Methodology for Investment Migration Programs 2021 (Henley & Partners)

For those of you interested in indexes and citizenship and how the private companies make their assessment:

In constructing the Global Residence Program Index (GRPI) and Global Citizenship Program Index (GCPI) we have referred to multiple sources and experts to obtain and interpret the primarily qualitative data used. We have relied principally on the expertise of residence and citizenship analysts and the experience of investors and government officials. As a result, the explanatory power that supports the scores in the different categories is based on surveys, interviews with respondents, and opinions solicited from selected experts. Where possible, the subjectivity of the various factors has been assessed against publicly available data and widely accepted composite indicators.

The data for surveys and interviews has been consistently collected from a representative sample that includes respondents, experts on citizenship, and practitioners who have been involved in the design of qualitative research in global mobility and related spaces. The sample frame for respondents consists of existing and potential investors, their advisors, and government officials in countries that either already have, or are in the process of establishing, investment migration programs. Relying on potential clients means that the responses of those who decided against proceeding with any program are also included. It may also be noted that among our respondent and expert base are government officials and consultants engaged in investment migration programs that have been discontinued as well as those that are in the process of being established or reformed.

The factors that are analyzed in each of the indexes are as follows:

Global Residence Program Index

  • Reputation
  • Quality of Life
  • Visa-free or Visa-on-arrival Access
  • Processing Time and Quality of Processing
  • Compliance
  • Investment Requirements
  • Tax
  • Total Costs
  • Time to Citizenship
  • Citizenship Requirements

Global Citizenship Program Index

  • Reputation
  • Quality of Life
  • Visa-free or Visa-on-arrival Access
  • Processing Time and Quality of Processing
  • Compliance
  • Investment Requirements
  • Residence Requirements
  • Relocation Flexibility
  • Physical Visit Requirements
  • Transparency


Reputation relies on the perceptions of investors and advisors regarding the image of the countries in which they invest. This indicator is subjective by nature, but much like the Attractiveness Indicators employed by the IMD in its Executive Opinion Surveys, our intention was to allow our respondents and informants the space to consider intangible and unanticipated factors while assessing the reputation of destination countries.

Endeavoring to assess reputation is not new, and the relationship between reputation and outcome is a popular mechanism for assessing the competitiveness of organizations, cities, and even regions. Furthermore, the reputation of a country, much like the reputation of a corporate, is a historical indicator that allows its previous efforts to meet investor expectations to be assessed.

Quality of Life 

The assessment of Quality of Life (QoL) uses a wide range of methods to evaluate subjective perceptions of various sample groups in different contexts, as well as developing factors that are independent of subjective perceptions. Like Reputation, QoL could well benefit from considering investors’ experiences and what is particularly relevant to individuals who are interested in investment migration.

We are aware, moreover, that there are substantial institutional efforts in developing composite indicators for QoL — the United Nations Human Development Index is one of the most comprehensive (relying on life expectancy at birth, schooling, literacy rates, and gross national income per capita). These factors do not cover all civil and political liberties though; for assessing democratic values, Freedom House’s Freedom in the World report is a preferable indicator.

As our focus is also on investment, the World Bank’s Doing Business reports are pertinent, since investors may have to negotiate the regulatory environment of destination countries for a variety of economic activities. We have sought to anchor the framing of our questions in established indicators but recognize that such indicators do not always correspond to what is being assessed in the GRPI and GCPI.

Visa-free or Visa-on-arrival Access

The methodology for this factor is relatively straightforward. It aims to measure an improvement in the mobility of an investor, or their ability to enter additional countries visa-free or with visa-on-arrival access as a result of being a citizen of, or resident in, a particular jurisdiction.

For the GCPI this factor relies on the 2021 Henley Passport Index, which curates data from 227 different travel destinations (including countries, territories, and micro-states), collated by the International Air Transport Association, to arrive at the ranking. The Henley Passport Index compares data on the number of destinations that a citizen of a given country can visit without requiring a prior visa. A relaxed travel policy is worthwhile in itself, but it also characterizes a country’s political regime and the extent of its civil liberties.

While acquiring alternative citizenship is more directly linked to ease of travel, an alternative residence can also enhance the mobility of individuals. It thus also features as a factor that motivates residence investments and is included in the GRPI.

Processing Time and Quality of Processing

Processing time for applications and their quality of processing are two distinct aspects that are assessed differently. Some countries may offer a short processing time between lodging an application and issuing a visa or permit, but there may be uncertainties in administrative processes. In this regard, input from respondents has proved valuable: the responses and analysis thereof have verified the official or declared processing time and complemented the ‘hard’ data on actual processing time taken (namely, the number of days), including obstructions faced.


Countries have different procedures and varying due diligence requirements for profiling applicants (including criminal records and financial statements), sources of funds, the manner of fund transfers, and the vulnerability to abuse of the funds invested. The standard measures adopted are best practices developed by international associations and professional agencies for anti-money laundering, counter-terrorist financing, and anti-bribery and corruption. The EU, unlike the USA, does not have a joint or federal procedure for conducting due diligence, so EU countries differ widely in terms of their national rules. Clear information and frameworks regarding due diligence facilitate better risk assessments for potential investors. A more intensive due diligence requirement may be an advantage as this translates into less uncertainty in private investments. Since financial institutions usually engage in Know Your Customer audits regardless of the regulations of investment migration programs, they are less vulnerable than private investments. Vulnerability to money laundering in different sectors could, furthermore, be avoided in the presence of clear regulations.

Investment Requirements

The upfront investment amounts for residence differ in terms of amount required, nature of investment, and additional costs. For this indicator, we consider the required investment amounts. The range in the stated amounts is broad and the nature of the investment is not always left to the discretion of the investor. Options for different forms of investment are specified by the destination governments, largely depending on policy considerations and benefits to the respective countries. Generally, a country offering more choice in how to invest and requiring lower investment amounts (including additional costs) scores higher.

Because of the unique nature of citizenship-by-investment (CBI) programs, investment amounts are substantial, and the accompanying conditions do not allow much choice in the nature of the investment. There is a noticeable pattern to the investments required for CBI programs: the investment amounts are generally greater than those required by residence-by-investment (RBI) programs, there is usually a requirement or at least an option to purchase real estate, and there is usually a requirement or an option to make a non-refundable contribution.


This factor raises the question of the extent of the tax burden that a resident is required to bear for both corporate and personal economic activities. It is rare for a country not to impose any taxes on its residents. The only two countries in our indexes that have that distinction are Monaco and the UAE, since they do not impose personal income tax, property tax, capital gains tax, or net worth taxes. For all other countries, preferential tax schemes and tax waivers, and incentives for applicants with significant investments heavily influence the score arrived at for this factor.

Total Costs

The stated investment amount does not always constitute the total actual cost an investor must bear to acquire residence status. As the nature of investment differs considerably across programs, it is difficult to compare the total actual cost of investment. Programs that offer a range of investment options score higher in this sub-indicator. Some investors have, however, raised questions about the uncertainties and volatility of foreign markets and therefore the value of choosing options that appear to be safer. Generally, destination countries that reduce investors’ opportunity costs by providing a wider choice of investments or by offering incentive-based investments are considered by investors to be more attractive.

Time to Citizenship

The time it takes applicants to gain citizenship is one of the criteria for assessing a RBI program’s attractiveness.

This refers to the process of naturalizing as a citizen once already a resident, which is distinct from direct CBI. Countries that have appeal in this regard offer a relatively fast path to citizenship, mainly because the time it takes to naturalize is comparatively short. However, this factor considers both the formal time required and any physical presence requirements. Countries with prohibitive rules governing the transition to citizenship score zero.

Citizenship Requirements

This factor examines all the requirements to qualify for naturalization after the specified minimum time has been fulfilled, including physical presence requirements, additional investment requirements or other ‘commitment’ requirements, and other requirements to qualify for citizenship, such as language requirements and cultural integration tests. In some countries, the transition from permanent residence to citizenship is less demanding and there are minimal additional requirements. Other countries have stringent physical presence but few additional requirements.

Residence Requirements

None of the countries ranked in the GCPI impose demanding conditions of residence. Smaller countries keen on attracting investment use waivers or substantial reductions in residence requirements to their competitive advantage.

Relocation Flexibility

An assessment of the number of citizenship investors in the different countries reveals that a substantial percentage of them apply for the migration of family members with the intention of either settling in the destination country or keeping the option open in case they need to leave their home countries. For this factor, we evaluated first the number of investors who indicated their intention to relocate and compared it to the number of investors who have relocated, in order to gauge which countries are conducive to relocation. Subsequently, we assessed the factors facilitating relocation. In this regard, EU member states have a clear advantage because a citizen of an EU member state can consider relocating to another member state or to a choice of several additional countries that have agreements with the EU, such as Switzerland. Though such relocation is not automatic, the rules are well established, they provide clarity on how and when relocation to another EU member state is permissible, and the process entails lower information costs. Destination countries’ efforts towards enabling family unification, and the ease with which they deal with private property, reduce the uncertainties that relocation can entail. Furthermore, for citizens who can support themselves financially, EU law imposes very few restrictions on their freedom to relocate.

The rule of law plays an important part in informing investors’ choices in relocation: their confidence in an existent fair process for securing personal freedom, settling investment disputes, and the legal wherewithal to negotiate with government authorities, all point towards a higher score.

Physical Visit Requirements

This indicator assesses whether physical visits are required as part of the application process, usually for interviews, oath-taking ceremonies, and passport renewals, by evaluating the number of visits required and the bureaucracy of the processes that precede them.


The World Economic Forum’s transparency indicators for CBI programs are: public support, evaluation studies, availability of public data, and due diligence criteria. No GCPI countries publish evaluations of CBI inflows, but the other criteria inform the structure and content of the surveys, which inquired about access to clear information on application processes, including due diligence, and how funds are used. Although many investors wish to understand, and preferably choose, where their investments are used, investments are often deployed in predetermined ways, making it difficult to influence their use. The visibility of such contributions in domestic projects and the earmarking of funds influence investors’ decisions and perceptions of program transparency.

Circulating such information is advantageous as it enables investors to conduct meaningful risk assessments. Furthermore, the impact of investments on potential and existing businesses could influence business decisions. The pivotal aspects for transparency are program rules and regulations, and processes and their implementation in program administration.


Wealthy Britons step up citizenship shopping to thwart Brexit

Not surprising:

The number of British entrepreneurs looking to “buy” citizenship from countries offering visa-free access to the European Union has risen sharply, investment migration firms say, as prospects of a post-Brexit trade deal between Britain and the bloc darken.

Investment immigration firm Astons said it had seen a 50% and 30% year-on-year increase in interest from clients seeking Cypriot or Greek citizenship respectively this quarter, less than four months before UK passport-holders are likely to lose their rights to freedom of movement across the EU.

Henley & Partners also reported a rise in requests for advice on investment migration applications to Malta, Portugal, Austria and several Caribbean islands, which offer a range of residency rights, visa-free travel to the EU and citizenship to investors in local business or property.

Citizens of certain Caribbean sovereign states including St. Lucia and St Kitts & Nevis also enjoy preferred access to the EU, thanks to close ties with EU members as a result of historic, diplomatic and modern trade agreements.

“This isn’t about tourists. This is the UK high net worth community that have a constant need to travel to and spend significant time in the EU,” said Henley & Partners director Paddy Blewer.

“This is investment migration as a volatility hedge and a component in a high net worth portfolio value defence strategy,” he said, adding that volumes of client engagement were higher now than immediately after the 2016 Brexit vote.

Interest in additional citizenships is rising even as the European Commission examines possible steps to curb EU states selling passports and visas to wealthy foreigners, due to concerns it can help organised crime groups.

Cypriot residency can be secured in two months with a 300,000 euro ($351,870) property purchase. Securing citizenship takes six months and requires a minimum property investment of 2 million euros.

Reuters reported in December how some donors to Britain’s ruling Conservative Party had sought Cypriot citizenship including hedge fund manager Alan Howard.

“Both Cypriot and Caribbean investments are proving very popular … primarily driven by high-net-worth individuals (HNWIs) from the UK who have an eye on the future and life after Brexit,” said Astons spokesman Konstantin Kaminskiy.


Henley & Partners said its volume of engagement with clients seeking alternative citizenship or residence by investment climbed 40% in the first quarter of 2020 versus Q1 2019, before flattening during the COVID-19 lockdown in Q2.

But interest has rallied since July 1, with a 15% year-on-year increase in engagement to Sept. 10, as the end of the Brexit transition phase nears.

Henley & Partners’ Blewer said clients were increasingly drawn to Caribbean citizenship applications – which is likely to give them better travel access to the EU than Britain – but which have a lower minimum investment and a quicker approval process.

Saint Lucia citizenship, offering visa-free travel to 146 countries, can be obtained in around four months for a minimum investment of 76,152 pounds, data supplied by Astons showed.

For less than 40,000 pounds more, investors can obtain citizenship of St. Kitts & Nevis – and visa-free travel to 156 countries – in around 60 days.

In contrast, Malta offers citizenship in exchange for around 1 million pounds of investment, but the process takes up to 14 months.

Portugal, meanwhile, typically processes investment migration applications in three months but only grants EU residency to investors and visa-fee travel to just 26 countries.

“With HNWIs, time is often more important than what is essentially a small fluctuation in cost and many are looking to secure additional citizenship as fast as possible in the pandemic landscape,” Arthur Sarkisian, managing director of Astons, said.

EU authorities are under pressure to clamp down on investment migration programmes by member states.

Sven Giegold, a member of the European Parliament from Germany’s Green party, said these kind of citizenship sales “posed a serious threat to EU security and the fight against corruption” in the bloc.

“EU passports and visas are not a commodity. Money must not be the criterion for citizenship and residence rights in the EU,” he said.

Source: Wealthy Britons step up citizenship shopping to thwart Brexit

How Covid-19 is changing citizenship by investment

More in depth than previous post:

Before Covid-19 connections and money could buy almost anyone the right to live pretty much anywhere they wanted.

The industry known today as CRBI—citizenship and residence by investment—began in 1984 in the Caribbean island of St. Kitts and Nevis, which offered a passport to foreigners who “invested substantially” in their economy. Today, more than half of the world’s 193 countries will trade citizenship or residency for cash. The industry is worth up to $25 billion a year and has spawned a new class of self-styled global citizens. But it’s also attracted criticism from those who say passports-for-purchase turn democracies into havens for criminals and facilitate money laundering and tax evasion.

The pandemic has led to unprecedented border closures and travel restrictions. Experts say that’s helped the CRBI industry grow but it’s also shaking it up, as high net worth individuals turn away from traditionally prized passports like the US and towards countries with high-quality healthcare systems.

London-based CRBI advisory firm Henley & Partners saw a 49% increase in enquiries in the first two quarters of 2020 compared to the same period last year. A competing advisory firm, Arton Capital, saw a dip in interest in the first quarter of the year as the pandemic spread in Asia. But enquiries rebounded and have increased 25% since April according to founder Armand Arton.

The CRBI industry was growing before the pandemic, thanks to demand from wealthy individuals in developing countries like India or Nigeria, whose economic growth has outpaced their diplomatic clout, “which is what bestows visa-free travel on citizens,” explains Paddy Blewer, public relations director for Henley & Partners.

A millionaire from oil-rich Gabon, for example, needs to apply for a visa to enter Europe’s Schengen zone. But that process can take up to 60 days and evidence suggests that Schengen visa applications from Africa are more likely to get rejected. Instead, a second citizenship from a Caribbean nation would guarantee them visa-free access to Europe for $150,000. That’s merely a “rounding error” for Blewer’s clients, who typically have about $6 million of assets under management.

Because of Covid-19, Blewer and Arton say investors are looking for countries who are perceived to have dealt with the pandemic better than others. That applies to Germany, Portugal, Australia, and New Zealand. Essentially, if people can work remotely from anywhere in the world, says Blewer, they are asking themselves one question: If another pandemic comes around, “where would they prefer to be?”

Finally, more Brits, Canadians, and Americans, whose passports are among the most valuable in the world, are becoming CRBI applicants. Henley & Partners reports “a dramatic 100% increase in enquiries from US citizens in the first six months of 2020,” which Blewer attributes to economic instability and a poor handling of the coronavirus. US citizens aren’t getting ready to leave en masse, he says, but they’re looking to hedge their bets. In September, a US passport holder could only travel visa-free to 86 countries, down from 171 last year.

“What we have seen with the pandemic is a complete change in the power of a passport,” Arton says.

Source: How Covid-19 is changing citizenship by investment

Surge of Covid-Related Interest in Investment Migration from Citizens of Developed Nations

The citizenship-by-investment industry broadens its marketing to include those from developed countries:

The massive volatility driven by Covid-19 has pushed the steady growth in investment migration into overdrive, with a nearly 50% increase in enquiries overall as the pandemic coursed around the globe in the six months to June 2020 compared to the same period last year. While the surge in interest shown by citizens of emerging economies such as India and Nigeria is somewhat predictable, a fascinating turn of events is the growing attention from nationals of leading developed nations. Most notable is America, with a dramatic 100% increase in enquiries from US citizens in the first six months of 2020 compared to the same period in 2019, along with significantly greater interest shown by Canadians and UK citizens.

“The tumultuous events of 2020, including the unplanned pause during the Great Lockdown, have resulted in people reconsidering how they wish to conduct their lives and — for those fortunate enough — choosing where they want to live by opting for investment migration,” says Henley & Partners CEO Dr. Juerg Steffen. “The relentless volatility in terms of both wealth and lifestyle has resulted in a significant shift in how alternative residence and citizenship are perceived by high-net-worth investors around the world.”

In terms of the total number of enquiries made in the first six months of 2020, Indian nationals outstripped all other nationalities by a long stretch. Henley & Partners received 96.5% more enquiries from Indian nationals than Nigerian nationals, who were placed second, followed by Pakistan and, startlingly, the US.

Several countries that host investment migration programs rank high on prominent indexes such as the 2020 Global Peace Index (GPI), the World Bank’s 2020 Ease of Doing Business ranking, and Deep Knowledge Analytics’ Covid-19 Regional Safety Assessment ranking. For those seeking the comfort of an alternative residence option in times of crisis, New Zealand comes out on top, impressively ranking 1st in both the GPI and Ease of Doing Business index and 2nd in the Covid-19 Regional Safety Assessment ranking. Other secure alternatives for high-net-worth families are Singapore, which ranks 7th in the GPI, 2nd in the Ease of Doing Business index, and 10th in the Covid-19 Regional Safety Assessment ranking, and Australia, which ranks 13th, 14th, and 6th in the three indexes, respectively.

In terms of alternative citizenship options in Europe, Austria is the top option, ranking 4th in the GPI, 27th in the Ease of Doing Business index, and 8th in the Covid-19 Regional Safety Assessment index, while Montenegro ranks 69th, 50th, and 83rd in the three indexes, respectively. The GPI omits the Caribbean small-island nations, but St. Lucia ranks 93rd in the Ease of Doing Business index and 127th in the Covid-19 Regional Safety Assessment ranking, making it the Caribbean investment migration program of choice for high-net-worth individuals.

“Once ‘nice-to-have’ assets of convenience and privilege that enhanced travel freedom and provided vacation or second homes, alternative residence and citizenship have rapidly become ‘must-have’ essential assets, not just to survive, but to thrive in the 21st century,” says Henley & Partners Group Head of Sales Dominic Volek, who points out that 19 of the G20 nations offer some form of mechanism to encourage inward investment in exchange for residence rights. The 20thmember is the EU, and 60% of EU member states offer investment migration options.

Source: Surge of Covid-Related Interest in Investment Migration from Citizens of Developed Nations

Nigeria’s wealthy use Henley in Caribbean passports for cash plan

More on the citizenship-by-investment industry:

A year ago, the office of Citizenship by Investment Program (CIP) in the small Caribbean island nation  of St. Lucia had received no applications from any Africans in its nearly five years of operations.

But in the past few months, it has issued up to 60 passports to Nigerians and is reporting steady increases in applications from the country—still its sole African market.

That sharp rise reflects spiking demand among Nigeria’s wealthy private citizens who are increasingly tapping into “investment migration” programs offered by foreign countries. The programs allow foreign nationals to obtain fast-tracked citizenship and passports or permanent residency permits in exchange for specified amounts of cash investments. The payment for the passports can come in form of direct “contributions” to the development funds set up by the national governments or through investment in real estate projects which offer the promise of not just passports but also possible profits.

With around 40,000 passports believed to have been issued through investment migration programs globally, citizenship by investment is now estimated to be a $3 billion industry. It is often favored by high-net worth individuals from countries with “weak” passports often from countries in sub-Saharan Africa and some Middle Eastern countries.

“What you have is a community of wealthy individuals who cannot travel without visas.”

Henley & Partners, the world’s largest investment migration consultancy, has also set up shop in Africa’s largest economy after seeing a sharp rise in demand from the country over the past three years. The office in Lagos is only Henley & Partners’ third in Africa, in addition to offices in Cape Town and Johannesburg opened six years ago.

“The reason we opened in Nigeria is because we saw significant potential in the market with growth in private wealth without global mobility for high net worth individuals,” says Paddy Blewer, public relations director at Henley & Partners. “What you have is a community of wealthy individuals who cannot travel without visas.”

That reality is best captured by the weakness of Nigeria’s international passport. In fact, Nigerian passport holders can visit two fewer countries now than they could in 2010 without first obtaining a visa. The country also suffered the worst decline in passport power over the past decade, according to rankings on the annual Henley Passport Index.

But even paperwork-intensive visa application processes have also gotten more complicated for Nigerians. Under the Trump administration, for example, US visa application fees for Nigerian applicants have been increased, an interview waiver process  for visa renewals for frequent travelers has been indefinitely suspended while a ban has also been placed on issuing immigrant visas to Nigerians. The net effect of these restrictions resulted in Nigeria recording the largest global drop-off in visitors to the US last year.

In search of improved international mobility, investment migration programs by Caribbean nations offer wealthy Nigerians and other citizens a legal and established workaround that ticks two crucial boxes: price point and access.

For instance, St. Lucia’s lowest-priced program, a “contribution to the national economic fund,” costs $100,000 for individuals and $140,000 for a family of four, as well as $15,000 for each additional family member. “That pricing model has really resonated well with the Nigerian community,” says Nestor Alfred, chief executive of St. Lucia’s CIP office. “A lot of our Nigerian applications consist of families.”

Other Caribbean islands including Dominica as well as St. Kitts and Nevis also offer investment migration programs with minimum costs of $100,000 and $150,000 respectively, a lot less than similar European programs typically cost. The US program issues permanent residence permits in exchange for investment ranging from $500,000 to $1 million.

But in addition to relative affordability, passports of Caribbean island nations also rank much higher than Nigeria’s on a global scale. For instance, St. Lucia passport holders have visa-free and visa-on-arrival access to 145 countries—more than triple Nigeria’s figure. And for extra context, St. Lucia passport holders’ visa free access allows them into the entire European 26-country “Schengen” area, the UK, and Switzerland.

Taking it up

With Nigeria’s oil-dependent economy battered by the pandemic and set for its worst recession in three decades, there are few indications interest in investment migration from Nigeria will slow down.

Nigeria and South Africa dominate demand from Africa and currently account for 85% of Henley & Partners’ business on the continent, with Nigeria growing rapidly with an interest in Caribbean-based citizenship programs.

That momentum will likely remain fueled by Nigeria’s super-wealthy with the country’s population of people with a net worth of more than $30 million—currently at 724 people—forecast to grow by 13%in the next five years.

But as it turns out, interest in emigration is not restricted to Nigeria’s super-wealthy alone. Over the past three years, middle-class Nigerians have also increasingly emigrated through skill-based programs offering legal pathways to residency and citizenship in Canada and Australia. In the last five years alone, the number of Nigerian immigrants issued permanent resident permits in Canada has tripled.

One distinction however is that high net-worth individuals who have earned most of their wealth locally are typically simply looking to boost their mobility options rather than permanently relocate. “What we’re dealing with people whose businesses and largely their wealth is derived from Nigerian investment—they’re not going to leave permanently,” says Blewer. “This is about being able to go where they want at the drop of a hat. It’s not about leaving Lagos.”


For tourism-based economies in the Caribbeans, investment migration programs offer a significant alternative to receiving foreign direct investment. And as recent history shows, with the Covid-19 pandemic paralyzing global travel and tourism, the revenue diversification opportunities these programs offer can prove vital. Indeed, after Hurricane Maria devastated Dominica in 2017, the government sought to shore up tourism deficits by reducing some of its processing fees to make its investment migration programs more attractive and in turn, provide much-needed funds to rebuild and boost the local economy.

But Dominica has also been caught in the crosshairs of a corruption scandal involving its passports program. Last year, an Al Jazeera investigation showed high-powered officials involved in brokering transactions to sell diplomatic passports to foreign business people suspected of corrupt dealings. Diezani Alison-Madueke, Nigeria’s embattled former minister of petroleum who is wanted for alleged corrupt dealings while in office, was identified in the investigation as one of the recipients of a diplomatic passport under questionable circumstances.

The scrutiny from such scandals amplify why investment migration programs claim to place a premium on due diligence. Even though it’s not legally required to, Henley & Partners says it carries out client verification processes, covering sources of wealth, and criminal history.

“We’re not interested in persons involved in military, government officials, or politically exposed persons. Our interest is more in executives and young professionals,” Alfred tells Quartz Africa. As such, the increased applications from Nigeria being primarily from private business executives across sectors, including banking, is ideal for St. Lucia because “it’s easier for us to determine the source of funds,” Alfred says.

Source: Nigeria’s wealthy use Henley in Caribbean passports for cash plan

Wealthy Americans invest in foreign passports, US visa loses lustre

Decline in value of US citizenship and its passport, according to the citizenship-by-investment industry:

There is a must-have travel accessory that wealthy Americans are buying this year: foreign citizenship.

A financial advisory firm specialising in “global citizenship” has been inundated by requests from US clients looking to “invest” in a foreign passport, reported The Washington Post.

The Toronto-based firm Arton Capital says that there has been a 30-40 per cent increase on last year in clients looking to obtain “a second citizenship and passport by investing in the economy of the host country.”

With severe outbreaks of coronavirus closing international borders to travellers from the US, it would appear a second passport has become the final refuge of wealthy Americans.

“This limitation of mobility has made more people aware of … the benefits of having more than one passport,” Armand Arton, president of Arton Capital told The Washington Post.

In response to the high community transmission rates, many destinations are refusing inbound travel from the US for all reasons but repatriation.

These travel restrictions have been put in place for public health reasons. However, for those with enough personal wealth, it might still be possible to buy their way out.

Some governments including Portugal, the United Kingdom and the Dominican Republic offer investment-based citizenship as through “job creation and capital investment by foreign investors”. Established to attract investment into local economies, these schemes are essentially passports for sale.

The cost of these “golden visas” ranges from around $100,000 for some Caribbean nations to over $3 million for passports within the EU.

“We’ve had Americans contacting us and saying, ‘Listen, I cannot believe that my American super passport cannot get me into as many countries as it used to before. What can I do?’ “Arton says. “That was never the case for us before.”

New Zealand also offers pathways to citizenship for investors, although notably there are requirements on the amount of time a candidate has spent in the country to qualify for an “Investor” class visa.

An applicant for a class 1 Investor visa must spend an average of 30 days in New Zealand a year over a three-year period, on top of a $2.5 million investment. Due to the closure of New Zealand borders since March to all but New Zealand residents, the process has become far more difficult.

However, this hasn’t stopped wishful thinking. In June the Herald revealed that 112,800 Americans visited the Immigration New Zealand Site, a spike of 160 per cent on last year.

Unlike other pathway’s to residency, many schemes do not require claim by heritage or even having to have ever stepped foot in the country, which makes them extremely appealing as an investment.

Residency via investment it is not a quick process. For most countries it can take months even years to have residency granted. Applicants and the source of their investments are subject to scrutiny.

“The one thing that we do have to explain to clients is this will take longer than you think”, says Paddy Blewer, PR director for Henley & Partners. Applicants are up to “hardcore investigation” not only by the country granting prospective citizenship, but also the agencies themselves.

Henley & Partners which helps clients with citizenship-via-investment programmes and also keeps track of the Henley & Partners passport rankings says they are very discerning with the clients they take on.

“We do that because we care about our reputation. We do that because we want to be around for the next 20 years.”

The US also offers a pathway to citizenship though investment via the EB5 visa.

The scheme which was established in 1990 was opened up to international investors willing to put between $1.3 and $2.7million into qualifying schemes in the States.

The USCIS has granted almost 80,000 paid-for visas via the programme, though demand for US citizenship via investment tailed off dramatically since 2016. The appeal of American citizenship began to lose its lustre, even before the coronaviurs pandemic.

Last month reports by the Passport Index and Henley and Partners Passport Rankings found a dramatic reordering in the value of international travel documents. Comparing passports by the number of countries offering visa-free to holders, the US passport in particular had suffered since the outbreak the Covid 19 crisis.

The Passport Index recently recorded a 20-place fall for the US passport, with 86 countries having put a coronavirus related ban on travellers from the US.

Source: Wealthy Americans invest in foreign passports, US visa loses lustre

Caribbean countries selling discount citizenship due to COVID hit

Of note. The citizenship variant of Gresham’s law in action:

Citizenship by Investment (CBI) Programs are not new to the Caribbean. Many countries in the region have been offering passports to wealthy foreigners in exchange for monetary investment for years, but with staggering post-COVID tourism losses, many passports have gone on sale. Among the countries to recently slash prices or make their CBI programmes more compelling are St. Kitts and Nevis, St. Lucia, Antigua and Barbuda, and Dominica.

St. Kitts and Nevis, which earns around 35 per cent of government revenue from its CBI programme, was one of the first Caribbean countries to begin slashing prices.

“In these days of Covid, when tourism is not happening, we have to find ways to create revenue to sustain our economy,” said Les Khan, CEO of St. Kitts and Nevis Citizenship Investment Unit, in a phone interview with Bloomberg.

St. Kitts and Nevis is currently offering a special deal through to the end of 2020. It entails paying a contribution of $150,000 to the country’s “Sustainable Growth Fund”, which will secure, for those who can afford it, passports for a family of up to four– a 23 per cent discount off of the usual cost of $195,000.

This is a great deal when considering the fact that St. Kitts and Nevis currently has the 26th most desirable passport in the world, out of 169 countries, according to the 2020 Henley Passport Index.

In May, St. Lucia cut the required CBI investment in five-year, non-interest bearing bonds in half, to $250,000 for an individual or $300,000 for a family of four. The “special offer” on these “Covid-19 Relief” bonds expires at the end of 2020. St. Lucia’s passport ranks at number 33 on the 2020 Henley Passport Index.

In Antigua and Barbuda, a family of four can become citizens at the bargain price of a $100,000 donation to its development fund. The government recently cut the price for adding additional children. Antigua and Barbuda’s passport ranks number 29 on the 2020 Henley Passport Index.

Pre-COVID-19, Dominica offered the cheapest citizenship by investment program in the world with the cost of second passports starting at only $100,000, but the price was scheduled to increase by 75 per cent, to $175,000. According to Dominica’s CBI website, “This major cost increase has now been put on hold indefinitely, although prices could increase once the COVID-19 pandemic is over so we encourage you to act fast.” Dominica has the 38th most desirable passport in the world, according to the Henley Passport Index.

The incentives seem to be working. According to Henley & Partners, a London-based passport broker, there has been a 42 per cent increase in citizenship applications.

“‘Investment migration’ has shifted from being about living the life you want in terms of holidays and business travel to a more holistic vision that includes healthcare and safety,” said Dr Christian Kalin of Henley & Partners.

Source: Caribbean countries selling discount citizenship due to COVID hit

The Ultra-Rich Are Now Buying ‘Pandemic Passports’ So They Can Move to Safer Countries

More citizenship-by-investment demand (so much for all being in this together and that pandemics don’t discriminate):

Wealthy travelers have been playing a game of “beat the ban” as countries have closed their borders to try to fight the Covid-19 pandemic. Getting it wrong can be very expensive, as one British couple recently learned. The pair bought two £10,000 ($12,000) first-class tickets to escape from London to Barbados, but they were so worried that British Airways would axe its service that they paid £100,00 ($125,000) to charter a private jet instead. (BA carried on flying.)

Now the super-rich are buying the ultimate insurance policy to make sure they will be able to travel to whatever virus-free, sunny bolt-hole they choose, if a second spike in Covid-19 infections triggers another global lockdown. The world’s wealthiest are snapping up multiple citizenships in countries around the world.

Henley & Partners, a London-based citizenship broker, is one of the biggest players in the nearly $4 billion-a-year “identity management” business (a.k.a. “passports for sale”). The firm’s latest figures show a 42 percent year-over-year increase in the number of people filing a formal application for a new nationality during the first three months of 2020. The number of inquiries is up by 25 percent.

“’Investment migration’ has shifted from being about living the life you want in terms of holidays and business travel to a more holistic vision that includes healthcare and safety,” Dr. Christian Kalin, the firm’s chairman, told Robb Report.

So, what exactly is convincing high net worth individuals that they need an escape plan? According to one Italian multi-millionaire who is critical of his government’s handling of the pandemic, the decision came down to two factors: the varying performance of national healthcare services and the closure of national borders, which has split up families. “We want to know there is a safe place, with good medical services, that the whole family can go to at short notice if we need to,” the millionaire told Robb Report. “Only citizenship can guarantee that.” Countries that have closed borders have continued to admit nationals returning home. Most national airlines have maintained some flights to major capitals.

The most popular “pandemic passports” or permanent residency programs are those of Australia, Antigua, St Kitts and Nevis, Tuvalu, Vanuatu, Austria, Switzerland, Portugal, Cyprus, Malta and Montenegro. All offer nationality or permanent residency in return for a direct donation to the national treasury or investments in local property or businesses. It can cost as little as $100,000 per family member in the Caribbean, rising through €1 million to €2 million ($1.1 million to $2.2 million) in Malta and Cyprus, to €7 million ($7.6 million) in Austria.

Australia and Austria are particularly attractive because they not only have high-quality national health services but the government of each country acted quickly to limit the spread of the virus. The United Kingdom, which has been a magnet for the super-rich in recent years and offers residency—but not a passport—in return for multi-million-pound investments, is not considered a safe haven because critics say the government botched its handling of the pandemic by reacting too slowly to the threat and failing to ensure the National Health Service was properly prepared.

Although having funds to buy multiple citizenships gives the rich an advantage in protecting their health and lifestyle, Kalin points out that the fees and taxes they pay are a source of much-needed capital for hard-pressed governments that now have to raise funds to pay for Covid-19 emergency economic bail-out programs. “Take Antigua,” he says. “It depends on tourism and now there is none and there won’t be for some time. It needs fresh sources of funds. Citizenship by investment is one.”

Source: The Ultra-Rich Are Now Buying ‘Pandemic Passports’ So They Can Move to Safer Countries

Malta: Henley and Partners’ profits rise by 500%, selling passports

A lucrative business:

The citizenship planning firm, Henley and Partners, has seen its share of distributed funds from the Individual Investor Programme (IIP) increase by over 500%, calculations by finds.

The firm is a leader in the process more commonly known in Malta, as the selling of Maltese passports.

Comparing the reporting by the Office of the Regulator for the IIP for the Third and the Fifth Reports (2016 – 2018), the firm has managed to make a significant sum of money through the IIP. The reporting period ranges between the 1st July and 30th June.

In the Third report which includes the profits from the start of the IIP to the 2016/17 reporting period, Henley and Partners managed to make €5.8m from their services.

The publication of the Fifth report last month, now shows that that this number has grown to €28.8m, 500% since the IIP process began

As with previous years, the sums of money that the firm receives come via a Suspense account which is set up to receive the financial contributions, property purchases, rents and investments generated from individuals seeking citizenship.  These elements are written into the Laws of Malta.

Once the individual(s) have made the Oath of Allegiance, these funds are then distributed under IIP guidelines. Henley and Partners is entitled to receive 4% of the contributions as well as 4% of the investments made under the Investment Requirement.

MEPs speak to Henley and Partners

The firm is by no means the only entity in Malta carrying out this process of ‘citizenship planning’ and it is clear from the reporting periods that Identity Malta generates more from the IIP. H&P are however a prime mover and shaker in the investment visa field, a field said to still be in need of proper regulation.

During their investigations into the murder of Daphne Caruana Galizia, and wider concerns about Malta, an EU delegation of MEPs from the Committee on Civil Liberties, Justice and Home Affairs, spoke to the firm trying to understand more about how the process works, and the firm’s role in it.

Malta and Cyprus are the only two countries which operate the ‘Golden citizenship programme’ within the EU, and according to their discussions with a representative of Henley and Partners, they found that they facilitate only 40% of the total number of applications for Malta.

With EU sanctions imposed on Russia and Russians being one of Malta’s citizenship clientele, the delegation raised concerns about a number of those blacklisted under EU sanctions who had managed to receive citizenship through their programme. H&P insisted that their due diligence processes were ‘very reliable’. The continued saying that the process is, ‘extremely serious and rather lengthy’ and that, ‘it is not easy to get citizenship rapidly’.

The representative added that they cooperate with the government and other organisations in cross checking the identities and backgrounds of those making applications.

The delegation report states that rejection rates for Russians have been going up and this is consistent with the 25% overall rejection rate that currently stands in Malta.

Applications are down but demand is steady

The latest regulator report shows that numbers of applications have dropped in the yearly reporting period, standing at 330, 47 less than the last year.

However, numbers from Europe remain high at 141 applications, 42.7%. Asia has also grown to 107 this year, 32.4%. This is 11%  greater than last and four times greater than 2015 figures (8.6%).

The Middle East has seen a 5.6% drop its numbers with only 26 applications made. Individuals from African states on the other hand, submitted 30 applications this year (9.1%), almost 4% more than 2016/17 reporting.

Overall, the number of approved applications was 223, making the total to June 2018, 961. This offsets the number of rejected or withdrawn applications which currently sits at 75.

Turning serious money into solid investment

Investment clients ‘are obliged to invest in a residential immovable property in Malta, either by acquiring and holding one having a minimum value of €350,000 or by taking one on lease for a minimum annual rent of €16,000.’ This is stipulated under the IIP Regulations.

Over this year’s reporting period, the total amount of property purchased as part of the IIP’s investment regulations sits at €29,600,500. This covers the value of 25 properties averaging €1,184,020 in value.

Sliema and St Julians are the most favourable places for this property, accounting for 72% of those purchased.

According to the 2016/17 report, there were 80 properties purchased, more than this year. The favourable locations of those properties remains consistent with this year.

Over 200 (231) other properties were being leased for a contractual duration of 5 years. This amounts to a total of €23,062,687.64, averaging €95,695.80 per contract and €19,139.16 per lease.

These leased properties are found across 26 different areas in Malta with Sliema and St Julians emerging as the most favourable again, 35% and 21% respectively.

Last year’s figures show that the number of leased properties was over double that of this reporting period. 483 properties were leased by investment clients. Their locations are also as varied as this year’s report.

They didn’t speak to me, they didn’t look at the reports

This year’s report opens with some criticism from the regulator, Mr Carmel DeGabriele. In his foreword to the report, he talks about his disappointment that members of the EU delegation that visited Malta, did not consult with him or look at the previous reporting or frameworks that the IIP use to vet potential citizenship candidates and use the funds.

He says that, ‘none of the fact-finding missions which came over to Malta from both the European Commission and the European Parliament as well as other institutions that have decided to criticize the running of this Programme have even bothered to request a meeting with the undersigned or any of the members of my Office or seem to have at least carefully studied any of this Office’s past Annual Reports before expressing in one way or another their deep concerns over this Programme.’

He also readdressed the question that the contributions that are paid in through the regulations go towards the country’s improvement.

‘It has already been spelt out that the income which the Government is and will be deriving from this Programme will in the coming months and years play an extremely important role in the country’s infrastructural boom and social development.’

Source: Henley and Partners’ profits rise by 500%, selling passports

Douglas Todd: Wooing the ultrarich with ‘Golden Passports’ and flattery

Good column on citizenship-by-investment schemes:

I regret to inform readers that few of you are likely to receive an alluring invitation to buy a “Golden Passport.” That is because you are not a “High-Net-Worth-Individual,” also known as an “HNWI.”

Chances are you are just not moneyed enough to be targeted by the glossy magazines, online ads and emails designed to entice a certain class of people to join the elite club of “global talent” eager to purchase their way into a new “opportunity oases,” or, as some of us still like to call them, nations.

No, since you are not worth many millions, if not billions, of dollars, you are not the market for the jargon, euphemisms and flattery that would otherwise urge you to advance the interests of yourself and family by becoming an international “investment expatriate” or “investor immigrant,” while being lauded as “the best and brightest.”

Instead, this exclusive circle of passport and visa purchasers is for the super-rich, especially those who don’t trust their own governments, who seek the “competitive advantage” of multiple passports, who are keen on avoiding taxes and who are looking for a haven for their families. Stable, clean welcoming Canada, and Metro Vancouver, are among the most sought-after destinations of this jet-setting club.

Alas, watchdog agencies are beginning to warn that some of these trans-national migrants also want to hide their ill-gotten gains. They are collecting second, third and more passports, or at least permanent resident cards, from multiple nations as they strive for an immigration status that can provide the real-world equivalent of what the game of Monopoly calls a “Get Out of Jail Free” card.

The number of investor migrants is expanding rapidly. Economist magazine says “thousands of passports are bought and sold every year, almost always by the wealthy. The number of commercially acquired residence permits runs into the hundreds of thousands.” It’s an industry that the public widely suspects of diminishing the rights and privileges of citizenship.

There is also gnawing worry the governments busy selling passports and visas — typically in exchange for an “investment” in government bonds, businesses or real estate in the value of anywhere from $200,000 to $2.5 million — are playing into the hands of international crooks, terrorists, money launderers and oligarchs.

The European Union has gained nearly 100,000 rich new residents and 6,000 new citizens in the last decade through poorly managed, semi-secret passport-sale schemes, says Transparency International and Global Witness. The watchdog organizations have concerns about Spain and Britain, but they’re especially alarmed by the European Union’s smallest countries, Cyprus and Malta — because anyone who buys a passport from one of these yacht-filled nations gains access to all 26 countries of the EU.

Canada designed one of the first investor-immigrant schemes in the late 1980s, which soon became known for luring hundreds of thousands of affluent Hong Kong residents to the country. And, along with the United States, Canada remains among the most popular destinations for ultrarich trans-nationals hunting for extra visas and passports.

Thousands of lawyers and immigration specialists now strive to ingratiate themselves with these upper-crust clients. The most influential firm promoting the value of trans-nationalism is Henley and Partners, founded by Swiss lawyer Christian Kalin, which has offices in 20 nations and claims to have created “the concept of residence and citizenship planning.”

Kalin is editor in chief of The Global Residence and Citizenship Review, a glossy magazine that sings the praises of the “aspiring migrants” who take advantage of extra passports and the mobility they provide. One glowing ad in his magazine pumps the value of paying to “secure your family’s future with European citizenship.” It features a posh father knotting the private-school-like tie of his son. Arguably the world’s second biggest firm centred on securing a safe haven for investor migrants is Arton Capital, which has its headquarters in Canada.

Vancouver-based Johann van Rooyen, who runs the Citizenship by Investment Research Consultancy, says the global rich are buying “powerful passports” because they want to have the potential to escape political problems, preserve their wealth, reduce their taxes and travel more freely to more countries.

“While political instability and violence forces most investor-class emigrants to physically move to their host countries, for many others a second passport is seen as an insurance policy against future risks. They prefer to stay in their home countries, but like to have an alternative in case things go wrong,” says van Rooyen, citing how high-net-worth migrants are worried about rising political danger, crime, pollution and authoritarianism in places such as the Middle East, Russia, China and South Africa.

“Many Hong Kong residents who left before the China takeover in 1997 returned within a few years, after they obtained a second passport (mainly from Canada),” says van Rooyen, explaining how a lot of migrants don’t actually move to the country they bought their way into. “And thousands of Lebanese Canadians returned to Lebanon after obtaining Canadian citizenship.” More than 250,000 people now living in Hong Kong, and at least 50,000 in Lebanon, have a Canadian-passport lifeline.

The federal Conservatives finally stopped Canada’s immigrant-investor program in 2014, after determining most of the affluent who took advantage of it didn’t intend to live in Canada and those who did paid few taxes while receiving free health care and subsidized higher education.

But Quebec’s buy-a-passport scheme continues to this day.

The Quebec Immigrant Investor Program — which attracts nine out of 10 of its millionaire applicants from Asia — does not actually lure many foreign rich to the French-speaking province. Instead, the vast majority of the roughly 5,000 migrants a year who exploit Quebec’s plan move to Metro Vancouver and Toronto, where their foreign-sourced dollars pump up the cities’ already high-priced real estate.

Radio Canada journalists this fall reported that fraud, forgery and money laundering are rife in the Quebec Immigrant Investor Program. And this appears to be the norm with many Golden passport schemes. More media outlets are beginning to detail the corruption in such programs, which often make it possible for high-net-worth individuals to evade taxes and in many cases the law-enforcement officials trying to track dirty fortunes.

Trans-national scoundrels, for instance, can dodge tax reporting rules in their home country by taking citizenship or residency in a second country and opening a bank account in a third, claiming tax residency in the second. The list of scams goes on. One Chinese investor caught up in a rare crackdown on immigration fraud in Vancouver was found with seven different passports.

The passport-for-sale industry needs to be more diligent in corralling abuse and pitfalls, say watchdogs. And so do receiving and sending countries. The Economist recently speculated about a possibly bad fate, for instance, befalling some of the tens of thousands of newly wealthy Chinese nationals, who have become the world’s leaders at snapping up Golden passports and visas

“Only about half the countries in the world allow their citizens to hold dual nationality. China is not one; and it has strict exchange-control rules,” warns the Economist. “It seems unlikely that all Chinese investment migrants have alerted the authorities to their plans, or gained permission to take their money out.”

Many politicians in the West have gone wild for passport-buying schemes, most of which are new. But law enforcement officials, the public and even the investor immigrants themselves are only learning now about the real price that may have to be paid for such dubious schemes.

Source: Douglas Todd: Wooing the ultrarich with ‘Golden Passports’ and flattery