CITIZENSHIP BY INVESTMENT FAQ SHEET
What is Citizenship by Investment? Citizenship by Investment is an economic and social development tool by which a country leverages its network of international relationships, physical and social attributes to attract resources for development. What are the benefits to a country of implementing a Citizenship by Investment Programme? Countries which offer CIPs benefit from increased economic development, economic diversification, capital mobilization, and increased Foreign Direct Investment (FDI). Additional benefits include enhancement of the country’s foreign reserve position as the investments are made in US$ currency as well as an extension of seasonal travel into the country as beneficiaries are required to spend a minimum of 15 days in Antigua and Barbuda annually. Are there risks associated with implementing a Citizenship by Investment Programme? Applicants for CIP programmes come from all parts of the world. An extensive network of experienced Due Diligence service providers are employed to mitigate the risk and challenges associated with the granting of citizenship to those persons. Where there are deviations from the carefully crafted policies and procedures established for maintaining the integrity of the programme, such as instances of undetected fraud or the inappropriate selection of authorized agents and citizenship by investment agents, the programme can be severely prejudiced. What other countries offer similar programmes? Citizenship by Investment Programmes are offered in Dominica, St. Kitts/Nevis and Austria. However, many countries offer immigrant investor programmes. Among these countries are the USA, Canada, United Kingdom, Jersey, Singapore, Belgium and Switzerland.
Why does Antigua and Barbuda need a Citizenship by Investment Programme? Antigua and Barbuda, as a middle income country, is no longer able to access development financing on favourable terms as in the past. However, as a consequence of systemic weaknesses in the domestic economy, exacerbated by the global economic and financial crisis, growth rates have fallen and economic activity requires a boost. As far back as 1997, the IMF in its Article 1V Consultations had indicated to the Government the need to formulate a public investment programme and mobilize resources for development. The Government has determined that the CIP can provide these critical resources. Who will manage the Citizenship by Investment Programme? The CIP will be independently managed by the Citizenship by Investment Unit (CIU). The decision to approve applications will rest with a designated core of professionals employed by the CIU. The CIU will report to the Prime Minister who will have the responsibility for the functioning and operation of the Unit as well as the Unit’s relationship with outside contractors and service providers. The CIU will also report twice annually to a Parliamentary Oversight Committee made up of representatives of both the Government and the Opposition. What are the features of the CIP? In order to qualify for Citizenship an applicant is offered one of four options: 1. Real Estate: Applicants for citizenship must acquire property valued at least US$400,000.00. 2. National Development Fund (NDF): Contributions to the National Development Fund (NDF) in the amount of US$200,000 minimum.
Contributions to this fund will be
governed by the provisions of section 42(2) of the Finance & Administration Act, 2006 which stipulates that there be established a special fund to be administered by a public officer. These funds will not be comingled with the consolidated funds and will only be utilized for public section projects and or innovation in private sector entrepreneurship. 3. Charitable Fund (CF) Contribution: Contribution to this Fund will be in the sum of US$200,000 to non-profit making organizations, as may be approved by the Minister, which deliver services in health care, education, sports, youth development or in environmental management. 4. Investment in a Business: (a) Investment in a business by a single investor in an amount of no less than US$1.5M
(b) Investment in a business by two or more persons in an amount of no less than US$4M, each of those persons individually contributing no less than US$400,000 in the investment. All the contributions mentioned above are exclusive of the fees payable to the Government of Antigua and Barbuda by the applicant. Qualifying applicants are conferred citizenship and the right to hold a passport, renewable every five years, once the citizen by investment satisfies the residency requirement of 15 days annually or 75 days cumulatively. What is the process for vetting applicants to the Citizenship by Investment Programme?/How will the CIU ensure that Citizenship is given only to bona fide applicants? The integrity and success of the programme is determined by the reputation of the bearers of the passport and they in-turn determine the reputation and integrity of the CIU. The outcome has significant implications for the visa free travel enjoyed by nationals as well as relations with other states. All applicants will undergo rigorous screening prior to consideration by the Citizenship by Investment Unit (CIU).
All CIP agents will be expected to conduct preliminary due
diligence on their clients and completed files will be forwarded to an international due diligence service provider who will conduct detailed background checks on all applicants. Applicants will be subject to an interview after the due diligence screening has been completed and ongoing checks will be carried out by the due diligence service provider after an approval has been granted. Every successful applicant will be required to come to Antigua and Barbuda and take an oath or affirmation of allegiance before he/she is granted the passport. The Government has chosen to outsource due diligence services as this will provide the programme with an unbiased third party assessment of the applicant.
Will the Citizenship by Investment Programme cause an inflationary effect on land prices? The Government is committed to ensuring that every Antiguan and Barbudan can realize the dream of land ownership and ultimately property ownership.
The CIP will be
endeavouring to ensure that this is accomplished. Applicants who choose to pursue citizenship through the real estate option will be required to purchase property in designated zones only. As such, land prices in non-designated zones will continue to be driven by domestic market conditions and should not be influenced by these purchases.
What economic benefits can be expected from this programme? The Citizenship by Investment Programme will be an effective tool to mobilize resources for economic and social development. By the end of its third year, on a projected number of 450 successful applications, the initiative is expected to result in gross inflows of over US$205.2 million (EC$550 million). At its zenith, it is projected to produce US$228.2 (EC$615 million) annually.
CITIZENSHIP BY INVESTMENT FAQ SHEET