PIGGY has noted that investing in multiple residences and alternative citizenships with the additional passports and personal access rights that accompany them is becoming the norm, particularly amongst high-net-worth individuals (HNWI).
Generally, investment migration programmes provide numerous benefits such as (i) increased global mobility, (ii) improved access to premium education and healthcare, and (iii) expanded business opportunities.
Citizenship is the relationship between an individual and a sovereign state, defined by the laws of that state and with corresponding duties and rights. It implies the status of freedom with accompanying responsibilities.
On the other hand, dual (or multiple) citizenship is the result of the interaction of the laws of two or more countries. People can become dual citizens automatically by birth within a certain territory, such as the United States of America (USA), by descent from a citizen parent, by marriage, or after successfully applying for the citizenship of another country.
According to Henley & Partners, a global investment migration advisory firm, over 100 countries in the world have some form of investment migration legislation in place.
Citizenship by investment programmes provide families with the privilege of acquiring an alternative citizenship, which in turn gives them the right to travel freely to various destinations and to settle in another country.
More than ever before, wealthy individuals are pursuing citizenship options as the most effective way to access new opportunities. Due to political circumstances, citizens of many countries find it difficult to travel abroad and are confronted with visa restrictions each time they want to enter a foreign country.
On the other hand, nationals whose passports usually allow them easy access to most countries may still need to obtain a visa to travel to some countries or find it impossible to obtain visas due to temporary travel restrictions during trade sanctions and other geopolitical disturbances.
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They may also be significantly exposed to terrorist threats or other forms of hostility due to their nationality.
While residence permits are granted to investors and wealthy individuals in most countries, there are now only a few countries that have clear provisions in their laws for granting citizenship based on economic considerations and without residence requirements. Australia, Canada, Hong Kong, Monaco, Portugal, the United Kingdom (UK), the USA, Singapore, and Switzerland are examples of countries that offer residence permits to wealthy individuals and investors.
Other countries offer citizenship by investment programmes, sometimes also referred to as economic citizenship programmes.
The following are some key advantages of alternative citizenship or residence:
Personal Security: Cross-country access and mobility can be viewed as an insurance policy against economic and political uncertainties in the current precarious global landscape. Citizenship or a passport, particularly from a small, peaceful country, can save lives in times of political unrest, civil war, terrorism, or other delicate situations.
Investment in the future: In an unsettled, ever-changing world, acquiring an alternative citizenship is a wise decision and an investment for the future for yourself and family. According to Henley & Partners, while popular residence and citizenship by investment programmes vary by country, the top three chosen by African families in 2022 were the Portugal Golden Residence Permit Programme, the St. Kitts and Nevis Citizenship by Investment Programme, and the Antigua and Barbuda Citizenship by Investment Programme. Another exciting new trend is the expansion of the inbound investment migration market in Africa, with the launch of Namibia’s Residence by Investment offering — the continent’s second after the Mauritius Residence by Investment Programme.
More African countries are setting their sights on attracting high-net-worth individuals by providing residence and citizenship opportunities through investment migration programmes, which are an innovative financing tool and have the potential to transform economies by injecting essential foreign capital and encouraging sustainable economic growth.
In conclusion, investment migration is attractive to investors, who intend to maximise and stabilise their profits by diversifying their activities across more reliable economies, making this kind of investment a form of insurance against global volatility. What investment migrants hope to achieve are benefits within the host country (social security, economic stability, or tax savings) as well as the rights they secure in additional countries. For more insights, join a PiggyBankAdvisor WhatsApp Group (+263 78 358 4745).
- Matsika is the managing partner at Mark and Associates Consulting Group and founder of piggybankadvisor.com. — +263 78 358 4745 or [email protected]/ [email protected].
