The phenomenon of economic citizenship - What Indians can learn from the Golden Visa program.

International investment has been playing a significant role in contributing to the globaleconomy as well as in integrating the international community. This has been made possible by Economic Citizenship - a phenomenon that has risen to prominence in recent years. Broadly speaking, Economic Citizenship refers to a process by which an individual and/or their family acquires another citizenship or permanent residence in a country of their choice. In return, they have the ability to make notable investments as well as exercise certain rights they gain as citizens of the country

Economic Citizenship is heavily linked to Citizenship by Investment. In the case of the latter as well, individuals who wish to invest in another country, can do so and also become a citizen of the said country as an added advantage. Citizenship by Investment in itself is an extremely broad topic and a simple summary would not do justice to the subject. For more on the various factors involved, you can refer to the blog written on the topic. https://bit.ly/understandingInternationalInvestments

One of the best examples to describe how beneficial economic citizenship can be is the Golden Visa Program. Since its implementation, this program has truly changed the pace of international investment as the world knows it. What exactly is the Golden Visa Program?

It is a means through which individuals - as well as members of a family - can reside in a country via donation, investment in real estate or some form of capital transfer. Housing is an essential part of one’s standard of living and the real estate market has been at an all-time high - a factor this program has used to the best of its ability. The first country to start this program was St. Kitts and Nevis when they initiated the process in 1984. Since then, a number of countries have offered the same to those who wish to invest in real estate abroad.

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One of the biggest advantages of this program is that it is not only applicable to the individual/main applicant but is also extended to members of the family who are dependent on the individual. It is also not mandatory for the applicant to move to the country they are getting the Golden Visa from. However, they do have to visit the place at select periods of time.

Countries that currently offer the Golden Visa Program are predominantly in the Caribbean and Europe. The most notable ones include Portugal, Spain, Turkey, Malta, and Dominica. For countries like Dominica and Turkey, in particular, the time period to receive a passport is a maximum of 6 months, an extremely beneficial feature*. Other countries such as Bulgaria* and Mauritius have also ventured out into this field in recent years. They provide permanent residency via real estate investment at first, and after a time period as short as 1+ and a half to 2 years, applicants who wish to can gain citizenship.*

How does the Golden Visa Program benefit the international community? It is important to note that in countries like Portugal, this Program was introduced during a period when the world was going through an economic crisis - the Great Recession of 2007-2009. The country was able to handle this economic crisis by encouraging investment in housing. This feature can be applied in the future in case of another economic crisis. In countries like St. Kitts and Nevis and Dominica on the other hand, the low population rate can also be an advantage for people to invest in real estate. One main reason for this is the demand would naturally be lower here than at a place like the United States.

Additionally, investing in the European market can bring in huge monetary value to the investor. Apart from the fact that investing in real estate abroad in itself is a profit to the individual, Golden Visa Programs offered by countries like Spain and Portugal, in particular, provide added benefits. This includes the ability to travel visa-free within the Schengen Zone, to live, work and receive quality educational services.

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How is this program of interest to Indians? Having the ability to invest in real estate abroad leads to a major influx of foreign exchange, boosting individual income. This kind of investment will also influence the country’s GDP in a positive manner. For example, The Golden Visa Program has helped boost the GDP of St. Kitts to a great extent, making a contribution of 14% to the country’s total GDP in 2014*. Ultimately, your investment opportunities are higher and your contribution to the country’s national income increases by a huge amount.

Countries from different parts of the world are more connected at present than ever before. A significant contributor to this process is the increase in immigration levels due to the increased chances of getting citizenship. Described as a lifeline that saved smaller countries from economic crises, the Golden Visa Program has been a breakthrough in international investment and is one of the most promising means of entering its market today. It is always an advantage to have the option of investing in anything of value and real estate is currently a major contender.

Taking up investment opportunities abroad - especially in a post-pandemic world - is extremely crucial but also one that can bring in extensive income, a better quality of life, and proper financial planning - if done correctly. This is where our company Big Town Realty can help you out!

Happy Investing!

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