Golden Visas: a Roundup of Economic Residencies Around the World

A REPORT FROM SOVEREIGNMAN.COM

GOLDEN VISAS: A ROUNDUP OF ECONOMIC RESIDENCIES AROUND THE WORLD

A BLACK PAPER GOLDEN VISAS: A A ROUNDUP OF ECONOMIC RESIDENCIES BLACK AROUND THE WORLD PAPER

CONTENTS

What is a golden visa?...... 4 Is a golden visa right for you?...... 5 What asset class should you invest in and what are the risks?...... 6 Programs that we did not include...... 9 Part I. European golden visas...... 10 European golden visas summary table...... 12 Portugal...... 13 Spain...... 19 Cyprus...... 24 Greece...... 29 Malta...... 34 Latvia...... 39 Part II. Residency by investment programs (golden visas) in the rest of the world...... 44 Quebec (Canada)...... 46 Colombia...... 49 The Philippines...... 53 Thailand...... 57 Malaysia...... 61 Honorable mentions...... 65 Australia...... 65 The United States...... 67 New Zealand...... 69 Conclusion...... 70

Every solid Plan B needs a residency option overseas.

And with all kinds of potential threats around the world, your planning should happen well before any storm hits.

Take the smart, well-prepared residents of the US Gulf or East coasts, for example: Days before a hurricane makes landfall, they board up their homes and businesses and travel to higher ground. There, they can wait out the storm and rest a little easier, knowing that they’ve taken the necessary steps to secure their property and preserve their family’s safety.

Planning for an overseas escape hatch is no different. The time to choose a location is now, while geopolitical storms are not imminent and the waters in your home country are relatively calm.

It’s impossible to craft a solid overseas residency Plan B while packing your bags. Such hasty planning may trap you and your family, forcing you to ride out the storm’s unpredictable, destructive path.

However, if you heed the warning signs and act accordingly, you’ll be safe. Your family will be safe. And you’ll be glad that you invested the time and money into this valuable insurance policy.

If you can find an overseas location where you enjoy spending time, all the better. And if you can establish a cash-flowing investment property, even better.

The best way to establish a foothold overseas is to be part of the lucky gene pool club. That is, if your grandparents hailed from Ireland, Italy, or even Poland in many cases, you might just qualify for instant (and cheap!) full citizenship back in the motherland.

Maybe you’re not part of the club, but you have desirable skills or experience. Or you marry a citizen. Or you have a baby in a country that grants citizenship to the child and residency (or even citizenship) to the parents.

There are many viable ways to gain residency (and often, eventually citizenship) abroad.

Lately, one of the most popular ways – for those who have the means – became the so-called golden visa programs.

That’s what we’ll cover in this report, giving you an overview of countries we believe offer some of the better golden visa options around the world.

From half a dozen European countries to Canada to several Asian nations – one of these destinations might just be your place to avoid the ominous storms around the world.

And that’s what we’re examining in this paper… places (both in and outside of Europe) where you can acquire residency – and in many cases, eventually citizenship – via a golden visa program.

WHAT IS A GOLDEN VISA? As the name suggests, a golden visa is NOT the same as citizenship by investment. It is residency.

Of course, full citizenship programs indeed are offered by several nations, many of which are in the Caribbean.

On those islands, you must “invest” anywhere from about $120,000 to $400,000+ in a non-refundable government contribution, or in an approved (and usually highly overpriced) real estate project. In exchange, you receive a passport in short order.

But that’s the Caribbean. Most of the rest of the world is different.

Selling citizenship outright, for a price as low as $100,000 (plus processing fees), would be political suicide for most governments... especially those with large welfare states. It would be especially frowned upon among EU countries constantly watched by The Eye of Sauron in Brussels. (Malta and Cyprus still do it, albeit for a much higher price.)

Selling residencies, not citizenships, is a more palatable solution for cash-starved governments.

You must simply prove you’re not a criminal and that you won’t be a burden to the country’s medical or social security system.

In return, you normally receive temporary residency, renewable annually, and in some cases even permanent residency right away.

To continue renewing your residency, your investment in the country needs to remain intact – property not sold, government bonds still in your name, etc. And you’ll need a few more

years of residency in the country, plus knowledge of a local language, to become eligible to even apply for a passport.

Yes, it does require a certain commitment, but it’s well worth the wait and effort. A European passport (especially any EU passport) is a great asset that offers an excellent visa- free travel and opportunity to live, work, run a business, study… in any other EU country, from Portugal to Finland.

And golden visas are not just about the EU: The rest of the world has something to offer, too. Several exciting Southeast Asian countries offer their versions of golden visa programs, as well as the countries from North and South America. Even Australia and New Zealand have immigration programs geared towards (serious) investors.

IS A GOLDEN VISA RIGHT FOR YOU? Just as with anything else, it all depends on your personal situation.

If throwing half a million euros into a property in Spain or Portugal is no big deal for you, then go for it. You can live there full-time, or just come for a few days’ vacation every year and stay in your own place. You can even rent it out when you’re not there.

However, if you’ll wake up in a cold sweat with nightmares of tenants trashing your Mediterranean condo, then you might want to consider cheaper and more traditional options first.

Pretty much every country that offers a golden visa program also has a traditional way of obtaining residency.

Marriage (and even common law partnership) with a citizen of a country is typically the easiest way. Also, having a child in a country often makes immigration matters go easier or faster.

Of course, marrying a European or having a child may not be on your to-do list for the near future. Especially if your spouse has anything to say about it.

In that case, you could target a job in your desired country, a real possibility if you have a resume heavy on STEM (Science, Technology, Engineering, and Math) experience and skills.

Alternatively, you could go for residency by opening a local business. Governments all over

the world want to attract entrepreneurial people who create jobs and economic activity on their shores.

(We regularly research easy and straightforward ways to obtain residencies around the world, so stay tuned.)

Asia is a little different in this regard, however; most of the time the golden visa route is your only option. Fortunately, most Asian programs won’t cost you an arm and a leg.

WHAT ASSET CLASS SHOULD YOU INVEST IN AND WHAT ARE THE RISKS? What can you normally invest in to secure your golden visa?

These types of visas are called “golden” for a reason – they normally require quite a substantial investment in real estate, the country’s government bonds, enterprises… or sometimes even a combination thereof.

Apart from the obvious reward – the desired residency – there also are risks that you need to consider.

If you are a US-dollar spender, then currency risk is the most obvious one you’ll face.

Your 500,000-euro investment might just be worth much less in US dollars in the future, if Europe’s economic drama continues to unfold.

Or, it might work the other way around – until just recently, most major currencies around the world were severely undervalued relative to the US dollar. If the US dollar were to regain its late 2016/early 2017 highs, securing a desired residency by spending overvalued US dollars, therefore, just might turn out to be a prudent investment.

There are also risks associated with each asset class that you might choose to own:

• Non-refundable contribution Arguably, this is the riskiest option, since you lose 100% of your “investment” -- guaranteed. Fortunately, non-refundable contributions are rare in the residency-by-investment world. However, program application fees can be quite substantial, and sometimes run into the tens of thousands of euros/dollars.

• Real estate Property investment is the most popular golden visa option anywhere in the world.

There is something almost magical about owning a second home on the shores where heroes of Homer performed their feats… or where Cristopher Columbus set sail to discover the New World.

You can enjoy the property yourself, or you can rent it out for profit while you are not there.

Property is also the asset class we like the most for golden visa purposes. You can find some amazing deals in certain areas, since property markets have been ravaged in most golden visa countries.

Of course, that’s not true everywhere; in some countries, such as Portugal, the market already has bounced back significantly.

Either way, keep in mind that the markets are volatile, and that your property may be worth less in five years (typically the minimum investment period) than what you paid for it.

This could especially be the case when you are forced to buy in special ‘golden-visa- approved developments’, or when you are dealing with dishonest real estate agents specializing in selling overpriced properties to golden visa applicants.

And… don’t forget property taxes.

Broke countries must fill empty coffers, and jacking up property taxes is one of the easiest ways to do so. Greece, for example, experienced several such tax increases during the crisis years.

• Bonds Investing in government bonds is one of the most straightforward ways to qualify for a golden visa, assuming a country offers that option. Many do.

Typically, you are supposed to keep your investment for a period of five years, at the end of which you will receive the entire balance back… with zero interest.

Application fees tend to be more reasonable when compared with the real estate route, since it is not the local property owner but the cash-strapped government itself that benefits the most in this case.

You will need to keep in mind, however, that if bad turns to worse, the country may default on its promise to pay you back.

It’s an inescapable possibility in today’s world of ongoing sovereign debt crises.

That’s not to say that it’s imminently going to happen if you invest in bonds. Every country is different and so far, there haven’t been any issues. Still we wanted you to know that just like in any investment, investment in a residency via bonds may bear certain risks. (We also present our risk analysis for each country offering bonds option.)

In the unlikely worst-case scenario, you will still enjoy your desired residency while waiting to get paid.

• Businesses There are certain golden visas that offer the possibility to invest in publicly-traded or private local enterprises.

And, just as with any equity investment, you might make money on it. You might even collect dividends. Or, you might lose it all. Risks here are similar to those associated with general stock market investing.

Consider this option only if you really know ins and outs of what you are investing in.

• Bank deposits Certain countries offer you the opportunity to “freeze” a certain sum for a few years in exchange for residency there. This way, much-needed capital and liquidity is introduced into the local financial system.

Similar to government bonds, bank deposits bear risk. In addition to general country-wide economic turmoil, the specific bank – the holder of your deposit – can go under due to its own mismanagement.

Such an event will put the program’s reputation and the government’s ability to attract investments in jeopardy, so chances are that the government will step in to protect you.

Or, it will not.

Anyway, if you choose this option, and if different banking options are available, make sure you pick the safest bank possible.

Refer to our recent Worldwide Banking Review, where we teach the basics of analyzing a bank’s balance sheet.

PROGRAMS THAT WE DID NOT INCLUDE As a side note – we generally did NOT consider programs that involve your active everyday commitment, such as running a business. If you invest a significant sum in a country and still must hustle, it is not really a “golden visa” anymore.

But that’s not to say that you should not consider such pathways to residency. Quite the opposite: If you have both a robust business plan and experience, an entrepreneurial visa could be the cheapest way to get in.

Caveat: Entrepreneurial residency renewals are usually subject to your success (and measured by the amount of taxes paid, local employees hired, etc.), so you do need to know what you’re doing to some degree.

However, the investment amount you need to commit up front is typically low.

Estonia, for example, has a general investment requirement of €65,000 for their entrepreneurship visa. And the Startup Estonia program offers the proverbial foot in the country’s door, with no initial investment requirement at all.

We plan on doing an international entrepreneurial roundup paper in the near future, so if this is a path that interests you, stay tuned.

As for golden visas, note that we also did not include countries that demand an investment equivalent of several million dollars. Most requiring such amounts are popular, economically advanced nations. The UK is a good example: Their Tier 1 Investor visa requires a minimum investment of £2,000,000 (~$2,580,000.) Ouch.

PART I. EUROPEAN GOLDEN VISAS Disclaimer: Each country’s golden visa programs are subject to a sudden change or even cancellation. Make sure you speak to a service provider that we present for each country before proceeding.

We start our roundup of golden visas with Europe for a reason. Maybe two.

First, despite the still unfolding emigration crisis, frequent acts of terrorism, economic problems and general uncertainty about the EU’s fate, for the most part Europe remains a wonderful place to live. You can have an outstanding quality of life there for a very reasonable price.

Sure, it is very hard to be a producer in Europe (with very few exceptions) – it’s just too overregulated.

But if you don’t have to make money there, Europe is lovely and appealing on many levels.

And the second reason we start with Europe is because it has the highest concentration of countries offering golden visa programs.

There is always a robust demand for them, since a member country’s participation in the common European market is a large part of what makes residency there so attractive.

To be clear: A citizen of one EU state has the full right to live, work, study, or do business in any other EU state.

And while a resident of one EU state does not have the full right to work and live in other EU states, he/she can still enjoy visa-free access to them for up to 90 days within a six-month period.

But, let’s face it: In practice, the borderless nature of a Schengen area makes such tracking nearly impossible. No one will ever notice you driving from Spain to France, for example.

(Most golden visa countries are also part of the Schengen area.)

Sure, there is a lot of skepticism about the future of the European Union today, but as one of our own subscribers once said: “Even if the EU falls apart completely in the future, a citizen of Portugal or Spain will still have (much) more of a right to live, work and study in Germany or Sweden than, say a Chinese or even an American citizen.”

We agree.

And by the way, this subscriber recently became a golden resident of Portugal. We even dedicated a whole case study to his experience.

So, we’ll start with Europe. Here is a map with the most compelling golden visa options available on the continent today (except for Hungary).

(Note that we included a once very popular but recently put-on-hold program – a Hungarian golden visa, where an easy €300,000 investment in the government’s bonds resulted in permanent residency.)

EUROPEAN GOLDEN VISAS SUMMARY TABLE

Portugal Spain Cyprus Greece Malta Latvia

Investment €500,000 in real €500,000 in real €300,000 €250,000 in real From €280,000 €250,000 in real estate (€350,000 estate in newly estate total: Combination estate in certain cases) constructed real of investments in estate + €30,000 property & govt bonds locked in a bank and contribution to deposit the government Additional Additional 10% Additional ~10- VAT of 19%, but Additional 23% Appr 10% on top 5% government costs 12% (most of can be lowered in VAT on new - various legal and fees + transfer tax of it is 10% VAT some cases. construction is government fees 2% upon purchase if buying new applicable OR plus other expenses Additional 2%- construction or transfer tax of 3% (~€6,000) 5% in legal and 7% transfer tax if on other properties government fees buying used) Type of Temporary Temporary Permanent Temporary Residence permit that Residence permit residency you residency residency good residency residency renewable is “indefinite”. The ID renewable every 5 get renewable for 2 years, then immediately every 5 years card itself needs to be years. Still need to annually renewed every renewed every 5 years. visit Latvia every 5 years (can year to renew the be done via a government ID. representative) Minimum stay 7 days first year No minimum stay Visit every 2 years No minimum stay No minimum stay Must come for requirement and 14 days requirement (no specific # of requirement requirement approx. 10 days each to maintain thereafter days) year (to renew the ID residency card). Alternatively, can come 2 different times Minimum Indefinitely or Indefinitely or Indefinitely or until Indefinitely or until Bond and property Indefinitely or until investment until permanent until permanent citizenship (7 years). permanent residency investments are 5 permanent residency period residency (5 residency (5 years) (5 years) years’ minimum. (5 years) $30,000 bank years) Contribution part is deposit to be kept non-refundable for at least 3 years Can golden No restrictions No restrictions Cannot work Cannot work, but Can work with a work No restrictions visa holder can run a business permit. Can run a work? business Leads to Yes, after 6 years Yes, after 10 years Yes, after 7 years of Yes, after 7 years of May possibly lead to Yes, after 10 years of citizenship? of residency of residency residency residency naturalization residency Dual Yes Not allowed Yes Yes Yes Yes (with NATO, citizenship unless from Latin EU countries, allowed? America Australia, New Zealand, Brazil…) EU / Schengen Yes/Yes Yes/Yes Yes/ No, but Yes/Yes Yes/Yes Yes/Yes member? expected to join Passport Excellent. Visa- Excellent. Visa- Excellent. Visa-free Excellent. Visa- Excellent. Visa-free Excellent. Visa- quality free access to 171 free access to 174 access to 158 free access to 171 access to 167 countries free access to 165 countries and countries and countries and countries and and territories countries and territories territories territories territories territories

PORTUGAL The most popular program in Europe - great for both European residency and a passport.

Portugal isn’t usually the first place to come to mind when thinking about Europe. It simply lacks the glamor and appeal of Spain, Italy or France.

But still, it’s cheaper than Spain, sunnier than France, safer than Italy… and is the European country that best combines proximity to the US with decent weather. (This fact may matter to our American subscribers.)

As a result, Portugal has been increasingly “discovered” by North Americans as of late (if you can even apply this word to the country where Vasco da Gama was born).

Portugal even topped the rankings of the countries that we compiled for non-American retirees in our recent “The Right Country For You” Black Paper. And, it came second for American retirees, behind only Costa Rica.

At first, this was due to the country’s affordability. The property market carnage that swept through most of southern Europe during and after the Global Crisis a few years back did not spare Portugal.

The Portuguese acted quickly, and became the early adopters of something that soon became widespread in this part of the world – its very own residency-via-investment program.

The Portuguese golden visa program was transparent, efficient, and well-presented to potential investors. Well, at least at first: The efficiency part was temporarily shattered after word spread and a months-long backlog ensued.

Today, Portugal’s the most popular program of its kind in Europe. It has managed to attract over €3 billion in investments, most of it coming from China.

As you can imagine, €3 billion is a substantial amount for a country of only 10 million people, so the program has played a decisive role in jump-starting the property market in Portugal.

Portugal’s golden visa program details Now let’s look closely at what exactly attracted investors into this program.

An investor will need to spend at least €500,000 on residential or commercial real estate in Portugal. A purchased property can be rented for income, or used for personal needs.

You are also not limited to a single purchase – any number of properties can be combined to reach the total of €500,000.

A lower investment amount of €350,000 is possible for the older properties that will be renovated. However, the practicality of this approach can be an issue.

Aside from the investment itself, you can also expect government and legal fees in the range of €20,000-€30,000, depending on your family’s size.

The temporary residency that you receive will need to be renewed after the first year and subsequently every two years. An applicant is required to spend a minimum of seven days in Portugal in the first year, and 14 days in the subsequent two-year periods.

A lot of people don’t mind the requirement – it gives them the opportunity to spend an enjoyable week or two at their own property in Portugal.

Even better, you don’t really have to limit yourself to Portugal – due to the borderless nature of the Schengen area, the government will have a hard time knowing whether you are in Portugal, France or Germany. So, if work or play calls in other EU countries, you can enter Portugal and then go about your plans elsewhere.

Qualifying family members include a spouse and children under the age of 18. Parents, and children over 18, can also be included if they are economically dependent on the principal applicant.

Alternative investment options Buying a property may be the best way to gain a Portuguese golden visa, but it is not the only option. Others include:

• Capital transfer of at least €1 million (a bank deposit)

• Creation of at least ten jobs

• Investment of at least €350,000 in certain research activities in Portugal

• Investment of at least €250,000 in the arts, reconstruction or refurbishment of the national heritage, etc.

• Investment of at least €500,000 in investment funds or venture capital aimed to capitalize small and medium companies in Portugal

If interested in any of the alternative options above, please talk to our service provider. (See below for contact information.)

Obtaining permanent residency and a passport in Portugal After temporary residency in Portugal for five years, you become eligible to apply for permanent residency. According to official rules, there is no requirement to physically reside in Portugal outside of the obligatory seven days per year, but knowledge of Portuguese will be required.

After you obtain your permanent residency, you are free to sell your investment if you desire to do so.

After a year of permanent residency (six years of total residency), you may apply for Portuguese citizenship. Again, basic knowledge of the Portuguese language and a clean criminal record will be required at this stage.

What really separates the Portuguese golden visa program from many others is the absence of an official requirement to physically reside in Portugal to qualify for naturalization outside of the initial requirement of the average seven days per year.

At least on paper.

The program is still relatively new, and whether this generous physical stay requirement will hold is to be determined. In a couple of years, the first golden visa holders will become eligible for naturalization... so we’ll see what happens.

In the meantime, if Portuguese citizenship is a must-have for you, we advise you to spend more time in the country than just the bare minimum. This way, you will have a much better chance of convincing Portuguese officials that you have serious intentions to naturalize in their country.

Generally speaking, unless you participate in a pure citizenship-by-investment program, it is always advisable to spend significant time in your new country of residence. As a rule of thumb, living in the country, having an active social life there, enrolling in local sports clubs or civic organizations and paying local taxes all should help to better your chances when your naturalization time arrives.

And if you do indeed decide to live in Portugal, there is good news for you from a tax standpoint: While Portugal usually taxes its tax residents on worldwide income, they agree to omit taxes on overseas income for ten years for eligible newcomers.

Legal contacts Raquel Cuba Martins and her team have been a reliable source of information regarding the Portuguese golden visa. SRS Advogados was a firm that our own subscriber Steve used, as outlined in this case study. He described their service quality as “top-notch”.

Raquel’s fees are reasonable for the golden-visa world and start from €6,000 depending on the case’s complexity – defined by the size of your family and number of properties you’re purchasing.

SRS Advogados

Tel: +351 21 313 2041

Email: [email protected]

Web: http://www.srslegal.pt/en/

Real estate examples (€500,000 minimum investment) While searching for particular pieces of property was not in our initial plans, we decided to include some examples just to show you what the minimum investment amount can get you.

And generally, it buys quite a lot in each country.

For example, in Portugal’s Algarve region (the country’s most prominent vacation destination), the minimum investment can get you this piece of eternal serenity:

This 1,800 sq.ft. (167 sq.m.) 2-bedroom, 4-bath house in the Lagoa region of Algarve has a price tag of €515,000 ($574,000).

That translates to about $322 per sq.ft. ($3,400 per sq.m.)

Frankly, this is not cheap even by Algarve standards, so with due patience, you should be able to find a much bigger property for the same money.

As usual, we do not include any specific links to the listings as they tend to disappear with time. Instead, please contact the service provider for their recommendations of real estate companies.

SPAIN Great for European residency, but restrictive for naturalization

Spain is to Europe what Florida is to the United States – an abundance of sunshine and its warm sea makes it the most popular vacation destination in the neighborhood.

Just like Florida, Spain had a decade of an extraordinary construction boom before the last global crisis. Property prices were growing by leaps and bounds, fueled by easy credit and speculative activity.

And just as in Florida, this bonanza predictably and abruptly ended in 2008, causing pain and misery for everyone involved, locals and foreigners alike.

But while Florida’s property market bottomed out quite a few years back, in Spain it took seven years of declining prices before things finally hit bottom. It’s only over the last 1.5 years that we have seen any improvements.

Even now, the overall picture is still far from rosy – prices are still depressed, especially outside of the most popular beach destinations and Madrid.

It’s not great for Spain, but from a golden visa perspective… such real estate prices make Spain’s program very attractive.

Spanish golden visa program details Having witnessed Portugal’s golden visa success, Spain decided to introduce its own program in September 2013 in an attempt to save the local property market.

According to the rules, a €500,000 investment in Spanish real estate in required. The investment can be comprised of one or several properties of a residential, tourist, rural, commercial or industrial nature. Agricultural land also makes the list.

Property can be rented for income.

If you start your golden visa application process from within Spain (recommended), then you will get temporary residency, which is good for two years. Upon its expiration, you will need to come back to Spain to renew it. Or, you can also designate a representative who can renew it for you, meaning that you won’t have to come to Spain at all.

From here on out, your residency permits will be issued in five-year increments… as long as you keep your investment. This is certainly an advantage in comparison to Portugal, which requires you to visit periodically.

…

So far, so good. But the program is still working out a few kinks, making it less popular than Portugal’s thus far. In fact, navigating the Spanish golden visa application process was a challenging task at first even for professionals (but our legal provider recently mentioned that the process has improved significantly over time).

Your family can be included in the application: a spouse and children under 18 are eligible. Children over 18 years of age, and parents, can qualify if economically dependent on the principal applicant.

Investors have an option to finance (if they can) the amount exceeding €500,000 in case they want a more expensive property, but the first half a millionmust come in the form of cash.

Alternative investment options There are several other ways to obtain a golden visa in Spain that you can explore:

• Investment of at least €2 million in Spanish bonds

• Investment of at least €1 million in public or private companies in Spain

• A bank deposit in a Spanish bank of at least €1 million

• Business projects of national interest that lead to jobs creation Considering Spanish financial woes, we do not currently recommend investing in bonds or making a bank deposit.

The government allows investors to switch between types of investments, for example, from one property to another; or from real estate to a bank deposit or investment fund, without compromising your residency.

Obtaining permanent residency and a passport in Spain A Spanish golden visa is great for residency, but think twice if Spanish citizenship is your ultimate goal: Spain requires you to renounce your original citizenship upon naturalization, unless you are from one of the Latin American countries. Not something most of us would want to do.

If interested, however, here is the process:

After holding temporary residency for a total of five years, you may choose to apply for permanent residency.

You don’t have to do it, but obtaining permanent residency make sense – once you have it, you can sell your Spanish investment if you wish and still keep your legal status.

Please note that while there is no requirement to be in Spain to maintain your temporary residency indefinitely, to qualify forpermanent residency, you will need to spend at least 183 days per year in the country.

And after holding permanent residency for an additional five years, you will eventually become eligible to apply for naturalization. During these last five years, you cannot be out

of Spain for more than ten months cumulatively.

(That brings the total count to ten years: Five years of temporary plus five years of permanent residency.)

Knowledge of Spanish language, history, and culture will be required to be able to naturalize, which should not be too hard after spending a full decade in the country.

The bottom line: While a Spanish passport is a great asset, depending on your country of origin and personal situation, limiting yourself to a Spanish permanent residency might be the wisest thing to do. Legal contacts We have been working with Cristian Balcells from Barcelona’s Balcells Group for several years now.

Cristian and his team are very knowledgeable about Spain’s golden visa and will be happy to assist you with your application.

Their fees for the golden visa program are €1,500 for the primary applicant, plus €1,000 euros for each additional family member.

Also, if you purchase real estate through them, the firm will close the property deal for you for €2,000.

Tel: +34 619493131

Email: [email protected]

Web: www.balcellsgroup.com

Spanish real estate examples (€500,000 minimum investment) Spain boasts many very desirable areas – from the exciting metropolis of Madrid to sunny beach destinations such as Costa del Sol in Andalusia or Costa Brava in Catalonia. But it is the Catalonian city of Barcelona that intrigues most.

This amazing 4,111 sq.ft. (381 sq.m.) 5-bedroom, 4-bath house located about 40 km outside Barcelona towards the French border can be bought for €570,000 ($635,000).

It means that the asking price is just $1,666 per square meter ($155 per sq.ft.), which is very reasonable considering the property’s quality and location.

CYPRUS European permanent residency at a reasonable price

Cyprus is a unique place: Located at the crossroads of Europe, Asia, and Africa, it has been a geostrategic point, and thus an important trophy, in many conquests.

Rich with history, the island even played an important role in Greek mythology – it is Cyprus, after all, where Aphrodite emerged from the sea foam.

So, it’s no surpise that its strategic location has played a major role in Cyprus’s development as an important regional trade and financial center.

Populated mostly by ethnic Greeks, Cyprus also boasts a substantial Turkish population. Disharmony between the two groups led to outright conflict in 1974, and to the division of the island into two different countries – The Republic of Cyprus (Greek side) and Northern Cyprus (Turkish).

Today we will be talking about The Republic of Cyprus – a member of the European Union.

If you have been a reader of Sovereign Man: Confidential for a while, then you know that Cyprus’s more recent fame is mostly negative – stemming from its banking crisis. In 2012, the Cypriot government, in a desperate attempt to save the crumbling banking sector, declared a bank holiday, froze bank accounts, and severely restricted any ATM withdrawals or wire transfers.

That example was the first case of a real, country-wide bail-in – a process forcingbank depositors (and not the government) to pay for stupid financial decisions made by their banks and their government. Not only did this jaw-dropping scenario occur in the EU, but it was blessed by Brussels.

Cyprus has yet to earn back any of the investors’ or depositors’ confidence it once enjoyed. And it serves as a great case study of what broke governments are willing to do to solve their own financial issues – pretty much anything including outright theft.

One thing broke governments do, however, that might benefit you is establish golden visa programs. Following on Spain’s and Portugal’s heels, a bankrupt Cyprus went and did that very thing. Is it worth the risk? Let’s explore below. Cypriot golden visa program details When compared to Spain’s or Portugal’s versions, Cyprus’s golden visa program displays certain perks and appeal.

First, what you get from the very beginning is permanent residency, not a temporary version.

And second, to qualify, applicants must purchase a new property directly from a developer for a price of at least €300,000 (plus VAT).

Keep in mind that since the new property is your only option, you will have to pay VAT to the government. Although it is rather high – 19% -- it can be lowered to as little as 5% when buying residential property to be used as your primary residence.

Up to two properties can be purchased; and they must come from the same developer. Here are all possible combinations:

a) two residential units (apartments or houses), or

b) a residential unit and an office space, or

c) a residential unit and a commercial space.

However, just spending €300,000 (plus VAT) on the property is not enough to qualify for the visa. The Cypriot government wants to make sure that you will not be a burden to its social system and are not planning to take any jobs from locals.

To that end, €30,000 needs to be deposited in a local bank (transferred from abroad) and kept there for at least three years.

And in addition to the above, applicants and their spouses must show a secured annual income of at least €30,000 derived from abroad. The required annual income must increase by €5,000 for every additional child, and by €8,000 for each dependent parent. This income may include salary from employment, rent, pensions, dividends from shares, etc. The spouse’s income may also be included.

As for the physical presence requirement, an applicant and included family members must visit Cyprus for at least a day every two years, essentially making your permanent residency not that “permanent” in practice.

Also keep in mind that since Cyprus is not a member of the Schengen area yet (mainly due to a dispute with Turkey), a Cypriot resident does not currently have an opportunity to roam the rest of Europe freely, and will have to apply for a Schengen visa to travel throughout Europe.

What family members can be included? The applicant’s spouse, children under the age of 18, plus the parents of either/both the principal applicant and spouse all can be part of the application. Children between the ages of 18 and 25 can be included only if financially dependent on the main applicant. Obtaining citizenship in Cyprus This residency-by-investment program may also lead to naturalization, which is great news. A Cypriot passport is a valuable asset in general, and once you naturalize, you will also be free to get rid of your investment.

The bad news is that the physical presence requirement is quite strict.

It takes seven years of total residency to qualify for Cypriot citizenship. Most importantly, applicants will need to reside in Cyprus for at least 1825 days (1825 = 365 days x 5 years) during that seven-year period.

And prior to filing your naturalization application, you will need to spend the entire previous year in Cyprus.

Cyprus is a beautiful place, but it’s frankly not that big of an island, so spending so much time there might be a stretch for many. And since Cyprus is not part of the common Schengen area, the Cypriot government would have few problems tracking your physical presence on the island by entry/exit stamps in your passport. Alternative investment options (citizenship-by-investment) If time is more valuable to you than money, then note that Cyprus also offers a straight citizenship-by-investment option, albeit at a much higher price of €2,000,000. Talk to our legal advisor about this program if interested. Legal contacts To get more specific details and advice about the program we suggest you turn to Pieris Ashiotis from the law firm Neocleous based in Limassol, Cyprus. He specializes in immigration law, and you can contact him at

Email: [email protected].

Web: www.neocleous.com Cypriot real estate examples (€300,000 minimum investment) The minimum investment of €300,000 guarantees that you can buy an upscale housing in Cyprus.

And since the only option is to purchase a new construction, here is one impressive newly constructed project in the coastal town of Xilofagou, consisting of several villas with the common pool and a large common area.

This 144 sq.m. (1,550 sq.ft.) 3-bedroom, 2-bath condo is selling for €300,000 plus VAT.

On a per square meter basis, depending on VAT, you’ll pay approximately $2,300-$2,400 ($214-223 per sq. ft.).

GREECE The cheapest golden visa program in the EU (tied with Latvia)

Great climate, healthy food and a relaxed vibe are what the Mediterranean region is mostly known for. And Greece is probably the most vivid embodiment of all this ambiance.

Food and climate aside, Greece is the cradle of Western civilization and the birthplace of democracy. The Olympic Games were invented by Greeks. It is the Greek philosophers who shaped the foundation of Western civilization.

With so much history in literally every rock, Greece is an all-around impressive place to be.

Thus, the Greek version of the golden visa program -- granting residency in return for investment in local real estate – immediately caught our attention.

You see, Greeks always viewed property as a safe-haven investment – property traditionally held its value very well over time, and property taxes were essentially nil.

To own a house was a dream that most pursued. Until very recently, any caring parent

considered it a sacred obligation to leave their beloved child a fully paid-off home.

As a result, home ownership in Greece is very high; at 74%, it’s way higher than the EU average.

But that seems to be changing now.

In 2008, as you know, Greece was hit very hard by a recession. And as a part of an austerity plan, the government increased property taxes several times. While still quite reasonable by North American standards (0.5% per year or less of market value), these hikes came at a very unfortunate time for Greeks.

Today, property ownership has become more of a burden. Cases where heirs refuse to accept property as a part of their bequest are happening more and more often… a situation that would have been very rare just a few short years ago.

That puts additional pressure on the free-falling housing market. Today’s price level was last seen in 2001.

However, the market seems to be finally bottoming out, and recently even started a moderate growth. That makes it interesting for investment purposes.

Greek golden visa program details To qualify for a Greek residence permit, applicants must purchase a property (commercial or residential) with a value of at least €250,000. More than one property can be purchased with the same combined value.

Note that the €250,000 is what the contract should state. Depending on the type of the property, additional VAT may apply.

VAT of 23% is imposed on the sale of new construction (collected by a property developer). This applies to all properties for which the building permit was issued after Jan 1, 2006.

VAT is not charged if a construction permit was issued before Jan 1, 2006, but the transfer tax of 3% applies in that case.

Your property can be rented out for profit with no restrictions.

Interestingly, the Greek government also makes it possible to obtain residency by purchasing a timeshare, or hotel accommodations or furnished tourist residences in integrated tourist resorts.

The agreement period should be at least ten years long and the lump sum paid no less than €250,000.

You may also choose to buy a piece of land and build on it. The cumulative value of the land and the contract with the construction company should be the same €250,000 or more.

In return, you will receive temporary residency; it can be renewed every five years, providing that the investment is maintained. There is no minimum stay requirement.

Greeks allow you to include your closest family in the application – a spouse, children up to 21 years old and parents of both spouses can all be a part of it.

The granted residence permit allows you to live in Greece, but not to work as an employee or run a business.

Obtaining permanent residency and citizenship in Greece Greek citizenship is possible under their golden visa program, but a substantial time commitment is required.

After you have had your golden visa for five years, you become eligible to apply for long- term residency (i.e. permanent residency). Once you have it, you are free to sell your investment.

Obtaining permanent residency, however, is not that simple, because…

• Over that five-year period, you should not leave Greece for more than six consecutive months, or ten months in total;

• You will need to prove that your income is sufficient to provide for yourself and your family; and,

• You will have to meet the conditions of integration into Greek society, such as demonstrating sufficient knowledge of the Greek language, Greek history and culture.

Of course, all these requirements are not unique to Greece – most other countries require your integration into society too, but only when applying for a passport, not permanent residency. Greeks make it pretty hard to obtain permanent residency, but you can still get it if you are committed.

Once you have your permanent residency, and after you spend two more years in Greece, you can finally apply for naturalization, bringing the total number of commitment years to seven. Legal contacts To resolve any doubts or questions, reach out to the government’s agency specially created to promote investment in Greece. It is also the body supervising the golden visa program.

Enterprise Greece was very prompt and precise in their answers. It is entirely possible that with their guidance you will require no additional service providers if you decide to apply. Feel free to call or drop them a line using the following contacts:

Email: [email protected]

Tel: +30 210 335 5700

Web: www.enterprisegreece.gov.gr

If, understandably, you still desire help through this process, we have someone to recommend. Please contact Jennie Giannakopoulou – the founder of Giannakopoulou & Associates, a boutique law firm with rather reasonable prices. Their golden visa handling fees start at about €5,000.

Tel: +30 210 9351450

Email: [email protected]

Web: www.jg-greeklaw.com

Greek real estate examples (€250,000 minimum investment) The property that follows is an excellent example of the high-quality home that one can get in Greece.

This 1,162 sq.ft. (108 sq.m.) 3-bedroom, 2-bath house in the town of Kalathos on the Rhodes island can be bought today for exactly €250,000 ($280,000).

It features a large pool and some amazing views.

Paying $2,600 per square meter ($240 per sq.ft.) looks reasonable, and we are sure it could serve as a dream home for many.

But remember that the bear market has been brutal in Greece and with a little bit of patience and due diligence, you can obtain even greater value per square meter.

MALTA A golden visa for as little as €280,000

Malta’s strategic location between Europe and Africa has garnered its importance throughout centuries in Mediterranean commerce and politics. Trade is an integral part of Maltese DNA.

As with Cyprus, Malta long served as a bridge between Southern Europe, North Africa, and the Middle East. And, similar to Cyprus, the British held it as a colony. The English language permeated everyday life, and the British introduced common law into their legal systems (though less so in Malta than in Cyprus).

Lastly, also similar to Cyprus, while not explicitly a tax haven, Malta is generally a tax- efficient place – generally high absolute tax rates usually can be lowered to almost nothing with available tax credits and various exemptions.

But still, the Maltese are like no one else in the world – a real melting pot of cultures. For example, they’re staunch Catholics who speak a vernacular close to Arabic. Residents speak a half dozen other languages on the island.

Malta has a decidedly entrepreneurial spirit, so it should be no surprise that the Maltese introduced an affordable and straightforward citizenship-by-investment program a few years ago. One needs to invest a little over a million euros in the country to receive a passport.

But the Maltese also have a residency-by-investment program, which we will be covering next. Maltese golden visa program details The Malta Residence and Visa Program (MRVP) was implemented in 2015.

Under the rules of the program, to obtain residency in Malta, the following combination of investments and contribution is required. (Yes, you’ll need to do all three.):

1) An investment of €250,000 in stocks, bonds, or other approved assets. The most common option consists of an investment in a zero-interest government bond. That investment needs to be retained for a minimum period of five years, at the end of which you will receive your principal back.

2) A property purchase with a value of at least €320,000 (which can be lowered to €270,000 if invested in South Malta or Gozo). The investment must be held for a minimum period of five years.

Alternatively, the property purchase can be substituted with a property lease of €12,000 annually (can be lowered to €10,000 if rented in South Malta or Gozo). To be leased for a minimum period of five years.

3) A non-refundable government contribution of €30,000.

So, the total minimum investment amount comes to around €550,000, or €280,000 if you decide to rent the property instead of buying it.

The Maltese government also wants to make sure you are not spending your last euros on this investment – an applicant must demonstrate an annual income of at least €100,000 coming from outside Malta. Alternatively, an applicant needs to have in their possession total capital of no less than €500,000.

What you will receive in return is an “indefinite” residency permit to stay in Malta. The ID card that comes with it has an expiration period of five years, so once every five years would be the minimum frequency you would have to come to Malta to renew it.

As you can see, in this program you cannot limit your investment only to real estate. You

are also “forced” to help the government by purchasing their bonds. Therefore, it becomes necessary to consider the government’s financial state, and to try to predict whether they will be able to repay you five years down the road.

Fortunately, Malta currently is in good shape. Not only did their debt-to-GDP ratio not rise significantly in recent years, but they managed to lower it from around 70% back in 2011 to around 58% today. We feel reasonably confident they will be able to honor their obligations to you.

Golden visa holders can do business in Malta with no restrictions and can even work, but a work permit is necessary (and may be hard to get).

Family members that you can include in your application: your spouse, your parents, your spouse’s parents, your children up to 18 years of age, and your children between 18 and 26 years old, if economically dependent on you and unmarried.

Obtaining Maltese citizenship Rules to obtain a passport under the MRVP program are still somewhat convoluted.

The MRVP residence program does not entitle the holder to automatically acquire a Maltese passport after a given period (but neither does any other golden visa program).

However, under Maltese citizenship law, a person physically present in Malta for over five years has the right to apply for Maltese citizenship.

Nothing is guaranteed, but the legislation is there for you, and if you show the genuine ties to the country upon naturalization, you should qualify.

Alternative investment options (citizenship-by-investment and temporary residency)

If you want a bullet-proof option for obtaining a Maltese citizenship, then consider Malta’s citizenship-by-investment program. In return for a €1,250,000 investment in a combination of bonds, property and a non-refundable contribution, you will get near-instant citizenship in Malta.

This is a very competitive price tag for EU citizenship.

And that is not your only option, either:

If you don’t have more than a million euros to spend on a Maltese passport - or even €280,000 on economic residency - but still want to be a resident of Malta, then consider its Global Residence program.

The program requires an annual “tax” contribution of €15,000 to the Maltese government, plus rental/purchase of real property, plus a non-refundable €6,000 contribution to the state.

What you get is Maltese temporary residency. You can renew it as long as you keep contributing the €15,000 every year. This residency will allow you to send time in Malta and Schengen but will not lead to permanent residency or citizenship.

Talk to the service provider below if you are interested in any of these programs. Legal contacts First, Identity Malta is the government’s department and the primary source of information regarding the program. Feel free to contact them with any questions.

And second, we have a direct relationship with one of the exclusive agents that holds a concession from the Maltese government for the program’s implementation. Laszlo Kiss is a good friend of Simon, and if you’re interested in the Maltese program, we suggest you use the following means to contact him:

Tel: +356 2778 0208

Web: www.discusholdings.com

Email: [email protected]

Real estate examples in Malta (€320,000 minimum investment) To qualify for a golden visa in Malta, you don’t have to buy a property and may limit yourself to just renting. But if you decide to go with the option involving a purchase, we present you with the following example:

This high-end 300 sq.m. (3,230 sq.ft.) condo overlooking a harbor is located in Msida – part of the Valetta metro area. The asking price is €325,000 ($363,000) which translates to $1,210 per square meter ($112 per sq.ft.) – an example of the excellent value. It is just above Simon’s threshold of “cheap.”

LATVIA Tie for the cheapest residency program in Europe

The three Baltic countries – Estonia, Latvia, and Lithuania – have emerged on the European political map after the collapse of the Soviet Union.

We have discussed Estonia several times in the pages of Sovereign Man: Confidential, especially regarding its famous and still unique e-residency program. Estonia is also one of the most technologically advanced countries in Europe, and frankly is quite an exciting place.

And we haven’t been silent about our enthusiasm for Lithuania, either: That’s where we hold our Liberty Entrepreneurship Camp every summer, and that’s where some of our team members hail from, so naturally, Lithuania is very close to our hearts.

Latvia will now start scoring more mentions in Sovereign Man’s member-only website.

That’s because it can offer quite a lot regarding international diversification – from a foreign bank account to legal residency through its golden visa program.

The latter we will discuss next.

Latvian golden visa program details Latvia was early to the scene, introducing its residency-via-real estate program back in July 2010.

Its price changes reflect what we always talk about in these pages: If you like a program, then research it and take action sooner rather than later. While the pricetag on Latvian (read “EU”) residency was as little as $95,000 in 2010, today it is much higher – a minimum investment of €250,000 is required.

Still, this is the lowest price on the market for an EU golden visa.

In Riga (Latvia’s capital) and Jurmala (its main resort town), the amount must be invested in a single piece of commercial or residential real estate. Outside of these popular areas, you can purchase up to two properties, so long as there’s a combined value of €250,000.

At the same time, the official cadastral (property value gleaned via surveying) value must be of at least €80,000. Your real estate agent should be able to look that up quickly.

Once you are approved for Latvian residency, the government will collect a fee of 5% of the property value (min. €12,500).

And, just as with the other programs discussed here, real estate in Latvia can be rented for profit.

Our legal providers tell us that you should expect a return on your investment of about 3-6% for residential property, and of 5-8% when buying commercial. It should also be possible to reach even better ROI numbers, but an investment larger than €250k is typically required.

The Latvian government does allow a golden visa holder to work in the country but still wants to make sure you have some economic means beyond your purchased property.

Luckily, requirements are very reasonable, since Latvia is no Switzerland and the cost of living there is very modest: The primary applicant needs to show a monthly income of at least €960, plus an additional €320 for the spouse and €200 for each child up to 18 years old.

No particular period of property ownership is defined, which means that as long as an investor continues to own the property, he/she can hold residency.

Please note that while Latvian residency is technically good for five years, the applicant still needs to personally visit Latvia annually to renew his or her ID, which has a one-year validity. The process takes a minimum of approximately seven business days (expedited option), so plan for a little vacation to Latvia during the summer.

Alternatively, you can complete the process in two much shorter visits:

1) Come for a day to apply for a new ID, and when it’s ready one month later…

2) Return for a day to pick up a new card. Obtaining permanent residency and citizenship in Latvia Latvia’s residency-by-investment program allows for eventual naturalization. However, a substantial time commitment - and demonstrated effort to integrate into Latvian society - is required.

As in most other places, obtaining a passport in Latvia is a two-step process:

1) Become a permanent resident after being a temporary resident for at least five years

During that five-year period, you are not supposed to be away for more than six months at a time, and you also cannot spend more than 12 months (combined) outside of Latvia. (As usual, if you spend your time in other Schengen countries, it would be difficult for the Latvian government to piece together your travels.)

Also, to get your permanent residency, you will need to pass a basic Latvian language test. Frankly, with fewer than two million native speakers, Latvian is not the most useful language on the planet, but learning it may be well worth the effort if you are after a European passport.

2) After five more years as a permanent resident (bringing the total year count to ten), a foreigner becomes eligible for naturalization in Latvia.

Rules concerning dual citizenship recently were loosened to allow multiple citizenships with selected countries, which include all EU and NATO countries as well as Australia, New Zealand, and Brazil.

Alternative investment options For your information, there are two more investment options offered by Latvia in return for residency:

1) A deposit in a Latvian bank of at least €280,000.

The investment amount will be locked for five years and is not covered by any insurance scheme.

If interested in this route, note that a five-year deposit in Rietumu Bank (one of the largest banks in Latvia), for example, is currently paying 3% in euros.

Interestingly, they also offer an option to make a deposit in US dollars, but they then require a higher $400,000 sum and will pay about 4% annually.

After your residency application is approved, the government will charge a fee of €25,000.

While going with this option may look very attractive from a simplicity point of view, we cannot recommend it without performing a much deeper analysis of Latvia’s banking system (which we haven’t done yet).

2) A €250,000 investment in government bonds for at least five years.

Additionally, an investor will pay a state fee of €38,000 upon approval.

Considering Latvia’s rather low debt-to-GDP ratio of about 40%, we think that investing in government bonds is likely to be a safer bet than a bank deposit. Latvia is not likely to default on its debt obligations within the next five years. It does not pay interest on the bond, however. Legal contacts Baltic Legal law firm was very prompt answering our questions and was knowledgeable about the application process. They also charge a rather reasonable €3,000 for the primary applicant and €700 for each additional family member.

While we haven’t done an extensive due diligence on them, we consider them a good starting point for your further investigation.

We have been dealing with Armands Viskers of Baltic Legal:

Email: [email protected]

Tel: +371 67799514

Web: www.baltic-legal.com Latvian real estate examples (€250,000 minimum investment) 250,000 euros can buy a lot of square meters in Latvia. Even in Riga – the country’s capital and its most expensive property market – prices are not likely to raise your eyebrows.

This 4-bedroom, 2-bath condo of two levels right in the historical center of Riga is currently selling for €258,000 ($288,000).

Considering that its area is 155 sq.m. (1700 sq.ft.) you will essentially be paying $1,858 per square meter ($173 per sq. ft.).

PART II. RESIDENCY BY INVESTMENT PROGRAMS (GOLDEN VISAS) IN THE REST OF THE WORLD While Europe does have a whole array of excellent golden visa programs, it is just one part of the golden visa story.

North America, Australia, and Southeast Asia all boast golden visa programs as well.

For this report, we mostly skipped South America, because there it’s generally very easy to obtain residencies using more traditional ways. Still, there is one option that we thought was well worth presenting: Colombia.

Also, all the Anglosphere countries (USA, Canada, UK, Australia, Ireland and New Zealand) have some kind of residency-by-investment program. And each of these countries is also a very popular immigration destination. Therefore, their minimum investment thresholds tend to be very high – a million dollars and more. We largely skipped those countries on a cost basis, although the Canadian province of Quebec made our list due to relatively relaxed requirements.

Note as well that Asia, in general, is very restrictive about naturalization. And their golden visa programs reflect that.

Applying through one of the Asian programs typically results in a long-term visa that never leads to a passport. But still, such programs should work fine if all you want is to spend your time in one of the region’s many exotic countries.

So, bottom line: programs outside Europe are not as unified and similarly packaged as they are within the EU. Some are also quite restrictive when it comes to naturalization, asset ownership or even age requirements.

Thus, we included a new line called “restrictions” in the table below to visually demonstrate each program’s shortcomings.

Canada (Quebec) Colombia Philippines Thailand Malaysia

Investment ~US$600,000 (C$800,000) ~US$165,000 US$50,000 in bank Currently starting ~US$70,000 requirements invested for a 5-year period deposit or real estate (plus at ~US129,000 but (RM300,000) in bank (479,516,050 (with no interest) in the US$15,000 per every will depend on the deposit if younger than COP in 2017) government fund additional dependent property availability. 50. in real estate or over 3) Financing options available corporation Additional ~US$35,000 Investment can be as ~US$15,000 for a (RM150,000) in bank little as US$10,000 in spouse deposit if older than 50 certain cases Program - 1,900 applications per year None Must be older than 35. Golden visa lasts only Golden visa does not restrictions (quota does not apply to Golden visa does not lead 20 years and does not lead to naturalization French speakers) to naturalization lead to naturalization Additional net worth - Need to show extensive and monthly income business experience requirements apply - Need to show net assets of at least C$1,600,000 Additional costs ~C$20,000 in government ~2-3% in legal and - ~$2,000 in government Everything is Legal fees US$1,000- and legal fees government fees fees included in the condo US$2,000 purchase price - US360 annual fee Type of Permanent residency that is Permanent A “retirement” visa Thailand Elite visa Visa renewable every residency renewable every 5 years residency renewable every 5 10 years years (for a maximum of 20 years) Minimum stay Need to live at least 2 years Visit for one day Need to come every 3 No physical presence No physical presence requirement within a 5-year period every two years years to renew ID requirements requirements to maintain residency Minimum 5 years Can be as little as Investment needs to Investment needs to Investment needs to investment one month be maintained to keep be maintained to keep be maintained to keep (Non-refundable if period residency residency residency financed) Can golden visa No restrictions No restrictions Can run a business. Can Cannot work as an Can work part-time in holder work? work as an employee employee selected industries only with special permission only (hard to obtain) Can lead to Yes, after 4 years assuming Yes, after 5 years No No No citizenship? you spend every day of that of permanent period in Canada residency (need to come for one day every year) Dual citizenship Yes Yes Irrelevant in this case Irrelevant in this case Irrelevant in this case allowed Passport quality Excellent. Visa-free access to OK. Visa-free access Irrelevant in this case Irrelevant in this case Irrelevant in this case 171 countries and territories to 107 countries and territories. Visa-free travel to the EU, but not the UK

QUEBEC (CANADA) A reasonably priced program favoring French speakers

Canada once had a very compelling country-wide residency-by-investment program favored by investors from all over the world (still mostly Chinese).

In return for the investment of C$800,000 in a government fund, an applicant could get permanent Canadian residency.

But back in 2014, the Canadian government in Ottawa decided that it was too good of a deal and shut the program down. There are no current plans to resurrect it.

Fortunately for those who are still dreaming of obtaining Canadian permanent residency, there is Quebec.

French-speaking Quebec is what Scotland is to the UK or Catalonia is to Spain. They feel they don’t belong there and like to set their own rules.

And in Canada’s case, Quebec defiantly held on to its own residency-by-investment program.

Canadian golden visa program details The Quebec Immigrant Investor Program (QCIIP) today is the only alternative to the now- defunct country-wide program.

To get approved under its rules, you must:

• Invest C$800,000 (~US600,000) through a financial intermediary (broker or trust company – see all certified providers here) for five years at 0% interest. Five years later, you will receive your C$800,000 back. The government of Quebec guarantees the investment.

• Prove that you are worth at least C$1.6 million (~US$1.2 million). You can show your real estate, bank and investment accounts balance, etc.

• Demonstrate that you have had at least two years of management experience over the past five years.

The last condition is rather confusing – there is no obligation to work or run a business in Canada once you become a resident. And, in fact, you may choose to do absolutely nothing there, but the government still wants to make sure that you have extensive business and management experience.

On the bright side, approved financial intermediaries in Canada can help you finance the investment.

Our legal contact on the ground tells us that the total investment amount can be reduced to approximately C$220,000 (~US$163,000) – enough to take care of the down payment and service the interest.

Any downsides? The financing option is much more expensive in absolute terms, since you will also have to forget about recovering the principle at the end of the five-year term.

Still, if you don’t want to tie up around US$600,000 for five years, you may consider this option.

Another important thing to mention: In the absence of the country-wide scheme, now all the investors’ attention is directed at Quebec.

As a result, they limit the total number of applications to 1,900 per year (with no more than 1,330 applicants from China), and applications are accepted only in a particular time window. For the 2017-2018 period, that period is between May 29, 2017, and February 23, 2018.

But Quebec being Quebec, they will consider your application at any time, outside of the quota and will even shuffle it to the top of the stack…if you speak fluent French (advanced intermediate or better).

Once approved, you will get permanent residency in Canada, which conforms to the physical presence rules applicable to any other Canadian permanent resident. You will need to apply for a new PR card every five years.

Here are some general rules about renewing your permanent residency: You are supposed to be physically present in Canada for a minimum of 730 days (i.e. two years) over five years. It’s a significant commitment, but think of it as spending summers in Canada.

At the end of the five-year term, the approved financial intermediary will reimburse you C$800,000, without interest. Again, you will get nothing if you chose to finance your investment. Obtaining a Canadian passport And just like any other Canadian permanent resident, a “golden visa” applicant can also become a Canadian citizen, which is great news, because a Canadian passport is a great asset to have.

To qualify, you must be physically present in Canada as a permanent resident for at least 1,460 days (that’s a full four years) during the six years prior to the date you sign your naturalization application. At the same time, you cannot leave Canada for more than 183 days during each of the four years within the six years before the date of application.

Confused? In other words, the soonest you can apply for naturalization is four years after you get your permanent residency. And that is assuming that you spend every day in Canada during these four years.

You may also try this built-in eligibility calculator here to simulate different scenarios.

Legal contacts We have been in touch with AURAY Capital. They were very prompt and answered our inquiries - even on a Friday night. And while we didn’t go further than just collecting information, we are quite confident that they will provide a professional service.

Web: http://www.auraycapital.com

Tel: +1 514-499-8440

COLOMBIA A golden visa that may cost you… nothing

At Sovereign Man, we are big fans of Colombia and have written about this exciting country many times. Colombia resembles Brazil – it is home to beautiful nature, very friendly people, and great weather. But unlike Brazil, it is much more business friendly.

In fact, we like Colombia so much that in 2016 we even held our own Sovereign Man conference in the “city of the eternal spring” – Medellin.

Medellin is the second-largest and the most livable city in Colombia, much more so than its capital of Bogota.

Decades of civil war are now coming to an end, and that’s excellent news for the country. All the money that was spent on the devastating conflict will now be pumped into very much needed infrastructure. For decades, the Colombian government did not want to spend a penny on roads or bridges… because they knew FARC would blow it up anyway.

That is changing now, as well as changing the world’s perception of Colombia. Of course, the famous drug-war-ridden image of the country is still very much alive, and it will take years to shake off.

But you can use it to your advantage today – assets in Colombia (especially real estate in Medellin) are still exceptionally cheap.

Colombian golden visa program details Just like in any other country, there are several ways to qualify for residency in Colombia.

There is one option that is unique, however. With it, your Colombian golden visa could potentially even come for free.

According to the country’s immigration law, a foreigner is supposed to invest an amount equivalent to 650 Colombian minimum wage salaries to obtain permanent residency. Colombian minimum wage is updated yearly, so the investment requirement changes as well.

However, the severe decline of the Colombian peso relative to the US dollar over the past three years has made this investment much cheaper for dollar spenders.

One USD in 2015 was worth about 2,000 Colombian pesos; today, it gets you around 3,000. So in 2015, you needed to bring in around $200,000 into the country to qualify for permanent residency; today $165,000 is enough.

There are a few ways to invest that money and obtain your Colombian permanent residency:

1) Buy real estate in Colombia. At current exchange rates, real estate in Colombia (and especially in Medellin) is cheap. ~US$165,000 can get you a lot of square meters there, considering that in Medellin you can still buy a prime property for $1,000 per square meter ($93 per sq. ft.).

2) Invest in a Colombian company. You could invest in a local startup, or in a mature local private company, or in the Colombian stock market.

Or, even better, you can start your own Colombian company.

That’s where it gets interesting.

The law states that a foreigner must invest at least ~$165,000 US dollars to obtain permanent residency in the country. Starting your own Colombian company and injecting ~$165,000 in it counts, too.

The law does NOT specify, however, that the firm mustspend the money. Or do anything at all, really.

You can transfer money to Colombia and let it sit in the company’s bank account.

Or, technically, you could start a company, move the money, obtain the residency permit, and then pull the money right back out of Colombia. Thus, if $165,000 sounds like too much money to park overseas, think of it more as a short-term loan. You can have the money right back in your home bank account in less than a month.

Sure, there are certain rules you will need follow to keep your residency active (i.e. you cannot shut down your Colombian company). Our legal advisor will navigate you through these waters.

Your family can be included in the application. In Colombia, they define “family” as your spouse, children under 25, and economically dependent parents.

And if you don’t have $165,000 to shuffle around, no worries – you can use a less expensive option for obtaining a one-year temporary visa in Colombia. Please refer to our October 2015 alert for more details.

Obtaining Colombian citizenship After holding your permanent residency for five years, you will be able to apply for naturalization.

The law stipulates that to maintain your permanent residency, you will need to visit Colombia for at least one day every two years.

However, if naturalization is your ultimate goal, you should be going there more often.

Just like with everywhere else, we urge you to spend more time in the country to raise your chances of receiving a positive naturalization decision.

It will be hard to convince a Colombian official that you are serious about their country if all you did is show up for just one day each year.

You’ll also need basic knowledge of Colombian history and geography. If you’re not a native Spanish speaker, you’ll take a language test in Spanish… unless you’re over 65.

One thing to note before you consider Colombia as a country for a second passport: Colombia has been in a civil war for decades, and they don’t take military conscription lightly. On the bright side, there are many legal ways to avoid it, and with the conflict all but over, they may switch to an entirely professional army in the future.

Legal Contact We know people who obtained Colombian residency quickly, efficiently, and without the help (or expense) of an attorney.

However, if you don’t speak at least some Spanish, and would like to have someone on your side to make sure the process is as smooth as possible, we are happy to recommend...

Juan Darío Gutiérrez

JDG Law Advisors

Landline: +57 4 3228898

Mobile: +57 3108958601

Email: [email protected]

Juan Dario is courteous, knowledgeable, and professional. If you’re looking for legal help while pursuing Colombian residency, look no further. And the best part is that he is charging only $500 per applicant (after a special discount for Sovereign Man subscribers).

THE PHILIPPINES Stay there indefinitely for as little as $10,000

We have finally arrived at Southeast Asia – a part of the world where foreigners do not have similar rights to locals, where foreign ownership is almost universally restricted and where obtaining long-term residency can be a challenge.

Still, there are a few countries where one can get a long-term residency in return for certain financial commitment.

And the Philippines is probably the most liberal Southeast Asian country in that regard.

The Philippines is a young, vibrant, and dynamic place of almost 100 million people. There are pockets of wealth and modernity, such as Manila’s central business district, but most of the country is still undeveloped and poor (and exceptionally cheap).

English is widely spoken there, and that is great news for expats not willing to learn a new language. But it is locals who benefit the most – English-speaking Filipinos can find employment anywhere in the world.

Unlike so many other Asian cultures, Filipinos are very welcoming towards foreigners. In the Philippines, you won’t feel like an eternal outsider, a foreigner with zero chance of integrating into a society… like you would in Japan, South Korea or even Thailand. That’s a big plus when you’re making a major move. The Philippine golden visa program details We will be talking about the Philippines’ Special Resident Retiree’s Visa (SRRV) here. But don’t let the word “retirement” in the program’s name mislead you – their age requirement is very liberal. The program will work for just about anyone 35 and older.

There are currently three visas designed for foreigners (who are not former Filipinos):

1) SRRV Classic If you are between 35 and 49 years of age, you will qualify under this category if you deposit US$50,000 in a local bank account. You can keep the funds locked for the duration of your visa (which can be indefinite), or you can use them for investment purposes.

And if you are over 50 years old, then you have the following options:

a) Deposit US$20,000 if you do NOT have a pension, OR

b) Deposit US$10,000 if you can show a pension of at least $800 a month ($1,000 in the case of a couple)

As you can see, the requirements are not bad at all.

The amount can indeed go up a little if your family is larger than three persons. An additional deposit of US$15,000 is required for once you start adding more than two dependents.

Who can be included in the application besides the main applicant? A spouse and unmarried children younger than 21 years old.

2) SRRV Smile can be used by pretty much anyone older than 35 who is ready to deposit $20,000 in a local bank. No investments are possible under this option.

3) SRRV Human Touch is specifically designed forailing retirees (a proof of pre-existing medical condition is required) who are 35 years old or older and who can deposit $10,000 in a local bank. No investments are possible under this option.

Regardless which path you decide to go, you will need to maintain your bank deposit as long as you intend to keep your residency visa. All deposits are fully refundable once you decide to cancel your stay.

If you ask our opinion, we like the “classic” version, because:

a) It allows for a lower investment amount of $10,000 if you are over 50 and have a pension, and

b) Under SRRV Classic, it is possible to use the deposited money to make certain investments in the country.

The last point is rather important – what you need to keep in mind is that the Philippines is not exactly the most stable banking jurisdiction in the world. Bank failures are not rare there, and in the past even involved the banks approved by Philippines Retirement Authority (i.e. Export Bank failure in 2012).

As a result, we would be very cautious about holding a substantial amount of money in any bank in the Philippines. And while you may not lose sleep over $10,000, losing access to $50,000 would be very uncomfortable for many.

Fortunately, if you choose the SRRV Classic program and are willing to deposit at least $50,000 (irrelevant of your age), you gain the option to spend this money on a property in the Philippines.

Foreign ownership in Asia, in general, is very restrictive – and the Philippines in no exception – so the list of available investment options is rather short:

a) An already constructed condominium unit Buying a condo in the Philippines sure looks like an interesting idea. One of our subscribers did exactly that – he bought an ocean-front condo in Cebu – the second largest city in the Philippines – and has nothing but good things to say about the country and his investment.

b) Long-term lease of a house, condominium or townhouse for a period not shorter than 25 years (renewable for another 25 years)

Any SRRV Visa entitles you to stay indefinitely in the country as long as you keep paying your annual SRRV fee and maintaining your investment.

One thing to note: The Philippines’ government definitely didn’t invent that program out of pure altruism. To renew your SRRV ID card you will need to pay an annual fee of US$360 (for a family of three). Each additional applicant after the third one pays an extra US$100 a year.

And while technically you don’t have to reside in the country, we are told that it is best to renew your ID card from within the Philippines. Luckily, there is an option to get your ID prepaid for three years – US$1,080 for a family of up to three. Obtaining citizenship in the Philippines The SRRV visa allows for indefinite living in the country, but unfortunately, it does not lead to permanent residency or citizenship. Legal contacts If you are an English speaker, it is very easy to go directly to the Philippines Retirement Authority and arrange your own application. The rules are clear-cut, and there should be no real reason to engage an agent.

This is about as do-it-yourself (and cheap!) as it gets, and you can start by filling out the form online at http://www.pra.gov.ph/main/srrv_form.

If you have any further questions, feel free to read the PRA’s resource page, or contact the PRA client relationship via email at [email protected], or by phone at +63 2 848 1412 (you may also replace the last two digits in this number with 13, 14, 15 and 16.)

THAILAND More of a membership in the elite country club than a golden visa

Thailand is an amazing place and ticks a lot of boxes.

You can find anything there: The beaches are pristine and beautiful, the culture is fascinating, and there’s always something to do. (Or not do… you can just veg out on the beach if that’s your preference.) The cost of living, while rising, is still incredibly low. The food is also phenomenal.

It’s hard not to fall in love with Thailand.

And visiting Thailand for vacation is easy for any Western national – all you need is your passport.

Getting any kind of long-term residency in Thailand, however, can be atrociously hard.

One of our own team members has been living in Thailand full time for many years now and is forced to leave the country every two or three of months to renew his tourist visa.

He doesn’t mind it, since he travels extensively for work anyway, but it can get very inconvenient very quickly if you must haul your entire family with you.

Tough residency laws force foreigners to turn to the Thailand Elite program. Thai golden visa program details The program has been around for a little more than a decade and offers easy and straightforward residency in Thailand in exchange for a certain investment.

Besides the residency itself, the program’s participant receives a whole heap of privileges to boot, such as…

• VIP escort and transfer in a limo every time you arrive or depart from Thailand’s international airports

• Discounts in many restaurants and hotels

• Complimentary golf and spa treatments, and even

• An annual health check-up in one of the country’s advanced hospitals. An especially designated concierge will be able to answer any question you may have. They will even assist you with getting a driver’s license.

The genuine desire to please a customer is in the Thais’ blood, and Thailand Elite’s level of service is top notch, even by Thai standards.

And the price reflects that.

Traditionally, you have to pay up to 2,000,000 Thai baht (~US$60,000) to secure a 20-year long residency in Thailand.

Yes, you read it right – it is not permanent residency, and not even the kind of temporary residency that you can renew indefinitely as long as you maintain your investment. The Thai Elite visa will expire after a period of time, and the maximum duration is currently 20 years (shorter visas are available too).

It is more like paying for a membership in a very elite country club.

And 20 years later, you will have to pay again.

That’s why our team member chooses to just renew his cheap tourist visa. And that’s why we haven’t covered the Thailand Elite option on the pages of SMC before. To us, paying $60,000 to be able to live in Thailand for 20 years just isn’t worth it.

Recently, however, the program experienced a promising development.

The cooling property market in Thailand has encouraged developers and government to get a bit more creative, and today it is possible to replace that non-refundable contribution with the purchase of a property.

Currently, there is only one development that qualifies – “Southpoint Pattaya,” which should be completed sometime in 2017. You can purchase and then rent out your property to offset some of the cost. (See below for details.)

If the project proves to be successful, the Thai government promises to expand the program by adding several other developments.

The program is somewhat restrictive regarding who can be included in the application – for an additional fee of 500,000 baht (~US$15,000), your spouse can also come onboard, and children under the age of 14 can be included for free.

Please note, however, that under the rules of the program, applicants are not allowed to work.

Interestingly, your Thailand Elite membership is liquid – it can be transferred to a stranger who will enjoy it until it expires – but they will need to pay a 20% transfer fee (of the prevailing rate). Obtaining permanent residency and citizenship in Thailand Thailand is restrictive when it comes to permanent residency and naturalization, and you can also forget about both under the Thailand Elite visa.

Eligible property in Thailand Here you can find more information about the project and available prices.

As of June 2017, the lowest priced condo could be purchased for 4,400,000 baht, or about $129,000. In return, you will get a tiny 30 sq.m. (323 sq.ft.) studio, which means that you will end up paying $4,300 per square meter ($399 per sq. ft.).

(Remember Simon’s threshold of cheap? It is $1,000 per square meter; this doesn’t even come close to that).

You can get a cheaper property on a square meter basis if you decide to buy a bigger place: a 97 sq.m. 2-bedroom condo can be bought for approximately $376,000 which translates to $3,800 per square meter ($353 per sq. ft.) – still rather expensive.

We find the prices, however, to be more or less on par with developments of similar quality in the area, which means that you are not overpaying just because the place is tied to a Thai Elite visa (but are still likely paying a bit too much.) Southpoint Pattaya development You can have a look at other available properties here.

…

Yes, there are drawbacks to the real estate path of getting Thailand Elite visa – it is quite a bit more expensive than a non-refundable contribution.

But at least you get to keep your condo 20 years later… and possibly even make money on it. The property developer even offers a guaranteed 7% yearly rental return (minus taxes) if you buy a smaller property – a studio or a 1-bedroom condo. They will take care of the rentals, and you will just receive the money.

And the macro trend should help you too – the Chinese are getting wealthier by the day, and they want to go on vacations. And Thailand, which is less than five hours away by plane

from Shanghai, is undoubtedly the prime vacation destination for them.

Thailand will be getting more and more popular -- not only with Chinese, but also with other rapidly developing Asian nations. That should serve as a strong tailwind for the valuation of property located in a top tourist zone.

And Pattaya is precisely one of such zones.

MALAYSIA

On August 4, 2020, the government of Malaysia officially suspended the federal version of the Malaysia My Second Home (MM2H) program. If you have already applied for residency through the federal MM2H program and are waiting for approval, please consult with the provider taking care of your case for more details. And if you are interested in obtaining residency in Malaysia, you can still use the regional MM2H program run by the government of Sarawak Province. We cover this program in this SMC Alert.

A 10-year visa, renewable indefinitely

When you think about livable countries in Southeast Asia, chances are that Malaysia isn’t the first to come to mind. Thailand, Singapore, and Bali all have been traditional go-to destinations for westerners, leaving highly livable Malaysia behind.

But visiting and even moving to Malaysia can be both prudent and easy.

Malaysia boasts some incredible natural scenery and landscapes, on par with Thailand’s beauty.

Stunning topography unfolds before you: Tropical islands (home to some of the world’s premier diving spots), rolling highlands covered in lush vegetation, tea plantations, rice paddies, orchards… plus an immoderate studding of waterfalls, river, and lakes.

It doesn’t get much better than this.

Malaysia sits between two local superstars – Thailand and Singapore. While it isn’t as business savvy as its southern cousin Singapore, Malaysia is one of the most consistent performers in the most dynamic economic region in the world.

The country has very good to excellent infrastructure, a very modern capital city of Kuala Lumpur, and a world-class airport to serve it.

It also has a tolerant population. Malaysia is the only country with a predominantly Muslim population among the options that we’ve covered in the report so far.

However, Malaysia’s is not the radical Islam of Saudi Arabia, and foreigners can do there pretty much anything there that they are used to back at home. Malaysia also has a very substantial Chinese population, so tolerance towards other religions is something all Malaysians grow up with. Malaysian golden visa program details What makes Malaysia especially appealing is that it offers one of the most attractive long- term residency programs in Asia – a region that is generally not very welcoming to foreign immigration.

The Malaysia My Second Home (MM2H) program allows foreigners to live in the country on a 10-year renewable visa, and enter and leave the country on an unrestricted basis.

There is no minimum number of days that you’re required to spend residing in Malaysia. However, as 10-yearly visas are stamped only up to the expiration date of your passport, you will have to come to Malaysia to re-stamp your visa each time you get a new passport, or when you renew the visa itself.

There are no age requirements, although there are two separate sets of criteria for those under and above age 50.

• Applicants under 50 years old are required to show proof of liquid assets worth a minimum of RM500,000 (~US$115,000), plus a monthly income of RM10,000 (~US$2,300) coming from outside Malaysia.

Your CDs, checking and saving accounts, brokerage and even your precious metals holdings (such as in Silver Bullion) should all qualify as a source of liquid assets.

As for your proof of monthly income, your salary, as well as any other source of periodic income, should work.

Upon government approval, an applicant will be required to deposit RM300,000 (~US$70,000) in a Malaysian bank. One year later, the participant can withdraw up to RM150,000 (~US$35,000) for approved expenses such as a house purchase, education for children in Malaysia and medical purposes. (Yes, you can purchase property there.)

The remaining balance of RM150,000 will need to be maintained throughout your stay in Malaysia under this program.

Applicants younger than 50 who have purchased a property in Malaysia worth at least RM1,000,000 (~US$235,000) may lower the basic fixed deposit requirement to RM150,000 right away, but it must remain untouched.

• Requirements for applicants aged 50 and above are a bit more relaxed. You are required to show RM350,000 (~US$80,000) in liquid assets. The offshore income requirement doesn’t change and is the same RM10,000 (~US$2,300) per month. A government pension can also qualify as proof of income for applicants aged 50 and above.

You also need to keep a deposit in a local bank in Malaysia, albeit a smaller amount of RM150,000 (~US$35,000) is required, of which RM50,000 can later be spent on eligible expenses starting from year two.

Applicants aged 50 and above, after purchasing a property in Malaysia worth at least RM1,000,000 (~US$235,000), may lower the basic fixed deposit requirement to RM100,000 (~US$23,000) right away. It may not be spent.

If you possess a government pension of at least RM10,000 (~US$2,300) per month, you will not need to make a deposit at all.

An attractive attribute of the MM2H program is that participants can purchase an unlimited number of residences in a region that otherwise is not very open to foreign real estate ownership. Property acquisition is subject to the minimum price requirement, which starts from RM500,000 (~US$117,000) per unit for most states.

Rules regarding working and running a business under MM2H programs are stringent. You can have only a part-time job (20 hours per week), and even then, you will need to get approval from the MM2H committee. Running an active business in Malaysia is also out of the question under MM2H, but of course, if you are a freelancer, you will be free to continue your activities.

All applicants can bring along their dependents: a spouse, unmarried children under the age of 21, and even parents over 60 years old. Obtaining citizenship in Malaysia Unfortunately, the MM2H program grants a non-immigrant visa that doesn’t lead to Malaysian citizenship. Legal contacts The program is rather clear-cut; you can navigate all the program’s details by yourself and using the official MM2H resources.

But if you still want to engage a government-approved agent, we can recommend Yvonne Lim, whom we have known since 2012. Back then, she stood out as the service provider with the best customer reviews in the country. She has also been in business since day one of the MM2H program existence and knows it inside-out.

To start, you will need to file an online assessment application on her website, www.joy-stay.com.

She offers three different tiers of service, depending on the level of her involvement in your case. Prices range from about US$1,000 to US$2,000 for the primary applicant – reasonable by any standard. Dependents come in even cheaper, at about US$100 each.

HONORABLE MENTIONS Here we list golden visa programs that did not make it to our main list, as they are either too restrictive, hard to qualify for or are very unpopular (which typically happens for a reason).

Nevertheless, you are welcome to have a look at them and see if you might be interested. After all, we don’t know your personal situation – writing a check for millions of dollars for a residency in New Zealand or Australia may not be too big a deal for you, for example.

AUSTRALIA

The Business Innovation and Investment visa in Australia (subclass 188) consists of several subcategories, including an investor stream designed for those willing to invest at least AU$1.5 million in an Australian state or territory for a minimum of four years.

Frankly, there are quite a lot of other requirements too, so let’s have a look at all of them. You will need to…

• Prove that you had business and personal net assets of at least AU$2.25 million over the last two years

• Be under 55 years of age (exceptions are possible)

• Invest AU$1.5 million in Australian State or Territory bonds for four years

• Score at least 65 points (currently) on the points test. (Points are awarded based on the applicant’s age, English language ability, business or investment experience, and applicant’s net worth, among other categories.)

• Have three years of experience either managing a qualifying business or “eligible investments”

• For at least one of the past five years, you also need to show that you managed a business in which you hold a 10% share OR managed “eligible investments” of at least AU$1.5 million

(“Eligible investments” include ownership interests in a business, bank deposits, real estate, stocks or bonds, business loans and even precious metals.)

What it all means is that the Australian government does not want to receive AU$1.5 million from just any applicant; they want to receive it from an experienced business person or investor in hopes that this person will stay and continue his/her business or investment activity in Australia.

In other words, they don’t make it too easy.

The good thing is that you don’t risk much ahead of time. You don’t have to invest a dime until the government preapproves you. To start, you will need to lodge an Expression of Interest (EOI).

Once you are approved, and once you make your investment, you will receive a visa that is good for four years (in practice more like four years and three months).

After four years are up, you will NOT be able to extend your visa in Australia under the same conditions. Instead, you may apply for a permanent residency, as long as you fulfill the physical presence requirements (described below.)

In your application, you can include your spouse/partner (same or opposite sex) and children up to 23 years of age.

Also, if you think that you may qualify for the “significant” or “premium” Investor category,

feel free to explore those as well. They are much less restrictive in their requirements other than the investment amount, which is understandably much larger (AU$5 million and AU$15 million, respectively.)

Here is the official government resource about Australia’s Investment visa for your reference.

Obtaining Australian permanent residency, and a passport, is possible under this program, but substantial physical presence will be required. It takes a total of five years of residency to qualify, and upon naturalization, you need to make sure you have not been absent from Australia for more than 12 months (total) over the previous four years, including no more than three months (total) in the 12 months before applying.

THE UNITED STATES

The United States is a unique place when it comes to immigration.

The country will do everything in its power to keep productive and entrepreneurial people off their shores by imposing stringent rules, but at the same time it offers 50,000 green cards a year to anyone who is willing to fill out the online lottery application.

And the country also offers one of the most liberal (at least on paper) residency-by- investment programs among the main Anglosphere nations – its EB-5 Immigrant Investor program.

Investors (plus their spouses and unmarried children under 21) are eligible to apply for a US green card (permanent residence) if they:

• Make the necessary investment in a commercial enterprise in the United States; AND

• Plan to create or preserve ten permanent full-time jobs for qualified US workers. The minimum investment amount is $1,000,000, and it can be cut in half to $500,000 if you choose to invest in a so-called targeted employment area — a rural area or an area with high unemployment.

Keep in mind that this investment is a non-refundable contribution, so it must be money you can afford never to see again. The bright part: You don’t need to have extensive business experience to qualify.

How can you make sure you sustainably employ ten people? You can go on your own and start a business, invest half a million dollars, and hope to create the jobs, or you just can just bring your money to one of the many approved “regional centers”… which pool investments from many EB-5 applicants together to realize much bigger projects.

Most of the EB-5 visa investments target commercial real estate. You would be surprised, but even some of the Hilton and Hyatt hotels, and even the ongoing Hudson Yards project in Manhattan were all funded (or co-funded) by EB-5 contributions.

Up to 10,000 visas are granted each year for eligible entrepreneurs. That includes family members.

And that’s where the main program’s shortcoming come in – there are far too many people wishing to invest $500,000 in return for an American green card. The statistics show that currently there are tens of thousands of pending applications, which means that it will take a few years just to clear the existing backlog.

Here is the official government resource about the EB-5 visa.

NEW ZEALAND

New Zealand’s program is very restrictive, which is why it’s relegated to the “honorable mention” category.

There has been no shortage of investment capital flowing to the shores of this island nation, which has turned its property market red hot in recent years. The government blamed foreigners investing under the golden visa program, and so in 2017 doubled the minimum qualifying investment from NZ$1.5 million (US$1.1 million) to NZ$3 million (~US$2.2 million.)

Only 400 applications are approved every year, and a points-based system similar to Australia’s makes sure that only the crème de la crème passes through.

You also must be younger than 65 to qualify.

In any case, if you think that you stand a chance in New Zealand, here are the conditions for the Investor 2 Visa:

NZ$3 million (~US$2.2 million) or more needs to be placed into one of many acceptable investments for a minimum period of four years.

The list of acceptable investments is rather long, but no items for personal use (i.e. your home, boat, etc.) can be included. Here are just some of the options:

• Commercial property

• Government and corporate bonds

• Eligible venture capital funds

• Angel investments

(The list of all eligible investments can be found here.)

Luckily, you don’t have to commit your time and money until you know that New Zealand’s government has approved you. Whether they will accept you or not, you will know after you express your interest by filling out this application.

Both permanent residency and citizenship (after five years of total residency) are possible under the Investor 2 program, but you will have to live there pretty much constantly to qualify.

(Keep in mind that there is also a much more expensive but less restrictive “Investor 1” residency program that we do not recommend where an applicant needs to invest NZ$10M (~US$7.2) for three years.)

If you are interested in New Zealand, we encourage you to look through available resources here, or contact the government’s department overseeing the program at [email protected]. They were prompt to answer all our questions.

CONCLUSION A golden visa may – or may not be – your golden ticket to a second residency.

Certain places present cheaper and easier options. For example, you might be part of the “lucky grandparents club” and have descendants from a country that grants citizenship by ancestry.

You might also consider obtaining a residency in a country by going a more “normal” way – by moving and living there, which, in most cases, requires you to live there continuously.

(Please login to the members-only Sovereign Man site to see what options are available today.)

But if you have neither time nor obliging ancestors, then turning to a golden visa option can make a lot of sense.

And, as you can see, many different options abound.

In Europe especially, a golden visa does require a hefty investment. But in return, you will often get permanent residency, and in most cases, you will receive your money back intact, and/or sometimes even make some money in the process.

And after committing several years to the country, you become eligible for full citizenship.

Of course, no country likes to give away citizenships. Keep in mind that very often such golden visa programs are a politically charged topic, and there are always opponents.

So, if citizenship is your goal, make sure you are ready to fight for it: By the time you lodge your naturalization application, you should be able to speak the local language at least a little, have spent more time there than the bare minimum, have enrolled in local clubs and civic organizations, and depending upon your life circumstances, maybe even have had a baby there. Think of it like building a stellar resume that vaults you to the top of the job candidate pool.

(The service providers in each country will advise you which requirements are more relevant.)

Also, depending on the current political and economic climate in the country, golden visa programs themselves are subject to sudden change or even cancellation.

The once very popular Hungarian residency-for-bonds program is a case in point – the political backlash and improved economic situation in the country led to the program’s closure in April 2017, after it had attracted close to €2 billion from investors.

So if you like any particular program today, you may want to pull the trigger sooner rather than later.

On the bright side, we expect the number of countries offering golden visas to expand in the future, especially as the European financial drama likely continues to unfold. No country wants to miss out on free money, especially when all the neighbors are doing it anyway. (Are you listening, Italy?)

And finally, we think that potential candidates to join the European Union, such as Montenegro or Serbia, may present an attractive opportunity. Unfortunately, they don’t have straightforward golden visa programs yet, but reportedly have schemes in the works.

We will keep our fingers on the European pulse.