Best countries for birthright #citizenship, 2022

From the citizenship-by-investment industry, interesting that Canadian advantages include, in addition to visa-free travel, no taxes on those not living in Canada and the ability to sponsor parents for permanent residency:

Parents today want better facilitation for their children and this is where the new trend of birth tourism comes into the picture. But better facilities are not the only motive of parents while giving birth to their children in other countries. They can also obtain second citizenship for their future generation with advantages like residences and passports.

So, if you want to know about the best countries for birthright citizenship to secure your children’s future, this article sheds light on countries that practice Birth Tourism.

  1. Chile: Chile is the most robust country that grants birthright citizenship. The nation has outstanding facilities like education, medical and secures 6th place on the best travel document globally. Chile acts on the jus soli abstraction when the outsider wants to give birth, and the child can automatically become a citizen of the country.The nation also practices the legal process after completing the Spanish language test and time for naturalization, which helps parents acquire lifelong citizenship and residency. The passport offered to Chileans has surprising and robust properties worldwide because citizens can access visa-free traveling to many countries like the UK, US, Japan, Canada, Europe, and Russia.
  2. Canada: Canada also facilitates birthright citizenship, as the child can automatically get their second passport after birth. The Canadian passport is laden with strong aspects that help citizens travel to approximately 190 countries visa-free. Not only this, but the nation is also well-known for its best education, health and citizens do not need to pay taxes if they do not live. All children with Canadian citizenship can also subsidize their families for permanent residency which acts as a major advantage.
  3. Mexico: Mexico like other countries also has many distinctive properties and amazing vacation places which makes it stand out on our list. The destination is lauded as the 25th best passport globally which offers the right of soil concept. Whenever parents decide to give birth in Mexico, the child can automatically obtain Mexican citizenship. Mexican citizens have the right to travel to many enormous destinations globally with visa-free properties. After becoming a Mexican, children who live for a stipulated time can apply for permanent residency along with their parents and grandparents after two years.
  4. Panama: Panama offers birthright citizenship to children with the help of the right to the soil principle. They have the best medical facilities with a provincial tax system for their citizens. The family members of Panamanian citizens can acquire their permanent citizenship in about 3 years after living there.
  5. Barbados: Barbados is a part of the United Kingdom, that provides birthright citizenship to the children born there. Barbadian citizens can travel across 140 countries without a visa with special access to the United Kingdom. Children also enjoy the complete right to healthcare, education, and social life, and if the parents have any British forefathers, they can apply for a British passport for their child too.
  6. Brazil: Brazil offers visa-free travel access to approximately 150 countries besides the right to the soil principle through birth tourism. The Brazilian passport secures the 20th position globally for providing the best facilities to its citizens. Apart from this, what makes Brazilian citizenship click with people is the parameters such as cheap and desirable environment to live in. Children who take birth in the country have access to all the benefits which include living, studying and working.

Final Verdict: If you are concerned about your child’s future then offering them a second passport, can help resolve your issues. All the mentioned countries have different and amazing rights to their citizens and dependents which make them an apt choice for birth tourism today.

Source: Best countries for birthright citizenship, 2022

They paid big money up front to immigrate to Quebec — but face wait times of more than seven years

Sometimes the focus on individual stories misses the broader picture of the Quebec investor immigrant program being a backdoor to immigrants seeking to live in Toronto or Vancouver (How over 46,000 wealthy immigrants took a back door into Vancouver and Toronto’s housing markets).

One of the better decisions of the previous government was to cancel the business immigrant program given the evaluation showed that “their economic performance and extent to which BIs [business immigrants] had economically established is low compared to other economic classes considered.” Census data largely confirms the limited economic benefits and earnings of investor immigrants:

Pakistani entrepreneur Nazakat Nawaz had the money, so the process of moving to Quebec as an investor to start a new life in Canada seemed straightforward.

The province wanted net assets of $1.2 million, two years of management experience and a five-year, interest-free investment of $800,000 entrusted with the province. That was in 2016.

It took 18 months for Nawaz to be screened and issued a Certificat de Selection du Quebec by the Quebec government so he could be referred to the federal immigration department to complete the processing of his family’s permanent-residence application.

Today, after investing hundreds of thousands of dollars and years of time in the process, the 45-year-old, his wife and their four children are still waiting in the United Arab Emirates, waiting.

“For the immigration department, it’s no problem to wait for a few years, but, for us, it’s our lives at stake,” says Nawaz, who has been running his own computer business since 2004.

His application was submitted to the federal immigration department in October 2018. His plan was to open an autobody shop in Quebec.

“Canada kept taking new immigration applications. If they didn’t have the processing capacity, why did they keep accepting new ones? It’s all because they’re greedy for more money. Just take our money and throw our applications in cold storage.”

The federal immigration department has been plagued by backlogs since the pandemic hit in March 2020, with global travel restrictions limiting the admission of newcomers and lockdowns hampering the processing of immigration applications here and abroad.

Like other provincial immigration programs for investor and entrepreneurs that vet and nominate their own applicants, those looking to migrate to Quebec must go through the same two-step process: Get a nomination from the province, then go through another round of screening and processing by the federal government to obtain permanent residence.

But Quebec-bound investors are facing a particularly long queue at both the provincial and federal levels.

The current processing time for the Quebec investor immigration program now stands at 65 months just at the federal end, up from 43 months in 2017. (The wait is six months for online applications and 25 months for paper applications in other parts of Canada.)

As of Jan. 23, there were some 14,000 people in the queue who had been referred by the Quebec government, most of them in the investor stream.

On the provincial front, the processing time has also crept up over the same period — from 21 months to 28 months, with a backlog of 1,075 applications in the system — compared to anywhere between four weeks and six months in other provinces, according to their websites.

In Quebec, that means the whole process adds up to a combined 93 months — more than seven years.

“Quebec sets its own annual immigration thresholds, and we receive more applications than the number of spaces that Quebec has allocated for the Quebec Business Class program,” said federal immigration department spokesperson Rémi Larivière.

“The number of applications that we process cannot exceed the number of spaces that Quebec has allocated for this program.”

After coming into power in late 2018, the Coalition Avenir Québec or CAQ reduced the province’s annual immigration intake by 20 per cent to 40,000. It set an annual quota of 3,400 for its business immigration program, which covers the entrepreneur, investor and self-employed streams.

It’s not known how much the delay to the processing applications is a result of the province’s reduced intake or COVID-related disruption with its federal counterparts. However, after failing to meet even its lower target during the pandemic, the Quebec government this year has raised it aims and wants to admit 52,500 new permanent residents, including 4,000 to 4,300 under its business immigration program.

According to federal officials, the overall backlog for the Quebec business immigration category has actually decreased in the past five years.

Due to the pandemic travel restrictions, at the request of the province, federal officials have prioritized the processing of applicants from Quebec who were already in Canada in order to maximize admissions to meet Quebec’s target. That hurts the business class applicants: “More than 95 per cent of applicants in the Quebec business class reside abroad,” said Larivière.

Alain Ayache, a spokesperson with Quebec’s Ministry of Immigration, Frenchisation and Integration, said the province’s admission targets are determined based on its immigration objectives and integration capacity to meet its “socioeconomic needs.”

“These targets were established to reduce the waiting periods for the applicants, more specifically by reducing the number of applications to the federal government waiting for permanent residence,” Ayache said.

Applicants under the Quebec investor program, meanwhile, are left confused and frustrated.

Before submitting a permanent-resident application to the federal immigration department, Nazwaz, like other applicants accepted by Quebec at the time, was required to deposit $800,000 for the five-year investment, either directly in cash or financed by paying a non-refundable fee — about $230,000 — to a designated financial institution. (The five-year term investment requirement has since been raised to $1,200,000.)

“We contacted the Quebec government and they said the federal government is responsible for processing and delays. When we contacted the federal government, they said Quebec gave them a quota to process applications,” said Nawaz.

“All I can say is they have ruined our lives. Everybody got their share of money and we are left with empty promises.”

Anup Kishin Gandhi was 45 when he applied under the Quebec program in 2018. A year later, he was selected and issued the selection certificate from the province. He immediately applied to the federal immigration for permanent residence.

“The stress is that when we started the process, I was 45 and I was expecting to settle by 50 and start my business, but today, I have no idea where my file is,” said Gandhi, now 49, who is from India but works in Abu Dhabi as a vice-president in human resources for a French energy company.

“Any delay is going to make it difficult for me (at my age) to start a business and to sustain. It would require a minimum four to five years to build a successful business. If I start something at 55, it’s near impossible.”

Gandhi said he has lived all his life in the United Arab Emirates but his family’s status there hinges on his job and they would have to leave and return to India if he is ever no longer employed there.

“I wanted my children not to have similar situations. Accordingly we all decided to immigrate to Canada, where there is security, safety and equal opportunities,” said Gandhi, whose 17-year-old twin boys, Maaluv and Mankush, have been studying French and were hoping to study medicine at McGill University.

Naween Verma said he applied to the same program in Quebec in 2015 and came to Canada for an interview two years later. After making his deposit, he got the selection certificate for his family and applied to the federal government in September 2017.

“Both governments are playing the blame game. Quebec already got our money and now they don’t care about us. The federal government thinks we gave money to Quebec, not them, so we are not a priority,” said the 50-year-old man, who runs a company in New Delhi that helps build infrastructure like bridges, roads and industrial buildings.

“We have already contributed so much money in the Canadian economy even before we get to go to the country. We don’t know what the future holds for us.”

Another Indian applicant, Preet Mann, 53, has paid $10,000 to hire a consultant to help with the application and another $15,000 just for the application fee under the Quebec investor stream. He has also sent his 21-year-old son to study in Montreal as an international student in preparing for settlement in the province.

The family was approved and issued the selection certificate from Quebec in 2017. By the end of that year, the federal immigration department confirmed the receipt of their application, which has been stalled since.

“We cannot deny that the global pandemic has disrupted the immigration system to some extent, but we had applied in 2017, surely a delay of more than four years cannot be attributed to the pandemic alone,” said Mann, who is the head of the marine department of a Japanese oil and gas company.

“The ever increasing processing times are creating havoc for cases like ours. We have given Canada our very hard earned money and there is no turning back for us now.”

Source: They paid big money up front to immigrate to Quebec — but face wait times of more than seven years

The Chinese Exploitation Of Turkish Citizenship To More Easily Obtain US/EU Residency Permits — Greek

Would be nice to have more data rather than just examples of advertising by immigration consultants. That being said, not surprising that alternate and backdoor pathways emerge:

In order to circumvent strict norms put in place by the United States, rich Chinese people are on the lookout for easier alternatives to acquire the US citizenship.

They have recently discovered that obtaining Turkish citizenship first would make it easier for them to acquire US citizenship.

Chinese websites and social media platforms are flooded with advertisements for obtaining Turkish citizenship.

These advertisements underline that the alternate way to obtain US Citizenship is by first obtaining Turkish citizenship which can be acquired through an investment of at least USD$250,000 in property.

The advertisements emphasise that it is possible to go to America and other western countries easily after obtaining Turkish citizenship.

The tagline of ads reads, “if you buy real estate, all your family members get their passports as gifts.”

As a result of China’s strained relations with the USA and many European countries in recent years, it has become difficult for Chinese citizens to obtain a residence permit in Western countries.

One Chinese real estate consultancy firms that deals with real estate sales from Turkey, emphasises in one of its advertisements that for Turkish citizenship, “Britain is the best springboard for settling in developed countries, such as the USA.”

The expressions used in the advertisements for Turkish citizenship published in China are as follows: “AFTER YOU BUY THIS, YOU CAN GO TO THE USA.”

The advertisements highlight the features of the Turkish passport: It can only be earned by buying a house for USD$250,000.

• It is a cheap and simple process, and it has two great advantages: It is the best springboard to go as an immigrant to developed countries such as the UK and the USA. After obtaining a Turkish passport, you can go to the USA as an immigrant with an E2 investor ID.

• E2 is a visa issued by the USA only to countries with mutual trade partnerships. After you get Turkish Citizenship, you can commute to and from the USA, you can live in the USA. Your spouse can work in the USA. Your children can study in American schools.

• Turkey is a country that has a trade partnership with the US. The E2 visa is the country’s most issued visa. It can take 500-600 people every year.

• If you get a Turkish passport, you can go to England with a business visa. The UK government allows Turkish citizens to engage in business. A 1-year commercial visa can be obtained on the first application. After five years, the right to stay in the UK indefinitely can be earned. After getting a business visa from the UK, your children can study in the UK. They can study for free in public schools.

• You can earn a Turkish passport with very simple transactions, just by buying a house. You don’t need to go yourself. If you buy real estate for 1.600 million yuan (USD$250,000), all your family members will be given passports. It does not ask for any documents. You can complete the transactions without leaving home.

It is recalled that a Turkish passport guarantees visa free travel to over 100 countries. You can get an E2 visa to the US with it.

Turkey has provision vide, in which a foreigner can obtain Turkish nationality on the basis of certain amount of investment in real estate, capital investment, by way of business generating employment for Turkish nationals, or by investing in Treasury bonds or any type of government loan instrument.

In 2018, with a legal regulation, the lower limit of real estate investment, which is one of the options for citizens of other countries to obtain Turkish citizenship, had been reduced from USD$1 million to USD$250,000.

However on January 06, 2022, the regulation on the ‘Implementation of the Turkish Citizenship Law’ was amended and the investment values were enhanced.

The Turkish government facilitated the regulation for foreigners to acquire Turkish citizenship in a bid to support the Turkish lira.

However, China is exploiting this provision of Turkey, whereby Chinese citizens are purchasing real estate in Turkey or making a fixed capital investment to obtain Turkish citizenship.

This is in order to bypass the difficulty its citizens face in obtaining the residence permit in western countries.

Source: The Chinese Exploitation Of Turkish Citizenship To More Easily Obtain US/EU Residency Permits — Greek

Pakistan to give citizenship to Afghan, Chinese and American Sikh investors

Hard to know how successful this citizenship-by-investment scheme will be in comparison to those of other questions as the Pakistani passport has limited visa-free travel privileges (number 88 on the passport index). One also has to ask questions regarding the risks of criminal or corrupt backgrounds of those who will apply:

The Pakistan government has decided to offer permanent residency to foreign investors, especially to fetch heavy investments from wealthy Afghans, Chinese and American Sikhs, Dawn reported.

In a tweet late on Friday night, Information Minister Fawad Chaudhry said: “In line with new National Security Policy, through which Pakistan declared geo-economics as the core of its national security doctrine, the government has decided to allow permanent residency scheme for foreign nationals. The new policy allows foreigners to get permanent resident status in lieu of investment.”

The government believes it will fetch billions of dollars in foreign investment by giving Pakistani nationality and proprietary rights to the foreign investors, the Dawn news report said.

An informed source said that the government wanted to attract heavy investments from the wealthy Afghan nationals who were presently investing in countries such as Iran, Turkey and Malaysia.

They said the government also hoped that US-based Sikh nationals would be happy to make investment in different sectors in Pakistan due to their attachment with Sikh religious sites in the country, the report added

Also, Prime Minister Imran Khan in his recent statements hinted that he wanted to attract top Chi­n­ese investors who relocated their industries to other countries in the region, according to Indo-Asian News Service.

The government also hoped that rich Arab nationals, who used to visit Pakistan every year for hunting purposes, would like to have Pakistani citizenship.

Source: Pakistan to give citizenship to Afghan, Chinese and American Sikh investors

EU looks to suspend Vanuatu from visa-free travel list over ‘citizenship for sale’ scheme

Of note. Welcome belated crackdown:

The European Commission on Wednesday proposed suspending visa-free travel between the bloc and the South Pacific nation of Vanuatu. The move, which would be a global first, is aimed at curbing the practice of offering “golden passports.”

In Vanuatu, foreigners can obtain citizenship and a passport in exchange for a minimum investment of $130,000 in the country. This in turn grants them easier access to other nations, including the 27 countries that make up the European Union.

The European Commission had issued a warning that it would take this step if Vanuatu did not alter its investment-for-citizenship program. The proposal now goes to individual EU member states for approval.

If the Commission proposal is adopted, it would end visa-free travel for anyone who has acquired Vanuatu citizenship since 2015. The ban will be dropped if the government amends the rules, the Commission said.

In the proposal, the EU executive pointed to the extremely risky nature of the scheme, arguing that it accepted essentially all applicants without sufficient screening, despite some appearing in Interpol’s security databases.

Cyprus, Malta also in hot water

The Commission said it is currently monitoring similar programs or planned schemes in several other countries, including Caribbean islands and the eastern European nations of Albania, Moldova, and Montenegro.

Similar programs in Cyprus and Malta, both EU members, are currently facing legal challenges from Brussels.

Source: EU looks to suspend Vanuatu from visa-free travel list over ‘citizenship for sale’ scheme

New One-of-a-Kind World #Citizenship Report Gives Switzerland Top Spot with Asian Countries Not Far Behind [for the wealthy]

For “global citizens” read the ultra-rich or plutocrats:

CS Global Partners, the world’s leading government advisory and marketing firm, has released its much-anticipated World Citizenship Report (WCR). The WCR showcases the World Citizenship Index (WCI), a distinctive tool that compares world citizenships from the perspective of a global citizen. The index’s methodology evaluates 187 jurisdictions across five key motivators defining citizenship for the global citizen.

The top scoring countries in the World Citizenship Report (WCR)

The top scoring countries in the World Citizenship Report (WCR)

Reliance was placed on official statistics to evaluate a score for the defined motivators of Safety and Security, Quality of Life, Economic Opportunity, Global Mobility and Financial Freedom. Backed by research from leading data banks, interviews and a survey undertaken by over 500 wealthy investors, the WCR looks beyond passport strength and emphasises pivotal factors that play a role in choosing the right second citizenship.

Micha Emmett, the CEO of CS Global Partners, said that the WCR stands apart from other reports in the industry because it “examines which countries offer the most benefits for global citizens, particularly in a post-COVID world where those that have the means are consistently searching for greater opportunities and better protection.”

“We wanted to capture what truly concerns and affects a global citizen,” she said. “When there are options to gain a second or third citizenship, the first question HNWIs mind is ‘where is the next place to be associated with?'”

“High-net-worth individuals must consider a myriad of factors when deciding something as monumental as where to obtain second citizenship and build a second home. While passport strength is, of course, an important component, it is also one that is subject to the greatest change as evidenced by pandemic related travel restrictions,” she added.

Results show Switzerland scoring the highest with 88.1, followed by Denmark (88.0) in second place and Finland, Norway and Sweden tied for third (86.9). Notably, global superpowers such as the United States did not rank in the top ten, symbolising a significant shift in what these economic giants can tangibly offer the global elite. Comparatively, Asiaemerged as a hub for economic prosperity due to its business advantages, particularly Japan, which ranked sixth and Singapore, which came in seventh.

Aside from analysing the performance of countries, the WCR looks at ways HNWIs protect and grow their wealth. This includes implementing an effective financial plan that considers inheritance and wealth taxes and investing in emerging valuable assets like cryptocurrency.

The report finds that citizenship by investment (CBI) is also an effective tool for the world’s wealthiest, and it has become a trend exacerbated during the pandemic. CBI offers an alternative and time-effective solution for those who do not have a marriage, descent, or naturalisation attachment to other countries. It ultimately enables applicants to obtain a second citizenship, often within three to four months, without any former ties to the nation, as long as they can pass a multi-tiered vetting procedure.

According to the report, entrepreneurs and business people actively sought investments that stood the test of time during the thick of lockdowns. While predicting the future isn’t possible, keeping abreast of global trends has enabled many HNWIs and global citizens to identify opportunities in places they may not have considered before. The WCR aims to bring these trends to light and make the second citizenship process simpler by compiling relevant data that most concerns affluent individuals and their families.

Source: New One-of-a-Kind World Citizenship Report Gives Switzerland Top Spot with Asian Countries Not Far Behind

How you can buy a British passport—the dangerous commodification of citizenship

Of note:

Last week, the UK Nationality and Borders Bill passed in the Commons. The Bill gave the home secretary Priti Patel the power to strip British people with dual nationality or born abroad of their citizenship without needing to warn them first. Three thousand miles away, in a conference centre in Dubai, a collection of lawyers, wealth managers, immigration experts and High Net Worth Individuals (HNWIs) were selling and shopping for visas and passports. The event hosted “the right advisers and government contacts” to help applicants “get ahead in life in countries such as Canada, USA, UK, Spain, Greece, Germany, Bulgaria,” including promising to hand-hold applicants through the UK’s investor visa process, where a £2m investment can be exchanged for long-term residency. Both events are representative of shifting currents in global citizenship. But who gets citizenship—and why? Who gets to keep it—and who doesn’t?

The commodification of citizenship began in the 1980s. When the Caribbean islands of St Kitts & Nevis attained independence from Britain, the economy was hindered by a colonial-era reliance on sugar exports. Selling citizenship represented a perfect economic opportunity. An existing resource with apparently unlimited supply, low overheads and limited human capital requirements, selling passports could deliver a direct injection of cash for the government. At $150,000 for a family of four, with no obligation to live or even visit the islands, the passports include access to tax-free income and visa-free travel to over 130 countries. For St Kitts and its customers alike—a diverse group of wealthy investors largely from developing countries from which travel is restricted—there seemed to be few downsides, besides potential displeasure from other countries.

At first, uptake was slow. But after a dramatic slashing of the EU import price for sugar in 2006, the Kittitian government enlisted the help of Henley & Partners, a London law firm, to give the programme a boost. Their influence was profound. In the following eight years, the percentage of St Kitts GDP derived from the citizenship-by-investment (or “CBI”) programme jumped from 1 to 25 per cent. Today, CBI is a booming international industry worth an estimated $3bn.

In short, St Kitts commodified citizenship, and Henley commercialised it. Now operated by around 100 countries around the world, CBI programmes offer a passport or residency permit in exchange for a one-time payment or a hefty real estate investment. Prices range from $130,000 for a single applicant (Vanuatu) to several millions (the UK) to schemes about which little public information is available (Switzerland, Austria). The innovation of CBI is in bypassing the linguistic, cultural or employment-related migration requirements usually tightly enforced by governments when the person involved isn’t incredibly rich. It has also spawned an entire industry. Search “citizenship by investment” on Google and a slew of adverts for agents, lawyers, due diligence firms and advisers appear, all hungry for their share of the application fee. There are even CBI influencers: Nomad Capitalist, a YouTube channel, garners millions of views each year for videos with titles like “12 Second Residence Permits with a Simple Bank Deposit.”

Source: How you can buy a British passport—the dangerous commodification of citizenship

Turkey’s citizenship-for-homes sales hit roadblock

Local inhabitants rarely benefit from these schemes apart from developers and realtors:

Record sales of homes to foreigners in Turkey, driven by a sharply falling currency and the promise of citizenship, are starting to slow after a new government rule aimed at tackling inflated prices, property experts say.

Property sellers and real estate professionals told Reuters that before the rule change some cheaper homes were being marked up and sold to foreigners for at least $250,000 – the minimum price for Turkey to grant foreigners a passport.

Some sellers were working with selected appraisal companies to inflate prices and secure citizenship for buyers, they said, with the difference between the market value and the price paid in some cases later returned to buyers.

But under a regulation adopted last month, the land-registry authority now automatically assigns appraisers to properties, thwarting collaboration that could lead to abuse.

GIGDER, an industry body that promotes Turkish home makers abroad, said that since Sept. 20 when the regulation was adopted, prices of some homes sold to foreigners have dropped by 30-45%, prompting some prospective buyers to walk away.

“This difference between construction companies’ sales prices and new valuations has led to distrust among foreigners,” said the head of GIGDER, Omer Faruk Akbal.

“We have since seen sales offices emptying out and presale contracts getting cancelled,” he said.

A construction boom has helped drive economic growth through much of President Tayyip Erdogan’s nearly two decades in power and, under the citizenship scheme, cash from abroad helped offset Turkey’s usually heavy trade imbalance.

Some 7,000 foreigners received Turkish citizenships via home purchases between 2017 and 2020, the government said last year.

The General Directorate overseeing land registries said it adopted the regulation in September to address “certain observed irregularities in the appraisal reports”.

Foreign home sales – mainly to Iranians, Iraqis, Russians and Afghans – reached an all-time high of 6,630 last month, official data shows, as a sharp falls in the lira made Turkish property more attractive to foreign buyers.

Last year net foreign investment in real estate was $5.7 billion, central bank data shows.

GIGDER’s Akbal expects construction companies to sell a record 50,000 homes to foreigners by year-end, though the new regulation might reduce that.

The sales have contributed to a broader rise in living costs for Turks that has weighed on Erdogan’s opinion polls: housing-related inflation was more than 20% last month, reflecting soaring rents, valuations and mortgage rates.

INFLATING PRICES

Ankara adopted the citizenship-for-homes scheme in 2017. A year later it cut the minimum price to $250,000, from $1 million, to attract foreign buyers and help alleviate the currency the crisis.

One property industry representative who requested anonymity said that before the regulation, properties worth only $150,000 could be reported to the land registry authority with a $250,000 price tag in order to secure citizenship for the buyer.

After the sale, the construction company would transfer $100,000 back to the buyer, the person said.

Ibrahim Babacan, chairman of Babacan Holding which works mostly with foreign buyers, said the new regulation was likely to lead to the cancellation of six of his 10 recent sales to foreigners.

“The customer buys the property with the aim of citizenship but when the appraiser reports a lower valuation, he cancels the contract,” he said, adding appraisers and builders often use different measurements in valuations.

While Babacan says the new rules will cool sales in October, the lira depreciation will keep foreigners interested. “You can buy a property in Turkey at a fifth the price in Dubai,” he said.

Source: Turkey’s citizenship-for-homes sales hit roadblock

Syrian’s Vanuatu passport cancelled after revelations about ‘honorary citizenship programs’ – 18-Aug-2021 – NZ International news

Of note:

In the midst of the pandemic, Vanuatu’s “cash for passports” scheme is helping to keep its economy afloat.

With its tourism industry smashed, the Pacific nation last year generated $175 million — 35 per cent of total government revenue — from its “honorary citizenship programs”.

However, after a Guardian investigation discovered that recipients included a “slew of disgraced businesspeople and individuals sought by police” — including Australians — the government is facing a tough choice between potential international sanctions or domestic economic pain.

Vanuatu’s first citizenship by investment scheme, known as “cash for passports” locally, was introduced in 2014 and has had several iterations since, including one intended to raise money after Cyclone Pam caused widespread devastation in 2015.

Many countries have similar schemes, including Australia, but usually, applicants are required to become permanent residents first and then only after a number of years do they become eligible to become a citizen.

Under Vanuatu’s scheme, successful applicants can become citizens within a matter of months and there is no requirement to reside in the country or even set foot on Vanuatu soil at all.

It costs around $US150,000 ($200,000) for a single application and more for couples and families. Most of the passports, which allow free access to any EU country, are sold to people from mainland China.

It has long been controversial, but the scheme came under increased scrutiny in July after the Guardian investigation was published.

Last week, the Vanuatu government revealed that the Vanuatu citizenship of a Syrian businessman referred to in the report, Abdul Rhama Khiti, had been revoked.

Vanuatu’s Citizenship Commission chair Ronald Warsal told the ABC’s Pacific Beat program the US government had imposed sanctions against Mr Khiti’s businesses just weeks after he had made his application.

“After the article came out in The Guardian and during the course of the investigation by our Financial Intelligence Unit [FIU] it was decided to have it revoked and money he has paid to be forfeited into government coffers,” Mr Warsal said.

He said the government was investigating more of those mentioned in the article and others that were not.

“It’s an ongoing thing,” he said.

“We want to ensure that people who come to Vanuatu, who obtain Vanuatu citizenship, are not wanted abroad [and] are not fugitives.”

Transparency International Vanuatu chief executive Willie Tokon said it was worrying that the Syrian businessman was able to get approval in the first place and that his citizenship was only revoked when the matter was raised in the media.

“My worry is how come we have all these allegations but the screening by [the] Citizenship Commission and Financial Intelligence Unit didn’t come up with this allegation,” Mr Tokon said.

He said if Vanuatu did not have the capacity to thoroughly vet applicants, it should seek help from Interpol and other agencies.

“If there’s no other way to do it, do it properly. If we don’t have the capacity, we have very strong support from the Australian government in terms of the AFP, they’re providing a lot of support. It needs to be done properly,” he said.

But Mr Warsal said the government had systems in place to do character checks.

“We do [make] the final decision but … it goes through certain processes,” he said, saying it was down to teamwork between immigration, the FIU and the police.

Economics professor Stephen Howes, from the Australian National University, said mishandling of the citizenship programs could have a couple of negative consequences for Vanuatu.

Mr Howes said Vanuatu could become seen as a “risky” country for banks to operate in, or even get added to international money laundering grey or blacklists, which would threaten the country’s ability to access international finance.

“That would further isolate the country and make it harder to form international financial links,” he said.

It could also diminish the value of Vanuatu passports, making it more difficult for Vanuatu citizens to travel.

“Vanuatu citizens might suffer as well if other countries decide that they don’t trust that someone with a valid Vanuatu passport is actually a bonafide Vanuatu citizen,” he said.

On the flip side, if Vanuatu did decide to scrap the citizenship schemes, then they would lose the revenue the country needs to support the population during the pandemic-related economic crisis.

Mr Howes said it was more likely the government would bring in reforms and tighten up the application process.

He said actions like cancelling the citizenship of those like Mr Khiti would show they “won’t take just anyone”.

“If they can show [they have a serious vetting process], that will instil more confidence into the scheme,” he said.

He said abandoning the “unorthodox” source of revenue would be a “really extreme step”.

Not everyone who wanted citizenship of another country and could afford to buy it was necessarily of bad character, he said.

“Think about the uncertainties in China, some people just want a safety net,” he said.

“The world’s a very uncertain place. So I don’t think it means you’re a criminal [if you want to buy citizenship].

“I think it could also mean you’re worried about the future of your country.”

Source: Syrian’s Vanuatu passport cancelled after revelations about ‘honorary citizenship programs’ – 18-Aug-2021 – NZ International news

Fleeing Hongkongers boost overseas property markets from UK to Canada

Of note from the citizenship-by-investment industry:

Hongkongers moving abroad have bought at least US$100 million worth of property since 2019, a year marked by unprecedented social unrest, according to a Hong Kong-based law firm.

The Harvey Law Group (HLG) found that Hongkongers’ preferred destinations are the US, UK, Australia, New Zealand and Canada. Their interest in finding a residency overseas or a scheme that paves the way to citizenship through investment has increased fourfold in the last two years.

“From our clients worldwide, since 2019, they have bought about US$1 billion worth of properties under various residency or citizenship-by-investment programmes, and Hong Kong contributed about 10 per cent of that,” said Jean-Francois Harvey, global managing partner and founder of the firm. Since 1992, HLG, which has 18 offices worldwide, has served about 12,000 clients and families who sought mobility via residency or citizenship schemes.

“This demand had been sustained. Pre-1997 we had a small wave of Hongkongers, but in 2019 we had a perfect storm, and easily there was fourfold growth,” he said. Each time the city faced a political crisis, there was a marked uptick in inquiries.

The type of person seeking a second passport or a residency abroad has shifted over the years too.

“The profile has changed a lot. Before 2019, a typical Hong Kong client would be in their 50s with kids aged in their late teens. Now, we’re looking at young 40s with kids between two and seven years old,” Harvey said.

“Before 2019, Hong Kong was never a passport market, because the Hong Kong passport is quite convenient to travel with, but lately we’ve seen a very big increase in the number of people asking for a new passport and to acquire new citizenship because they want security.”

The alternative passport option became more popular still after Beijing imposed a sweeping national security law seen by many as an erosion of Hong Kong’s autonomy and the freedoms afforded its citizens under the Sino-British treaty.

The various residency and citizenship schemes on offer have boosted the housing markets of destination countries, as buying property is typically one of the ways to gain permission to stay in a country.

“There are many benefits to the host country, including to the property market. In fact, since the outbreak of the pandemic, many more countries have been designing and setting up residence and citizenship-by-investment programmes to attract affluent investors and talent,” said Denise Ng, head of North Asia at Henley & Partners.

For Hongkongers, the top residency programmes are those offered by Thailand, the UK and Canada, while for citizenship, the preferred schemes are in Malta, Grenada and Dominica, according to the immigration consultancy.

“For international investors, wealthy families and entrepreneurs based in Hong Kong, citizenship diversification through investment migration will continue to be a robust solution to navigating ever changing circumstances. [It is] a win–win for sovereign states and investors alike.”

It is estimated that about 50,000 Hongkongers chose to leave the city in 2020, though this year the number is likely to decline by 4.6 per cent, according to UK-based Astons, which helps clients buy real estate and obtain residency and citizenship via investment.

“For many Hongkongers, emigration is being considered with a long-term view and so the real estate component of residency or citizenship through investment can be particularly preferable,” said Arthur Sarkisian, managing director at Astons.

“It provides a tangible asset that can bring a further return on their investment in addition to residency or citizenship. Or, in the case of the residential path, it can provide them with the firm foundation of a home when starting their new life.”

Source: Fleeing Hongkongers boost overseas property markets from UK to Canada