In the race of possessing the world’s most powerful passports, the globe has become a playground for the rich and citizenship by investment a much sought-after commodity. Yes, passports are for sale for a substantial sum as many countries look for economic growth through the route of citizenship by investment. Being around since the 80s and 90s, this concept is definitely not new but in recent years it has seen a massive surge. With social media being a major contributor in promoting the travel industry, many feel the need for a stronger passport to avoid the hassle of obtaining visas.
The Popular Investment Migration Programmes
In 2014 the US ran out of immigrant-investor visas before the end of the fiscal year for the first time, owing to substantial Chinese participation. The wealthy population world over has a high interest in Caribbean citizenship as well. With the popular white sandy beaches coupled with low investment programs, a Caribbean passport provides value for money and quick processing times.
How They Work
The investment citizenship programmes vary depending on the country and mostly include the route of foreign investment in real estate and businesses or direct donations to a country’s government in exchange for a visa or passport. Such programmes act as significant economic drivers and are especially beneficial to countries that are struggling economically. It can also help these developing countries in terms of infrastructure and economic resources.
For instance, in St. Kitts and Nevis, the money generated from the citizenship by investment programme has been attributed to lifting the nation out of debt and fuelling a construction boom. According to the IMF, these programmes amounted to 14% of St Kitt’s GDP in 2014, and other estimates suggest that the programme may have accounted for 30% of the government’s revenue in 2015.
The Front Runners
Meanwhile, richer countries like New Zealand, United Kingdom, and the United States too are trading their passports for a price to boost their economy. Being ranked as the least corrupt country in the world in the Corruption Perceptions Index, New Zealand has become a popular option for many who hope for the rolling hills and peaceful country setting. While the US programme has the interest of investors looking for a stable economy. The US caps the total number of visas granted each year through the programme to 10,000, but the number of applicants exceeds that figure phenomenally.
Changing World Order Fuelling Growth
In recent years, with the economic and political changes around the world citizenship programmes are garnering interest from investors who are leaning towards multiple citizenships.
As per BBC reports, the events of Brexit further fueled the interest of the population in other citizenships, and even the 2016 US Presidential election has been a catalyst in the practice of purchasing passports.
The freedom of movement that these schemes provide has attracted many entrepreneurs and investors looking for business opportunities with lower tax rates.
People today want to live in more than just one place, they want freedom of movement and accessibility while they experience life as global citizens in the true sense. As this trend continues to grow, the rich are buying their way into countries making citizenship by investment a well-advertised industry while passports have become a hot commodity that continues to lure the rich.
