Written by Christopher Willis, Managing Director of Latitude World
The COVID-19 pandemic changed the world as we know it, and whether most of us realize it or not, many of those changes continue, the result of scars left by the global lockdowns. Although the turmoil was worldwide, some countries dealt with it in far better ways than others.
Additionally, people with dual citizenship recognized a critical advantage of being able to cross international borders when virtually every country had barricaded its citizens in — while keeping the rest of the world out.
In this post-pandemic world, the need for multiple citizenships has never been more apparent. However, the advantages offered by holding citizenship status in multiple countries go far beyond increased access during a worldwide crisis.
As a result, it’s easy to see why more and more people have been applying for and securing citizenship status in other countries since the pandemic.
Data shows dual citizenships are becoming more popular
For example, in 2022, over 200 Americans were approved for Portugal’s Golden Visa program. However, just the first seven months of 2023 saw almost 200 Americans receiving approval. As a result, more than 700 Americans have now secured Portuguese citizenship via the nation’s Golden Visa program, which provides a straightforward and unencumbered pathway to citizenship through investment.
Another country that has seen a dramatic surge in the number of citizenship-by-investment applications is the Caribbean island of Grenada. In 2022, the nation received 1,251 such applications, which surged to about 1,700 in 2023. Additionally, investments by individuals seeking citizenship in Grenada have more than doubled year over year, climbing from around EC$359 million (~US$132.8 million) in 2022 to around EC$834 million (~US$308.6 million) in 2023.
In 2024, we project that over 100,000 high-net-worth individuals with at least $500,000 of liquid assets will start the process of securing residency in another country.
Why dual citizenship is now nearly a necessity for HNWIs
Of course, most countries continued to allow their citizens to enter during the pandemic, although many refused entry to non-citizens. Thus, having dual citizenship provides access to another country if another worldwide crisis hits, shutting down international borders again.
However, access to another country isn’t the only advantage of dual citizenship. In fact, the many benefits offered by dual citizenships have made multiple residencies a virtual necessity for the most successful high-net-worth individuals (HNWIs) and their families. As a result, a second citizenship and or residency is now considered a critical component of wealth planning.
For example, being a citizen of another country means you can travel there without needing to obtain a visa upon entry. In fact, some countries like Malta grant visa-free travel access to multiple countries. As a result, many Americans seek Maltese citizenship because it will enable them to live, work and study throughout the European Union.
Additionally, while having entry access to another country provides greater freedom in general, it also provides a Plan B that enables you to relocate at a moment’s notice in the event of potential unrest in your home country. Further, dual citizenships enable HNWIs to choose from two different healthcare systems if they develop serious health conditions or experience a health-related crisis.
HNWIs can also include their family members on their applications for additional citizenships, which is an excellent move for students because it gives them access to more educational options. For example, not having to pay international tuition fees can result in significant savings while still enabling students to enroll in a university in a different country.
In today’s competitive environment, it’s becoming more difficult for students to gain access to Ivy League schools or other universities that are difficult to get into. However, students with multiple citizenships tend to be well-traveled and to have greater cultural sophistication, which can make them look more attractive to the most exclusive schools.
Finally, securing dual citizenships for the entire family can be an excellent option as part of legacy planning because it secures all these advantages for the next generation. In some cases, dependents up to the age of 30 and parents can be included on one application.
Citizenship by investment in Grenada
HNWIs generally have two different pathways to citizenship or residency in other countries. The first involves making a significant investment in the country they are seeking citizenship in. Not every country allows for citizenship by investment and those that do have different requirements.
For example, Grenada requires a minimum investment of $150,000, and investors can choose from two different options. The first option involves investing $150,000 into the island nation’s National Transportation Fund (NTF). HNWIs can also bump their investment up to $200,000 to include their spouse or up to three dependents, with an additional $25,000 investment required per additional dependent.
In addition to those investments, investors must pay all the required application fees, including $1,500 per application and due diligence fees of up to $5,000 for them, their spouse, and their dependents.
Alternatively, HNWIs can either buy a $220,000 share in an approved real estate project or invest $350,000 in such a project and then hold that real estate for at least five years from the date on which citizenship is granted. This option also comes with the same application fees as the first one, plus government fees amounting to $50,000 for a family of up to four and $25,000 for each additional dependent.
While those amounts can add up when including family members, Grenada is an attractive option for dual citizenship because it offers visa-free travel to 148 countries and jurisdictions, including the U.K., the Schengen Area in Europe, Singapore, Hong Kong, and China.
Malta’s citizenship-by-investment program
Malta has also become particularly attractive as an alternate citizenship-by-investment option due to its membership in the European Union and its overall political stability. With a minimum investment requirement of €600,000, a Maltese passport grants visa-free travel to 190 countries, including the U.S. and the U.K.
Investors can choose from two options. The first is to establish residence in Malta for 12 months and pay €750,000. They also must either buy residential real estate there worth at least €700,000 or rent a residential property there with an annual rent of €16,000 or higher.
The other option is to establish residence in Malta for 36 months and pay €600,000. The investor must also buy residential property or rent residential property there, with the same amounts as the first option.
Both options come with due diligence fees of €15,000 for the investor and €10,000 for their spouse and dependents age 13 or older.
Some of the other popular destinations for dual citizenships include the Caribbean islands of Antigua and Barbuda, St. Kitts and Nevis, and St. Lucia. Not only do these nations offer a taste of paradise alongside a second home country, but they also grant visa-free access to many other countries.
Citizenship by descent
On the other hand, you may not necessarily need to have a high net worth to be eligible for citizenship-by-descent programs. In this scenario, you can secure dual citizenships based on ancestral descent or the citizenship of previous generations.
For example, the highest demand for dual citizenship we’ve been seeing is via ancestral descent, especially in Italy, Ireland and Poland. In many cases, those who are eligible have technically been citizens since birth, so applying for dual citizenship is merely seeking legal recognition of that status.
Additionally, Austria allows families who fell victim to persecution by the Nazi regime to become nationals. This includes any family who was a citizen of the successor states of the Austro-Hungarian Empire, which covers Hungary, Czechoslovakia, Romania, Poland, and the Kingdom of the Slovenes, Croats, and Serbs. It even includes stateless people who resided in Austria.
In addition to these citizenship or residency requirements outlined above, eligible applicants must be a descendent of someone who was forced to flee Austrian borders before May 1955 due to fear of Nazi persecution or the fallout from the war.
Additionally, the applicant’s ancestor must have had reason to fear or had suffered persecution by the National Socialist German Workers’ Party or German Reich authorities. Finally, they must be of direct lineage from a victim of Nazi persecution.
Austrian nationals gain the freedom to travel throughout the EU and to live, study or work anywhere in the EU or in nations that belong to the European Free Trade Association. In all, an Austrian passport grants visa-free travel access to 191 countries, including the U.K. and Hong Kong.
Taking out insurance on the future
Of course, not every country allows dual citizenships at all, and some may allow them only with certain countries. However, where dual citizenships are allowed, the many benefits cannot be ignored, and for HNWIs, citizenship is often just an investment away — an investment that will pay dividends not only in monetary means but also for the family’s future.
Additionally, the growing geopolitical tensions around the globe have created more uncertainty about the future than has ever been experienced on such a widespread basis at almost any other time in history. Thus, dual citizenships are essentially like taking out an insurance policy on the future, providing security and protection for future generations, and there’s no easier way to do this than through citizenship-by-investment programs.
