Economic citizenship

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Economic citizenship can be used to represent both the economic contributions requisite to become a citizen as well as the role in which one's economic standing can influence his or her rights as a citizen. The relationship between economic participation and citizenship can be considered a contributing factor to increasing inequalities and unequal representation of different socioeconomic classes within a country.

Contents

Republican notions of citizenship

The republican model of citizenship emphasizes one’s active participation in civil society as a means of defining his or her citizenship. [1] Initially used to describe citizenship in ancient Greece, the republican notion focuses on how political participation is linked with one’s indent as a citizen, stemming from Aristotle’s definition of citizenship as the ability to rule and be ruled.

In relation to economic citizenship, the civil participation discussed by Aristotle can be described as economic participation so critical to the capitalist system. Defining one’s ability to be a full citizenship by his or her economic participation will establish a variegated system of citizenship in which those who can contribute most to the economy will be better represented and have a broader range of rights than those who cannot contribute as much. Variegated citizenship represents the concept that those within a different regime or status receive different levels of rights and privileges. [2]

Economic citizenship in theory

T. H. Marshall acknowledges this concept in his discussion on the relationships between social class, capitalism and citizenship. He argues that capitalism is reliant upon social classes which directly relates to differentiated concepts of citizenship. [3]

Similarly, Alice Kessler-Harris discusses the relationship between one’s ability to labor, and his or her right to equal wages as a component of citizenship. Her central argument addresses how denying a woman the right to labor and equal wages limits her identity as a citizen. [4]

The arguments by both of these theorists contribute to the notion of economic citizenship because they highlight both how economic standing and participation can be linked to one’s identity and privileges as a citizen.

Citizenship by investment

Citizenship-by-investment enables individuals to acquire an additional citizenship by making an exceptional economic contribution to another country. [5] This can be done by successfully completing a citizenship-by-investment program (also referred to as immigrant investor programs). Most of these programs are structured to ensure that the investment contributes to the welfare, advancement and economic development of the country in which they wish to reside or belong to. It is more about making an economic contribution rather than an investment. [6] These programs must be run in a manner which is legal and transparent, and in keeping with the constitution of the nation offering citizenship. This ideally should prevent corruption at the same time as giving the individual obtaining citizenship a sound legal right to their new citizenship. [7]

Immigration and citizenship law specialist Christian Kälin created the term ius doni to describe this type of citizenship by analogy with the terms ius sanguinis and ius soli . [8] Kälin's analysis of the subject points out the increasing popularity of this method to attract high-value investors around the world. [9]

Several countries are currently offering investors citizenship or residence in return for an economic investment. [10] This is usually in the form of requiring a substantial investment, coupled with compliance, residence and language requirements, among others. These countries are very selective in the type of individual they will allow to gain citizenship, however these individuals are more often than not motivated by more than just capital gains, and are looking to invest in a country more substantially from a family, social or cultural perspective. [11] Individuals who bring their family with them as dependents commonly contribute to the economy in a variety of ways, including paying for private schooling, purchasing real estate, extending their business and creating employment. Previously, the majority of countries with citizenship-by-investment programs were located in the Caribbean, for example Antigua and Barbuda, Saint Kitts and Nevis and Dominica. More recently in the European Union, Malta and Cyprus have developed successful programs. [12] [13] It is estimated that each year, hundreds of wealthy people spend a collective $2 billion to add a second or third passport to their collection. [14] It is estimated that in 2018, €100.6 million came in to Cyprus in revenues from the Cyprus citizenship by investment program. [15]

Alternatively, countries may offer certain options to secure a permanent residence. Examples of countries offering such residence programs are the United Kingdom, Switzerland, Portugal, Bulgaria, Canada and Australia. [16]

Economic impact

The economic impact of citizenship by investment programs is mainly a function of the monetary inflows as well as how such programs operate. The primary impact is generally achieved through an investment in the real estate sector of a country, which in turn can significantly boost local economies. In aggregate, this effect can be particularly strong for smaller economies. [17]

The economic effect on smaller states can be illustrated when looking at GDP growth rates over time in Caribbean states for instance. The impact of such programs on a country’s economy is significant and can range from 5.1% to 14%. [18]

Possible advantages of citizenship-by-investment

Possible disadvantages of citizenship-by-investment

Overview of Citizenship-by-Investment Programs [27]
Malta EU - DonationSaint Lucia - DonationAntigua and Barbuda - DonationDominica - DonationGrenada- DonationSt. Kitts and Nevis- Donation
Minimum Investment RequiredUSD $1,100,000USD $240,000 [28] USD $100,000USD $200,000 [7] USD $150,000USD $250,000 [25]
Visit RequiredYesYesNoNoNoYes [25]
Average Processing Time1 year+18 months3 months8 months60 business days14 months
Residence RequiredYesNo5 days within 5 yearsNoNoNo
Oath of Allegiance RequiredYesYesYesNoNoNo

List of citizenships by investment

Citizenships by investment map .mw-parser-output .legend{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .legend-color{display:inline-block;min-width:1.25em;height:1.25em;line-height:1.25;margin:1px 0;text-align:center;border:1px solid black;background-color:transparent;color:black}.mw-parser-output .legend-text{} Current citizenship by investment programs Former citizenship by investment programs Citizenships by investment.svg
Citizenships by investment map
  Current citizenship by investment programs
  Former citizenship by investment programs

Current citizenships by investment

Current citizenship by investment programs include Malta [29] (2014- [30] ), Saint Kitts and Nevis [31] (1984- [30] [32] ), Dominica [33] (1993- [32] [30] ), Antigua and Barbuda [34] (2013- [30] ), Grenada [35] (1997-2001, 2013- or 2015- [30] [32] ), Vanuatu [36] (1996-1997 or 1998-2002, 2014- [37] [32] ), Turkey [38] (2016- [30] ), North Macedonia, [39] Bulgaria, [40] Saint Lucia [41] (2016- [30] ), Cambodia, [42] Samoa [43] (1991-1997, 2017- [37] [44] [45] ), Cape Verde, [46] Austria, [47] Jordan [48] (2018- [30] ) and Egypt [49] (2020- [50] ).

Former citizenships by investment

Former citizenship by investment programs include Scotland (18th century), Belize (1985-2001 or 2002), Ireland (1984-1994 or 1988-1998), Moldova (2018-2019), Cyprus (2007 or 2011-2020), Montenegro (2008-2010, 2015-2022), [51] Comoros [52] (2008-2018), [53] Marshall Islands (1995-1996), Nauru (1998-2000 or 2002) and Tonga (1982-1996). [54] [55]

See also

Related Research Articles

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<span class="mw-page-title-main">Cypriot passport</span> Passports issued to citizens of Cyprus

Cypriot passports are issued to citizens of Cyprus. Every Cypriot citizen is also a Commonwealth citizen and a citizen of the European Union. The Cypriot passport, along with the Cypriot identity card, allows for free right of movement and residence in any of the states of the European Union, European Economic Area, and Switzerland. As of October 2024, Cypriot citizens had visa-free or visa on arrival access to 178 countries and territories, ranking the Cypriot passport 13th in terms of travel freedom according to the Henley Passport Index. Cypriot citizens can live and work in any country within the EU as a result of the right of free movement and residence granted in Article 21 of the EU Treaty. The Republic of Cyprus was formed in 1960. All persons who were citizens of the Republic of Cyprus at this time are entitled to renew their citizenship and passport, whether living on the island or abroad within the diaspora. Their descendants, whether living on the island or abroad, are equally entitled to obtain Cypriot citizenship and passport. These citizens include the Greek and Turkish people, as well as the much smaller communities of Jewish and Armenian heritage.

<span class="mw-page-title-main">CARICOM passport</span> Passport

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<span class="mw-page-title-main">Saint Kitts and Nevis passport</span>

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<span class="mw-page-title-main">Visa policy of Antigua and Barbuda</span> Policy on permits required to enter Antigua and Barbuda

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<span class="mw-page-title-main">Visa policy of Dominica</span> Policy on permits required to enter Dominica

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<span class="mw-page-title-main">Visa policy of Saint Kitts and Nevis</span> Policy on permits required to enter Saint Kitts and Nevis

Visitors to Saint Kitts and Nevis must obtain a visa, unless they come from one of the visa exempt countries.

<span class="mw-page-title-main">Visa policy of Saint Lucia</span> Policy on permits required to enter Saint Lucia

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<span class="mw-page-title-main">Visa requirements for Saint Kitts and Nevis citizens</span> Administrative entry restrictions

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References

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  2. ↑ Ong, Aihwa. Flexibile Citizenship: The Cultural Logics of Transnationality. Durham: Duke University Press, 1999. 217. Print.
  3. ↑ Marshall, T. H. "Citizenship and Social Class." The Citizenship Debates: a Reader. Minneapolis: University of Minnesota, 1998. 93–111. Print.
  4. ↑ Kessler-Harris, Alice. "In Pursuit of Economic Citizenship," Social Politics, vol. 10, no. 2 (summer 2003): 157–175.
  5. ↑ Turak, Natasha. "Villas by the sea: Rich Russians fleeing sanctions are pumping up Dubai's property sector". CNBC. Retrieved 7 January 2023.
  6. ↑ "How to get a second passport: "Citizenship by investment" is booming - BizNews.com". 2016-06-30. Retrieved 2016-07-20.
  7. 1 2 3 4 Government of Canada website. 2023.
  8. ↑ "Investment Migration Council". investmentmigration.org. Retrieved 23 August 2017.
  9. ↑ Kälin, Christian H. (2016). Ius Doni: The Acquisition of Citizenship by Investment. Ideos. ISBN   9780993586637.
  10. ↑ Towey, Hannah. "From Thailand to Portugal, these are the 10 cheapest countries where you can buy citizenship or residency status for as low as $19,000". Business Insider . Retrieved 7 January 2023.
  11. ↑ "IFC Review - The Global Citizen". www.ifcreview.com. Retrieved 2016-07-20.
  12. ↑ "€120 million generated through IIP scheme, income for 2016 estimated at €80 million - The Malta Independent". www.independent.com.mt. Retrieved 2016-07-20.
  13. ↑ "Cyprus Citizenship By Investment Remains Preferred Citizenship In Europe - Immigration - Cyprus". www.mondaq.com. Retrieved 2016-07-20.
  14. ↑ "Where is the cheapest place to buy citizenship? - BBC News". BBC News. 3 June 2014. Retrieved 2016-07-20.
  15. ↑ Insider, Investment Migration. "Investment Migration Insider Data Center". Investment Migration Insider. Retrieved 2020-04-24.
  16. ↑ "Quick Comparison of CBI/RBI schemes - Best Citizenships".
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  18. ↑ Heather, Cover-Kus. "Citizenship by investment: a lifeline for many small states". The Commonwealth. Retrieved 26 June 2021.
  19. ↑ "Investing in Second Citizenship: Why is Second Passport a Smart Investment for High Net Individuals". Finance Monthly | Monthly Finance News Magazine. 30 November 2022. This is especially significant in worst-case scenarios like war, political instability, or civil unrest. It's a valuable asset, emotionally and financially. It's a source of satisfaction and pride knowing that the person can live and work in more than one country and is a legal citizen of both.
  20. ↑ "Citizenship Bay: Top eight passports that give you exclusive access to 150+ countries visa-free". Premium Times Nigeria. 9 January 2023. Retrieved 24 June 2023.
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  22. ↑ Houlder, Vanessa (29 June 2016). "Citizenship for sale to the wealthy". Financial Times.
  23. ↑ "Top benefits of citizenship by investment programmes". 2019-12-05. Retrieved 2016-07-20.
  24. ↑ Altchek, Ana. "There's a surge in Americans applying for secondary passports. Political unrest ahead of the election and a rise in antisemitism are 2 major factors". Business Insider . Retrieved 7 August 2024.
  25. 1 2 3 St. Kitts And Nevis Government Press Release. (2023, July 27). St Kitts and Nevis announces further monumental changes to its Citizenship by Investment Programme. St. Kitts And Nevis Government. Retrieved July 28, 2023, from https://ciu.gov.kn/wp-content/uploads/2023/07/SKN-Press-Release-SKN-CBI-July_2023_Final.pdf.
    https://web.archive.org/web/20230728095706/https://ciu.gov.kn/wp-content/uploads/2023/07/SKN-Press-Release-SKN-CBI-July_2023_Final.pdf
  26. ↑ "The High Price of 'Citizenship by Investment' in the Caribbean - Nearshore Americas: Premium Intelligence and Better Outcomes in Latin America Outsourcing". Nearshore Americas. 2014-09-09. Retrieved 2016-07-20.
  27. ↑ Kalin, Christian H. (2015). Global Residence and Citizenship Handbook. Ideos Publications. pp. 406–409. ISBN   978-0992781859.
  28. ↑ "Saint Lucia Citizenship by Investment". Caribbean Trust. Archived from the original on 2022-01-06. Retrieved 2017-04-23.
  29. ↑ "LEĠIŻLAZZJONI MALTA". legislation.mt. Retrieved 2022-02-26.
  30. 1 2 3 4 5 6 7 8 Insider, Investment Migration. "History of Citizenship by Investment". Investment Migration Insider. Retrieved 2022-02-26.
  31. ↑ "Saint Christopher and Nevis Citizenship Act" (PDF). best-citizenships.com.
  32. 1 2 3 4 "History of Citizenship by Investment - Best Citizenships". best-citizenships.com. 17 December 2018. Retrieved 2022-02-26.
  33. ↑ "Commonwealth of Dominica Citizenship Act" (PDF).
  34. ↑ "Antigua and Barbuda Citizenship By Investment Amendment Act 2016" (PDF).
  35. ↑ ICT, Ministry of. "Welcome" (PDF). WebOffice | GOG. Retrieved 2022-02-26.
  36. ↑ "Chapter 3 of the Constitution" (PDF).
  37. 1 2 Insider, Investment Migration (2019-01-16). "Remembering the Dead Part 2 - Citizenship by Investment Programs of Yesteryear". Investment Migration Insider. Retrieved 2022-02-26.
  38. ↑ "Acquisition Of Turkish Citizenship".
  39. ↑ "Република Северна Македонија - Министерство за внатрешни работи". mvr.gov.mk. Retrieved 2022-02-26.
  40. ↑ "Legal guide 2013" (PDF).
  41. ↑ "Citizenship by Investment Act No 14 of 2015" (PDF).
  42. ↑ Refugees, United Nations High Commissioner for. "Refworld | Law on Nationality". Refworld. Retrieved 2022-02-26.
  43. ↑ "Final Investment" (PDF).
  44. ↑ "Origins and History of Citizenship by Investment - Best Citizenships". best-citizenships.com. 7 January 2019. Retrieved 2022-02-26.
  45. ↑ "Samoa Citizenship by Investment launched in 2017 - Best Citizenships". 16 December 2018. Retrieved 2022-02-26.
  46. ↑ "Cape Verde Law" (PDF).
  47. ↑ "Austria Citizenship by Investment". Henley & Partners. Retrieved 2022-02-26.
  48. ↑ "Jordan Citizenship by Investment Program". Henley & Partners. Retrieved 2022-02-26.
  49. ↑ "Egypt Citizenship by Investment".
  50. ↑ "Egypt Citizenship by Investment Program Requirements & Benefits". Vardikos.com. Retrieved 2022-02-26.
  51. ↑ "Montenegro citizenship by investment extended until 2022 - Best Citizenships". best-citizenships.com. 20 March 2021. Retrieved 2022-03-05.
  52. ↑ "Comoros nationality law" (PDF).
  53. ↑ "What happened to Comoros Citizenship by Investment? - Best Citizenships". best-citizenships.com. 3 December 2019. Retrieved 2022-03-05.
  54. ↑ "Origins and History of Citizenship by Investment - Best Citizenships". best-citizenships.com. 7 January 2019. Retrieved 2022-03-05.
  55. ↑ Insider, Investment Migration. "History of Citizenship by Investment". Investment Migration Insider. Retrieved 2022-03-05.
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