20 Best Citizenship by Investment Programs in 2023
This article will explore the 20 best Citizenship by Investment programs in 2023. You can skip our comprehensive analysis and proceed directly to the 5 Best Citizenship by Investment Programs in 2023.
Over the past decade, individuals with net worth ranging from $2 million to over $50 million have progressively gravitated towards Citizenship by Investment (CBI) programs. Motivated by aspirations for improved mobility, advantageous tax arrangements, and an elevated lifestyle encompassing better education and expanded civil liberties, these programs have surged in popularity.
By introducing CBI programs, several smaller countries have strengthened their financial independence and improved their sovereign equity, thereby reducing public debt and reliance on debt financing from supranational organizations.
The Allure of Investment Immigration: Embracing Global Prospects
This rise in interest towards acquiring second citizenship or an alternate nationality holds particular allure for entrepreneurs, especially those classified as High-Net-Worth Individuals (HNWIs). Such a venture opens the gateway to previously untapped business prospects, providing access to emerging markets and highly lucrative opportunities. By exploring these thriving industries and fostering global connections, entrepreneurs can substantially bolster the resilience and prosperity of their ventures.
As reported by Investment Migration Council, in 2020, a historical high of 6,705 Americans chose to renounce their citizenship, but this figure notably decreased to 2,426 in 2022. The decline in numbers might partially be attributed to the closure of U.S. embassies during the pandemic. According to a survey conducted by Greenback Expat Tax Services, which polled U.S. expatriates residing in 121 countries, approximately 1 out of every 4 American expatriates is contemplating or actively planning to relinquish their U.S. citizenship. Critics of American tax legislation argue that the country's global income tax compliance and disclosure regulations are excessively burdensome and restrictive.
With investors increasingly recognizing the value and potential benefits of a diversified passport portfolio, governments of countries offering investment migration programs also acknowledge the significance of customized immigration policies in attracting investors.
On August 15, Bloomberg reported that the European countries offering golden visas have collectively attracted approximately €25 billion (equivalent to $27.1 billion) in foreign direct investment through these schemes over the last ten years. Portugal has stood out as a significant recipient, securing around €6.8 billion (equivalent to $7.3 billion) during this period.
HNWI's Preferred Destinations: Tax Havens
Many countries with CBI programs provide tax-friendly environments, featuring low or zero-tax regimes for foreign-sourced income, capital gains, and other financial gains. HNWIs can leverage these tax advantages to optimize their global tax position, reducing their tax liabilities significantly. Moreover, some countries grant tax exemptions or reduced personal income tax rates to their new citizens, providing substantial tax savings.
Additionally, becoming a citizen of a tax-efficient country can lead to exemptions from wealth and inheritance taxes, preserving family wealth for future generations. Individuals can avoid double taxation and create a financially advantageous global lifestyle by strategically utilizing dual citizenship and tax treaties between nations.
Given the substantial wealth and strategic business relocations undertaken by HNWIs and entrepreneurs via CBI programs, several companies specialize in providing bespoke solutions and navigating tax intricacies. Distinguished companies acclaimed for their services include Intuit Inc. (NASDAQ:INTU), Automatic Data Processing (NASDAQ:ADP), and Broadridge Financial Solutions, Inc. (NYSE:BR).
Intuit Inc. (NASDAQ:INTU) is a leading financial technology company renowned for its diverse financial products and services, including TurboTax, QuickBooks, and Mint. The financial tools provided by Intuit Inc. (NASDAQ:INTU) serve as invaluable aids in managing complexities for businesses, HNWIs, and entrepreneurs alike. On September 13, Intuit Inc. (NASDAQ:INTU) introduced QuickBooks Money, a comprehensive payments and banking solution. This new offering does not impose any monthly fees or minimum balance requirements, providing small businesses with full control over their finances from any location. QuickBooks Money builds upon QuickBooks' previous financial technology innovations, delivering robust payment and money management features to small businesses through a simplified mobile and web-enabled experience, all without requiring a subscription.
Automatic Data Processing (NASDAQ:ADP) provides human resources management and payroll services, including tax-related services. Automatic Data Processing (NASDAQ:ADP) simplifies HR, payroll, and taxes, benefiting enterprises and HNWIs. On August 3, Automatic Data Processing (NASDAQ:ADP) successfully acquired Honu HR, Inc., doing business as Sora (Sora). Sora is a low-code intelligent workflow automation and data integration solution designed to streamline various business applications, including HR and IT systems, to deliver a more efficient and user-friendly experience for employees, business owners, and HR professionals.
Broadridge Financial Solutions, Inc. (NYSE:BR) offers investor communication and technology-driven solutions for financial services firms, including tax reporting services. Leveraging its communication technology expertise, Broadridge Financial Solutions, Inc. (NYSE:BR) offers crucial tax reporting services for financial firms, HNWIs, and entrepreneurs. On September 14, Broadridge Financial Solutions, Inc. (NYSE: BR) unveiled BRx Match, an all-encompassing cloud-based reconciliation and matching solution. BRx Match has been created to serve as a comprehensive reconciliation platform, capable of addressing both intricate and straightforward reconciliation tasks, thereby empowering business users with the capabilities of an enterprise-level reconciliation solution. This platform streamlines the entire reconciliation process, starting from its earliest stages, leading to enhanced efficiency, transparency, and accuracy, all while mitigating risks and reducing the total cost of ownership.
Now that we have taken a look at some major companies that are providing tax and related services for entrepreneurs and high net worth individuals, let's take a look at some of the best Citizenship by Investment programs in 2023.
Copyright: sidelnikov / 123RF Stock Photo
Methodology
We determined the 20 best Citizenship by Investment programs in 2023 by evaluating several pivotal criteria of each country: affordability ranking that we gathered from our article (the information provided pertained to the top 15 programs, and we conducted separate research for the remaining 5 programs), tax advantages, political stability, government effectiveness index, and human development insight values.
We analyzed data from Trading Economics and KPMG to assess tax friendliness, factoring in personal income tax percentages. Vanuatu and Cape Verde were not included in these lists, so we conducted independent research. The country with the lowest tax rate was assigned the highest rank.
In a similar vein, political stability and government effectiveness rankings were informed by The World Bank index, while human development values drew from the United Nations Development Program index. This data was instrumental in crafting our distinct ranking score against each metric.
Subsequently, we determined the best Citizenship by Investment programs in 2023 by averaging their placements on these indexes, with a lower average score signifying a more favorable ranking.
Please Note:
Cape Verde utilizes a progressive personal income tax structure, ranging from 16.5% to 27.5%. We ranked it by calculating its average rate.
In cases where multiple countries had similar average scores, their ranking was determined by their tax friendliness score as a decisive factor.
We consulted various sources such as Premier Consultancy Group, Global Citizen Solution, IMI Daily, Nomad Capitalist, Immigrant Invest, and Best Citizenships to ascertain investment costs.
20 Best Citizenship by Investment Programs in 2023
20. Egypt
Affordability Score: 12
Tax Friendliness Score: 7
Political Stability Score: 19
Human Development Score: 15
Government Effectiveness Score: 19
Average Score: 14.4
To obtain Egyptian citizenship through an investment program, one must meet specific financial requirements, including a non-refundable contribution of $250,000 to the Egyptian government, a real estate investment of $300,000, a business investment of $350,000, or a bank deposit of $500,000. Additionally, eligibility criteria include maintaining a clean criminal record and holding a valid passport.
19. Cambodia
Affordability Score: 10
Tax Friendliness Score: 5
Political Stability Score: 15
Human Development Score: 20
Government Effectiveness Score: 18
Average Score: 13.6
Cambodian citizenship, known as Khmer citizenship, presents an attractive accelerated naturalization pathway, typically taking 3-4 months to complete. This opportunity is available to foreign individuals willing to donate $245,000 to the Royal Government or invest a minimum of $305,000 in official projects.
Some of the top companies providing best-in-class tax and financial management services include Intuit Inc. (NASDAQ:INTU), Automatic Data Processing (NASDAQ:ADP), and Broadridge Financial Solutions, Inc. (NYSE:BR).
18. Jordan
Affordability Score: 18
Tax Friendliness Score: 9
Political Stability Score: 17
Human Development Score: 16
Government Effectiveness Score: 7
Average Score: 13.4
Foreigners pursuing Jordanian Citizenship by Investment program must choose from various investment options, including bank deposits, treasury bonds, securities, small and medium-sized enterprises, or local projects aimed at job creation. Once the initial due diligence process is completed, applicants can select their preferred investment route, including bank deposits, treasury bonds, stocks, ownership stakes in corporations, or investments in job-generating businesses.
17. Turkey
Affordability Score: 15
Tax Friendliness Score: 11
Political Stability Score: 20
Human Development Score: 4
Government Effectiveness Score: 12
Average Score: 12.4
Acquiring Turkish citizenship through investment provides a range of pathways. These avenues encompass buying real estate worth a minimum of $400,000, contributing a fixed capital sum of $500,000, depositing $500,000 (or its equivalent) in a specified Turkish bank, investing $500,000 (or its equivalent) in government bonds or real estate/venture capital funds, or generating employment opportunities for at least 50 individuals, which the Ministry of Family, Labor, and Social Services will confirm.
16. Armenia
Affordability Score: 7
Tax Friendliness Score: 5
Political Stability Score: 18
Human Development Score: 14
Government Effectiveness Score: 17
Average Score: 12.2
In the South Caucasus region, Armenia is an enticing option for immigrants. Its rich culture, historical significance, diverse landscapes, and warm welcome make it a unique destination. Armenia's 20% personal income tax, lower than many other countries, and its affordable living costs make it an appealing choice for those seeking economic opportunities in a culturally vibrant setting.
15. Vanuatu
Affordability Score: 5
Tax Friendliness Score: 1
Political Stability Score: 10
Human Development Score: 19
Government Effectiveness Score: 20
Average Score: 11
Vanuatu offers a Citizenship by Investment program that allows individuals to obtain citizenship by making a non-refundable contribution of either $130,000 or $180,000 for a family of four. This contribution, often called a donation, is directed towards Vanuatu's local development fund. This donation's primary objective is to enhance the country's infrastructure, overall development, and economic progress within the region.
14. Romania
Affordability Score: 19
Tax Friendliness Score: 3
Political Stability Score: 12
Human Development Score: 6
Government Effectiveness Score: 14
Average Score: 10.8
Investors seeking Romanian citizenship must adhere to the standard naturalization process, which entails establishing their primary residence in Romania for at least eight years (or five years if married and cohabiting with a Romanian citizen). This duration can be reduced by half if the applicant invests at least EUR 1,000,000 in Romania, resulting in a four-year or two-and-a-half-year requirement for those married to a Romanian citizen. Furthermore, any year in which the applicant spends more than six months abroad is excluded from the calculation of the citizenship application period.
13. St Lucia
Affordability Score: 3
Tax Friendliness Score: 9
Political Stability Score: 9
Human Development Score: 17
Government Effectiveness Score: 13
Average Score: 10.2
Saint Lucia is one the cheapest Citizenship by Investment programs and offers multiple investment options. One is the National Economic Fund Contribution, with amounts ranging from US$100,000 to US$15,000, depending on family size. Another choice is real estate investment, requiring a minimum of US$200,000. The Government Bond Investment option mandates a US$300,000 investment for sole applicants, plus a US$50,000 administration fee. These options grant citizenship and support the country's economic growth.
12. North Macedonia
Affordability Score: 9
Tax Friendliness Score: 3
Political Stability Score: 14
Human Development Score: 13
Government Effectiveness Score: 11
Average Score: 10
Under the Donation Route, individuals must contribute approximately $220,000 (€200,000) to a government-approved fund. Meanwhile, under the Investment Route, a direct investment of roughly $430,000 (€400,000) is necessary for the development of new facilities, excluding those in the hospitality sector. Additionally, a prerequisite of employing a minimum of ten individuals is mandated, thereby contributing to the creation of new job opportunities and the overall enhancement of the nation's economy.
11. Seychelles
Affordability Score: 20
Tax Friendliness Score: 4
Political Stability Score: 11
Human Development Score: 11
Government Effectiveness Score: 3
Average Score: 9.8
Seychelles offers citizenship to investors who have committed at least $1 million to a business in the country and have sustained their residency for a total of 11 years. Applicants must provide evidence of their investment in launching or expanding a business and meet other stipulated criteria to qualify. It's crucial to note that personal assets are not factored into the assessment. The eligibility conditions further mandate that applicants have maintained legal residence within Seychelles for an accumulated period of 11 years, without being absent for a continuous span of one year or more without the prior consent of the Minister of Internal Affairs.
10. Cape Verde
Affordability Score: 8
Tax Friendliness Score: 6
Political Stability Score: 7
Human Development Score: 18
Government Effectiveness Score: 8
Average Score: 9.4
Cape Verde ranks 10th on our list of best Citizenship by Investment programs in 2023. Investors who make a substantial investment of $200,000 or more in the country can be granted citizenship. Cape Verde solicits investments in Energy, Tourism, and Infrastructure projects, with a particular emphasis on foreign investors who stimulate job creation and make substantial contributions to the nation's economic development.
9. Austria
Affordability Score: 21
Tax Friendliness Score: 13
Political Stability Score: 6
Human Development Score: 3
Government Effectiveness Score: 2
Average Score: 9
The Austrian CBI program demands a significant financial commitment, typically from $2 to $10 million. However, this investment must be directed towards an active business that contributes to job creation or generates new export sales, with passive investments like government bonds, financial instruments, or real estate meeting the program's criteria. Moreover, participants in the program are required to uphold their investment for a minimum of 10 years. In addition to the financial commitment, applicants must demonstrate their ability to sustain themselves and their families in Austria.
For investors that are looking to increase their exposure to the tax and financial management services markets, some stocks to consider include Intuit Inc. (NASDAQ:INTU), Automatic Data Processing (NASDAQ:ADP), and Broadridge Financial Solutions, Inc. (NYSE:BR).
8. Dominica
Affordability Score: 1
Tax Friendliness Score: 10
Political Stability Score: 1
Human Development Score: 16
Government Effectiveness Score: 13
Average Score: 8.2
Dominica continues to be recognized as one of the cheapest Citizenship by Investment programs globally. With its efficient and transparent process, Dominica's program offers individuals the opportunity to obtain citizenship through various investment options. These options include donating to the Economic Diversification Fund or investing in pre-approved real estate projects. With its reliable reputation and attractive incentives, Dominica remains a top choice for those seeking second citizenship through investment.
7. Mauritius
Affordability Score: 14
Tax Friendliness Score: 4
Political Stability Score: 8
Human Development Score: 7
Government Effectiveness Score: 5
Average Score: 7.6
With its stable political environment, strong economy, and high standard of living, Mauritius offers an attractive option for investors looking to obtain a residence, which can eventually lead to citizenship. The country's residence program provides a route to citizenship through various investment options, such as real estate, property & hotel development schemes, and approved businesses. Obtaining a passport through naturalization in Mauritius requires a minimum of five years, and citizenship can only be attained after securing a permanent residence permit, which is typically granted three years after obtaining the initial residence permit.
6. Montenegro
Affordability Score: 4
Tax Friendliness Score: 2
Political Stability Score: 16
Human Development Score: 5
Government Effectiveness Score: 10
Average Score: 7.4
Montenegro is one country offering a Citizenship by Investment program in 2023. This program allows individuals to obtain Montenegrin citizenship by investing significantly in the country. Montenegro is a country in Southeastern Europe known for its landscapes and rich cultural heritage. Montenegro CBI program provides various benefits to investors, including visa-free travel to over 120 countries, access to the European market, and a favorable tax regime.
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Disclosure: None. 20 Best Citizenship by Investment Programs in 2023 is originally published on Insider Monkey.
