Amid the global economic uncertainty and turbulent times, some investors and high-net-worth individuals looking to obtain second citizenship or residency are searching for suitable programs that meet their goals and objectives without throwing their money down the drain. Investors who neither like the idea of donating money to a governmental fund, nor purchasing a real estate property to get a second citizenship, have the option of investing in government bonds to acquire an instant passport. Several countries such as Saint Lucia, Vanuatu, and Turkey, provide this investment option in return for granting their citizenship.
Government Bonds: Stable investment
Investing in a highly regulated government mechanism can be an attractive option for those looking to acquire citizenship for several reasons, mainly because is it backed up by the government. It provides investors with higher transparency, peace of mind, and a lower risk of default compared to other types of investments. It also minimizes the risk of fraud, making it one of the safest investment options to gain citizenship or residency by investment.
Good Returns
Government bonds usually offer a fixed rate of return, yield excellent financial results depending on the type of government bonds and the economic growth of the country, and ensure a steady source of income for its holders. Therefore, it is considered an attractive option to investors looking for stable and predictable returns, and at the same time seeking a second citizenship.
Diversification
Investing in government bonds can be a good option to diversify the investment portfolio. This means that investors are less exposed to the risks associated with other types of investments. Moreover, Government bonds can be liquidated directly, without the hassle of finding a buyer or relying on a broker. Liquidation of investments is a crucial factor when considering any investment venture.
Countries providing citizenship by investing in government bonds
Saint Lucia: $300,000 investment in government bonds
Saint Lucia, which is evolving as one of the Caribbean\’s fastest growing economies and well-known for providing a variety of investment and business opportunities for people looking to increase their wealth and diversify their portfolios, has introduced on January 2023, the Government National Action Bond (“NAB”) Option as a qualifying investment option for the grant of citizenship. Thanks to this option, an applicant and qualifying dependents of any number may opt for the Government Bond option at $300,000. The bond is non-interest bearing with a holding period of five years. A one-time administrative fee of $50,000 is payable upon the grant of citizenship.
It is worth noting that St. Lucia has been praised for its advanced and modernized infrastructure, and resilient and modernized educational and healthcare systems, making it ideal for investors and their families.
Vanuatu: from AUD150,000 to 180,000
Investors looking to obtain Vanuatu’s citizenship can now acquire it through a new bond investment option under the country’s citizenship by investment (CBI) program, according to recent reports published in Vanuatu’s government gazette. The bonds, which are denominated in Australian dollars, require minimum investments ranging from AUD 150,000 to AUD 180,000 depending on their maturity period of 2 to 3 years. Investing AUD 150,000 in government bonds matures in 3 years, AUD 170,000 for bonds matures in 2.5 years, and AUD 180,000 for bonds matures in 2 years. The bond units will be issued by The Reserve Bank of Vanuatu and will not accrue interest. In addition to the principal investment, applicants will also need to pay an application fee of VT 5,000 ($42), a certificate fee of VT 10,000 ($84), and a global marketing fee of AUD 7,500 (approximately $5,000) to the designated master agent for the Investment Government Bond Option (IGBO).
Vanuatu, a small island nation in the South Pacific, has invested heavily in its passport program in recent years, which offers citizenship to foreign investors who invest a certain amount of money into the country’s economy.
Turkey: $500,000 investment
For an investment of $500,000 in government bonds, Turkey gives investors the opportunity to obtain citizenship and a second passport for themselves and their families. The country offers a wide variety of government bond types and choices, making it simple for investors to build a portfolio that gives them both Turkish passports and financial returns. The investment must be kept for three years after the candidate receives citizenship.
With its unique geographic position, fast-growing economy, sizeable domestic market, and seamless global connectivity, Turkey is considered one of the most affordable citizenship programs. Turkish passport holders can easily apply for a Schengen visa if they have sufficient documentation. In addition, many other countries have bilateral agreements with the country that allow visa-free travel, including Hong Kong, Singapore, Japan, Mexico, South Korea, and nearly all of Latin America.
There are various investment options to acquire a second citizenship or residency, including donating to the government\’s development fund, buying real estate, bank deposits in foreign currency, investing in share capital, along with investing in government bonds. However, choosing the best investment route depends on the investor’s circumstances, goals, and objectives.