Citizenship acquisition can be a long and rigorous process but that is not always the case for high-net-worth individuals who may explore the option of acquiring citizenship by investment. In this newsletter, we will discuss what citizenship by investment is; the pros and cons from the perspective of the countries offering it and the individuals who seek to obtain it; citizenship by investment programs; legal and regulatory considerations; and more.

Understanding Citizenship by Investment

Citizenship by investment is an alternative route to acquire citizenship for high-net-worth individuals who are willing to invest a significant amount of capital in a country's economy. The requirements for citizenship by investment programs vary from country to country, but they generally involve making a substantial investment in the country, such as purchasing real estate, making a financial investment, or creating a business. In return, the individual will be granted citizenship in the country, along with all the benefits that come with citizenship, such as the ability to travel freely, access to social services, and the right to vote and participate in the political process.

Pros and Cons of Citizenship by Investment

Citizenship by investment programs offers a range of potential benefits and drawbacks for both the countries offering the programs and the individuals seeking citizenship.

From the viewpoint of the countries offering citizenship by investment programs, there are several potential advantages. These programs can attract foreign investment, boost tourism, and stimulate economic growth. In addition, citizenship by investment programs can be a way to attract talented individuals and entrepreneurs who can help drive innovation and economic development. One concern is that these programs may create opportunities for abuse and fraud, potentially undermining the integrity of the citizenship process. There is also a risk that citizenship by investment programs may be exploited by individuals seeking to evade taxes or launder money.

From the perspective of individuals seeking citizenship by investment, there are also potential benefits and drawbacks. Citizenship by investment programs can provide access to visa-free travel, better healthcare and education systems, and tax advantages. Additionally, citizenship by investment can provide a sense of security and stability, especially for individuals from countries facing political or economic instability. However, the costs associated with citizenship by investment can be significant, and the requirements for obtaining citizenship can be complex and time-consuming. There is also a concern that citizenship by investment programs may perpetuate inequality by providing opportunities for the wealthy to access citizenship in countries with better economic and social systems while leaving behind those who cannot afford to participate in such programs.

Citizenship by Investment Programs

The European Union has taken a cautious approach to citizenship by investment programs. In 2020, the European Commission published a report highlighting the risks associated with such programs, including money laundering and tax evasion. The report recommended that member states should phase out their citizenship by investment programs or limit the access of non-EU citizens to such programs. Additionally, following the Ukraine conflict, there were concerns that citizenship by investment programs could pose a security risk, as they may provide a means for individuals who are subject to sanctions due to their involvement in the conflict to evade those sanctions. In light of the foregoing, a number of European countries have either ended their citizenship by investment programs or restricted access to the programs. For example, in February 2023, the Prime Minister of Portugal, Antonio Costa announced that the country is ending its citizenship by investment program even though it has brought almost €398 million to the country. The prime minister noted that the need to tackle property and rent price speculation in the country led to the decision to put an end to its citizenship by investment program.

Regardless of the European Commission's call to crack down on this multi-billion dollar industry, there are still a variety of citizenship-by-investment programs available in Europe and around the world, each with its own set of requirements, benefits, and drawbacks. Some countries, such as Malta, Antigua & Barbuda, and St. Kitts & Nevis, offer well-established citizenship by investment programs, while others, such as Grenada, Dominica, and Vanuatu, have newer programs. It's important to clarify the requirements and benefits of each program carefully before deciding which one to pursue.


Citizenship by investment programs are subject to a range of legal and regulatory requirements, including due diligence requirements, anti-money laundering regulations, and residency requirements. Additionally, investors who obtain citizenship through investment may be subject to additional legal requirements, such as reporting requirements for their investments. It's important to work with experienced legal counsel when pursuing citizenship by investment to ensure that you are complying with all necessary legal and regulatory requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.