Economic citizenship explained

Economic citizenship can be used to represent both the economic contributions requisite to become a citizen as well as the role in which one's economic standing can influence his or her rights as a citizen. The relationship between economic participation and citizenship can be considered a contributing factor to increasing inequalities and unequal representation of different socioeconomic classes within a country.

Republican notions of citizenship

The republican model of citizenship emphasizes one’s active participation in civil society as a means of defining his or her citizenship.^[1] Initially used to describe citizenship in ancient Greece, the republican notion focuses on how political participation is linked with one’s indent as a citizen, stemming from Aristotle’s definition of citizenship as the ability to rule and be ruled.

In relation to economic citizenship, the civil participation discussed by Aristotle can be described as economic participation so critical to the capitalist system. Defining one’s ability to be a full citizenship by his or her economic participation will establish a variegated system of citizenship in which those who can contribute most to the economy will be better represented and have a broader range of rights than those who cannot contribute as much. Variegated citizenship represents the concept that those within a different regime or status receive different levels of rights and privileges.^[2]

Economic citizenship in theory

T. H. Marshall acknowledges this concept in his discussion on the relationships between social class, capitalism and citizenship. He argues that capitalism is reliant upon social classes which directly relates to differentiated concepts of citizenship.^[3]

Similarly, Alice Kessler-Harris discusses the relationship between one’s ability to labor, and his or her right to equal wages as a component of citizenship. Her central argument addresses how denying a woman the right to labor and equal wages limits her identity as a citizen.^[4]

The arguments by both of these theorists contribute to the notion of economic citizenship because they highlight both how economic standing and participation can be linked to one’s identity and privileges as a citizen.

Citizenship by investment

See main article: Immigrant investor programs. Citizenship-by-investment enables individuals to acquire an additional citizenship by making an exceptional economic contribution to another country.^[5] This can be done by successfully completing a citizenship-by-investment program (also referred to as immigrant investor programs). Most of these programs are structured to ensure that the investment contributes to the welfare, advancement and economic development of the country in which they wish to reside or belong to. It is more about making an economic contribution rather than an investment.^[6] These programs must be run in a manner which is legal and transparent, and in keeping with the constitution of the nation offering citizenship. This ideally should prevent corruption at the same time as giving the individual obtaining citizenship a sound legal right to their new citizenship.^[7]

Immigration and citizenship law specialist Christian Kälin created the term ius doni to describe this type of citizenship by analogy with the terms ius sanguinis and ius soli. ^[8] Kälin's analysis of the subject points out the increasing popularity of this method to attract high-value investors around the world.^[9]

Several countries are currently offering investors citizenship or residence in return for an economic investment.^[10] This is usually in the form of requiring a substantial investment, coupled with compliance, residence and language requirements, among others. These countries are very selective in the type of individual they will allow to gain citizenship, however these individuals are more often than not motivated by more than just capital gains, and are looking to invest in a country more substantially from a family, social or cultural perspective.^[11] Individuals who bring their family with them as dependents commonly contribute to the economy in a variety of ways, including paying for private schooling, purchasing real estate, extending their business and creating employment. Previously, the majority of countries with citizenship-by-investment programs were located in the Caribbean, for example Antigua and Barbuda, Saint Kitts and Nevis and Dominica. More recently in the European Union, Malta and Cyprus have developed successful programs.^{[12] [13]} It is estimated that each year, hundreds of wealthy people spend a collective $2 billion to add a second or third passport to their collection.^[14] It is estimated that in 2018, €100.6 million came in to Cyprus in revenues from the Cyprus citizenship by investment program.^[15]

Alternatively, countries may offer certain options to secure a permanent residence. Examples of countries offering such residence programs are the United Kingdom, Switzerland, Portugal, Bulgaria, Canada and Australia.^[16]

Economic impact

The economic impact of citizenship by investment programs is mainly a function of the monetary inflows as well as how such programs operate. The primary impact is generally achieved through an investment in the real estate sector of a country, which in turn can significantly boost local economies. In aggregate, this effect can be particularly strong for smaller economies.^[17]

The economic effect on smaller states can be illustrated when looking at GDP growth rates over time in Caribbean states for instance. The impact of such programs on a country’s economy is significant and can range from 5.1% to 14%. ^[18]

Possible advantages of citizenship-by-investment

• Better quality of life — Citizenship-by-investment programs often provide individuals with the ability to relocate permanently to another country to improve many aspects of lifestyle. This is significant in undesired scenarios and situations like war, political instability, or any form of civil unrest within a country.^[19]
• Mobility — A second, or even third, passport from a country with a high level of visa-free access gives an individual the ability to travel widely without time-consuming visa application processes^[20]
• Security — Securing the option to permanently reside or retire in a safe country. This alternative passport, most likely from a peaceful country, is critical when travelling and in times of political unrest, civil war, terrorism and other situations^[21]
• Education — Provides children with the ability to live, work, and study in multiple countries^[22]
• Financial planning — An alternative citizenship offers more privacy and economic security across banking and investment portfolios. Investors also enjoy tax breaks and the possibility of improved personal and corporate tax exposure^[23]
• Political certainty — Political uncertainty and antisemitism are factors that have contributed towards Americans seeking secondary citizenship. Acquiring alternate citizenship could offer individuals a certainty in the political environment of the country.^[24]

Possible disadvantages of citizenship-by-investment

• The time it takes to complete the process differs between countries and programs, and this can also be delayed by the time it takes the applicant to submit all the necessary documentation, which differs from country to country. For example, the time to citizenship in Malta or Antigua and Barbuda is typically between three and six months. Before Cyprus closed their economic citizenship program, it was possible to obtain citizenship in as little as 90 days. To qualify for citizenship in Canada, an applicant has to be physically present for an aggregate of three years in a five-year period.
• The level of investment required also varies between countries and programs. For example, Caribbean citizenship-by-investment programs require less of an investment than those programs in the EU. In Dominica the minimum investment required is USD $200,000 and St. Kitts and Nevis the minimum investment required is USD $200,000 in real estate
• Governments may change their policies or requirements at any time, or increase the investment amount without much notice. Applicants who have already submitted their documents may have to make the necessary changes to still qualify for the programs
• Generally, citizenship-by-investment programs have come under much scrutiny over the years, over concerns over a lack of transparency and accountability^[25]
• Certain governments may limit or prohibit the use of dual-citizenship

Overview of Citizenship-by-Investment Programs^[26] !!Malta EU - Donation !Saint Lucia - Donation!Antigua and Barbuda - Donation!Dominica - Donation!Grenada- Donation!St. Kitts and Nevis- Donation

Minimum Investment Required	USD $1,100,000	USD $100,000^[27]	USD $100,000	USD $100,000	USD $150,000	USD $150,000
Visit Required	Yes	Yes	No	No	No	No
Average Processing Time	1 year+	3 months	3 months	3 months	60 business days	4 months
Residence Required	Yes	No	5 days within 5 years	No	No	No
Oath of Allegiance Required	Yes	Yes	Yes	No	No	No

List of citizenships by investment

Current citizenships by investment

Current citizenship by investment programs include Malta^[28] (2014-^[29]), Saint Kitts and Nevis^[30] (1984-^{[29] [31]}), Dominica^[32] (1993-^{[31] [29]}), Antigua and Barbuda^[33] (2013-^[29]), Grenada^[34] (1997-2001, 2013- or 2015-^{[29] [31]}), Vanuatu^[35] (1996-1997 or 1998-2002, 2014-^{[36] [31]}), Turkey^[37] (2016-^[29]), North Macedonia,^[38] Bulgaria,^[39] Saint Lucia^[40] (2016-^[29]), Cambodia,^[41] Samoa^[42] (1991-1997, 2017-^{[36] [43] [44]}), Cape Verde,^[45] Austria,^[46] Jordan^[47] (2018-^[29]) and Egypt^[48] (2020-^[49]).

Former citizenships by investment

Former citizenship by investment programs include Scotland (18th century), Belize (1985-2001 or 2002), Ireland (1984-1994 or 1988-1998), Moldova (2018-2019), Cyprus (2007 or 2011-2020), Montenegro (2008-2010, 2015-2022),^[50] Comoros^[51] (2008-2018),^[52] Marshall Islands (1995-1996), Nauru (1998-2000 or 2002) and Tonga (1982-1996).^{[53] [54]}

See also

• Visa requirements for Maltese citizens
• Visa requirements for Saint Kitts and Nevis citizens
• Visa requirements for Dominica citizens
• Visa requirements for Antigua and Barbuda citizens
• Visa requirements for Grenadian citizens
• Visa requirements for Vanuatuan citizens
• Visa requirements for Turkish citizens
• Visa requirements for North Macedonian citizens
• Visa requirements for Bulgarian citizens
• Visa requirements for Saint Lucian citizens
• Visa requirements for Cambodian citizens
• Visa requirements for Samoan citizens
• Visa requirements for Cape Verdean citizens
• Visa requirements for Austrian citizens
• Visa requirements for Jordanian citizens
• Visa requirements for Egyptian citizens

Notes and References

1. Book: Leydet, Dominique. The Stanford Encyclopedia of Philosophy. Edward N.. Zalta. March 25, 2017. Metaphysics Research Lab, Stanford University. Stanford Encyclopedia of Philosophy.
2. Ong, Aihwa. Flexibile Citizenship: The Cultural Logics of Transnationality. Durham: Duke University Press, 1999. 217. Print.
3. Marshall, T. H. "Citizenship and Social Class." The Citizenship Debates: a Reader. Minneapolis: University of Minnesota, 1998. 93–111. Print.
4. Kessler-Harris, Alice. "In Pursuit of Economic Citizenship," Social Politics, vol. 10, no. 2 (summer 2003): 157–175.
5. News: Turak . Natasha . Villas by the sea: Rich Russians fleeing sanctions are pumping up Dubai's property sector . 7 January 2023 . CNBC . en.
6. Web site: How to get a second passport: "Citizenship by investment" is booming - BizNews.com. 2016-06-30. en-US. 2016-07-20.
7. Book: Government of Canada website . 2023 .
8. Web site: Investment Migration Council. investmentmigration.org. 23 August 2017.
9. Book: Kälin. Christian H.. Ius Doni: The Acquisition of Citizenship by Investment. 2016. Ideos. 9780993586637. en.
10. News: Towey . Hannah . From Thailand to Portugal, these are the 10 cheapest countries where you can buy citizenship or residency status for as low as $19,000 . 7 January 2023 . Business Insider.
11. Web site: IFC Review - The Global Citizen. www.ifcreview.com. 2016-07-20.
12. News: €120 million generated through IIP scheme, income for 2016 estimated at €80 million - The Malta Independent. www.independent.com.mt. 2016-07-20.
13. Web site: Cyprus Citizenship By Investment Remains Preferred Citizenship In Europe - Immigration - Cyprus. www.mondaq.com. 2016-07-20.
14. News: Where is the cheapest place to buy citizenship? - BBC News. BBC News. 3 June 2014. en-GB. 2016-07-20.
15. Web site: Investment Migration Insider Data Center. Insider. Investment Migration. Investment Migration Insider. en-US. 2020-04-24.
16. Web site: Quick Comparison of CBI/RBI schemes - Best Citizenships .
17. Gold and El-Ashram . Judith and Ahmed . A Passport of Convenience . International Monetary Fund IMF, FINANCE & DEVELOPMENT . 2015-12-01 . 52 . 4 . 26 June 2021.
18. Web site: Heather . Cover-Kus . Citizenship by investment: a lifeline for many small states . The Commonwealth . 26 June 2021.
19. Web site: Investing in Second Citizenship: Why is Second Passport a Smart Investment for High Net Individuals . Finance Monthly Monthly Finance News Magazine . 30 November 2022 . This is especially significant in worst-case scenarios like war, political instability, or civil unrest. It’s a valuable asset, emotionally and financially. It’s a source of satisfaction and pride knowing that the person can live and work in more than one country and is a legal citizen of both..
20. Web site: Citizenship Bay: Top eight passports that give you exclusive access to 150+ countries visa-free . Premium Times Nigeria . 24 June 2023 . 9 January 2023.
21. News: The Passport King. Clenfield. Jason. Bloomberg.com. 2016-07-20.
22. News: Citizenship for sale to the wealthy. Houlder. Vanessa. Financial Times. 29 June 2016.
23. Web site: Top benefits of citizenship by investment programmes. 2019-12-05. en-US. 2016-07-20.
24. News: Altchek . Ana . There's a surge in Americans applying for secondary passports. Political unrest ahead of the election and a rise in antisemitism are 2 major factors. . 7 August 2024 . Business Insider.
25. News: The High Price of 'Citizenship by Investment' in the Caribbean - Nearshore Americas: Premium Intelligence and Better Outcomes in Latin America Outsourcing. Nearshore Americas . 2014-09-09. en-US. 2016-07-20.
26. Book: Kalin, Christian H.. Global Residence and Citizenship Handbook. Ideos Publications. 2015. 978-0992781859. 406–409.
27. Web site: Saint Lucia Citizenship by Investment. live. 2017-04-23. Caribbean Trust. https://web.archive.org/web/20220106093620/https://ctrustglobal.com/caribbean-citizenship-by-investment-comparison/saint-lucia-citizenship/ . 2022-01-06 .
28. Web site: LEĠIŻLAZZJONI MALTA . 2022-02-26 . legislation.mt.
29. Web site: Insider . Investment Migration . History of Citizenship by Investment . 2022-02-26 . Investment Migration Insider . en-US.
30. Web site: Saint Christopher and Nevis Citizenship Act. best-citizenships.com.
31. Web site: History of Citizenship by Investment - Best Citizenships . 2022-02-26 . en-US. best-citizenships.com.
32. Web site: Commonwealth of Dominica Citizenship Act.
33. Web site: Antigua and Barbuda Citizenship By Investment Amendment Act 2016.
34. Web site: ICT . Ministry of . Welcome . 2022-02-26 . WebOffice GOG . en-gb.
35. Web site: Chapter 3 of the Constitution .
36. Web site: Insider . Investment Migration . 2019-01-16 . Remembering the Dead Part 2 - Citizenship by Investment Programs of Yesteryear . 2022-02-26 . Investment Migration Insider . en-US.
37. Web site: Acquisition Of Turkish Citizenship.
38. Web site: Република Северна Македонија - Министерство за внатрешни работи . 2022-02-26 . mvr.gov.mk.
39. Web site: Legal guide 2013 .
40. Web site: Citizenship by Investment Act No 14 of 2015.
41. Web site: Refugees . United Nations High Commissioner for . Refworld Law on Nationality . 2022-02-26 . Refworld . en.
42. Web site: Final Investment .
43. Web site: Origins and History of Citizenship by Investment - Best Citizenships . 2022-02-26 . en-US. best-citizenships.com.
44. Web site: Samoa Citizenship by Investment launched in 2017 - Best Citizenships . 2022-02-26 . en-US.
45. Web site: Cape Verde Law.
46. Web site: Austria Citizenship by Investment . 2022-02-26 . Henley & Partners . en.
47. Web site: Jordan Citizenship by Investment Program . 2022-02-26 . Henley & Partners . en.
48. Web site: Egypt Citizenship by Investment .
49. Web site: Egypt Citizenship by Investment Program Requirements & Benefits . 2022-02-26 . Vardikos.com . en-US.
50. Web site: Montenegro citizenship by investment extended until 2022 - Best Citizenships . 2022-03-05 . en-US. best-citizenships.com.
51. Web site: Comoros nationality law.
52. Web site: What happened to Comoros Citizenship by Investment? - Best Citizenships . 2022-03-05 . en-US. best-citizenships.com.
53. Web site: Origins and History of Citizenship by Investment - Best Citizenships . 2022-03-05 . en-US. best-citizenships.com.
54. Web site: Insider . Investment Migration . History of Citizenship by Investment . 2022-03-05 . Investment Migration Insider . en-US.