13 Citizenship By Investment Programs 2023: What to Know

13 Citizenship By Investment Programs 2023 

With the globalization of the U.S. market, it has become more common for taxpayers to want to acquire multiple citizenships. It can be because the Taxpayer travels between multiple countries frequently or the taxpayer prefers to travel to certain countries that are not as compatible with their own country’s passport, so they want to obtain a second passport. And, specifically for U.S. Citizens, the Citizenship-by-Investment programs help US citizens facilitate the formal process of expatriation from the United States. The Citizenship-by-Investment programs are programs that countries offer for non-citizens of their country in order to obtain citizenship in the country – simply by investing in the country’s economy. There are multiple different types of Citizenship-by-Investment programs, and which program works best for one taxpayer may not work best for another taxpayer. Let’s look at some of the basics of the Citizenship-by-Investment programs:

Which Countries offer Citizenship-by-Investment?

• • • Antigua and Barbuda

    • Austria

    • Cambodia

    • Dominica

    • Egypt

    • Grenada

    • Jordan

    • Malta

    • North Macedonia

    • Kitts and Nevis

    • Lucia

    • Turkey

    • Vanuatu

    • UK (Closed)

    • Samoa (Inactive)

    • Moldova (Closed)

    • Montenegro (Closed)

*Other RBI (Residency-by-Investment) Programs may also ultimately lead to Citizenship, such as the U.S. EB-5 visa.

Application & Background Fee

When considering which specific citizenship investment program a taxpayer may be interested in, it is important to understand the application and background fees (which are in addition to the investment component). The application and background fees can be significant, with their purpose being for the country to perform a background check on the taxpayer to ensure that they qualify for citizenship.

Investment Component

With a Citizenship-by-Investment program, the key portion of the program involves making an investment into the country’s economy. Depending on which specific Citizenship-by-Investment program the taxpayer is applying for, there are different types of investments that can be made — and the costs can range extensively. In some countries, the investment can be limited to under $250,000, whereas in other countries investment can reach into the millions of dollars, so it is important that taxpayers have a firm understanding as to what is required for the specific CBI program.

Refundable vs Non-Refundable Investment

With most of the programs, after a certain amount of time, the investment that the Taxpayer made can be refunded, presuming that it has not lost its value. With that said, some countries offer a reduced investment alternative, although these types of lower investments are typically nonrefundable.

Travel Component

Another important aspect of obtaining a Citizenship-by-Investment is obtaining a that fits the Taxpayer’s specific needs. Oftentimes, an important factor in determining whether one Citizenship-by-Investment program is preferred over another program is the strength of the passport — and which countries offer visa-free travel, and if so for how long. For many individuals, access to the countries within the Schengen Zone is a key alluring factor for selecting one country’s program over another.

U.S. Tax and International Reporting to the IRS

It became very common during the Covid crisis for taxpayers to want to consider having a Plan B, which typically meant obtaining a second or third passport. It is important to note that in the United States, there was also a lot of misinformation spread online about tax benefits. Unlike most countries, the U.S. follows a worldwide income/citizenship-based taxation model. This means that when a person is a US Citizen, Lawful Permanent Resident, or Foreign National who meets The Substantial Presence Test, they are required to report their worldwide income and disclose their global assets on various International information reporting forms. The reason why this is important is that when Taxpayers obtain second citizenship in a country that does not levy tax on a specific category of income and/or has not entered into any FATCA agreement with the United States, the taxpayer is still required to report the income and assets to the US government.

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