In the wake of global financial crisis, countries are realizing the potential value of offering their residence and citizenship to foreign investors in return for hefty investments that will boost their ailing economies.
Coupled with this is a growing trend amongst wealthy individuals in obtaining a second residence and citizenship.
Global financial advisory firm, Arton Capital is taking the concept of a world without boundaries into the future. At the head of the institute is Armand Arton, a man with a dream to empower individuals and families to become global citizens.
“By attracting foreign direct investment countries attract liquidity, stabilise their public finance, their job market as well as the real estate market,” says Arton, CEO of Arton Capital, a Dubai based firm that specializes in international immigration and citizenship law for the wealthy. “By allowing high net worth individuals in their countries, they attract some of the most successful entrepreneurs in the world, which creates a tremendous knowledge spill-over.”
“On a macro scale, the immigrant investor programs contribute to improved trade links between sending and receiving countries, providing the economic benefits go in both directors,” he shares.
Not all EU countries immediately offer citizenship to eligible investors. Some countries are instead proposing new legislation that will allow them to offer residency to foreign investors.
For example, Portugal and Spain, who have much stricter immigration policies are now offering residency to people who invest in real estate projects in their country.
Bulgaria also modified their citizenship act to allow clients in their existing investor program who have already invested €512 000 in government bonds for 5 years, to speed up the process to citizenship in one year by doubling their investment. Hungary has granted legislation to allow foreigners who purchase €250 000 worth of government bonds without interest to quality for permanent residency in what has been described as a very simplified procedure. For a set pre-paid fee, clients can pay a reduced amount of €130,000, which will be used to finance the required investment amount for a period of 5 years.
However Arton adds that there are a number of other successful citizenship-by-investment programs in the Caribbean region that are growing in popularity due to their flexibility. “We have actually seen an increase in demand for such programs in the past 12 months. They are good alternative for investors coming from politically and economically distressed regions who need to secure a fast exit option for themselves and their families.”
It’s not just struggling EU economies that are using their passports as a method of attracting investors. Caribbean countries such as Dominica, St. Kitts, Nevis and most recently Antigua and Barbuda all offer citizenship by investments programs at a much faster path than their EU counterparts.
Europe, on the other hand, is represented mostly by the classic investment programs that lead to citizenship through residence.
Whether it is investment in government bonds, real estate, or business, the qualifying applicants and their families have to maintain their residency status for a certain number of years, before being allowed to apply for citizenship.
Arton Capital has advised over 1500 families and processed over US$ 1 billion in transaction and foreign investments over the years. As per Arton, they represent some of the top 50 wealthiest and most powerful people in the world as per Forbes and Wealth-X. “More than 35% of our clients are ultra high net worth individuals with over US$ 30 million in personal assets. Most countries who provide for immigrant investor programs have requirements for an entry level of net worth, so our typical client will have a minimum of US$ 5 million in personal net worth.”
The Antiguan program is a bit more restrictive in that it requires investors to physically spend one week per year on the island and will limit number of applications per year.
However competition amongst countries offering these investor visas is greater than ever so it’s important for foreign investors to choose wisely between the immigrant investor programs, as many seek long-term security for generations to come.
Dominica’s economic citizenship program is now more popular as it has the lowest investment requirements. Its government is considering to include select real estate projects as a viable investment channel for foreigners.
“Citizenship is also the business of the investor’s children, grandchildren and so forth,” shares Arton. “This is why citizenship by investment is recognized as a powerful tool for sustainable economic growth and development.”
“Obtaining a second residency and/ or citizenship has become a powerful and strategic tool, an asset with which to create a better ore stable and secure life,” Arton shares. “The global citizens movement gives people the opportunity to expand their options by providing a new life in countries that have better economy, education, social and political realities.
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