A publication from the Financial Times Special Report June/July 2017 A GUIDE TO GLOBAL CITIZENSHIP in association with CORPORATE STATEMENT MAP The 12 citizenship by investment jurisdictions Austria Bulgaria St Kitts and Nevis Antigua and Barbuda Malta Cyprus Cambodia Dominica Saint Lucia Vanuatu Grenada Comoros 2 JUNE/JULY 2017 CONTENTS June/July 2017 pwmnet.com Published by: Financial Times Ltd, Number One Southwark Bridge, London SPECIAL REPORT SE1 9HL +44 (0)20 7873 3000 www.pwmnet.com Staff members can GUIDE TO GLOBAL be contacted by dialing +44 (0)20 7775 followed by CITIZENSHIP their extension number. Editor-in-Chief Yuri Bender 6376 [email protected] Deputy Editor Elisa Trovato 6374 [email protected] Chief Sub-Editor Elliot Smither 6379 [email protected] Advertising James Newman 6332 International Sales Manager M: +44 (0) 7912163587 [email protected] Spencer Le Grys 6865 Business Development Executive [email protected] Adrian Northey 6333 Global Business Director [email protected] Senior Marketing Manager Raj Rai 6340 [email protected] Marketing Executive Dimple Khatri +44(0)20 7873 4028 [email protected] Publishing Director Angus Cushley 6354 Design Kostya Penkov 3255 [email protected] Production Daniel Macklin 4120 [email protected] Printed by Wyndeham Group in the UK Annual subscriptions: £415 | €525 | $675 Subscription Enquiries: tel: +44(0)20 7873 4240, 02 INTRODUCTION 14 A GLOBAL APPEAL [email protected] CBI schemes are attracting a huge amount of interest Host nations are receiving applications from peoples Change of Address Notification among wealthy families and the institutions serving of disparate cultures and backgrounds, united in their [email protected] them desire for a better life © Financial Times 2017 08 THE RESEARCHER 16 METHODOLOGY PWM is a trademark of Financial Times. “Financial Times” and The CBI Index is the brainchild of James McKay, a The CBI Index is built around seven pillars, “FT” are registered trademarks research analyst and consultant designed to satisfactorily measure global citizenship and service marks of the Financial Times Ltd. All rights programme features and jurisdictional desirability reserved. No part of this publication may be reproduced 09 WHAT, WHO, WHY, WHEN or used in any form of advertising without prior A look at what the CBI Index entails and who is likely 20 KEY FINDINGS permission in writing from the to find it useful The CBI Index’s key findings allow readers to either editor. No responsibility for loss occasioned to any person acting perform an overall review of the programmes, or or refraining from acting as a result of material in this 10 BECOMING A CITIZEN evaluate the pillars individually publication can be accepted. On any specific matter, reference Citizenship diversification, just like asset should be made to an diversification, can ensure that the onuses of appropriate adviser. Registered 24 INFOGRAPHIC Office: Number One Southwark citizenship never outweigh the advantages An overview of the seven pillars which form the CBI Bridge, London SE1 9HL, UK Index The Financial Times adheres to a self-regulation regime under 11 SELECTING CBI the FT Editorial Code of For the applicant, citizenship by investment can Practice: www.ft.com/editorial 26 COUNTRY PROFILES code represent freedom, safety and wellbeing A snapshot of the 12 countries which offer citizenship by investment programmes 12 DUE DILIGENCE The standards and the integrity of due diligence 31 PROGRAMME PROFILES checks form the bedrock of CBI programmes A closer look at the 12 citizenship by investment programmes which make up the CBI Index 13 NATIONAL EMPOWERMENT If the funds raised through citizenship by investment 38 COUNTRY SNAPSHOT programmes are properly allocated it can lead to a Key facts about the 12 nations which make up the CBI noticable upturn in a nation’s fortunes Index Published in youtube.com/ Professional Wealth @FT_PWM association with: FTPWM Management Group PWMNET.COM 3 CBI schemes can prove passport to stability in an uncertain world WRITTEN BY YURI BENDER huge amount of interest in the wealth INTRODUCTION planning community, looking to add tools to their armoury, and among CBI schemes are attracting a wealthy families searching for a range Today, especially since huge amount of interest of potential jurisdictions in which among wealthy families and to house their families and domicile Trump and Brexit, the institutions serving them, their assets, they have also attracted everybody is wondering controversy. but they are not without Their supporters say CBI schemes where they belong, how controversy help to make people more mobile, allowing those escaping persecution they fit in and how this he sense of geopolitical and harsh political regimes a greater instability fuelled by the number of options. Their detractors will affect the future of UK’s vote to leave the say they are aimed primarily at their children European Union and the Russian, Chinese and Middle Eastern subsequent election of tycoons who have acquired assets MICHA-ROSE EMMETT CS GLOBAL PARTNERS Donald Trump as US president has in questionable circumstances Tonly added to interest in Citizenship and are looking to escape justice by Investment (CBI) schemes. These by re-establishing their businesses entrepreneurs and wealth creators, fast-track routes to citizenship and elsewhere. and at another they are portrayed Legal practitioners second passports, in return for major In reality, most oligarchs, magnates expect many UK as an “enemy of the people”. Many employment-creating investments in and other politically exposed wealthy residents to seek to of these business people therefore tourism, agriculture and infrastructure, people know that they can easily fall obtain an additional have a plan B, involving a second passport with are offered by a variety of countries in out of favour with their government. advantages of EU citizenship for themselves and their the Caribbean, Europe and Asia. At one moment they can be perceived membership after families, in exchange for making While CBI schemes have created a to be legitimate and are revered as Brexit substantial investments in their new host countries. SAFETY AND SECURITY “CBI, more than ever is coming into its time,” says Micha-Rose Emmett, CEO of CS Global Partners, specialising in citizenship, residence, immigration and foreign investment law. “Today, especially since Trump and Brexit, everybody is wondering where they belong, how they fit in and how this will affect the future of their children,” with safety and security the main priorities for those looking to expand the number of jurisdictions they can potentially settle in. She says that while few Syrians thought about emigrating in 2011, today, most would consider the option of a second home country, if they were allowed access to it. “Some applicants derive from war-torn countries, or jurisdictions All images: Getty images: All that are unable to provide them 4 JUNE/JULY 2017 INTRODUCTION SPECIAL REPORT with basic freedom, and a second citizenship allows such persons to seek a better life,” suggests Emmanuel Nanthan, ambassador and head of the Citizenship By Investment Unit in the Commonwealth of Dominica, which launched its programme in 1993. But CBI does not have to be the basis of a wealth management strategy, as it is often touted in countries such as China and Russia, where it is the main service discussed at the proliferation of wealth management conferences. The wealth planning process should Nationals from countries The earliest CBI of a passport. look at family finances, business goals experiencing political or military scheme was lunched Due to current instability, Ms Emmett by St Kitts and Nevis including cross-border expansion instability have been interested, for believes everybody should be looking and tax liabilities, with the CBI option the last few decades, in acquiring at “diversification of nationalities”. potentially able to feed into some second passports to facilitate timely Some people, she says, have the family goals. emigration, he says, with Chinese and luxury of ancestry in their search for “Some clients want to start with the Middle Eastern nationals historically an alternative home country to the one goal of relocation of citizenship,” says seeking Canadian sanctuary. But they grew up in, while others have a Ms Emmett. “But it should be just one the main driver of securing second “range of options and price levels to factor, a piece in a puzzle for wealthy citizenships today is tax, he believes, help them diversify”. families, not necessarily the foundation with Cyprus and Malta proving among of their strategy.” the most popular jurisdictions for EVERYONE WINS For many clients, the attraction of both EU and non-EU nationals. Some Although the schemes are transactional establishing a new country of residence Caribbean centres, he says, offer and not meritocratic, offering can be a strong one. In our new world of quicker and cheaper CBI solutions. citizenship generally to those who tax transparency, tax optimisation has But the practicalities of some can afford to move, they “add value become less of a question of moving schemes can be questionable, he says. to both client and country,” believes assets to a low tax jurisdiction and more New “homes” can prove ineffectual Ms Emmett, with those applicants about structuring assets in the most if the new nationals do not actually benefiting from illicit money flows efficient tax residence, suggests Shelby move to the host countries. “In my quickly shown the exit door. du Pasquier, head of the banking and view, it is generally the actual residency Many countries use international financial services practice at Geneva in the appropriate politically stable, due diligence agencies to trace the lawyers Lenz & Staehelin and one of financially affluent country, offering an origins of funds and assets and Switzerland’s leading experts in tax appropriate tax environment that offers establish legitimacy, with jurisdictions and financial services.