The conditions under which the privilege of citizenship by naturalization is granted vary from country to country, but essential factors are usually family relationships or certain periods of residence, besides character, language and other requirements.27
Birth within a territory
Nowadays relatively few countries grant citizenship to anyone who is born within their territory. The US is the most important of those countries. The principle that citizenship is passed on by birth within a certain territory is called ius soli (“law of the soil”).
If you know where you were born you can relatively easily find out whether you may have the right to another passport – or, in case of the US, whether you may actually be a US citizen (and possibly never filed tax returns and therefore need to consult urgently with a US tax lawyer).
You can plan your children’s citizenship portfolio to a certain extent. If your children are born in a country that grants them citizenship either right away, or will make the acquisition easier later on, the right steps need to be taken prior to their birth.28 Some countries faced significant birth tourism29 and adjusted their laws to make it more difficult to just fly in and give birth. Countries which did not adjust their laws, like the US and some Caribbean nations, are trying to be restrictive in granting visas to pregnant women.
Ancestry
Many people may not be aware that they are entitled to an alternative citizenship by virtue of their ancestry. The principle that citizenship is passed on by descent is called ius sanguinis (“law of the blood”). Americans (and Canadians, Australians, Argentineans etc.) in most cases have traceable ancestry in Europe. If the ancestry is not too far back, it may be possible for them to re-acquire the citizenship of their ancestors. For example many US citizens are entitled to Irish, Polish or Italian citizenship due to the mass immigration from these countries to the US in the early twentieth century. For example an Irish-born grandparent, or also a grandparent from Poland or Lithuania, may be the basis for a successful claim to Irish, Polish or Lithuanian citizenship and – as a result - to an EU passport. In Croatia, to reclaim citizenship it is sufficient to have proof of Croatian ancestry, no matter how far removed.
Even though many countries have tightened their nationality laws, it is constructive to investigate the option, especially if one of your closer ancestors was born in another country. Dual or multiple citizenships offer numerous benefits beyond the possibility of taking up residence in the country of citizenship (and in case of citizenship of an EU country, to have the right of establishment throughout the EU).
Naturalization
For a person who cannot rely on the ancestral option there are residence and immigration options available to skilled people, investors and wealthy individuals in numerous countries:30 Australia, the Bahamas, Canada, Hong Kong, Monaco, Singapore, Switzerland, and the United Kingdom are just a few examples of countries which offer residence to wealthy individuals and investors.
This book deals with the most attractive countries where residence permits are available to investors and wealthy individuals. Thus the emphasis is not just on general quality of life, business and employment opportunities (in which case for example Australia or New Zealand would be among the immigration countries of choice), but specifically on factors concerning wealthy individuals, such as personal tax, privacy and personal security. The countries have also been selected with a view of citizenship planning and the possibility of acquiring an attractive alternative citizenship with relative ease. All these countries are welcoming foreign persons who are willing to invest.
Citizenship-by-Investment
There are, however, only three countries at the moment that legally offer citizenship-by-investment programs that do not require a specific period of residence in the country. These are Austria, the Commonwealth of Dominica, and St. Kitts and Nevis. Citizenship-by-Investment offers the opportunity to legally acquire a new citizenship quickly and easily, without any disruptions to one’s life.31
Apart from these three countries, there are several others which have similar provisions in their laws to allow the granting of citizenship to substantial investors.32 However, there is no established and clear practice in these countries; the processes involved are not transparent, the conditions not clear and the decisions mostly arbitrary.33 Also, in many countries there are suspicions that an element of corruption may be involved in the citizenship acquisitions. Therefore if the intention is to acquire citizenship based on investment extreme care has to be exercised. In fact, in most cases it is not advisable unless a real, substantial investment is contemplated in the particular target country.
Some countries also have provisions to grant non-citizens passports34 or honorary citizenships35 which are legal but largely useless as no full citizenship status is acquired and thus the documents are often not recognized by other countries. Furthermore, as no citizen status is acquired, there is no protection and the documents can be revoked any time just like residence permits, therefore not giving the kind of security that is desirable when acquiring an alternative citizenship and passport.
Caveat emptor
With regard to the acquisition of alternative citizenship, it is important to always obtain proper advice from reputable legal advisors, and to check the citizenship laws and procedures as published by the country’s government. This is particularly relevant if citizenship is sought on the basis of an investment or other direct contribution to a country. Unfortunately there are many illegal activities in this “field” and it is safe to assume that most offers are fraudulent. What makes matters worse, sometimes even seemingly reputable professionals have been found to be involved in what turned out to be fraudulent offers. For example, between November 2010 and May 2011 a Canadian immigration lawyer and a private client lawyer based in Switzerland simultaneously offered citizenship in Iceland for a US$ 400,000 investment in some private equity fund. Iceland’s citizenship law requires the passing of a parliamentary bill in order to grant citizenship to a foreigner outside the normal naturalization procedures. A simple check of the Citizenship Act would have revealed this, yet the “marketing” activities of these lawyers made it necessary for the Icelandic Government to publish an unequivocal statement. The government statement underlined that Iceland has never had in the past and has no intention to establish any kind of Citizenship-by-Investment program.36
2.4 Criteria to consider when acquiring citizenship
The most important criterion when acquiring alternative citizenship is that the acquisition is in accordance with the constitution and laws of the country, i.e. that it is legal. This seemingly obvious premise needs to be pointed out specifically in this context.
Citizenship documents and passports obtained by illegal means such as bribery are sadly not uncommon. In many countries it is possible to make (illegal) direct payments to corrupt government officials in return for passports and citizenship documents. Holders of such documents run a serious risk of exposure, arrest and deportation. Even in those countries where the law gives the President, Prime Minister or other government ministers relative discretion regarding the granting of citizenship, if any payments are involved, these are bribes – a crime in almost every country. Often the result is a revocation of previously granted citizenship and passports, for example after a change of government. Persons who have acquired documents this way are also frequently blackmailed and forced to pay further “fees” later on.37 It is therefore crucial that citizenship is obtained based upon specific provisions in the law and clear, official procedures.
A related criterion is that the granting of citizenship