Affluent Americans Securing Exit with Discreet 'Golden' Visa Transactions
In recent times, there has been a surge in business for Luxury Locations Real Estate in Antigua, with the increase in interest in the Country's Citizenship-by-Investment (CBI) program. This trend is not unique to Antigua, as up to 70% of current buyers in Caribbean CBI programs hail from the United States.
Caribbean CBI programs offer second citizenship in exchange for a qualifying economic contribution, typically requiring clean background checks, proof of lawful source of funds, and meeting minimum age/health criteria. The benefits of these programs are numerous, including visa-free travel to 140–151+ countries, family inclusion, lifetime citizenship that can be passed to heirs, and generally favourable tax regimes.
Essential Requirements
The essential requirements for these programs are quite similar across countries. The core principle is obtaining citizenship by making a government-approved economic contribution, which can be a donation, investment in a government fund, or the purchase of approved real estate. Minimum investment thresholds generally start around USD 200,000, with higher amounts required for other routes or countries. Eligible applicants must be adults (18+), with no criminal record, verifiable lawful source of funds, not subject to sanctions, and in good health. Most programs require detailed documentation and due diligence checks.
Family inclusion is a common feature, with spouse and dependent children routinely included. Many programs also allow inclusion of parents/grandparents and other dependents under defined age/condition limits, although the rules vary from country to country. Residency or physical presence requirements are traditionally minimal, with some programs requiring no physical stay, while others require a short visit or limited days within a set period. Holding periods for real estate options are also common, with approved properties normally needing to be held for a minimum term, usually 3–7 years, before resale.
Key Benefits
The key benefits of these CBI programs are numerous. Holders of these passports typically enjoy visa-free or visa-on-arrival access to about 140–151+ countries, often including the Schengen Area and the UK. Full citizenship rights are granted, including the country’s passport, nationality for life, and the ability to transmit citizenship to eligible heirs under local law. Family coverage is also a common feature, with the primary applicant’s immediate family usually able to receive citizenship under one application.
Several jurisdictions also offer tax and residency advantages, with many having no or low income, wealth, or inheritance taxes for non-residents. Mobility and business advantages are also significant, with easier global travel, potential access to regional residency/rights, and in some cases eligibility for programs like the U.S. E-2 investor visa.
Country Highlights
Some of the countries offering these CBI programs include Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia. Each country has its unique features. For example, Antigua & Barbuda's donation option is reported to start from around USD 230,000, and it historically required a short visit. Dominica is known for its cost-effective entry point, with minimum donation/real estate options around USD 200,000 and a strong due-diligence reputation.
Caveats and Recent Reforms
It is important to note that programs and fee thresholds change frequently. Recent regional coordination has introduced reforms such as capped applications, stricter due diligence, and proposed minimum physical presence rules for participating states. Due diligence is strict, with applicants needing to pass background and source-of-fund checks. Failure to pass these checks can lead to rejection and the loss of fees.
Second citizenship may also have legal and tax consequences, as it may affect tax obligations and legal status in the applicant's home country. Some countries restrict or prohibit dual citizenship, so it is advisable to consult a tax/legal advisor.
The Rise of New Zealand's Golden Visa
In a bid to attract more high-net-worth individuals, the government of New Zealand relaxed its visa rules in April. The visa can be obtained by making a direct contribution to the Government, starting at USD 200,000, or by purchasing pre-approved real estate at a minimum value of USD 200,000. The visa rules change in New Zealand has seen a surge of Americans seeking its "Active Investor Plus" visa.
In under three months, 189 golden visa applications were received in New Zealand, compared to 116 submissions over more than two-and-a-half years. This surge in demand is largely attributed to global uncertainty and the need for safe havens.
In conclusion, the demand for CBI programs, also known as "golden passports," is on the rise, with many countries in the Caribbean and New Zealand offering these programs to attract high-net-worth individuals. These programs offer numerous benefits, including visa-free travel, full citizenship rights, family coverage, tax and residency advantages, and mobility and business advantages. However, it is important to note that programs and fee thresholds change frequently, and due diligence is strict. It is advisable to consult a tax/legal advisor before applying for these programs.
- Investors seeking a lifestyle change may find Caribbean CBI programs appealing, as they offer not only a second passport but also visa-free travel to 140–151+ countries, favorable tax regimes, and the opportunity to invest in high-end real estate, such as luxury locations in Antigua.
- For individuals interested in diversifying their financial portfolio or seeking a safe haven for their funds, New Zealand's Golden Visa presents an attractive opportunity. With a starting donation of USD 200,000 or investment in pre-approved real estate, investor can gain access to a new market, potential business opportunities, and a secure environment for themselves and their family.
