CBI programmes are the following:

– Due diligence
– Freedom of movement
– Standard of living
– Minimum Investment
– Ease of processing
– Citizenship timeline
– Mandatory travel/residence
– Due diligence

  • Independent researcher and architect of the CBI Index, James McKay, deems these the most critical factors of any investor’s decision-making process when choosing the right CBI programme to obtain their second citizenship. He explains that;

  • “The CBI Index is rapidly becoming the leading tool for investors to accurately measure the performance and appeal of global citizenship by investment programmes.”

    Throughout the CBI index special reports, the prime emphasis is falls on due diligence as this is the security and vetting procedures involved in each CBI programme ensure that morally questionable characters are excluded. The 2018 CBI Index highlights the due diligence process as a key component in differentiating the programmes.

    CEO of due diligence experts S-RM, Heyrick Bond Gunning, stated that it:

    “should be a staple of all CBI programmes that aspire to success and durability.”

    Echoed from 2017 CBI Index, Dominica remains the world’s best CBI programme due to maintained high levels of timeliness and simplicity in process, an affordable investment threshold, and a robust due diligence framework. This result is a great testament and success to the nation of Dominica as their CBI programme has withstood the challenges presented by last year’s hurricane season. Dominica further serves as an admirable example of how CBI funds are used to improve the lives of its citizens, such as the recently announced construction of 5,000 new homes, financed entirely by the CBI programme.

    With the latest upheaval over post-Brexit debates, this has ignited and raised awareness of the value of one’s citizenship and the certainty — or lack thereof — that it may hold. The impact of this can influence an inevitable result that freedom of movement is becoming a key element for investors to allocate their finances.

    To find out more, please head over to the official CBI Index website at www.cbiindex.com.

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Malta ranks first among all CBI Programmes for due diligence and compliance

According to the new citizenship index published by HF Corporation, Malta ranks first among all Citizenship by Investment programmes for due diligence and compliance. HF Corporation allocated a points-system to due diligence, being 7, and compliance, being 8. Out of a total 15 points, Malta scored the highest amount with a respectful 12 points, just scraping the win against Cyprus who secured a strong 11 points.
In this competitive marketplace, robust due-diligence standards, pricing befitting the offered benefits, smart processing and effective channelling of the foreign direct investment for the economic development of the countries and for the prosperity of their nations, will determine which programme will outperform the other. It is key to note that each sovereign country has, and should have, the right to design a naturalisation policy that works with their nation and their recipient governments.
REPUTATION
A programme’s reputation can be heavily influenced by ‘due diligence’ and the ‘compliance’ of the country with the accepted international standards. What is meant by reputation in relation to a programme is about how well the programme is perceived outside of the country. This could include regulators, institutions, intergovernmental organisations and other professionals. A prominent aspect that advances any programme is its transparency and through the responsibility of government agencies whereby the due diligence standards are set. These are done either directly or through professional due diligence providers, as a way of reflecting this transparency and boosting the reputation of programmes.
DUE DILIGENCE
As briefly mentioned in the above paragraph, due diligence standards are the standards opted by the governmental authority, in respective countries, who are responsible for all approvals of the citizenship by investment and naturalisation applications. These are to ensure that _“persona non grata”_ or otherwise known as, unwanted persons, are not admitted under the respective programme. Much of this includes but does not limit running background checks on the applicants and the source of their funds that may either be run by the government agencies or through third-parties, or a combination of all these practices may be opted.
COMPLIANCE
Compliance of a country’s citizenship programme with the international standards issued can somewhat but not wholly lie in due diligence practices. This may not always the same as the broader compliance of the country can vary with the international standards that also include the financial standards. With the compliance of a country’s financial system aligning with the international standards – which may not only be limited to differential tax rates – is another feature that, in addition, can ensure that the nationals of that country will not have to face additional scrutiny in the outside financial world.
METHODOLOGY
The HF Corporation have allocated seven points (7) to due diligence, while eight (8) points have been assigned to compliance. The methodology that is taken in to account is to determine compliance by the policies announced by task forces, financial advisory bureaus as well as the regional organisations. It is important to analyse and not under estimate all these factors as side by side, they can eventually have a combined effect on the global reputation of a single or even multiple programmes. The more transparent and the stricter the due diligence standards are made in the country will highly impact the reputation of a programme in the long term; the more the compliance of a particular programme with accepted standards, the greater the local, regional and global acceptance of the programme will be – and hence, more foreign direct investment into the respective country – thereby more utilisation of _“ius pecuniae”_ for the welfare of the indigenous population.
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The most recent changes made in the Spanish Golden Visa

The Spanish Golden Visa has undergone some modifications in its programme, making it more attractive to potential investors, highly qualified professionals, entrepreneurs, researchers and transnational displaced workers. In the recent years, Spain’s economy has experienced growth and stability, primarily because Russian, Chinese and Middle-Eastern investors have purchased property under the country’s Golden Visa programme.

Expansion of dependents who can accompany the investor

Prior to the changes, when the Spanish Golden Visa was launched in 2013, the requirements for an investor to expand the residency permit grant to their dependents was limited to family members who were their husband or wife and minor children.
However, the residence permit now entitles not only the husband or wife to accompany the main applicant on their application, but extends for people with similar relationship, such as, domestic partners.
Additionally, minor children as well as children of legal age who have constituted themselves a family unit, as well as the ascendants of the investor or of his spouse, the in-laws, dependent on them, are too granted with permission to accompany the main applicant as their dependants.
As the Spanish Golden Visa has broadened the scope for opportunity and possibility for investors to grant a residence permit to the following family members: domestic partner, spouse, couple, minor children, older children, ascendants of the investor and ascendants of the investor couple.

Elimination of the need to visit Spain to renew visa

Another change coming with the modification of the Spanish Golden Visa (residence permit for investors) relates to the requirement that investors must renew their permit either while residing in Spain or entering the country to renew the permit. This meant that the beneficiary of the residence permit would travel to Spain (if not already residing in Spain) at least once during the validity of the permit to be able to renew it later.
Nevertheless, the change recently introduced has eliminated the requirement for this need to travel to Spain. Now, beneficiaries can renew the permit without having ever stepped on Spanish soil. In this respect, the Spanish residence permit is equated to that of its competitors in the European market making it easier for beneficiaries holding the residence permit to travel through Europe without having to enter Spain to comply to the visa renewal regulation.

Residence permit extension increased to 5 years

Rather than investors having only their visa permit extended up to two years, a further modification has been included, coherently with the issue of not needing to travel to Spain at any time and making it even easier and more attractive for investors to subsequently achieve Spanish nationality: the duration of the residence permit has been increased once it has been renewed from two years to five years.

Initial visa validity increased to 6 months

By the entry into force of the Second Chance Act another modification has been made with the initial visa with which investors traveled to Spain to make the investment. To begin with, the visa duration period was issued to a restricted 60 days, even less than that of a Spanish tourist visa permitting non-EU members to enter Spain for 90 days. The new change introduced in this aspect extends the duration of this initial provisional visa by increasing it to a considerable 6 months. Moreover, this type of visa is applicable to those investors who despite not having formalised the investment (purchase of a home or property), have at least signed one of the contracts securing the deed prior to the making the investment itself and have deposited the money in Spain.
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PM Gaston Browne welcomes inquiry into mandatory vetting of Caribbean CIPS

Ranked first in the OECS (Organisation of Eastern Caribbean States) for citizenship programmes, the islands of Antigua and Barbuda have a lot to offer potential investors seeking a second citizenship. With a limited time offer of a $100,000 contribution up until 31st October 2018, the CIP of Antigua and Barbuda is becoming immensely popular.

As a result of its popularity, Prime Minister Gaston Browne of Antigua-Barbuda has stated:

“… that every application for Antigua and Barbuda citizenship by investment, under his administration has been subjected to the rigorous vetting process.”

Chief is it that all citizenship by investment programmes go through proper due diligence checks. This is and will continue to be an upmost priority as the question of proper due diligence has been a thorny issue, primarily for Caribbean CIPs. Bearing in mind that the due diligence worldwide will not uncover all negative information, efforts of the government are in action with high alerts on those who have committed acts against law via these thorough checks that are put in place.

PM Browne goes on to declare:

“In this regard, my government welcomes the initiative announced by Prime Minister Mitchell [of Grenada] as chairman of the Monetary Council. The position of Antigua and Barbuda has always been, and remains, that strict and intensive vetting is central to the credibility and integrity of the CIPs,”

The leader of the sovereign state of the Commonwealth, Antigua and Barbuda, continues:

“What occurs in one jurisdiction has an impact on all; it is, therefore, imperative that full vetting
of applicants, be carried out and that it be strong and intensive. In this regard, my government
and its authorities will cooperate fully with an inquiry into whether all countries are subjecting
to their applicants to vetting by the regional and international crime agencies, and the sooner
the inquiry starts the better.”

Not only is this a prime factor of safeguarding applicants and new citizens, it is essential that
consultancy agencies are in the scope of these meticulous vetting procedures. Coates Global
assures that all their authorised agents and qualified lawyers who assist with the programmes
have been certified by each country’s government, ensuring that they correlate to the citizenship
and visa legislations set in place, including vetting protocols.

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The latest Portuguese citizenship legislation updates

Launched in 2012, the Portuguese programme has been a popular programme amongst investors because of its low stay requirement, affordable investment options and the opportunity to acquire citizenship status after year six (if investors comply to the regulations set up for the Golden Visa programme).

As of recent, the Portuguese Immigration department (SEF) are planning to update its citizenship legislation by amending the length of years an applicant can obtain a Portuguese passport. Previously, as stated above, an applicant could opt to apply for settlement in Portugal after the sixth year of their Golden Visa. However, with the new citizenship legislation, the Portuguese programme has dropped this period down by one year. Applicants can now apply for a Portuguese passport after just five years as opposed to the previous six years.

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Moldova Programmes

Alongside Malta and Cyprus, Moldova is set to be the third country in Europe to offer a citizenship by investment programme in the coming months. Compared to its older counterparts, the Moldova programme is offering the most affordable route to citizenship in European region.

The financial requirements of the programme are for approved applicants to make one of the following contributions:

-€100,000 contribution in to the Moldovan Public Investment Fund

-€250,000 contribution in to an area of strategic development such as real estate or government bonds

The primary reason for the Moldovan government offering such reasonable and affordable contribution options is heavily dependent on the fact that Moldova is still not a member of the European Union. In contrast to the other two citizenship by investment programmes who are in the European Union significantly alters the pricing difference. However, the programme is not without its benefits as though applicants who are approved can relish in visa-free travel to over 120 countries including the Schengen Area. Additionally, investors contributions will drastically help the citizens of Moldova (including themselves) as the Moldovan government’s fundamental objective is to create long-lasting societal value for the Moldovan people. The government recently announced that the investment programme will help provide “valuable foreign direct investment that will enhance the daily lives of all Moldovans”.

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Montenegro Programme

The government of Montenegro have officially approved the launch of the nation’s citizenship by investment programme as of 1st October 2018. The programme is capped at 2000 applicants, granting those approved with a full Montenegrin citizenship in exchange for a secure investment in to the country. The programme is set to offer non-EU countries the opportunity to invest in a citizenship over the course of the next three years.

Perks of the programme are yet to be finalised with some benefits already confirmed, such as, visa-free travel to over 125 countries (including the Schengen area) and an accelerated application processing time that is confirmed to process citizenships at a given period of six months.

There are two routes of investment, which are the following:

– €250,000 investment in a government approved project in an under developed region of Montenegro

-€450,000 investment in a government approved project in a developed region of Montenegro

As the programme is still preparing for its launch, there may be slight amendments and/or adjustments. If so, we will keep you up to date with the latest news about the Montenegrin citizenship by investment programme.

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The Sustainable Growth Fund launched in St Kitts and Nevis

As of 1st April 2018, the ever-populare St Kitts and Nevis Citizenship-by-Investment Programme will launch and make available a new investment path for potential investors who seek a strong and secure path to obtaining a second citizenship.

Followed by the success of the Hurricane Relief Fund, St Kitts and Nevis have launched the Sustainable Growth Fund (SGF) that allows investors the opportunity to become citizens by making one of the following contributions:
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SINGLE APPLICANT: $150,000
MAIN APPLICANT + THREE DEPENDENTS: $195,000
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Rather than replacing the Sugar Industry Diversification Foundation (SIDF), both fund will coexist. The SGF will enable citizens an residents to thrive by streaming resources in to areas of health care, education, alternative energy, heritage, infrastructure, tourism and promotion of indigenous entrepreneurship.

Dr. the Honourable Timonthy Harris, Prime Minister and Minister of Finance in St Kitts and Nevis, spoke out upon announcement of the new fund:
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“St Kitts and Nevis will maintain their high standards of integrity, rigour and robust due diligence. We shall continue to refine our programme and will continue to strengthen our platinum brand.”

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The Impact of Brexit on UK residency via Tier 1 investor visa programme

On 20th March 2018, Theresa May confirms the alleged leave time and date from the EU to be at 11pm on Friday 29th March 2019. Having this date confirmed, many foreigners living in the UK, either on a BRP card, work permit or visa, have concerns regarding their residency status in the UK once Brexit takes full effect. A question on many foreign investors lips remains; what is the likelihood of this impacting UK residency via the Tier 1 investor visa*programme?

Luckily, the question has a fittingly great and simple answer: no changes are to be made towards the Tier 1 investor visa programme. Foreign investors, who are eligible for the programme, can apply and invest into the UK as they have done so before.
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The only noticeable change is that the immigration law firms (who deal specifically with these investor programmes) have seen a drastic increase in demand for them, especially from Chinese investors. With the Financial Times reporting that the “total Chinese investment into the UK reached £20.8bn in 2017”. This has continued to rise in 2018.
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Foreign investors see the UK as a prosperous investment due to the economic stability, international connections and educational prospects, as well as the UK being among the safest places in the world; regardless of any risks related to Britain leaving the EU.
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For more information regarding the UK residency via Tier 1 investor visa programme, please contact us through our contact form, call or email and we will get back to you as soon as we can.

*Often referred to as the UK “Golden Visa”

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PSU leader in favour of CBI programmes for St Vincent and the Grenadines

Mr Elroy Boucher, President of the Public Service Union (PSU), says he hopes that the Unity Labour Party administration can come up with measures to relieve the tax burden on Vincentians.

Compared to the other independent Eastern Caribbean States, St Vincent and the Grenadines remain the only countries without a formal citizenship by investment (CBI) programme.

The governing political bodies, the New Democratic Party (NDP) and the Unity Labour Party (ULP), are divided by the sheer volume of opposed opinions towards the CBI programmes, which have an immense affect on the taxes for their citizens as well as the government budget.

Mr Boucher endorses the CBI programmes as do the NDP, agreeing that by supporting the programme benefits, not only the citizens, but helps fund a significant chunk of the national budget. In contrast to this, the opposing ULP argue that the programme enforces and encourages a higher rate of passports to be sold on the black market.

Mr Boucher voiced his support for CBI programme at a PSU press conference on Wednesday 28th February 2018, saying;

“… I’ve heard the opposition put forward the suggestion that the government can make use of the citizenship by investment programme. And I just can’t understand the reluctance to get involved. Every OECS country is using this programme and it is financing a great part of their budget,”

Followed by;

“St. Kitts is the leader, I think, in this regard. It is financing a great part of their budget. This programme has allowed these governments to lower the taxes on their people… St. Kitts has been voted the least corrupt country within CARICOM. The least corrupt and they are running this programme,”

As quoted by Mr Boucher, he is “mind-boggled” by the ULP’s stance on CBI programmes and continued to add;
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“ … we elect you to govern and govern in a responsible way to make our living conditions better.”

The PSU union leader continued to debate that rather than taking the advice of the opposition, the government;

“would rather find ways of taxing workers, the citizens. And I am of the view that a responsible government needs to listen to all of the ideas and see how best they can put policies in place to relieve the burden, the financial burden of workers and their families.”

In its “People’s Budget” response to the national budget in January, the opposition restated its support for a CBI programme.