In his article, Philippe May from Arton Capital in Singapore, gives his insights on the latest changes in the citizenship-by-investment industry.
Philippe A. May is Managing Director at Arton Capital in Singapore
While the citizenship-by-investment (CBI) industry in Cyprus could be described as free-wheeling in the past, the council of ministers announced significant new regulations on 22 May 2018.
Most important is a cap of 700 naturalizations per year (2017 saw 1013 persons becoming Cypriots). Future applications will be subject to an enhanced due diligence, examination time increases from three to six months and the program will change its name and operate as «Cypriot Investment Scheme».
Changes Are Welcome
Earlier this year the government announced new regulations aimed at limiting the number of agents promoting economic citizenship. From an industry perspective the changes are welcome. Due to the sensitive nature of the citizenship industry a proper regulation by professional government bodies is key to success for every country which taps into the investor migration market.
Antigua and Barbuda – where the ruling government party just won elections with a landslide – also released changes to its already successful program: The minimum age for parental dependents is reduced from 65 to 58 years, and children below 18 years do not need to visit the Caribbean country for a minimum of 5 days any more.
Reduced Prices
More spectacular is a Limited Time Offer (LTO) under the real estate option: Until 31 October 2018 two applications (not single applicants!) from related parties can make a joint investment of $400,000 with each applicant investing 50 percent in order to qualify. Antigua and Barbuda already have a very attractive donation option of $100,000 (plus fees) for a family of four and will remain one of the most attractive countries for CBI.
At the other end of the world (and of the CBI spectrum) in an attempt to remain competitive with Caribbean rivals Vanuatu's Prime Minister has reduced the prices for «honorary citizenship» of his country: $150,000 for a single applicant and $200,000 for a married couple with children under 18 years.
A Double Oddity
However, these are not donation amounts which applicants need to pay directly to the government once their case is approved (such as the $100'000 in Antigua and Barbuda mentioned above). These are the amounts which applicants need to pay to their local agents in Vanuatu (who act as escrows) before approval.
They include agent and government fees – a double oddity: In the much more experienced countries of the East Caribbean donation amounts are only due after approval, and paid directly to the government. Vanuatu is also the only CBI country where the government determines the fees of its agents.
Fast-track to Citizenship
Moreover the above only applies for one of two programs, the Development Support Program (DSP) and only in greater China. Another, parallel running program in place is called Vanuatu Contribution Program (VSP), has different prices and is only marketed by a single exclusive agent.
Vanuatu will need to make further amendments to its CBI legislation if it wants to become a serious player among the increasing number of countries that welcome investor immigrants with a fast-track to citizenship.
