Definite benefits to citizenship by investment programmes, says …

LONDON, England — There are definite benefits to the citizenship by investment programmes across the Caribbean, says Caribbean Co. founder, Ursula Petula Barzey on the heels of a recent CBS 60 Minutes report called Passports for Sale, which painted a very negative picture of the programmes.

Barzey, who writes about the citizenship by investment programmes for the luxury travel blog Caribbean Co., said the programmes are a much-needed source of foreign direct investment that, if managed properly, can help to diversify the countries’ economies, which are currently overly dependent on tourism.

According to Dominica’s 2016 Budget, in the 2015/16 Financial Year, EC$279.8 million was raised via their citizenship by investment programme. EC$44 million of which was spent on various projects including employment and apprenticeship programs, small and micro business support and road repairs after Tropical Storm Erica in 2015.

The money generated from the Antigua and Barbuda citizenship by investment programme, launched in 2012, was projected to raise EC$111.4 million in 2015 compared to EC$60.3 million in 2014. For St Kitts and Nevis, the programme was projected to generate 30% of the government’s revenue in 2015 — roughly EC$200 million.

A significant percentage of the millions generated by both programs are used to fund various development initiatives across a range of sectors through the Antigua and Barbuda National Development Fund (NDF) and the St Kitts and Nevis Sugar Industry Diversification Foundation respectively.

“The alleged rogues, scoundrels and tax cheats highlighted from the St Kitts and Nevis programme are all historical cases. The St Kitts and Nevis citizenship by investment programme like all the others in the region have since tightened their criteria and due diligence process,” the strategist explained. “These improvements in addition to the programmes and projects funded through the five Caribbean citizenship by investment programmes should have been the focus of the CBS 60 minutes report. Of course, that may not have been sensational enough.”

“Either way, considering the potential ramifications of your entire population losing visa-free access to certain countries as what happened when St Kitts and Nevis lost visa-free access to Canada, it would have been foolish for them or any of the other programmes to continue accepting candidates who don’t meet a high standard. Failure to do so undermines the value of the product – the passport,” Barzey said.

She also explained a new online course to educate high net worth individuals on how to secure a second passport through one of the five Caribbean citizenship by investment programmes located in Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis and Saint Lucia. The online course, titled Seven Steps Citizenship, also provides insight on the three European citizenship by investment programmes located in Austria, Malta and Cyprus.

“I was inspired to create the Seven Steps Citizenship course after attending a number of citizenship by investment conferences and interviewing leading government officials, experts, and advisors regarding second citizenship. My goal is to create further awareness and present the information on the citizenship by investment programmes in an objective and thorough way so that potential candidates can make an informed decision about which programme is right for them and their families,” added Barzey.

“Applicants must go through a series of steps including a comprehensive due diligence background check before they are approved. The course helps to prepare families for the process and helps them decide which country would best fit their needs,” she noted.

The Seven Steps Citizenship course starts with an overview of citizenship by investment and a detailed outline of the seven steps process to successfully acquire a second passport. It then describes each of the five Caribbean and three European citizenship by investment programmes, providing insight on relevant legislation, requirements, application process, investment options, fees, taxes, dual nationality, the list of visa-free countries and territories as well as additional resources. The course also provides access to five comparison charts to help candidates evaluate the citizenship by investment programmes based on personal circumstances. There are also some worksheets for candidates to assess and keep track of progress.

Via one of the Caribbean citizenship by investment programmes, a second passport can be secured in three to six months after undergoing due diligence background checks most often conducted by American and European agencies. The minimum investment for these programmes ranges from US$100,000 to US$250,000, not including government processing and due diligence fees.

Barzey added that countries are now publishing their programme data.

“For example, we now know that through the end of 2015, accounting for the last ten years, approximately 10,777 applicants had been granted citizenship and by extension second passports via the St Kitts and Nevis programme. Applicants came from 127 different countries.

“Increased transparency will help keep the governments accountable to the public and in term bring about greater reporting on the program. This, in turn, will provide candidates who must work with an approved agent to submit their application with critical insight and help prevent them from falling for dodgy schemes not actually connected to the legitimate programs. This is one of the main reasons for the Seven Steps Citizenship course.”