CITINAVI magazine - spring 2019 by CITINAVI global

Citizenship Navigation

CITINAVI Spring 1st Quarter 2019

DECENTRALIZATION *BREXIT - UK new startup visa USA EB-5 Investment

MIPIM PropTech Europe 2019

Global Residency & Citizenship Navigation by Investment Europe, Caribbean Islands & Canada

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DECENTRALIZATION "We designed Ethereum to enable machines and bots to be fist-class citizens" Joseph Lubin

Editor’s Preface Just after the annual Investment Immigration Summit in Dubai 24-26 feb 2019. I met Mikkel Thorup at Abu Dhabi, canadian young globe-trotter, the host of The Expat Money Show podcast and the author of #1 Best-Selling book Expat Secrets on Amazon. He is one of permanently moving escape artists in the world and he benefits tax free global residency in UAE escaped from the intense scrutiny and onerous policies of this native tax agencies. He presents continuously podcast interviews with global free tax investors like MAURICE GLAZER, RICHARD MAYBURY, GUNNAR GARFORS, DOUG CASEY (Anarcho-capitalist speculator)... "American Passports Seized For Not Being Tax Compliant" are new results of FATCA 2015 and the concept of residency and second citizenship, (created in the years 1990s, at a time when most international lawyers and wealth planning professionals did not consider the subject to be of much relevance) is being considered by the increasing international CEO entrepreneurs. Global wealthy people enjoy tax free residency. Over the years this concept has itself become a major topic among a number of international entrepreneurs as well as many wealthy individuals and families, who are looking at alternative residency and second citizenship solutions. One of the strengths of incorporating an offshore company in UAE is that, despite being a tax-free jurisdiction, it has prestigious internationally and good press, especially Dubai and Abu Dhabi. Tax Residency Certificate Taxation in the United Arab Emirates In an era of globalization, businesses are no longer restricted to a single geographical territory and are spread across the globe. In order to curb double taxation and ensure that the business owners are not paying tax for the same income twice, countries like UAE have entered into Double Tax Avoidance Agreement (DTAA). Once DTAA is signed between two countries, it mandates tax authority to produce a tax residence certificate, which helps investors, individual residents claim the treaty benefits. Global Passport Ranking, 2019 It’s not American or British. The United Arab Emirates passport is now the world’s most powerful, according to CEOWORLD magazine’s Global Passport Ranking for 2019. This was followed by Singapore, Germany, Finland, Denmark, Sweden, France, Italy, Luxembourg, Spain, the Netherlands and South Korea. The United States ranked No. 14 in the 2019 index, with 116 visa-free countries. And the worst? Afghanistan.

DECENTRALIZATION CRYPTOCURRENCY Crypto mania made Joseph Lubin, a cofounder of Ethereum blockchain, a billionaire, and he set out to build a utopian business empire. Then reality got in the way. A year ago, Joe Lubin seemed like one of the most prescient people on the planet. Cryptocurrency like Bitcoin, Ether and other ICOs would be reliable to any entity in the world if individuals were free to build their experiences tailored to their unique aims. Crypto might allow international CEO managers the most of their personal freedom and financial opportunity around the world. Vanuatu accepts Cryptocurrency for citizenship programs and South Korea finally recognizes Cryptocurrency Exchanges recently. PropTech beyond Crypto-Currencies The property industry is one of the largest and most valuable asset classes in the world and the use of technology to improve this sector is on the rise. The pace of innovations in the property industry is accelerating rapidly. Much is being said about how emerging blockchain technology by its association with cryptocurrencies stands to be a major disruptor in the global real estate space. In rapidly developing markets like China, Singapore, and Southeast Asia, there seems to be a surging enthusiasm and recognized demand to apply it to everyday business challenges, real estate transactions included. After a successful first edition, MIPIM PropTech Europe 2019 recurs for a second edition, which will take place in Paris. Conferences, presentations and workshops will be part of the events not to be missed. During the first two days of July, MIPIM PropTech Europe will bring together 1500 participants, 1000 companies and 100 speakers from 40 countries.

Editor in chief Hyong-Jin KWON Mipim Cannes 1st Quarter 2019 - 3

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Citizenship Navigation spring 2019

contents

Editor’s Preface ................................... p.3

Your Taxes With An Offshore Plan by Mikkel Thorup..................................... p.6-7 The World is Your Oyster by Doug Casey ........................................... p.8-10 Decentralization - Consensys Cryptocurrency .............................. p.11 Why risk decentralized currency on centralized exchanges? by Crypto Cipher ............................ p.12 South Korea Finally Recognizes Cryptocurrency Exchanges by Christian Reeves ............................... p.13 Putting Real Estate on the blockchain. Could Asia be the gateway to global acceptance? by Pascal Iakovou p.14-15 THE NEW GOLDEN AGE FOR GLOBAL TRAVELERS ........ p.16-19

11 CIP FORWARD by Bruno L’ecuyer

IMCET - the need for standards, education and qualifications in the investment migration industry...p.20-21

New Visa Categories to Replace Tier 1 (Graduate Entrepreneur /Entrepreneur); Changes to Tier 1 Route (Investor)..p.22 World’s Wealthy Face UK Golden Visa 20 Crackdown ..................................... p.23 Getting Innovative with Chartbury and the UK Tier-1 Entrepreneur Visa - the entrepreneurs franchise business plan ................................................. p.25 Tax planning considerations for Tier 1 HNW migrants in the UK by Dmitry Zapol .......................................... p.27-29

27 Hiring Professional Money Managers

to Lower and Diversify Project Risk Should be a Must for Investors by Abteen Vaziri.............................. p.30-31 USA EB-5 project - Are you ready to become an american movie producer & get your U.S. VISA? by KAT CONWAY .................................... p.32-33

If you would like to be considered for submitting an article, please contact : CitizenshipNavigation@gmail.com Advertisement : citinavi@gmail.com Asso. Onsaemi Worldwide 29 Boulevard Grande-Duchesse Charlotte, 1331 Luxembourg

Trump Administration Prepares to Close International Immigration Offices p.35 CANADA - Where Canada stands in current residency by investment industry by Kianoush Mahmoudi p.38-39 CANADA - INVESTOR PROGRAMS by Alex Khadempour.......................p.40-41

Caribbean CBI Investment Programs GRENADA ....................................... p.42-43 SAINT LUCIA................................... p.45 THE COMING OECD BLACK LIST..p.47 MONACO - The interest of Monegasque residency .............p.48-49 FRANCE -The New Stay "TALENT PASSPORT" ........................................... p.51 SERBIA-Banking in Serbia for nonresidents, interview with Bojan Timotijevic ..................................p.52-53 MOLDOVA-Citizenship by investment .....................................................p.54-55 Bulgaria CBI Overview and advantages ............. p.56 Armenia Becomes The Economist’s ‘Country of the Year........................ p.57

Australian Real Estate Market-Insights by Patrick Conheady ..................p.58-59

CYPRUS-"changes" The CYPRUS Investment Programme ..................p.60 Why Ayia Napa is Attracting Smart Investors by Natasa Kyrgia ............p.61 Thin and thick conceptions of citizenship / Normative problems surrounding citizenship deprivation by Olivier Vonk ...........................p.62-63

MIPIM PropTech focuses on the challenges of tomorrow.................. p.65 PropTech - How customer-centric real estate companies should be by Jorge Prospero dos Santos ......................p.66 PropTech - Why Open platforms are the key to real estate’s future by Jeanne Massa .................................p.67 INVESTMENT IMMIGRATION SUMMIT-IIS MENA in DUBAI ..........p.68

Editor in chief : Hyong-Jin KWON Graphic designer: Rina Asanuma Social Media, Website Seo/Sem Planner: Nan Qin Market Research: Ke XU Vietnam: Vy Trieu Le, Quoc Nguyen / China: Baihui XU Advertising marketing : Ryoici Kosaka

Le Trieu Vy

1st Quarter 2019 - 5

Your Taxes With An Offshore Plan

Asia has traditionally been seen as a safe haven for European and North American citizens looking to free themselves from the intense scrutiny and onerous policies of their native tax agencies. However, a number of countries across the region are now moving to implement sweeping tax reforms that could make them a less appealing prospect for expats and foreign investors. At last count, the average income tax to GDP ratio across Asia stood at an estimated 20%, which is about 10% lower than the mean for OECD nations . However, the sustained economic growth witnessed amongst ASEAN members like Malaysia, Singapore, and Thailand not to mention established global players such as China and India over the past decade has significantly influenced fiscal policy amongst these countries. As birth rates fall throughout the continent, populations are beginning to age which creates a greater demand for low-cost health care. At the same time, increasingly affluent citizens are calling for better and more expansive public services. To add to this, infrastructural deficiencies in key areas such as transport, roads, and telecommunications pose a looming barrier to further growth and investment over the coming years. These trends have triggered a desire to broaden tax bases and increase taxation rates to shore up growing government deficits. In the 19th Century, German economist Alfred Wagner produced studies showing that as a country’s wealth increased, so too did its tax revenues. These findings gave birth to a new theory known as Wagner’s Law, which is widely accepted amongst academic circles today. Those of you who have been following the news in Japan over the past year will be aware of the arrest of former Renault president, Carlos Ghosn on charges of tax fraud. You should also note that this was a man who was once praised the sole saviour of Nissan automotives and afforded hero status amongst the Japanese. South Korea has recently been through a similarly massive tax scandal, as Samsung Chief Lee Kun-hee has been found guilty of tax evasion in a ruling that has sent shockwaves across the country. Both of these high profile cases are a clear indication of where legislation is moving in parts of Asia. When you consider the fact that these are two of the most developed countries in the region, and that both of them have by far the strictest tax policies of any Asian nation (34% income tax to GDP ratio in Japan, 25% in South Korea) , it seems clear that China (20% income tax to GDP ratio) will be forced to adopt a similar approach in order to maintain its ambitious plans for growth. Meanwhile, the Philippines, Malaysia and Thailand look set to follow suit as they pursue their own paths towards economic development. __________________________________________________ https://www.austaxpolicy.com/1462-2/ https://lkyspp.nus.edu.sg/gia/article/asia-must-learn-to-love-higher-taxes https://lkyspp.nus.edu.sg/gia/article/asia-must-learn-to-love-higher-taxes

Tax Minimization for Asian Entrepreneurs While there are definitely signs of stricter government policies to 6 - Citizenship Navigation

by Mikkel Thorup

come, it’s undeniable that the tax rates in Singapore, Malaysia, and Hong Kong are some of the most competitive in the world, especially for corporations. All of these countries offer significant incentives to companies which can reduce the effective tax rate to below 10% in most cases. When you add in the fact that dividends and capital gains are treated as tax-exempt income the advantages are obvious. With that being said, both locals and expats need to be cognizant of the tax minimization strategies that are available to them so that they can retain as much of their wealth as possible, in case circumstances do change. When it comes to reducing your tax burden there are three main factors to take into account: ● Your nationality. ● Your place of residence. ● Your source of income. As far as nationality goes, unless you’re planning on renouncing your citizenship you really don’t have much of a choice to make. But as long as you’re not an American national, you’re pretty safe in this regard because no other country (except for Eritrea) taxes the foreign earnings of non-resident nationals. In fact, few other countries have the political and financial leverage to implement such a policy even if they wanted. For non-US citizens, the main criteria for tax exemption is the period of residence i.e. the amount of time you spend within your home country. Now, this figure will vary based on the country. Japan In Japan you have two tiers of taxpayers: ● A resident taxpayer which is anyone that maintains a permanent home (Jusho) in the country or a temporary home (Kyosho) for a period of over one year. These individuals will have to pay taxes on any income they earn from any location in the world over the year. ● Non-permanent resident taxpayers are any individuals that have been physically present in Japan for less than five of the previous ten years (measured in aggregate). Anyone that fits these criteria will not have to pay any income taxes on foreign earnings. __________________________________________________

https://www.aseanbriefing.com/news/2018/07/26/comparing-tax-rates-acrossasean.html

China At the end of 2018, China adjusted its individual income tax laws (IIT) to bring their tax residency rules in line with Western nations such as the UK, Australia, and New Zealand. The new law stipulates that any individual that either maintains a permanent home in the country or spends more than 183 days within China over the course of the year will be subject to taxation on their foreign earnings. However, there is currently some argument about whether this ruling will affect foreigners, who have traditionally been exempted from this rule as long as they spent less than 5 years (total) in the country.

Both Malaysia and Singapore follow international guidelines for tax residency, charging foreign incomes for any individuals that spend more than 183 days in-country. However, there is a workaround available for foreign residents. Malaysia’s MM2H visa program allows expats to remain within the country for periods of 10 years without incurring any taxes on their foreign-sourced income. In Singapore, residents can leverage a slew of tax reduction programs such as the qualifying child relief (QCR), spousal support relief, parental support relief, and supplementary retirement scheme (SRS). Taken together, these programs can reduce your overall taxes by several percentage points. Hong Kong In Hong Kong, only locally-sourced income is considered valid for taxation purposes, so your residential status will not be a factor. The general rule of thumb for evaluating the source of income is – the location of the office from which funds are being managed and controlled. So, if you enter into an employment contract with a company outside of Hong Kong and receive compensation outside the country then you are essentially taxexempt. The same rule can be applied to investment income, pensions, and business earnings.

Three Strategies for Tax Minimization The Permanent Traveler Yo u c a n b e c o m e a P T ( s t a n d s f o r perpetual traveller or permanent tourist), in which case you will be able to keep your tax burden to a minimum as you will never clear the criteria for tax residence in any one country. If you’re pursuing this strategy then you will either need to find a few countries that offer long-term tourist visas (possible options include India, Canada, Mexico, France and Italy). Be warned, if you opt for the latter option and plan on working during your foreign stay then you will likely be running afoul of visa restrictions which bar you from earning income in the country. Now, these laws are generally only enforced on tourists that are running local businesses, but even if you are operating a locationindependent digital company then you are advised to take all necessary legal precautions before adopting a PT strategy.

Tax Exempt Nations A second approach is becoming a permanent resident or national of a taxfree country. While this would seem like the most appealing option for individuals looking to minimize their tax burdens there are a few clear obstacles to contend with: ● There are currently only 23 tax-free nations across the world , so you are somewhat limited in your choice of destinations. ● Tax-free nations such as Somalia and Western Sahara are politically volatile and lack any sort of real entrepreneurial infrastructure. While you won’t be paying taxes in these countries, you may find yourself bereft of many essential resources.

Singapore and Malaysia

With the right structures in place and an effective foreign residence you too can live the life you want to lead without worrying about handing over half of your income to the government.

● Ultra-wealthy island-nations such as Monaco, Bermuda, St Barts, and Turks & Caicos are extremely expensive. Many of these countries also have strict policies in place to govern who can get in (hint: if you’re not a millionaire then you need not apply). There are however a few attractive destinations where you can set up home base, a vast majority of these are in the Middle East. In places like the UAE (my own adopted home), Qatar, Bahrain, and Kuwait you can access many of the amenities that you would find across the Western world without any of the associated taxes. While these countries to make up for the lack of direct income through sales taxes, you’ll still find yourself saving a substantial chunk of your earnings in the long-run. __________________________________

https://tax-free.today/blog/23-countries-withoutincome-tax/ 1. https://www2.deloitte.com/content/dam/Deloitte/cn/ Documents/international-business-support/deloittecn-ibs-malaysia-int-tax-en-2017.pdf 2. http://premieroffshore.com/which-countries-taxworldwide-income/ 3.http://taxsummaries.pwc.com/ID/Hong-KongIndividual-Taxes-on-personal-income

Territorial Tax Countries Your final strategy is to establish residency in a country that does not tax foreign income. If you’re earning money from an offshore business or through passive investments in multiple countries, then this is generally the best choice for preserving your wealth. As an added bonus, you will find a wide array of territorial tax countries where you can choose to set up shop. Recently countries such as Costa Rica, Georgia, Macau, Panama, and Paraguay have risen to fore due to their relatively accessible second passport programs, rapidly developing infrastructure and strong expat communities. If you prefer to maintain your base in Asia, then Malaysia, Singapore, and Hong Kong are still your best options for deploying this strategy.

Don’t Accept Taxation Anybody who claims that taxes are an unavoidable cost of doing business has simply not researched this topic in great enough depth. The truth is that there are a variety of legal tax minimization strategies available to any entrepreneur or professional that is willing to think outside the box and internationalize their life. With the right structures in place and an effective foreign residence you too can live the life you want to lead without worrying about handing over half of your income to the government.

ABOUT THE AUTHOR: Mikkel Thorup is the host of The Expat Money Show podcast and the author of #1 Best-Selling book Expat Secrets on Amazon. He has spent the last 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe and Iran. His goal is to help people just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. To learn more about how Mikkel Thorup can help you with an offshore plan visit ExpatMoneyShow.com 1st Quarter 2019 - 7

The World is Your Oyster by Doug Casey

Since writing The International Man in 1976, I've had quite a bit to say about internationalizing yourself. The book's subtitle was Making the Most of Your Personal Freedom and Financial Opportunity Around the World; but in going over past editions of our newsletters, I find that most of what I've written in recent years has been about the financial aspects of expatriation. Now seems a good time to confront the rest of the subject head on – the reasons to very seriously consider leaving your home country, and to do so now, not next year. The International Man is long out of print, of course, and only available through used bookstores and finders (including amazon. com). While I'm obviously biased, it's actually still an excellent read, although the world is a different place and I've learned a few things since 1976. The book was directed to Americans, but found a fairly broad international market – becoming, among other things, the biggest-selling book in the history of Rhodesia. That, in and of itself, provides a bit of an object lesson in how things can change, I think. 8 - Citizenship Navigation

When I first went to Rhodesia in 1978, war was still raging, but I was able to find an entrepreneurial local publisher, Gordon Graham. At the time, there were still about 250,000 people of European extraction among the 6-million population. And it was clear most of them were eyeing the exits and wondering where to go. Most of the whites were native Africans, born to families that had been in the country for generations, and they felt they had just as much right to be there as the blacks. But when it comes to such things, it's not a question of rights but of political power. Today there might be 5,000 whites still hanging on. But making what they called “the chicken run” 30 years ago was definitely the smart course. However, few of them had a “bolt hole” elsewhere. In any event, my book flew off the shelves, as people desperately scrambled for alternatives. The problem – your problem – is that any country can turn into a 1970s Rhodesia. Or a Russia in the '20s, Germany in the '30s, China in the '40s, Cuba in the '50s, the Congo in the '60s, Vietnam in the '70s, Afghanistan in the '80s, Bosnia in the '90s. These are just examples off the top of my head. Only a fool tries to survive by acting like a vegetable, staying rooted to one place, when the political and economic climate changes for the worse. When the going gets tough, the mentally tough go elsewhere. The way your forefathers once did – at least, if you live in an immigrantbuilt country like the US, Canada, Australia, New Zealand, or Argentina.

I don't know exactly when I became interested in exploring other lands. Maybe it began with reading Uncle Scrooge comics when I was a kid in the '50s. Uncle Scrooge (who is a fantastic character and one of the great heroes of American literature) was always taking Donald Duck and his three nephews off to an exotic clime for a high-adventure treasure hunt. Maybe it was when I wanted to be a paleontologist and read about Roy Chapman Andrews (a model for Indiana Jones) rooting for fossils in Mongolia. Or when I decided I'd like archaeology better and read about Heinrich Schliemann discovering Troy. But a couple of specific things really set the bit in my teeth. One was when I was in Milan, looking to buy a Ferrari. The seller was a guy I remember well, Viviano Corradini, who was actually an American. I asked him why he was living in Italy. “You see this?” he said, as he veered the car way into the opposite lane and back again a couple of times, then slammed on the brakes, then accelerated – a wild little ride. “You can't do this in the States. They'll throw you in jail. Here, you can do anything you want!” He was right. After I bought the car we realized I didn't have any plates, so he reached up into a closet and found some old New Jersey plates. “Here. Use these.” I did, no problem, for the next six months, all over Europe. It gave me some practical reality about not being controlled by other people's arbitrary rules.

Of course the world in general – and absolutely, positively Europe – is a bit more tightly wrapped now. And I don't endorse the idea of reckless driving. Or of robbing national banks – at least not without the cover of being an executive with Goldman Sachs… But the point is that, at different times, there are places that are good for doing certain things. And places where it is bad to be. Who wouldn't have preferred to be in the USA, rather than the USSR, from 1920 to 1990? Ireland was a dismal, depressing place for decades after WW2; then in the '90s it blossomed. Africa was a very safe, prosperous, and enjoyable place before about 1960, when it started to degenerate into a giant hellhole. About every country on the planet has had its good times and its bad times; that's one reason the original Baron Rothschild sent his sons to several different ones. Some countries, like Russia, have been living at Hard Times Central since day one; others, like the US, have had good times for a long time.A wise man, at least in my view, doesn't allow himself to be limited by an accident of birth. It's most unfortunate (for them, anyway) that most people have a peasant mentality. They're idiotically indoctrinated into thinking that their country is the best place in the world, simply because that's where they were born. It makes sense in a way; their ancestors rarely ventured more than a day's walk from the village where they were born. After all, there were stories of dragons and demons over the hill. Things haven't changed much, except people have exchanged the mud hut for a McMansion. But they've retained that medieval serf worldview. And the CNN and BBC newscasts on their widescreens only reinforce the notion that things are dangerous outside their borders; they're probably even more scared than their primitive ancestors. Assuming they watch anything beside sitcoms and sports. It's certainly possible to be happy living your whole life in the place you were born and grew up. But unless you were born a member of the lucky sperm club, it's almost always suboptimal, and sometimes it can be disastrous. I suspect now is one

In any event, I suggest you at least consider the possibility of transplanting yourself, or at least start by transplanting some assets. Don't look at it as a negative thing. The world is your oyster. Make the most of it. This is directed not only at Americans, but at everybody, everywhere. It just seems a little more urgent for Americans, as well as for Europeans, at this point.

Doug Casey Doug Casey We're of the opinion that the world at large, and the US in particular, is heading into some seriously turbulent times. The diminution of personal and financial freedom looks like a hyperbolic curve, at first with an almost unnoticeable slope, then one that gets steeper and steeper, at an accelerating rate. I think an excellent case can be made that the current crisis is an inflexion point, beyond which it goes vertical. A crisis (and this will be a very real one) always draws exhortations from the authorities to “unite” and “pull together” – which usually boils down to following orders and turning in those who don't. People will want, and will get, “strong leadership.” This does not bode well for libertarians, classical liberals, and free thinkers, in general. As the crisis deepens, it's likely to be dangerous for someone who doesn't agree with groupthink. Things are likely to be much mellower if you're living somewhere they consider you a tourist, than to stay on your home turf where questions will be asked if you don't join the hooting and panting chimpanzees that will surround you. You can absolutely plan on unwelcome social pressure in the years to come, especially as the wars expand. Coincidental with this is going to be the near destruction of the US dollar; I just don't see any realistic way around that eventuality at this point. The consequences of that are going to be disastrous, but it's possible to insulate yourself from many of them. The biggest problem, and also the one most people just don't see, is political. There is almost no way you can effectively insulate yourself if a government, and society as a whole, goes crazy. You might argue that really tough times in the US are a long shot; the US is “different” from other countries. It's certainly true the US has been particularly blessed for most of its existence, because it actually was different. The problem is that what made the US different from every other country – a Constitution that expressly limited the powers of the state, and an explicit acceptance of property rights and the free market – has evanesced. It's why I refer to it as the US, which is just another country, rather than America, which was a unique and excellent concept.

In many ways the world seemed to turn over a new leaf in the '80s. Not just with the election of Reagan and Thatcher, but with the appearance of many more like them, almost everywhere. Whether it's the “hundredth monkey” hypothesis, or whether there really is such a thing as the “spirit of the century,” the majority of people tend to hold similar views at the same time. It's strange. From about 1980-2000, all over the world, tax rates went down, regulation was relaxed, markets were freed up. The Soviet Union collapsed, apartheid in South Africa nonviolently disappeared, New Zealand fired two-thirds of its government employees, China liberalized. Even the constipated continents of Europe and South America loosened up. It looked like freedom was in the ascendant. But it couldn't last.

Another was in Switzerland, when I was hanging around for about a month with an ex-Foreign Legionnaire named Ron Schneeberger. He was planning to rob the national bank of Haiti, figuring that Papa Doc had about $50 million in negotiables sequestered there. That was a lot of money in those days. Ron reasoned, quite correctly, that if you robbed the corner liquor store, you'd get $50 and likely get killed. If you robbed an ordinary bank, you might get $5,000. But if you hit a government… who was going to pursue you?

The reasons to very

seriously consider leaving your home country, and to do so now, not next year.

Now, certainly since September 11, 2001, the tenor of the world has changed again – radically. And the negative new trend has been supercharged by the financial crisis that began to unfold in 2007. Now practically everywhere, much higher taxes, onerous new regulations, border controls, and capital controls (to prevent the makebelieve crime of money laundering), among other things, are the new order. It seems as if the clock has been turned back to the 1930s, but much worse, in that governments are much more powerful. And I fear a redux of the 1940s is in store. The whole world acted pretty much the same in the '30s and '40s as well, you'll recall. One thing I think you can plan on is foreign exchange controls. A government turns to FX controls during a currency crisis, to prevent its citizens from swapping the local currency for something foreign – transactions that would further weaken the local currency. FX controls, in effect, force people to stay with a sinking ship. But they are politically popular, for a number of reasons. They allow the government to “do something” during a crisis. They appeal to the average yahoo, partly because he doesn't travel abroad and tends to question the patriotism of those who do. Only the rich (especially the “unpatriotic” ones) have assets out of the country, and it's now time to eat the rich. 1st Quarter 2019 - 9

At a bare minimum, you should have a meaningful amount of gold in a foreign safe deposit box. In addition, you should own some foreign property, preferably in a location where you would enjoy spending some time. These things are currently not reportable, and it would be impractical for the government to get you to repatriate that capital. The ideal scenario, of course, is to have your main residence in one country, your assets in another, your business in a third, and your citizenship in a fourth. That isn't practical for most. But you can certainly get assets abroad. And you may want to consider acquiring a second citizenship, which can considerably expand your options. The International Man has a lot on this topic. It's not necessary, and often not even desirable, to establish official residency in the country where you'd like to spend time, because that risks getting stuck in its tax system. It's usually smarter just to leave every 90 days to renew your tourist visa and not spend more than six months per year in any one country. That way you'll be treated as a valued tourist, who should be courted, rather than as a citizen, who can be milked like a cow. Once you do acquire another passport, the next question is whether you should renounce your US citizenship, which could give you huge tax and regulatory benefits. As everyone knows, the US is one of the few countries in the world that taxes its citizens regardless of where they may live – although it must be said that other governments seem to be moving in this direction. The problem with renouncing your US citizenship is that the US assesses what amounts to an exit tax on Americans who do so. Since 2004, any high-net-worth individual who renounces his citizenship is automatically assumed to have done so for tax reasons. And any individual deemed to have expatriated for tax reasons is deemed to have sold all his assets at fair market value on his last day as a US citizen. And, if the expatriate spends more than 120 days per year in the US, he can be taxed on his worldwide income and potentially is subject to estate tax. 10 - Citizenship Navigation

In the near future, however, even that option may not be feasible. So let's plan ahead… I wrote The International Man as a guide for those who were looking for a place that could offer more of what they want. I can't rewrite the book in this short report. But it's worth making a few observations about the world in general, then about some areas and countries in particular.

We're heading into a currency crisis for the record books, and I think you can plan your life around some type of FX controls. If you don't get significant assets out of your home country now, you may soon find it costly and very difficult to do so. Already, very few foreign banks and brokerage firms will take accounts from US persons. But although there are reporting requirements, there's currently no law against Americans having overseas accounts, and no laws against foreign banks and brokerage firms accepting American business. Many institutions find that it's simply not worth the aggravation and worry to deal with Americans.

There are advantages to places that are unstable, poor, repressed, and backward, just as there are disadvantages to places that are stable, rich, free, and advanced. A lot depends on who you are and what you want to do. Try to keep an open mind.

First, there may not actually be any one “best” place, simply because you're dealing with the human animal, who's subject to all manner of fears, hysteria, vices, and assorted aberrations. I don't know where Shangri-La is located. Therefore, you want some degree of diversification, so you always have a “Plan B” available. Second, there are roughly 225 distinct political entities around the world, and there are likely to be more as time goes on. There are advantages to places that are unstable, poor, repressed, and backward, just as there are disadvantages to places that are stable, rich, free, and advanced. A lot depends on who you are and what you want to do. Try to keep an open mind. Third, I don't think there's any doubt that the West – meaning North America, Europe, Australia/New Zealand, and Japan – is in relative decline. Meanwhile, places like China, India, and Vietnam are on the way up. The reasons are simple. In the developing world, a worker earns between 1/5 and 1/30 what his counterpart does in the West. But he's just as smart, might be even better educated, is likely to work twice as hard, and has less of an attitude of entitlement. It may be true (but less and less) that the developing country has less infrastructure. But now a number of them have telecoms, roads, airports, and such that are among the world's newest and best, while many of those in the West are falling apart. At the same time, the general level of taxes and regulation tends to be much lower in developing countries; that's a big reason why they're developing. Part of the better social ambiance is reflected in people being free of debt; they may not make much, but they save something like 10% to 20% of what they do make. So, instead of a mountain of debt that must be paid off, there's a growing pool of savings to be invested.

The days of automatically having the odds tilted in your favor simply because you were born an American are coming to an end. By the end of this century, wages will be more or less normalized the world over. Americans also have had a huge advantage in speaking English, the world's most commonly spoken language, its lingua franca, and the language of science, business, aviation, entertainment, and other fields. But that advantage is also diminishing, as almost every educated person now has English as a second language. Most Americans have only English. Negatives? Many of these places have large bureaucracies, as a legacy from buying into various strains of socialism imported from Europe. There may not be much regulation (of the type we have in the West), but there are still plenty of forms that need to be processed and approved. In order to make things happen, bribes must be paid. I've discussed the ethical implications of paying bribes in the past, but suffice it to say that as developing countries become freer and wealthier, bribery and general corruption will likely diminish. At the same time, as the US becomes less free and wealthy, bribery and general corruption will greatly increase. I think it's incumbent upon any self-directed free man to go where he can most fully realize himself. But where that is depends on who he is. And sometimes happenstance plays a part. I'm reminded of one of my favorite scenes in Casablanca. Claude Rains, as Renault the police inspector, asks Bogart: “Rick, how'd a guy like you ever wind up in Casablanca?” “I came for the water.” “But there's no water in Casablanca – this place is a desert…” “Yeah, I was misinformed.” Editor's note: Clearly, there are many strange things afoot in the world. Distortions of markets, distortions of culture. It’s wise to wonder what’s going to happen, and to take advantage of growth while also being prepared for crisis. How will you protect yourself in the next crisis? See our PDF guide that will show you exactly how. Click here to download it now. DOUG CASEY, world-renowned speculator and libertarian philosopher, and author of “The International Man: The Complete Guidebook to the World's Last Frontiers. For Freedom Seekers, Investors, Adventurers, Speculators, and Expatriates” (1979). Doug wrote the definitive book on profiting from periods of economic turmoil, Crisis Investing, a #1 New York Times bestseller. He also wrote more recently, Totally Incorrect (2012) and Right on the Money (2013), continuing his mission of challenging statism and advocating liberty and free markets. In 2016 he published his first novel, Speculator, followed in 2017 by Drug Lord. He has been a guest on hundreds of radio and TV shows, including David Letterman and Charlie Rose, and has been featured in publications such as Time, Forbes, People, and the Washington Post. Founder of Casey Research, he is a regular keynote speaker at free market events. He currently spends most of his time in Argentina and Uruguay, and traveling to various dysfunctional hellholes.

Consensys

CRYPTOCURRENCY

DECENTRALIZATION "We designed Ethereum to enable machines and bots to be first-class citizens" with espoused visions of decentralization and a democratized global society. Crypto mania made Joseph Lubin a billionaire, and he set out to build a utopian business empire. Lubin, a cofounder of the Etherreum blockchain, spoke at events Davos and SXSW, Austin-Texas. "So be nice to the machines of this generation, lest some future artificial general intelligence who feels that you have been disrespectful to her ancestors decides to turn your carbon into something more useful to the future machine money." Self-described computer nerd, Lubin grew in Canada and attended Prinston in the mid-1980s. During the September 11 attacks he experienced an existing crisis, deeply depressed about the state - "I felt we were living in a global society and economy that was fuguratively, literally and morally bankrupt", he said at Consensys' Ethereal Summit 2017. He thought that some unexpected events would send the world into the worst economic depression it had ever seen. In 2013 Lubin read the bitcoin white paper, he believed : Decentralization is game-changer and he participated Buterin's core group through Ethereum 18 million ICOs in 2014. He planned to create a business ecosystem around Ethereum differently to Buterin's technology. In his version of the decentralized future, he is the architect and financer as CEO and central bank of self-sovereignity

funding all of Consensys. In 2014 launched via crowdsale at 30 cents per token, he created holding company Consensys of which he was proud of describing as 'global organism of applications and infrastructure for a decentralized world' as the Ethereum blockchain allows apps to be embedded in the blockchain thanks to its technical superioity. Ethereum bacame launching pad for hundreds of ICOs, initial coin offerings. The crypto landscape is littered largely with currently wothlless Ethereum-based ICOs, Airfox and Pragon, sold 27 million USD in unregistered securities when they issued their ICOs in 2017. EOS, rival app-supporting blockchains has raised 102 million USD recently from investors, are challenging Ethereum. But almost all blochchain technologies are illfated carcasses. Lubin's organism an Consensys keep growing but its business are in the red He repeats to speak : this is definitely not something you need to Lubin's global organism apears to burn cash of huge millions a year. Forbes estimates that Lubin's fortune is less than 1 billion, difficult to know how long he can continue to fund his dream. Lubin insists - it stands, Consensys is stable and healthy. 4th Quarter 2018 - 11

Satoshi Nakamoto’s purpose to create Bitcoin for monetary sovereignty is still at the helms of centralized parties. The year 2019 has just started(Q1) and it has brought with it a slew of publicity regarding large scale exchange hacks and exit scams. The crypto trading platform Cryptopia suffered a security breach last month(14th Jan. 2019) when, according to one estimate, as much as $16 million worth of cryptocurrency was stolen. On 26th Feb. 2019 Cryptopia announced via Twitter that worst case 9.4% of their total holdings was stolen. However, - It did not provide an idea of that amount in monetary terms. The third wave of crypto wallets tied to cryptocurrency exchange Cryptopia was emptied to the tune of around USD 30,000 — USD 40,000 worth of ether Despite it’s being smaller-scale theft than the previous two rounds but raises the question — why are people still depositing their cryptocurrencies into Cryptopiaowned wallets? Cryptopia is back in business with its website relaunching in read-only mode on Tuesday this week. It Relaunched the platform to pre-hack status means that - users may not be able to identify who lost their funds and who didn’t since the funds are not accessible for exchange or withdrawal. - The public will never know for sure the accurate amount that the exchange lost in the hack. According to Elementus, the hackers have been shuffling the funds around in small pieces and gradually moving them into exchanges to cash out. Over 76,000 different wallets, none of which were smart contract-based, were used, meaning the thieves must have gained access to not one private key, but thousands of them. And instead of withdrawing the funds as fast as possible, they took their time extracting the assets over the course of nearly five days before Cryptopia realized they were being hacked. 12 - Citizenship Navigation

Why risk decentralized currency on centralized exchanges?

It’s not about one centralized Exchange, adding to the misery of traders was the news of the death of Gerald Cotten, the 30-year-old founder of a Canadian cryptocurrency exchange, Quadriga CX who took the whereabouts of some C$180m ($135m; £105m) in c r y p t o c u r r e n c y t o h i s g r a v e . N o w, Quadriga CX users are wondering if they will ever see their funds again. The concerns around centralized cryptocurrency exchanges being hacked, corrupt, or operating illegally has spread fear amongst traders for years. Crypto giants are also wonderstruck and considering the decentralized way as the better option when it comes to the security of crypto assets and to retain traders’ trust.

Binance, the world’s largest cryptocurrency exchange by adjusted trading volume, is about to release its decentralized exchange, Binance DEX, for public testing.

The latest announcement on the development progress of applications on the blockchain is the partnership between Unlimited Tower and EOS Decentralized Exchange (DEXEOS), the first-ever decentralized exchange on EOS. So you’ve tried centralized exchanges and now you should look to branch out further. Have you considered trying a decentralized exchange?A DEX does not hold customers’ funds, positions, or information, and only serves as a matching and routing layer for trade orders. Here is a list of best DEXs that one can tryWavesDEX The Waves Decentralized Exchange is a decentralized market where users can trade waves-based assets, including Waves, Waves Assets, fiat tokens and

by Crypto Cipher

cryptocurrency tokens like wBTC and wETH. On the WavesDEX, users can trade with no counterparty risk as all operations take place on the Waves blockchain itself ensuring that no trust is required. Escodex Escodex is one of the best DEXs for a new trader like me. It supports wide range of cryptocurrencies- masternode coins (ERC20, zerocoin protocol, cryptonight/ cryptonite lite/cryptonite classic, omnicore coins), which is not that common among decentralized exchanges. Another advantage against many of the DEXs on the market is that Escodex supports trading in many BTC-trading pairs. The available trading pairs at the trading platform are the following: BTC/ETH, BTS/ BTC, BTC/USDT, BTS/ETH, ETH/USDT, BTS/ESCO, ESCO/BTC, ESCO/USDT, ESCO/ETH, BTS/USDT, BTC/USDT, BTC/EOS and BTC/BCH. The exchange platform is quite user friendly and well structured. KyberNetwork KyberNetwork is an on-chain protocol which allows instant exchange and conversion of digital assets (e.g. crypto tokens) and cryptocurrencies (e.g. Ether, Bitcoin, ZCash) with high liquidity. KyberNetwork wants to implement several ideal operating properties of an exchange including trustless, decentralized execution, instant trade and high liquidity. Besides serving as an exchange, KyberNetwork also provides payment APIs that will allow Ethereum accounts to easily receive payments from any crypto tokens. I am sure the crypto regulations, bans, and hacks will catalyze the development of decentralized exchanges and we can definitely expect better user experience and liquidity on DEXs in the foreseeable future. Mitigated hacking risks and increased privacy are always nice, right! medium.com

South Korea Finally Recognizes Cryptocurrency Exchanges CRYPTOCURRENCYINVEST ABROAD & INVESTING OVERSEAS By Christian Reeves

It seems crazy to me that there are still some countries out there that have not adopted laws to allow and support cryptocurrency exchanges. Just look at how it has transformed the economy of Switzerland and Estonia. This post will look at the fact that South Korea finally recognized cryptocurrency exchanges and issued laws to govern their operation. South Korea finally jumped on the bandwagon and is now looking to set up this country as the tech and crypto center of Asia. South Korea, a long contrarian to cryptocurrencies, has stepped forward and embraced digital tokens. The main concern that the financial regulators in South Korea had regarding cryptocurrencies was that it would be used to launder money. The first step to avoid that problem was to strengthen regulations and have a clear framework from which cryptocurrencies could navigate from. Concern existed, but it was shared with the knowledge that the mainstream adoption of cryptocurrencies could benefit local banks and double their economic footprint in the country. Speculations were high and the desire to reach an agreement was always present. Last year alone South Korea was responsible for a third of all Bitcoin trades done. South Korea compromises just one percent of the worldwide population yet it makes up for 30 percent of the industry. It was crazy to think that cryptocurrency exchanges were not regulated in this country. You read that correctly, a country where Bitcoin regulation was strict and full of obstacles made one third of all the trades done by Bitcoin. Last December the citizens of South Korea also made over 17 percent of all ethereum trades. The main reason behind the explosion of cryptocurrencies could be that the country in general is known to be very tech savvy, and that that majority of the trades were done by young people who are unemployed and see Bitcoin and Ethereum as a great investment. Not only young unemployed people joined the cryptocurrency boom there is a great variety of residents of South Korea who invest in Bitcoin. Around the world cryptocurrency seems to be a fad for young entrepreneurs, but not in South Korea. People

of all ages, young, housewives, working class, grandparents, everybody seems to be cashing in on Bitcoin and Ethereum. South Korea is known to start trends in the economic market and what many experts in the field are commenting is that the wide acceptance of cryptocurrency in South Korea is soon to be followed by many other jurisdictions as it has with many other technology based products. As with everything involving technology there have been some ups and downs. An exchange in South Korea recently got hacked causing a drop of 10 percent in Bitcoin worldwide. This led to many enthusiasts to abandon trading as it confirmed their fears that a hack that could make their money disappear a real threat. Bitcoin was not affected in the hack just the demand for it. Crypto has fallen from the mighty throne that it held last December when it was valued at over $20,000 dollars, but interest by particulars and financial institutions in South Korea have not waned. The complete opposite in fact, while everywhere else in the world analyst’s are worried how the fall of Bitcoin might decrease the interest of Bitcoin enthusiasts South Korea is confident in the power that cryptocurrencies hold. The government has begun to make ambitious promises such as the goal to make South Korea the next crypto valley and take Switzerland’s cryptocurrency crown. Also, they plan to make South Korea the place for blockchain companies to open shop. South Korea announced that they have stipulated that their blockchain budget to be one trillion Won. This sum of money is outlandish in a good way and it shows the amount of confidence that the government has in the technology. The South Korean government has created a subdivision of their Financial Services Commision called the Financial Innovation Bureau to look after cryptocurrencies and blockchain. The government entity will also help in setting rules and regulations that may encompass any of these technologies. South Korea is looking into the future and is the best example out there of a country who didn’t believe at first in crypto and has now adopted its legal framework to include it. 4th Quarter 2018 - 13

Putting Real Estate on the blockchain Could Asia be the gateway to global acceptance? by PASCAL IAKOVOU

Much is being said about how emerging blockchain technology stands to be a major disruptor in the global real estate space. But will its adoption be slowed by its association with cryptocurrencies, which have undoubtedly had a volatile run since their inception within the last ten years? Alarmist headlines may deter populations of more developed economies, especially, to adopt the many other proposed uses for the technology. But in rapidly developing markets like China, Singapore, and Southeast Asia, there seems to be a surging enthusiasm and recognized demand to apply it to everyday business challenges, real estate transactions included. Could the Asia-Pacific region, with its initial forays into blockchain uses, be the gateway to the greater global trust that this consensus-based technology will need in order to prevail?

Advancing Perceptions Beyond Crypto-Currencies Blockchain technology can be a hard concept for the average person to grasp, which can be a major obstacle to any new technology’s widespread adoption. However, the same could once be said for the internet, and although most people still wouldn’t be able to explain how the internet works, they have no problem today trusting the infinite user-friendly apps that allow them to tap into it. Blockchain proponents would envision a similar fate for their own technology. (You can go here for an excellent primer on cryptocurrency and the underlying blockchain technology that is pertinent to this article.) For the 10,000-foot view…a blockchain is a decentralized and ‘trustless’ database capable of facilitating direct peer-topeer transactions without the intermediators that traditional transactions have typically required. Verification is achieved by a consensus of the distributed nodes resident on the chain, each maintaining its own protected ‘copy’ of the database. Cryptocurrencies are but one type of asset transaction that can be managed on a blockchain. In that instance, the blockchain acts as a digital ledger capable of transferring funds directly between entities (in the form of cryptocurrency native to the particular blockchain), thereby removing banks as the traditional verifier and trusted third party to the transaction. The Bitcoin blockchain is the figurative patriarch of the blockchain family and likely what comes to mind to most of the general public at the mention of ‘blockchain’. That’s not necessarily good news for acceptance of the technology given the volatile valuation of bitcoins in the past twelve months. Bitcoin increased nearly 1,900% from its value at the beginning of 2017 to its all-time high of US$19,783 per bitcoin in December 2017. It’s since plummeted about 80% from that figure (US$3,964 as of this writing), and November 2018 saw the worst monthly decline for bitcoins in the last seven years.[1] Every other cryptocurrency has essentially followed suit. Several have experienced internal strife within 14 - Citizenship Navigation

their communities, resulting in ‘forks’ – the descriptor for when a blockchain breaks into a different variation of its original.[2] There have also been several high-profile hacks and thefts, increasing perceived associations with illicit organizations and stoking the fears of potential investors that centralized governments will reign-in the technology with over-regulation. [3] With these factors taken together, it is no wonder that many are inclined to wait-out blockchain development or write it off altogether as just another fleeting technology fad. But it is important to understand that a blockchain is not intrinsicly linked to cryptocurrencies; it is merely the underlying technology allowing cryptocurrencies to be exchanged between members. As mentioned earlier, a blockchain can be designed to support any type of transaction. While the founders of Bitcoin prioritized the relative simplicity of tracking financial transactions, those blocks that assemble the chain can be packaged with a multitude of other data if so designed. That conceptual variation enables such inventions as ‘smart contracts’, and unalterable registries, for example. Once assembled and collectively verified by a consensus of the network’s nodes, these blocks become an immutable part of the digital record. That is exactly what later varieties of blockchains have set out to do, Ethereum being the pioneering blockchain in that regard.[4] This has unleased nearly limitless possibilities for uses across many industries where transactions are prominent, real estate obviously being a major candidate. Just as blockchain users are assigned a unique digital ID, any real property has the potential to be assigned an ID that has a permanent and tamperproof digital history attached to it (Think of it like a Vehicle Identification Number that allows you to look up the accident and service history of a car you are looking to purchase.). It would be akin to a global title system for real property; something like a record-keeping ‘courthouse’ for the world. Real property could be tokenized and exchanged on the blockchain, just as any other asset or commodity, allowing for an easy splitting of interests and ownership ‘slices’ of real estate. Here are a few examples of what this could portend for the industry: Simplified, reliable and transparent property searches; a reduced reliance on brokers and/or Multiple Listing Services that may present biased or fragmented information. Underwriting and due diligence processes reduced to a matter of minutes. Sales and lease agreements entered via smart contracts that are instantaneously recorded. Automated payments and cashflow management by smart contract between tenants, landlords, contractors and/or service providers. Advanced property data analytics when combined with Internet of Things (IOT) technologies, improving owner decision-making as well as property transparency and valuations. Introducing greater options for shared property ownership through asset tokenization, reduced barriers to trans-nation investments, and increased liquidity within the real estate asset

A 2018 JLL Asia Pacific report titled Clicks and Mortar: The Growing Influence of Proptech describes some of the unique demand drivers and challenges shaping Asia’s approach to emerging property technologies, to include the blockchain. Here’s how it cites Asia could enjoy more rapid technological change relative to other regions[6]: The rapid urbanization and boom of megacities. 40 out of 47 countries with fastest population growth rates are in Asia; 20 alone are in China. The result will be a wider pool of users having more diversified needs that start-up technology firms can fulfill. The rise of the middle class and millennials. Asia’s middle class will account for 65% of the population by 2030 (up from 46% in 2015) and US$38 trillion in consumption (from US$10 trillion in 2015). By 2020, 50% of the population will be millennials. These factors will account for major changes to spending habits in the region. High priced markets will find younger consumers more open to flexible ownership and leasing structures that technology can provide. Improved technology savviness among consumers. Asia accounts for 50% of total internet users in the world and tops the world in growth of smartphone traffic to the internet. Online shopping is booming in the region and paving the way for ‘an Amazonlike experience when shopping for real estate’. Selective support from governments. Japan is one of the first countries to legalize Bitcoin, and along with India is making some of the most accelerated adoptions of blockchain technology. While China has taken a harder stance against cryptocurrencies, it has been much more supportive of alternative blockchain uses. The report acknowledges that much of the regional consumer behavior in property purchasing has traditionally leaned towards human interactions for better trust. However, that is likely to be overshadowed in years to come by the demographic changes described here. Additionally, many developing markets, such as in Southeast Asia, suffer from major issues with title security that are a hamper to real estate investment and should highlight the problems with reliance on traditional human interactions that many supposedly favor. As one Director at a prominent Hanoi firm puts it: “Property transactions are generally quite chunky, so traditionally it takes a lot of time, paperwork and fees to complete transactions. This creates liquidity and transparency issues in the real estate market. Blockchain has the potential to be a game changer. By digitalizing transactions, time and costs are reduced

whilst transparency and security increases. Although the application of blockchain is in early stages worldwide, I believe Vietnam has the potential to quickly follow this global trend, as the population is young and eager to embrace new technology whilst policymakers are aggressive and forwardthinking.” (Matthew Powell)[7] Even developed economies such as Japan suffer from chronically inaccurate land registries and records of ownership. That is why the Government of Japan recently began experimenting with select cities digitalizing property records on a blockchain with hopes that the trial will be successful and implementable across the country within the next five years.[8] On November 30th, MicroSoft Japan announced a major partnership with a nascent blockchain startup called LayerX with intentions to aggressively accelerate the technology.[9] With measures like these and its commitment to the smart regulation of digital currency, Japan is poised to be at the forefront of any future blockchain boom. [10]

real estate markets may want to take note. Their relatively stable markets may not be screaming quite as loudly for some of the advantages that blockchain technologies could herald, yet there are undoubtedly some ground-shifting changes on the horizon with successful maturing of the technology and its universal adoption. It will likely take more persistent education and successful demonstrations for many to override the image of blockchain technology from the flashy yet tumultuous birth of cryptocurrencies to the more mundane yet practical uses of the future. Once those attitudes shift, though, look for the blockchain to rapidly change the way we all do business.

References

B lockchain has the

[1] Oimet, Sam. (2018, December 1st) Bitcoin Price Ends November with Worst Monthly Decline. Retrieved from https://www.coindesk.com [2] Van Wirdum, A. (2018, November 14th) When the Fork Forks: What You Need to Know as Bitcoin Cash Goes to War. Retrieved from https:// bitcoinmagazine.com [3] Bloomberg. (2018, September 20th) The Latest Cryptocurrency Exchange Hack is a $60 Million Theft at Japan’s Zaif. Retrived from http://fortune. com

Several tech startups in the region are also leading the way with innovative and exciting uses of b contract.[11]

[4] “Ethereum’s core innovation, the Ethereum Virtual Machine (EVM) is a Turing complete software that runs on the Ethereum network. It enables anyone to run any program, regardless of the programming language given enough time and memory. EVM makes the process of creating blockchain applications much easier and more efficient than ever before. Instead of having to build an entirely original blockchain for each new application, Ethereum enables the development of potentially thousands of different applications all on one platform.” Retrieved from https:// blockgeeks.com/guides/ethereum

REIDAO is a Singapore technology firm that registers real estate with its own Ethereum address where users can visit and retrieve information about the property, including its ownership details. The website for the firm’s short-term rental project, CrowdVilla, states that it will ‘change the paradigm in using real estate assets as a community. Using blockchain to create an open and transparent way of recording digital assets, CrowdVilla will revolutionize the timesharing model in real estate.’[12]

[5] Kiger, Patrick J. (2018, October 10th) Developing Blockchain Technology Has Potential to Aid Real Estate Transactions. Retrieved from https://urbanland.uli.org/ [6] Clicks and Mortar: The Growing Influence o f P ro p t e c h . R e t r i e v e d f ro m h t t p : / / w w w. joneslanglasalle.com.cn [7] Savills Vietnam (2018, September 11th) How Will Blockchain Effect sia Real Estate Market? Retrieved from https://www.retalkasia.com [8] Iesho, Ashour. (2017, June 27th) Japan to Trial Blockchain for Real Estate Records. Retrieved from https://bitcoinist.com

Real Estate Doc (RED) is another Singapore-based firm targeting the commercial real estate leasing market. In describing their platform, their website claims ‘by shifting leasing operations to the blockchain, users can significantly eliminate paperwork, save time, streamline work processes, enjoy heightened security through data encryption, lower legal and banking charges, and minimize fraud.’[13]

[9] Suberg, William. (2018, November 30th) Microsoft Japan Parnters with With Startup to Increase Domestic Blockchain Uptake. Retrieved from https://cointelegraph.com [10] Bambrough, Billy. (2018, June 27th) Japan’s Next Economic Boom will be Bitcoin and Blockchain Fueled. Retrieved from https://www. forbes.com [11] https://i-house.com [12] https://reidao.io/ [13] https://realestatedoc.io/

Asia a Real Estate Blockchain Bellwether?

potential to be a game changer. By digitalizing transactions, time and costs are reduced whilst transparency and security increases.

The socio-economic character of Asia Pacific is placing the region at the leading edge of this new wave of technology. Professionals and innovators in Western 4th Quarter 2018 - 15

THE NEW GOLDEN AGE FOR GLOBAL TRAVELERS Boom Technology Presents a Supersonic Future

16 - Citizenship Navigation

Plane, boat and car manufactureres are combiniong cuttingedge technologies and superb craftmanship to take luxury travel to the next highest level “This new funding allows us to advance work on Overture, the world’s first economically viable supersonic airliner,” said Blake Scholl, founder and CEO of Boom Supersonic. “At Boom, our vision is to remove the barriers to experiencing the planet. Today, the time and cost of long-distance travel prevent us from connecting with far-off people and places. Overture fares will be similar to today’s business class— widening horizons for tens of millions of travelers. Ultimately, our goal is to make high-speed flight affordable to all.” Boom Supersonic Closes $100 Million Series B to Develop Overture, its Revolutionary Mach-2.2 Airliner Overture will be the first airliner to enable supersonic transportation for tens of millions of people, advancing Boom’s vision to remove the barriers to experiencing the planet Investors, led by Emerson Collective, include Y Combinator Continuity, Caffeinated Capital, and SV Angel as well as founders and early backers of transformative companies like Google, Airbnb, Stripe, and Dropbox. The proceeds of Boom’s Series B round, which include $56 million in new investment as well as previously-announced strategic investments, allow the company to advance the development of its Mach-2.2 commercial airliner called Overture. Overture will be the most community- and environmentallyfriendly supersonic jet ever made. Thanks to advanced aerodynamics and engines, the carbon footprint will be similar to flying international business class today. Moreover, Overture is being designed to accommodate next-generation sustainable alternative fuels. At landing and takeoff, Overture will be as quiet as the subsonic aircraft flying similar routes today. As history’s first independently developed supersonic jet and the fastest civil aircraft ever built, XB-1 will demonstrate in flight the key technologies for mainstream supersonic flight: efficient aerodynamics, advanced composite materials, and an efficient propulsion system.

4th Quarter 2018 - 17

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G500

‫اﻟﻘﻄﺮﻳﺔ ﻟﻄﺎﺋﺮات رﺟﺎل اﻷﻋﻤﺎل‬

Bespoke travel at the highest level

OVERVIEW

SPECIFICATIONS

Qatar Executive, the private jet charter division of Qatar Airways Group, is the First Commercial Operator of the Every aspect of our new Gulfstream G500’s design Passenger capacity 13 Ultra-Modern Gulfstream G500 Jet Worldwide Qatar

and performance is dedicated to the fastest flight possible. In the cabin, every detail is devoted to Executive’s brand-new jet receives Operations providing a uniquely personalised and completely comfortable interior.

Crew

2 pilots, 1 cabin crew

Maximum range from Qatar 5,200 nmAviation (9,630 km) Specification approval Civil Authority Speed

0.90 Mach

Long-range speedPW800 engines, 0.85 Machoptimised for highThe G500 is powered by the next generation Pratt & Whitney Canada Our Gulfstream G500 can fly easily non-stop from altitude, fast and long-range jets. In addition to being one of the most efficient jets in the ftindustry, the aircraft’s Maximum cruise altitude 51,000 the Middle East to Europe, Asia and Africa, delivering remarkable range makes it capable of travelling Los to London; CabinIstanbul height to Cape Town; 1.93 m (6 ftAngeles 4 in) an optimal balance of speed, maneuverability and non-stop from comfort that helps passengers maximise every minute and San Francisco to Tokyo. Cabin width 2.41 m (7 ft 11 in) of their travel time.

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “Our new G500 jet will offer a remarkable flying experience to many of our loyal passengers who are already keen on experiencing this avant-garde jet. With two of these technologically-advanced aircraft in our fleet already, we are excited to be receiving an additional five G500s, to offer our passengers much more of an elite choice and flexibility.”

length on the opening day of Cabin Farnborough International Airshow 2018.

12.65 m (41 ft 6 in)

Charter on demand : Exclusive charter programs combine guaranteed availability with customized planning to the finest detail. qatarexec.com.qa

At the very top end are converted airlines, with Boeing and Airbus The G500 jets are one of the fastest offering privately knitted-out versions, and most advanced aircraft types in along with Brazilian manufacturer the Qatar Executive fleet. The state- Embraer - like a luxury hotel suite of-the-art jet sets a new industry in the sky, offering a huge cabin benchmark by offering one of the with master suites, living and dining quietest cabins, as well as having the areas, multiple bathrooms and a TEL (+974) 4022 1700 | EMAIL request@qatarexec.com.qa | qatarexec.com.qa best cabin altitude pressure, allowing gallery and bar to serv e a variety of for unparalleled passenger comfort. onboard dining options. To go longhaul Gulfstream G650ER, which has T h e c a b i n c o n t a i n s t h e m o s t a flight range of +12 hours such as advanced technology including New York to Hong Kong or light satellite communications, high-speed jet, such as the Embraer Phenom internet, the Oryx One entertainment 100, configured usually to carry four system, wireless local area network passengers for shorter distances. and Gulfstream’s Cabin Management System, which allows passengers Your choice on earth depends on to use their own personal electronic whether you want to drive or be devices to control audio, video, driven. In case to be sit back with a lighting, temperature, window shades bit more space - Rolls-Royce's mighty and other cabin functions. Phantom - the huge V12 engine will make the car shift at remarkable The brand-new executive jet was speed. It carries you by the silent first unveiled by Qatar Executive power

the Rools-Royce Phantom VIII

the Embraer Phenom 100, suitable for shoter distances

1st Quarter 2019 - 19

CIP FORWARD by Bruno L’ecuyer

The world is changing – globalisation has become an irreversible norm. We live in a time of unprecedented global peace, a new Pax Romana where conflicts are more often resolved through sanctions than kinetic warfare. The private sector has been far more successful than nation states at eradicating diseases like polio and malaria (witness the work of the Bill & Melinda Gates Foundation, for example). Meanwhile, the number of people living in poverty more than halved between 1990 and 2013 thanks largely to the greater opportunities provided by the world economy and private organisations are helping to eliminating hunger through, among other means, biotechnology. None of these achievements would have been possible – and certainly not on this scale – if it weren’t easy for people and money to cross international borders easily and for wealthy people to invest their money where they see fit. So, why are we hamstringing the free movement that is so central to world development, thus threatening to make globalisation a m e r e m e m o r y o f h a p p i e r, m o r e prosperous times? We believe it is time to re-think the approach to the migration of high net worth individuals; people should not be judged on where they come from, but rather by what they plan to do with their money when they arrive. By setting out and enforcing strict selfregulatory rules and codes of conduct for investment migration, every host country can ensure that when people move themselves and their money it does the maximum amount of good for the people of that nation. By ensuring that this cash goes into the local economy, it helps to create jobs, sustain start-up businesses, and improve productivity – all the things that globalisation achieves when it’s working properly. The battle for all who believe in globalisation and free movement is to convince others of the benefits that these migrants bring. It should be an easy win, but we face entrenched opposition from those who see investment migration as an unfair “fast track” to citizenship. Some two in five (42 per cent) UK residents say that wealthy individuals should not be allowed to obtain citizenship in a country 20 - Citizenship Navigation

to pioneer. We have an underlying responsibility and moral duty to act in the best interests of the industry and ensure that we continue to adhere to ethical values.

other than where they were born through investment migration, according to recent research by the Investment Migration Council. Capitalism faces a problem, namely the reluctance on the part of its adherents to discuss the good that it can bring to everyone. To do this effectively, we need to stand up for principles such as strict, rules-based investment migration, and be unafraid to discuss the benefits it brings. As an industry, we’ve had our fair share of issues. We are currently operating at a time of unprecedented interest in our industry and indeed in our business. And with that interest comes great opportunity but also certain risk and significant scrutiny. Let’s face it, when focusing on high net worth individuals, the narrative around immigration is seldom positive. F o r e x ampl e, earl i er thi s year the Canadian state broadcaster – CBC Radio Canada – went live with a global report following an extensive undercover investigation into the investment migration industry, specifically the Quebec Immigrant Investor Program (QIIP). The report was predominantly concentrated on Hong Kong where a team of journalists posed as a wealthy Chinese entrepreneur seeking a Canadian residency permit. They uncovered a small number of client advisors offering ways in which the due diligence process and key requirements of the programme could be circumvented. Humans are not infallible, and no industry can ever operate free of individuals seeking a shortcut. Of course, left unchecked, any investment migration programme is open to abuse, and without oversight and a rigid code of ethics it leaves itself open to claims of corruption or the potential for bad actors to circumvent global regulation standards. However, we must take it upon ourselves to protect the industry that we helped

But where does one start with a code of ethics? We believe that such a document should cover essential items such as integrity and ethical practice, competence and objectivity, confidentiality, conflicts of interest and regulatory compliance – among other issues. Who should be involved in drawing up this code? In our view, it’s everyone’s business – from government to business to academia, all should pitch in to give their viewpoint on how we can make investment migration both ethical and effective. And once drafted, will these be adamantine rules, fixed for all time? It’s hard to see how they can be. Investment migration is a relatively new idea, and as we find our way towards a truly ethical way of managing this process across different countries and jurisdictions we will have to accommodate new viewpoints and adapt to changing economic and political circumstances and realities. The ultimate goal is to ensure that investment migration brings value to countries of destination and investment, and that the price paid for residence or citizenship ends up not in the pockets of kleptocrats but is invested in a way that will bring value to ordinary citizens. Investment migration suffers from staying in the shadows and that’s bad news for the countries who stand to gain so much. Every citizen, every business and public body is, in their own way, responsible for making immigration work for all. What’s more, by being open about the rigorous processes that aspiring citizens must go through, we can avoid the opacity that sours so much of the discourse around investment migration. Author: Bruno L’ecuyer, Chief Executive, Investment Migration Council

THE NEED FOR STANDARDS,

EDUCATION AND QUALIFICATIONS IN THE INVESTMENT MIGRATION INDUSTRY IMC Certification Starting Late in the Second Quarter of 2019

More than ever before the global Investment Migration (IM) industry needs to demonstrate transparency, responsibility, high standards of integrity and enhanced due diligence processes, given the levels of scrutiny, comment and challenge currently being experienced. As the IM industry matures and its popularity continues to develop there is a pressing need to demonstrate that the industry can regulate itself and conduct itself in an appropriate and professional manner.

Diploma in Investment Migration: Dip (IM) 1 year course (Level – Advanced/ Professional) Post-Graduate Diploma in Investment Migration: PG Dip (IM) 1 year course (Level – Expert/ Experienced Practitioner) Current experienced practitioners in the industry will be eligible to continue with their professional membership or upgrade to Fellowship of the IMC.

The IMC through its core objectives is a channel that can be used to gather all areas of the industry together to help establish professional standards, benchmarks, competencies, codes of conduct and best practice for those working in or associated with the industry.

By benchmarking those who are advisors and practitioners in the industry, (and who are committed to competency, standards and integrity), the level of professionalism and reputation of the industry will be enhanced.

Towards this end the IMC has established a global Education and Training division (IMCET) whose core objectives are:

All of the new range of IMC qualifications and training courses are designed to enhance the technical knowledge, competencies and expertise of those working in or associated with the industry.

The development of professional competencies and standards for those working in the IM industry Accredited and certificated learning opportunities that lead to IMC professional status Education and training for all levels of staff Promoting integrity, ethics, transparency and best practice through education The delivery of cutting – edge professional training and on-going competency development. The professionalisation of the industry via entry to the IMC by formal qualifications and experience is to be a cornerstone of responsible growth and development for the future and should be welcomed by all those within and those evaluating the status and value of the IM industry. The new framework of Education and Training that has been created by the IMC will cater for all levels of background and experience, and the courses will be delivered by IMC Education and Training (IMCET). IMC Qualification Structure and Levels Certification in Investment Migration: Cert (IM) 4-6 month course (Level – Fundamentals/ Intermediate)

The IMCET courses and training will be delivered through a flexible range of learning methods to enable individuals to study in a way that assists their lifestyle. The qualifications and training courses are international in content and focus but will involve a study of a number of individual country specific IM programs and common industry issues in order to give a complete overview of the workings of the industry. Each course will be provided via the IMCET world class on-line Learning Management System, supported by: Course manuals produced by industry experts Webinars Digital Learning and case studies Workshops (face-to-face or virtual) Formal Assessments Bill Howarth, Education Advisor THE FIRST OF THE NEW QUALIFICATIONS AND TRAINING PROGRAMMES WILL BE AVAILABLE FROM THE SECOND QUARTER OF 2019. For more information, kindly contact admin@imcet.com

1st Quarter 2019 - 21

New Visa Categories to Replace Tier 1 (Graduate Entrepreneur / Entrepreneur); Changes to Tier 1 Route (Investor)

Introduction of new Start-up and Innovator visa categories to replace the Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) routes, with applicants in these categories assessed by trusted endorsement bodies vetted by the UK government; Investment threshold would be removed for the Start-up visa and reduced to GPB 50,000 for the Innovator category; English language levels for both categories will be set at B2 (higher than B1 for the current categories); Increased scrutiny over the source of funds for Tier 1 Investor applicants by extending the requirement to hold the investment funds from 90 days to two years, and by restricting rules to make it explicit that banks must carry out all due diligence checks before opening accounts for potential applicants; and Investment in UK government bonds would be excluded for all new Tier 1 Investor applicants to encourage investment in alternative forms.

which would be closed to new applicants from July 5, 2019. Expanded eligibility. The category would be open to applicants starting a new business for the first time in the United Kingdom, not just recent graduates. Removal of funding requirement. Applicants would not need to have secured any initial funding for their proposed business. New endorsing bodies. Applicants would need to be endorsed by an independent endorsing body which has been vetted and approved by the UK government. Longer visa validity. The visa would be granted for two years initially (doubled from one year under the Graduate Entrepreneur category) and applicants would be able to switch into the Innovator

The UK Government has proposed fundamental changes to the Tier 1 visa category through a Statement of Changes released today. Changes include:

I nvestment threshold

would be removed for the Start-up visa and reduced to GPB 50,000 for the Innovator category

The proposed changes are scheduled t o t a k e e ff e c t o n M a r c h 2 9 , 2 0 1 9 . Applications under the existing Tier 1 (Graduate Entrepreneur) route can be made until July 5, 2019.

category to continue progressing their business. Effect on existing Tier 1 (Graduate Entrepreneurs). Transitional provisions would allow Tier 1 (Graduate Entrepreneurs) to switch into the Start-up route or alternatively continue to switch into the Tier 1 (Entrepreneur) category until July 5, 2021.

The situation

A closer look – the Innovator visa

In a Statement of Changes, the UK government has proposed the introduction of new Start-up and Innovator visa categories to replace the Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) routes, together with restricted rules for the Tier 1 (Investor) route.

Tier 1 (Entrepreneur) route to be closed. The Innovator visa would replace the Tier 1 (Entrepreneur) route which would be closed to new applicants from March 29, 2019. New expert endorsement requirement. Applicants would need to be endorsed by a designated endorsing body approved by the UK government, who would assess whether the applicant’s proposed business is innovative, viable and scalable. The Home Office has not confirmed which bodies would be authorised to issue endorsements yet,

A closer look – the Start-up visa Tier 1 (Graduate Entrepreneur) route to be closed. The Start-up visa would replace the graduate entrepreneur route 22 - Citizenship Navigation

but has set out criteria with which the endorsing bodies must comply. Eligibility for Indefinite Leave to Remain (settlement). Innovators who satisfy at least two of the Home Office’s new criteria may qualify for settlement after three years, down from five under the existing route. The criteria include: Investing at least GBP 50,000 into a business; Doubling the business’s customers; Applying for intellectual property protection after research and development activity; Generating annual gross revenue of GBP 1 million; Creating 10 full-time jobs for resident workers. Effect on existing Tier 1 (Entrepreneurs). Existing Entrepreneurs can continue to extend their visa under the current rules until April 5, 2023, but would be required to provide more detailed information on their role in the business and the jobs they have created. Settlement applications for existing Entrepreneurs will remain open until April 5, 2025.

A closer look – the Investor visa Increased scrutiny over funding. New Investor visa applicants would need to prove they have had control of the required GBP 2,000,000 investment funds for the last two years, up from 90 days under the existing rules. If the funds have been held for a shorter period, applicants would need demonstrate the source of the investment funds. An expanded test will allow the Home Office to refuse applications where there are grounds to believe the investment funds have been transferred internationally by unlawful means. Further, rules are being restricted to make it explicit that banks must carry out all due diligence checks before opening accounts for potential applicants. Investment in government bonds no longer accepted. Under the proposed changes, investment in government bonds would be precluded, to incentivise investment in active and trading UK companies.

Effective date. The proposed changes will apply to all new applications made on or after March 29, 2019. Transitional provisions are in place to protect existing Tier 1 Investors, who can apply to extend their visa under the existing rules (subject to some minor alterations) until April 5, 2023 and apply for settlement until April 5, 2023. The above proposals do not affect the Tier 1 (Exceptional Talent) category.

Impact The changes should broaden the scope for overseas entrepreneurs to start a business in the United Kingdom with reduced or no prior funding. The changes would also place the role of assessing the viability of proposed businesses on new endorsing bodies, rather than Home Office officials. By contrast, the proposed changes require prospective Tier 1 Investors to demonstrate the source of their funds over a much longer period. The changes should also encourage direct investment in UK companies rather than via government bonds.

Background The proposed changes follow a review by the independent Migration Advisory committee, which recommended that an endorsement approach should be introduced in the Tier 1 (Entrepreneur) c a t e g o r y. T h e c o m m i t t e e f u r t h e r recommended substantial reform to the Entrepreneur category on the grounds that it had produced low quality businesses which added little or no benefit to the UK economy. The changes are designed to encourage the development of and investment in viable, innovative and scalable businesses in the United Kingdom. The proposed changes to the investor visa were announced in December but were not implemented pending research on the best way to achieve the desired policy goals.

Looking ahead The government proposals are scheduled to take effect on March 29, 2019 (July 5, 2019 for the closure of the Graduate Entrepreneur scheme), but still require parliamentary approval. Fragomen will monitor the situation and will report on relevant developments. Source: Fragomen.com

World’s Wealthy Face UK Golden Visa Crackdown Wealthy investors from countries such as Russia who want to settle in Britain face stricter rules on so-called golden visas under a new regime to be announced on Thursday, a crackdown spurred by the Skripal nerve agent attack. However, transparency campaigners have attacked the shake-up to the visa scheme, which has seen rich overseas investors such as billionaire Roman Abramovich set up home in the UK, as not going far enough. In an attempted crackdown on money laundering, new Home Office rules that take effect in April will require visa applicants to prove they have had control of more than £2m for at least two years, rather than 90 days. The investments will also need to be made in UK businesses, while investing in gilts will be excluded, in an attempt to increase the benefit to the British economy. The tier-one “investor visa” route has in the past attracted many wealthy Chinese and Russian investors who have resettled in the UK. But the scheme has been under review since the UK’s relations with Russia deteriorated after the poisoning of former Russian agent Sergei Skripal in Salisbury last year. Britain failed to renew the visa of Mr Abramovich, owner of Chelsea football club, after the Skripal attack, in the highest-profile case of the UK spurning one of its Russian residents. The number of Russians granted tierone visas fell from 46 in 2017 to 29 last year, the lowest number since they were introduced in 2008. Duncan Hames, director of policy at the anti-corruption charity Transparency International UK, said the proposals were “far more modest” than those first envisaged by ministers. He said a recommendation had not been included that would have set up an independent body to carry out checks on 3,000 individuals granted tier-one visas before 2015, when there were “little to no checks on the source

of applicants’ wealth”. He added: “We are still in the dark about the legitimacy of £3bn entering the UK, most of which came from investors from high corruption-risk states.” Home Office officials said the department was still “looking into” the idea of wealth audits, but they would not be included in the April rule changes. The department has already made an embarrassing U-turn after it was forced to reverse a complete suspension of the investor visa scheme in December on being challenged by immigration lawyers. Caroline Nokes, immigration minister, said her priority was “making sure that talented business people continue to see the UK as an attractive destination to develop their businesses”. Separately, the Home Office said on Thursday it would relax conditions for entry in two other tier-one visas — the “start-up visa” (formally known as graduate entrepreneur) and the “innovator visa” (previously called the entrepreneur visa). The former is being expanded to people of any background looking to start a business, not just recent graduates. They will also be given a total of two years, rather than one, to make their business a success before applying for a further visa. Meanwhile, the innovator route will be for more experienced business people but applicants will need only £50,000 to invest, rather than £200,000 under the current scheme. Both routes will be assessed by “endorsing bodies and business experts” rather than the Home Office. Nadine Goldfoot, a partner at immigration law firm Fragomen, welcomed the changes. “The Home Offi ce are maki ng good pr act ical changes for entrepreneurs and they’re doing the right thing,” she said. “It makes such a difference when experts assess applications, rather than officials being expected to decide what makes a good business.” Source: ft.com

1st Quarter 2019 - 23

Getting Innovative with Chartbury and the UK Tier-1 Entrepreneur Visa

- the entrepreneurs franchise business plan -

UK housing market is a ‘goldmine’ for wealthy foreign buyers Sales of houses worth over £10m tripled after sterling slumped following Brexit vote The global super-rich have taken advantage of the Brexit-induced decline in the value of sterling to buy up three times as many £10m-plus luxury homes as before the referendum vote. Some 300 homes sold for more than £10m each in the tax year to April 2017 (the latest for which figures are available), an increase from the 100 sold during the preceding 12 months. The figures, released by HM Revenue and Customs on Wednesday following a freedom of information request, were rounded to the nearest 10 by HMRC. Jonathan Samuels, the chief executive of property lender Octane Capital, said the 13% drop in the value of the pound compared with the dollar since the June 2016 referendum had turned the UK into “a goldmine for foreign investors seeking a bargain”. “The mainstream property market saw transaction levels tail off considerably following the EU referendum vote,” said Samuels, who submitted the FoI request. “But at the very top end of the market activity levels soared as ultra-wealthy opportunist buyers cashed in on rapidly softening prices. “The weakness of sterling means a fair percentage of these buyers were almost certainly based overseas, as some of Britain’s wealthiest cities became a goldmine for foreign investors seeking a bargain. “While many homeowners sit on their hands during times of political and economic volatility, the ultra-wealthy often use these periods to acquire assets at a significant discount.” Samuels said the fall in the pound, which has declined from $1.46 on 23 June 2016 to $1.26 on Wednesday, had “more than compensated” for the 3% second homes stamp duty surcharge the government introduced in 2016. The pound was worth $1.59 in June 2015. Stamp duty on properties selling for more than £1.5m is 12%, rising to 15% for second homes. In the 2016-2017 tax year, stamp duty raised £7.3bn for the government – £3.4bn of it in London. The Treasury raised £4.1bn in stamp duty on second-home sales in the 2017-18 tax year, a 21% increase on the previous year. Samuels said the highest levels of property spending had been in London. “Brexit had a particular impact on super-prime properties in the capital so for many very-high-net-worth individuals the fallout from the EU referendum vote was an investment opportunity,” he said. Source: The Guardian, 2019 24 - Citizenship Navigation

The UK is one of the most attractive places in the world both as a business location or as a place for private residence. The UK has been attracting people from over the world for hundreds of years and is known for having a stable democratic government and a highly respected legal system which has been adopted by countries across the globe; the UK is strategically located between the US and Europe and straddles time zones between the east and west. From a tax perspective, it can also be an attractive base for wealthy individuals and families taking advantage of the special tax treatment available to those not domiciled in the UK. The UK also boasts some of the best educational institutions in the world, from pre-school to university. The UK has always been at the forefront of financial innovation, bringing UK and international companies and investors together. Its capital, London, is a leading global city and has one of the highest GDPs of any city in Europe. London houses headquarters of numerous multinational corporations, financial institutions, professional firms and major worldwide organisations and is the world’s most influential financial centre that is home to the FTSE100. Through London, global companies have embraced innovative new strategies, fostered global outlooks and driven economic success in the UK and are looking outwards whilst securing strong inward investor support, allowing them to further innovate, grow and create jobs. This is a clear demonstration of international investor confidence in UK plc.

Franchise is made by the master franchisor

and immigration consultants working on the entrepreneurs application; ensuring that the entrepreneurs franchise business plan meets the criteria of tier-1 entrepreneur visa

Key Advantages: - International business environment - Attractive tax regime - Direct international flights to all major cities in the world - World-renowned schools and universities - Fast immigration application processing - No business or management experience required - Very objective entry criteria and predictable outcome - The UK allows dual-citizenship and has an extensive network of double tax agreements It’s with this innovation that business opportunities qualifying for the UK tier-1 entrepreneur visa are now available and this wave of change is happening now. Chartbury, a real estate investment company based in London, is at the forefront of such innovative investment opportunities that allows overseas investors to easily apply for the UK Tier 1 Entrepreneur Visa. In a fast paced and dynamic world everyone is looking for ways to secure their future. UK franchise investment is operating at record highs and franchises collectively contribute over £17bn and 710,000 jobs to the country’s economy (British Franchise Association and NatWest) with the top franchise investments being in the food and beverage sector. UK Tier-1 Entrepreneur Visa Investment - How it works Investment in any business requires the investor to purchase shares which gives the investor legal rights in that business. The investor will receive a Share Certificate as well as Articles of Association and legal documents detailing the investors rights that show proof that the investor has a legal share in the assets of the business. Chartbury’s specially designed franchise and immigration package allows an entrepreneur to invest £200,000 in a franchise business, which makes the entrepreneur and their family eligible to apply for the UK Tier-1 Entrepreneur Visa while enjoying the unique benefits and lucrative returns offered by their franchise business investment. The structure of Chartbury’s franchise investments have been tailored to meet the business criteria of the UK Tier-1 Entrepreneur Visa and directly address the issues previously faced by overseas investors seeking to establish a business in the UK. Instead of investors ‘going it alone’ and having to face the challenges and risks of opening a UK business alone, an investor can invest in a qualifying franchise business and apply for the UK Tier-1 Visa with Chartbury’s full support and legal advisory given by our experienced legal partners ensuring that the investor meets the personal & business criteria required by the Home Office.

Chris Ward

The benefits of franchise investments with Chartbury are that the investor is investing in a business with a proven business model and business plan where all processes and structure for the franchise is made by the master franchisor and immigration consultants working on the entrepreneurs application; ensuring that the entrepreneurs franchise business plan meets the criteria of tier-1 entrepreneur visa. Many visa applications fail because applicants do not provide adequate proof of funds or the proof of funds provided by them is not accepted by the Home Office. With Chartbury’s franchise investments, all funds are held in UK solicitor’s escrow account, backed by indemnity insurance, therefore, the entrepreneur investor can easily fulfilling this criteria for UK Tier 1 Visa. The immigration consultants will help and assist investors to prepare for the visa interview, allowing the investor to clearly understand the franchise business model ensuring the investor is fully prepared for the interview with the Home Office, therefore, improving their chances of getting the Tier 1 Visa. Finally, to ensure the investor can meet the language requirements, the immigration consultants can assist with finding the appropriate resources to fulfil the English language requirement.

UK Tier-1 Entrepreneur Visa Investment - Requirements Visa applicants will be required to score 95 points as follows: The applicant must have access to no less than £200,000 (25 points) The money must be held in one or more regulated financial institutions (25 points) The money must be disposable in the United Kingdom (25 points) Pass English language at IELTS 6.5 lever or Level C1 (10 points) Demonstrate the financial resources to maintain oneself and dependants (10 points) Investment money can be shared by a team of up to 2 entrepreneurs this can be a more affordable option for some entrepreneurs.

Standard Route - 5 years to obtain settlement

Tier 1 Entrepreneur applications are normally granted for an initial period of three years where after it can be renewed for a further two years. After FIVE years’ residence, entrepreneurs may qualify for indefinite leave to remain (ILR) in the UK. The applicant will be required to show an investment of £200,000 in their UK business; and the business has created two full time jobs for UK residents. After settled status has been held for 1 year the investor can apply to be naturalised as a British Citizen. The total time is 6 years to become a British citizen. Chris Ward, Senior Investment Manager at Chartbury chris@chartbury.com - www.chartbury.com 1st Quarter 2019 - 25

-Further informationWhat'sApp Jp/En +44 7466 782323 En/Fr/Jp/Kr + 33 75052 1847 citinaviglobaljp@gmail.com

Tax planning considerations for Tier 1 HNW migrants in the UK by Dmitry Zapol

The UK encourages foreign direct investments by granting high net worth individual investors and entrepreneurs the right to remain temporarily in its territory, with the associated tax benefits of the resident “non-dom” regime. Similar rights are extended to members of their immediate family. After a qualifying period, whose length generally depends on the amount invested in the British economy or growth of the British business, the individual and their kin can obtain indefinite leave to remain (ILR) in the UK. Later, they can even apply for settlement in the UK to become British citizens. The Immigration Rules that regulate the process are complex and subject to frequent and unexpected changes. In the latest amendments to the rules published on 7 March 2019, the Home Office announced sweeping reforms of the Tier (Investor) category alongside with the abolition of the Tier 1 (Entrepreneur) category and it’s replacement by severely more restrictive immigration routes. The Home Office’s explanatory notes are comprehensive; however, clients rarely submit applications themselves. Usually they engage a triad of advisors who are experts in the fields of UK immigration law, financial and tax planning. It is not a coincidence that tax consultants are right at the end of the list — experience has shown that despite moving to a hightax country, seeking comprehensive tax advice often comes as an after-thought, when the investments are made, and the arrival dates are set. This article highlights the primary tax planning considerations relevant to non-domiciled investors and entrepreneurs at different stages of the UK immigration process for high-value migrants. Immigration There are two routes that most high-value migrants can take — Tier 1 (Investor) and Tier 1 (Entrepreneur). The latter is being replaced by the Innovator category, although there will be also a Start-Up pathway, which is unlikely to be pursued by anyone without pre-existing strong ties with the UK. The Tier 1 (Investor) category is for high-net-worth individuals who can afford to invest at least £2 million in the UK. The investor does not need a job offer in the UK nor is he required to prove a good command of the English language although the latter will be required when applications for the ILR and settlement are made. The investment funds must be their own

savings, which the investor has held for at least 2 years. The holding period has gone up from 90 days, which had been the condition under the old regime. Up until a few years ago, a substantial number of investors making the application had been wives of wealthy foreigners; the latter, together with the couple’s children being her dependants. Under the old rules, the dependants — particularly the husband — were free to visit the UK as they please without any commitments as to the duration of visits. Currently, in order for dependants to meet the UK settlement requirements, they must spend the same length of time as the main applicant in the country, which has alienated a significant number of applicants. Tier 1 (Entrepreneur) was for non-European migrants who want to invest in the UK by setting up or taking over, and being actively involved in the running of, a UK business or businesses. Broadly, the applicant needs to invest £200,000 in a UK company and comply with a host of other requirements, including speaking English to a certain standard and having enough money to support themselves in the UK. The new Innovator category replaces the Entrepreneur route and requires the applicant to have a significantly better command of English. Also, the business will be under a large degree of scrutiny to ensure that it is innovative enough. With the gradual tightening of the rules allowing foreign students to seek work in the UK after finishing their studies, the Entrepreneur visa has been especially popular with parents willing to help their children to stay in the UK. The Innovator visa is likely to remain as attractive although it’s yet to be seen, how many applicants will take on the innovation challenge. Both routes allow the migrant to apply for the ILR after a continuous residence period in the UK of five years. This can be reduced to three years for the investor who invests £5 million or the entrepreneur who makes extraordinary progress with developing their business. A further reduction to two years is available to the investor who invests £10 million. Interestingly, the Rules only allow the main applicant to reduce the length of time before they apply for the ILR and exclude their dependants, who need to wait the whole five year period before submitting the application. There are also strict requirements regarding the number of days that the migrant can spend outside the UK in any 12-month period. Failing to meet them will result in the inability to apply for the ILR and settlement. 1st Quarter 2019 - 27

Taxation in the UK primarily depends on a person’s residence status. Since April 2013, residence has been determined under the statutory residence test (SRT). The SRT is explained in brochure RDR3, which also contains useful practical examples, which are worth reviewing by anyone attempting to ascertain their residence situation. The SRT establishes residence status according to the number of days (counting midnights only) that a person spends in the UK during the tax year that runs between 6 April and 5 April of the following calendar year. Residents generally pay tax on their worldwide income and gains, whilst non-residents are generally only taxed on income from sources in the UK. However, individuals resident but not domiciled in the UK can elect to be taxed on the remittance basis where non-UK income and gains are only liable to tax when directly or indirectly remitted (brought) into the UK. On its own, an individual’s immigration status or current nationality has no bearing on their UK tax liability whatsoever. The migrant should be treated as a regular typically nondomiciled taxpayer who requires the usual pre- and post-arrival tax planning measures. Nevertheless, tax advice should take into account two considerations that pertain to the granting of the Tier 1 Investor or Innovator status. Firstly, it’s safe assume that the end goal of most migrants and their families is to settle in the UK. To achieve, this they must spend at least 185 days in any 12-month period in the UK on the rolling basis starting from the day of arrival in the UK under the newly issued leave to enter. This immediately denies the benefit of the UK-residence planning techniques based on the extended periods of absences from the UK. As a result, most tax planning measures should be undertaken before the investor’s arrival in the UK during Stage one as explained below while they are non-UK resident. Secondly, the Rules require the migrants to physically bring the investment funds into the UK. Unless these are derived from clean capital, accumulated during the period of non-UK residence, the investor or the entrepreneur will suffer the consequences of making a remittance of foreign income or gains, which will be taxed at the appropriate rates. Further remittances might occur where the migrant pays for services rendered to them in the UK, such as various professional fees. Taxation of remittances can be avoided under the business investment relief as described below; however, the expense of planning for the 28 - Citizenship Navigation

minimisation of tax burden might nullify the tax benefits it aims to achieve. The Tier 1 (Investor) process It is possible to split the Tier 1 (Investor) immigration process in three stages. Stage one is preparatory during which the migrant collects documents and submits the visa application. As Stage two, the investor arrives in the UK after receiving leave to enter the country. Stage three involves the migrant making the investment, which will permit them to remain in the UK and to apply for the extension of their stay until they can apply for the ILR and later for citizenship. There might be a period of several months between Stages one and two during which the investor stays in their home country waiting for the outcome of the application. The migrant typically has up to three months from the day of their arrival in the UK to fulfil the requirements of Stage three. The investor should plan to remain non-UK resident at Stage one and even partly through Stage two; and during this period of non-residence he should aim to perform the larger share of his tax planning strategy.

Statutory Residence Test

A Clllean capital should

be credited to a separate bank account and never mixed with non-UK income and gains that might be derived after assuming UK residence.

During Stage one the applicant prepares and submits documentary evidence of their ability to invest at least £2 million in the British economy. This amount must be in cash and kept in a regulated financial institution (typically a bank) in the UK or overseas. Sometimes instead of clear funds the future migrant has an asset portfolio that includes capital assets and undistributed income, but the Home Office will not take these into consideration. Funds held by companies or trusts are equally excluded. The investor should convert these assets into cash: any gains accumulated in securities and properties should be crystallised by selling them; where there is a right to receive income — dividends, interest, salary, royalties, business profits — this right should be exercised and the proceeds received into a bank account. It might seem reasonable only to create sufficient cash to fund the £2 million investment. In fact, when converting

assets into cash or receiving income, the investor might be subject to a double tax liability, determined by their current tax residence and the source of funds, although this might be reduced under double tax agreements or domestic tax exemptions. However, any nonUK gain that is crystallised and nonUK income that the investor receives after they become UK resident will be liable to UK’s fairly high taxes unless the taxpayer claims the remittance basis of taxation and does not bring the funds to the UK. As a result, the migrant might face the situation where they cannot pay for his life in the UK without incurring a significant tax cost. The following discussion also largely applies to Tier 1 Innovators except that the funds that they are expected to invest are significantly lower. “Clean capital” Conversely, income and gains received before becoming resident form so-called “clean capital”. If the migrant loans clean capital to someone, the loan principal will always remain clean capital when repaid to the investor (but note the position with regard to loan interest below). Gifts received from related and third parties are also clean capital provided they are not considered to be a form of hidden income or gains distribution. In practice, some UK-resident investors live off the gifts made to them from their non-UK resident spouses, who earn income and gains not liable to UK tax. Clean capital will not be taxed in the UK, whether brought in its territory or not. However, in the case of an investor’s death, clean capital kept in a UK bank account will form their UKsitus asset liable to 40% inheritance tax. Therefore, it might be prudent to bring to the UK only the amounts necessary to fund current expenses. Clean capital should be credited to a separate bank account and never mixed with non-UK income and gains that might be derived after assuming UK residence. In fact, considering that income and gains are taxed differently in the UK, they should also be kept in separate bank accounts. Moreover, if clean capital generates income — say it has been loaned and the migrant receives interest — this should be paid to the income bank account and not into the clean capital account to avoid tainting it. Counterintuitively, the same cannot be done with gains generated with the use of clean capital. For example, if clean capital is used to buy shares, any gain realised on their future disposal will always form part of the proceeds and it cannot be segregated from clean capital by being paid to a separate bank account.

There is no requirement or in fact possibility to declare clean capital to the UK tax authorities (HMRC) upon becoming UK resident. Equally, there is no requirement to report the use of clean capital on UK’s tax returns. However, the taxpayer should keep documents that reflect dates and methods of creation of non-UK income and gains to prove that they were received while they were non-UK resident and thus form their clean capital. Such documents include bank statements, sale and purchase agreements, loan agreements. They might be necessary in case of a future dispute with HMRC. The Rules also allow the investor to rely on money that is owned either jointly with or solely by his close relative (spouse or partner). If the close relative is a lower rate taxpayer then, subject to the rules of their residence jurisdiction, the investor can gift the assets to the relative, which she can dispose of subject to the payment of a smaller amount of tax. Provided the requirements of Stage one are satisfied, the investor will receive the leave to enter the UK as a Tier 1 (Investor). The arrival to the UK should be timed with regards to the residence planning considerations as discussed next. At the same time the investor should not delay their arrival in order to satisfy the continuous residence requirement

required to apply for the ILR at the end of his stay. “Connecting factors” of tax residence Under the SRT, UK residence may be acquired automatically if the individual spends over 182 days in the UK in a tax year, has a home in the UK without having a home abroad or works in the UK on a full-time basis. If the migrant is not UK resident automatically, they might be resident under the sufficient ties test. This looks at the connections that the individual has with the UK in any tax year. The relevant factors include having a family — spouse or minor children — resident in the UK; availability of UK accommodation (rented or owned), working in the UK for over 40 days during the tax year (continuously or intermittently; for a UK or a nonUK employer or a in a self-employed capacity); and length of visits to the UK in the preceding tax years. The more UK ties the investor has in a tax year — the smaller number of days they can spend in the UK during that period without becoming UK tax resident. It is also possible to be automatically

In a situation where clean capital needs to be used to invest in capital assets, one can think of a few planning options. First, the investment may consist of assets that will not generate gain on disposal, in which case the purpose of the investment would typically be earning income — coupon or dividend — that can be easily segregated in a separate offshore bank account. Alternatively, clean capital can be offered to a bank as collateral to secure a lombard loan used to acquire the assets. Finally, the investor might just buy the bullet and come to terms with paying (typically) 20% capital gains tax (CGT) on the amount of gain brought in the UK as well as professional fees incurred in connection with determining the composition of the mixed fund. Considering that the top rate of CGT on disposal of securities and financial instruments is still significantly lower than the top 45% income tax rate, the very last option may not be the worst, especially seeing that once tax is paid, the taxpayer needs not to worry about future remittances of gains in the UK and can fully enjoy the proceeds. If the investor runs out of clean capital, they might have no choice but to bring foreign income and gains to the UK and face the prospect of the maximum 45% taxation. They can borrow from an overseas lender provided that the loan is made on commercial terms and the interest is serviced from UK-source income or gains.

O nce tax is paid,

the taxpayer needs not to worry about future remittances of gains in the UK and can fully enjoy the proceeds.

non-UK resident under a separate set of circumstances, for example, if one works abroad on full-time basis and they spend under 91 days in the UK with a limited number of UK work days. Residence is determined for the entire tax year starting from 6th April regardless of the taxpayer’s relocation date. However, there is a possibility to split the tax year and only begin UK tax residence from the day of arrival in the UK. This is typically achieved by starting to have a home in the UK or by commencing full-time employment in the country. Experience shows that in the tax year of arrival in the UK, most migrants have two ties: they acquire a home in the UK and their families become UK resident. The SRT allows them to stay in the UK for up to 120 days without becoming resident here provided they are not UK resident automatically. However, there are plenty of pitfalls and before determining their residence situation, the migrant should avoid buying accommodation in the UK or entering into long-term leases, moving family and sending children to school and spending over 90 days in the UK

in any tax period. Additional planning opportunities might be offered by the tiebreaker clause in the residence article of the double taxation treaty that the UK might have with migrant’s residence State, although complications might arise that stem from the mismatch between the tax years’ periods. This typically arises if the migrant is coming from a country where a tax period is the same as a calendar year, which may conflict with the UK’s 6th April-to-5th April tax year. HMRC provides an interesting explanation of this rule in part INTM154040 of its International Manual (http://tinyurl.com/ INTM154040). Remittance rules and Business Investment relief Under Stage three, the investor must invest £2 million by way of share capital or loan capital in active and trading companies that are registered in the UK. Similar rules apply to the innovator although the amount is £200,000. Provided that the investment comprises clean capital accumulated during Stage one, there will be no UK tax consequences on bringing the funds in the UK. In the opposite scenario, where the investments consist of foreign untaxed income and gains made after the date of first becoming UK tax resident, these will constitute remittances, on which the migrant will be taxed at their applicable income tax or CGT rate. HMRC explain the meaning of remittance in part RDRM33140 of its Residence, Domicile and Remittance Basis Manual (http://tinyurl.com/RDRM33140). If they satisfy terms of the business investment relief (http://bit.ly/1wq9Wj6) the invested amounts shall not be treated as remittances and shall not be liable to UK tax. There are additional income tax and capital gains tax reliefs such as EIS, SEIS and VCT intended to encourage investment in the shares of unquoted trading companies. Finally, if the investor is appointed director or taken on as an employee of the company in which he has invested, he might be able to receive a substantial reduction on future disposal of its shares under the terms of the ‘Entrepreneurs’ Relief’ where the personal tax rate may be 10% on gains made. Thus pre-arrival tax planning for a Tier 1 migrant is a complex matter that should be done prior to finalising immigration plans. Future migrants should consider their medium to long-term planning strategy, which includes residence planning, creation of clean capital and acquisition of assets in the UK. Law as stated on 11 March 2019 Author : Dmitry Zapol, tax advisor, ADIT (Affiliate) LL.M (Tax) LL.B (Hons)

1st Quarter 2019 - 29

Hiring Professional Money Managers to Lower and Diversify Project Risk Should be a Must for Investors by Abteen Vaziri

While investors seek out and hire the top immigration attorneys and select projects with a past history of I-526 and I-829 approval in order to maximize the likelihood of securing the first objective, the majority of investors seek little to no outside counsel in evaluating the second. Selecting a project with an exemplar petition approval record and hiring a competent attorney only decreases the risk of not attaining the first criteria, but does nothing for the second criteria. Why are investors not hiring professional money managers to manage their EB-5 real estate investors? Why is there not enough emphasis on this point by the industry? Securing both permanent residency and a return of investors’ funds should be the goal for all EB-5 investors. In addition to evaluating project performance and hiring top immigration attorneys, investors should be as focused on hiring professional money managers to oversee investment strategy in order to achieve the best results from EB-5 investment. Today there are more than 1,100 regional centers, and less than 10% of them existed even 5-7 years ago. Given that the EB-5 project cycle can often take 8 years or more, the vast majority of them have not had enough time in the business to have completed an entire cycle. One look at the statistics posted by the United States Citizenship and Immigration

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Services (USCIS) for fiscal year 2017 shows that roughly 89% of all the I-526 applications and close to 80% of all I-829 applications adjudicated in that year were approved. Those percentages are fairly good. And while many agents in China and elsewhere focus on these approval ratings as if they are some sort of stamp of approval on a project’s viability, the truth is that the USCIS is not approving EB-5 projects based on their viability as projects or the ability of the projects to pay back investors. At the I-526 stage the USCIS is looking at the projects to evaluate if they meet the very broad statutory requirements for approval of the immigrant petition. These criteria essentially focus on job creation, TEA designation, and other technicalities such as a comprehensive t business plan, and the investor’s source of funds for the investment.

The effect of fraud within the EB-5 progOne of the first questions that EB-5 investors are coached into asking regional center operators is whether the project operator has any I-526 approvals, I-829 approvals, or any project paybacks. These lines of questioning are somewhat unfair, and their answers are potentially misleading given that many newer regional centers have not been around long enough to have reached the point of I-829 approvals, and hence project paybacks. For most EB-5 investors, the most important criteria in evaluating an EB-5 investment is approval of their I-526 petition and ultimately securing conditional and permanent residency for themselves and their families. The second criteria is the likelihood of receiving a return of their capital.

Why are investors not

hiring professional money managers to manage their EB-5 real estate investors?

At the I-829 stage the USCIS is verifying that the project dollars were spent, and the project created the required number of jobs. Approval of the I-526 and I-829 criteria may give investors the false sense of security that the USCIS is evaluating the viability of these projects, but that could not be further from the truth. Investors hire the top attorneys in the business to ensure that they meet these I-526 technicalities, and in some cases, investors evaluate many law firms to choose only the best—ones that boast 100% approval rates and over 1,000 I-526 and I-829 approvals under their belt. Neither the USCIS nor the immigration attorneys, however are required or quali fied to evaluate the investment itself. Therefore while investors, and placement agents do quite a bit of homework on selecting the right attorneys and projects that have been exemplar approved, they are performing virtually no research on

what projects are most likely be able to pay them back their investment. An 89% and an 80% approval rate of the immigrant petitions is a good result, but it gives zero insight into the investors’ ability to get their principal investment back at the end of the EB-5 process. Much of this is the result of lack of underwriting ability by EB-5 regional center operators and immigration attorneys not being properly equipped in giving advice in real estate and finance. Other reasons are the complexity of real estate capital structures in the United States and development procedures in other countries being completely different. In fact, while the rate of immigrant petition approvals may be relatively high, the rate at which investors are securing a return of their investment appears to be disturbingly low. Although there are not exact figures as to the total amount of dollars that have been invested through the EB-5 program since its inception in 1993, a few unverified reports indicate that the total amount is between $27 billion and $30 billion over the last 25 years. It is true that some of the EB-5 funds that have been raised are not yet due for a payback, but relatively speaking there have been very few projects that have returned investors’ funds. Some projects are years overdue on payment deadlines according to their loan documents. Those projects that have paid back investors, which have been few and far between, have been sure to widely advertise this feat. One regional center that has been around for over 30 years boasts having paid back 23 projects’ investors totaling over $860 million. While there are no public databases with published data on this topic, and the USCIS does not publish repayment statistics, assuming that $10 billion out of the $27-30 billion of the EB-5 project funds raised are not due for repayment yet, one can estimate with a fair amount of certainty that the total amount of repaid funds is under $1 billion.

The answer is a bit complicated. Part of the reason is because EB-5 regional centers and fundraisers have traditionally been real estate developers and marketing specialists, and not sophisticated financial institutions like the investment banks on Wall Street that manage assets for high net worth clients. The risk to investors of not receiving their capital back is a result of various factors which include: numerous project failures in the form of Ponzi schemes, outright frauds, projects that have been underwritten poorly or have been in nontraditional assets classes that banks do not lend to (which makes them very difficult to refinance), and other shortcomings that have become favorite topics for headline financial news over the past few years. For EB-5 investors, to lose their EB-5 investment does not just have financial consequences. It can lead to immigration consequences as well. This is why fiduciary duties to EB-5 investors should be adhered to with a much greater degree, and “[n] ot honesty alone, but the punctilio of an honor the most sensitive” should be the standard of conduct for these project operator fiduciaries.*1 However, the lack of expertise that can be provided by professional financial *1 Meinhard v. Salmon, 164 N.E. 545 (N.Y. 1928) managers exacerbates these risks. The other potential answer is that the portfolio model of investment has been more difficult to get approved by the USCIS for reasons that I will explain, and that has deterred others from adopting this model. From an investment viewpoint, single project failure should be all the reason more why investors should look at diversifying in an EB-5 portfolio fund. Historically however, there have been numerous attempts at projects in a portfolio model

number of investments in the portfolio. They may also lower the variance by having different asset classes in the portfolio and assets in different geographic locations across the United States. The less homogenous the projects, the less variance that the portfolio will have according to Modern Portfolio theory. Abteen Vaziri that have been denied, and relatively few that have actually been approved. More recently, however, this trend may be shi fting as more portfolio models have been receiving approvals. The USCIS does not allow the pooling of jobs but does allow the pooling of assets in an EB-5 portfolio fund, and this has been the differentiating factor between the portfolio models that have been approved by the USCIS and the ones that have been rejected. Now that the USCIS has approved portfolio models, this could be the future of the industry, reversing the trend of such low percentages of estimated returns of investor capital.

This would imply that the amount of funds invested in projects that have been paid back is in the 5% range. This data clearly shows that the biggest risk for EB-5 investors is therefore not the regional centers’ ability to get them their green cards, but the regional center’s ability to repay the investment. Even the reputable regional center with 23 paybacks discussed above currently has reports that one of their projects with a few hundred investors already invested may ultimately never break ground. As the famous securities law disclosures from most broker dealer e-mails state: “past performance is not an indication of future results.” Why are EB-5 investors and agents so obsessed with past performance when the securities regulators are telling investors that past performance should not be relied on?

the industry has

89% initial green card application approvals but less than a 5% payback rate

Diversifying is the best way to lower project risk, as we have seen that even project operators with perfect project success rates and project payback rates can have a blowup. One example of a portfolio fund model is an EB-5 fund based out of Florida that was the first successful fund in getting approval from the USCIS. The way they got approved was by pooling investors’ funds together in order to diversify investors’ risks, but requiring investors to pick one project for job creation purposes. What that means is that, for the purposes of meeting the investors’ job creation requirements in the immigration context, I-526 petition and I-829 petition success are still reliant on the completion of one project, but the investors’ return on their investment and capital at risk can be diversified across a pool of investments. Under portfolio theory, the less correlation that investments in a portfolio have to each other the less variance that the portfolio will have. What this means is that a portfolio of all technology stocks or all energy stocks will theoretically have a higher variance than one that has less correlation by having stocks from different industry sectors. This can also be mimicked in an EB-5 portfolio fund. Such EB-5 portfolio funds theoretically can help minimize investors’ variance by the

Asset classes such as hotels, apartments, condos, office buildings, and retail outlets all perform differently in different parts of the real estate cycle. Also, different regions in the United States can be affected differently by regional downturns or natural disasters. Imagine having a portfolio of EB-5 projects that are all located in Puerto Rico or New Orleans where all such projects could be affected by a single tropical storm or hurricane or any other geographic event. Having a well-balanced portfolio of EB-5 projects that lowers investors variance by the number of investments, asset classes, and geographies can conceptually lower an EB-5 investor’s variance, and hence investment risk. The way money managers have reduced, and diversi ed investment risk has always been by diversifying and lowering the investment variance. Implementing a successful Portfolio Model in the context of EB-5 investment is a highly complex strategy with the potential to yield key financial returns at the end of the EB-5 project cycle. This is why more emphasis should be placed by investors on hiring professional money managers for their EB-5 investments. In the EB-5 marketplace where almost all projects get approved for job creation by the USCIS, regardless of their safety or viability, the industry’s focus has been on good attorneys, exemplar approvals and hence green card approvals, instead of return of their capital. Although getting green card approval is very important, it should be just as important for the industry to focus on taking steps to make sure EB-5 investors can receive their investment back. Where the industry has 89% initial green card application approvals but less than a 5% payback rate, one can see that emphasis is lacking in one of the two important investment criteria by the investors. The industry has always focused on trusting the top immigration attorneys for the first category, but the industry has never focused on trusting the top money managers for the latter category. We hope that more of the industry begin focusing on the last point. By giving more trust to professional attorneys and professional money managers, there should be no reason why both categories cannot achieve a greater than a 90% success rate. Managing Director, Brevet Capital Management, IIUSA Director 1st Quarter 2019 - 31

USA EB-5 project

ARE YOU READY TO BECOME AN AMERICAN MOVIE PRODUCER & GET YOUR U.S. VISA? by KAT CONWAY

Do you require a 100% tax benefit in the U.S.? Do you want U.S. Citizenship through a creative pathway? The American motion picture and video industry is a creative pathway for you and/or your immediate relatives to secure your EB5 visas! The U.S. (United States) film industry generated $43B (Billion USD dollars) of revenue in 2018. By the end of 2020 it will skyrocket to $50B (Billion USD dollars). Statista.com reports even healthier film industry projections for years to come. In other words, making movies is big business in America! The U.S. film industry is the third largest film market in the world behind China & India; a smart and profitable way to get your ROI (Return of Investment) and your U.S. EB5 visa(s); not to mention impressive film tax benefits! U.S. President Donald Trump has recently signed a new tax law titled: The Tax Cut & Jobs Act which allows for a 100% tax write-off (or to be more cautiously optimistic 25%) based on an investors passive investments. Do you have a family member that has always dreamed of being in the film industry? In short, a film investor is officially considered an “Executive Producer,” receives rolling credits as such on a film, or we will provide on-the-job training to you or your family member as a “Co-Producer,” or are you already active in the film industry in your country and in pursuit of your American visa(s)? We welcome a partnership with you too and your film group!

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Here is a list of renowned film school’s your son or daughter may want to apply to: (AFI) American Film Institute, University of Southern California, New York University Tisch School of the Arts, University of California Los Angeles, Columbia University School of the Arts, Stanford University, Loyola Marymount University, Emerson Visual and Media Arts School, Ringling College of Art & Design, Northwestern University, Colorado Film School, Chapman University Dodge College of Film & Media Arts, Rhode Island School of Design, University of Wisconsin/Milwaukee, and Florida State University College of Motion Picture Arts, Syracuse University, University of Texas at Austin, University of North Carolina School of the Arts, Wesleyan University, California Institute of the Arts, to name a few.

1. “Regional Center EB5”: $500K (Thousand USD dollars) is the required capital investment, requires USCIS preapproval before they can market to investors and make sure that all offering documents comply with the US Securities and Exchange Commission, must also target rural and high unemployment areas in the U.S. — this process takes extra time. The investor is usually a limited partner and/ or an investing member in a limited liability company, a purely passive role, does not have to meet the day to day operation obligations and has little control over their capital investment — almost no control. 2. “EB5 Direct or Direct EB5” also referred to as “Stand-alones” by the USCIS: $1M (Million USD dollars) is the required capital investment, allows the business to market the project without having to obtain USCIS pre-approval and puts you on a fast-track to your EB5 visa(s). The Direct Investment pathway does not allow for a passive investment (separate and apart from the TCJA passive investment tax benefit). The Investor in an EB5 Direct investment must be an equity investor in the job-creating business. This can be accomplished either through the issuance of common shares or preferred equity. At the very least, the EB5 Investor must be placed in an advisory capacity. With this structure, the Investor could obtain a more substantial return on his investment. Escrow is eliminated (saving time) and a ‘Signed Subscription Agreement” is satisfactory for the USCIS. We believe it may be very important for you to have control as an active partner to enhance company returns and grow your investment? It is important to note that the investor only has to demonstrate the ability to exercise managerial control or affect the business’s policies — the investor is not required to show performance of such duties as a corporate officer or board member. Additionally, both pathways are required to be “Matter of Ho” “Matter of Izummi” & “Matter of Soffici” compliant. The USCIS has not increased the EB5 Regional Center or EB5 Direct capital investment requirement since the authorization of the U.S. Immigration Act of 1990. By October 2019 for inflation reasons, more than likely, the United States Congress will significantly increase the capital investment requirement to at least double the amount for both pathways. Now is the time to make a decision about your EB5 visa(s) investment!

EB5 Films in association with American Film Pictures is prepared to collaborate with an EB5 Visa venture capitalist or film financier. How will this work? Production offices to only claim direct job-creation, employ ten permanent full-time U.S. employees for two years, and to be structured as follows: aggressive film marketing, film finance, production office administration, social media, management of films in production, and miscellaneous. To hire ten employees for two years the cost will be approximately $500K (Thousand USD dollars) to include providing ten full time employees with 35 hour work weeks. The remainder of your investment will be $500K (Thousand USD dollars) or more for actual film production costs vs. the production offices — fulfilling the USCIS requirements for your visa(s). Moreover, we may be in production on various film projects simultaneously. There are seven major stages when producing a film: 1. In-Development 2. Pre-Production 3. Production 4. Principal Photography 5. Wrap 6. Post-Production 7. Distribution

USCIS.gov the “United States Citizenship & Immigrations Services” is an EB5 (Employment Based Fifth Element) program that the U.S. government created in 1990 for immigrant visas related to employment and job-creation. There are 10,000 total EB5 visas available per year worldwide. There are two distinct pathways for this program as follows:

All Films will be Sold

in the United States & can be Sold in Your Country of Origin to Guarantee Your ROI! Do You have a Film Distribution Company?

There are always three budgets for a film depending on financing raised. Films take approximately six months to one year to produce to completion, sometimes longer. These film crew positions and aspect of the film production is considered ‘seasonal, transient, or temporary’ for the USCIS. Conversely, the film production offices are exactly what the USCIS requires and approves. Low budget film costs may range from $250K to $1M, medium-budget is $1M-$5M, high-budget is $5M plus (no cap). The goal is to sell the film to generate revenue ie: ‘first-monies-in’ (your $1M return of capital investment) in tandem with net profits and, just as importantly, your EB5 visa(s). The surest way to generate revenue is to hire recognizable name talent such as a director, actor, writer, etc. This typically means it will be a $1M-$5M budget as name talent alone will be paid at least $1M for their film distribution value. The goal is to sell the film, to win awards,

to drive healthy company revenues, to receive tax benefits, to get your visa(s), and to make more movies! This is the reason we are in pursuit of an EB5 Visa venture capitalist or film financier. All Films to be Sold in the United States & Your Country of Origin with a Film Distribution Company to Guarantee Your ROI Did you know that in 2018, the USCIS shutdown 108 regional centers and did not approve those EB5 visas? When an EB5 regional center real estate project does not get launched it is due to dependence on real estate bank financing that does not get approved, global warming to include floods, tornadoes, hurricanes or other unforeseen natural disasters which will compromise your investment and visa(s) on building a project. As an EB5 Direct investment this variable is eliminated. Furthermore, we have collaborated with an EB5 bank for you to conveniently open an EB5 friendly bank account to wire transfer your EB5 capital investment so the USCIS (a division of the U.S. Department of Homeland Security) will be able to verify and trace your EB5 original source of “Path of Funds” to determine that the funds were acquired through lawful means, not obtained from an illegal source, income earned by the petitioner or his or her spouse, actively invested, to then be transferred to the NCE (New Commercial Enterprise) film company U.S. business bank account for the actual undertaking of business activity. All of the above mentioned are key conditions for every USCIS approval process. What is one simple reason to choose a Direct EB5 project? Control over your capital investment! A Regional Center EB5 investor has very limited control over their capital investment! In summary, being a part of the American film industry is super fun, profitable and prestigious worldwide opening many doors; a creative pathway to secure your American citizenship! Our EB5 teams are composed of the finest immigration attorney(s) and EB5 visa professionals in the business to ensure you receive your adjudicated visa(s). As well, we are team players and are happy to work alongside your immigration attorney(s) and more. We are EB5 Films in association with AmericanFilmPictures.com, a for-profit business, and a member of iiUSA.org. We abide by the USCIS Core Values: Integrity, Respect, Vigilance & Ingenuity. To find out more please click the EB5 button on our website and type in the PASSWORD: iwantEB5visa AmericanFilmPictures.com info@americanfilmpictures.com

1st Quarter 2019 - 33

EB-5 P R O GR A M

+84 121 4335357 Le Trieu Vy LetrieuvyGlobal@gmail.com

INVESTMENT AND IMMIGRATION PROCESS

PICTURE HERE

ALTERNATIVE INVESTMENTS

EB-5 CAPITAL

CIVITAS TRADITION FUND III, LP Civitas EB-5 Capital manages Regional Centers throughout the United States. As a professional investment manager, Civitas performs rigorous institutional-quality financial analysis of each potential EB-5 project, screening a wide range of potential investments to ensure those we select meet stringent criteria. Civitas is one of the few regional center manager that has successfully help multiple investors obtain unconditional permanent United States residency and repayment of their investments. * *Making a qualifying investment alone does not guarantee a successful completion of the EB-5 program as there may be other independent grounds for inadmissibility to the United States.

EB-5 Investment Opportunity

Civitas Alternative Investments provides qualified individuals the opportunity to invest in a range of real estate assets with top-tier developers in the U.S., in categories like hospitality and multifamily. Some of the funds are conservative and income-oriented, others are more aggressive. All the funds are designed to target above-average returns on a risk-adjusted basis. To learn more, please contact us at LetrieuvyGlobal@gmail.com.

Civitas Texas Regional Center

May 2018

www.civitascapital.com 34 - Citizenship Navigation

Trump Administration Prepares to Close International Immigration Offices

The Trump administration is preparing to shutter all 21 international offices of U.S. Citizenship and Immigration Services, a move that could slow the processing of family visa applications, foreign adoptions and citizenship petitions from members of the military.

A senior DHS official who spoke on the condition of anonymity to describe a decision that has yet to be announced publicly said it primarily is a cost-saving measure that will hand off responsibilities to State Department and DHS personnel working abroad.

USCIS Director Francis Cissna said in an email to staffers Tuesday that he is working to transfer those duties — now performed by employees worldwide — to domestic offices and the State Department’s embassies and consulates. He wrote that if the State Department agrees, the agency would move to close its international field offices in coming months “in an effort to maximize our agency’s finite resources.”

The USCIS International Operations Division, under the Refugee, Asylum, and International Operations Directorate, has about 240 employees in the U.S. and in two dozen field offices in 21 countries, and is “charged with advancing the USCIS mission in the international arena,” according to materials on the agency’s website.

“I believe by doing so, we will better leverage our funds to address backlogs in the United States while also leveraging existing Department of State resources at post,” he wrote. “Change can be difficult and can cause consternation. I want to assure you we will work to make this as smooth a transition as possible for each of our USCIS staff while also ensuring that those utilizing our services may continue to do so and our agency operations continue undisrupted.”

the agency would move to close its international field offices in coming months “in an effort to maximize our agency’s finite resources.”

Generally, the offices facilitate applications from potential immigrants to the U.S.; closing the offices would reassign about 70 USCIS staffers across the world who the agency’s website says provide “valuable information services” and solve a wide array of problems, from aiding someone who lost a green card to helping widows of American citizens and members of the military obtain legal documents. The move comes as the Trump administration is pressing to tighten the nation’s immigration controls and to shift from family reunification to merit-based immigration. Department of Homeland Security officials say it is part of an overall effort to streamline U.S. immigration operations.

The shift will ripple to offices in New Delhi, Rome, Portau-Prince, Haiti, and numerous other cities where the agency has offices that handle emergencies, alleviate backlogs in immigration petitions, and provide direct information in foreign languages. USCIS foreign offices also investigate fraud.

If the State Department agrees,

“Reuniting families, enabling adoptive children to come to join permanent families in the U.S., considering parole requests from individuals outside the U.S. for urgent humanitarian reasons or significant public benefit, and providing information services and travel documents to people around the world — all with unique needs and circumstances — are just a few of the responsibilities our officers assume on a daily basis,” USCIS says of its mission. The agency also investigates fraud, aids asylum seekers and refugees, and provides public information in foreign languages. More than half of the overseas USCIS staff members are foreign nationals, and the local contract employees who perform many of the applicant screenings are likely to continue doing so under State Department supervision, a DHS officials said. Cissna said in his message to staffers that he would consolidate regional, district, and field offices in the U.S. in coming weeks “to streamline management structures, balance resources, and improve our overall mission Source: stripes.com performance and service delivery.” 1st Quarter 2019 - 35

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Poland to Russia, where they snuck onto the Trans Siberian Railroad. From there came Korea and Japan before they secured a place in steerage to America, getting off–apparently on a whim–in Seattle. He’s been there ever since.

checks he received fr known as “Wiedergu Make it Good,” Selig

INVEST IN EB-5 SEATTLE INNOVATION CENTER

Selig worked at his father’s children’s clothing store before putting up his first shopping center in 1962. He jokes about why he got into real estate: “I didn’t trust the stock market.” Right place, right time: By the 1980s Selig owned as much as a third of all

Selig also enjoys ridi skiing. “I skied 42 da going for 50,” he say a.m. with classical m children. One daught debuted recently at th Selig accompanied he

New Billionaire: Martin Selig Escaped Nazi Germany to Seattle, Where He Built Fortune In November 2, 2015 Real Estate

It’s impossible to look at Seattle and not see Martin Selig. His eponymous real estate company has been erecting buildings there for nearly six decades– mostly high-end high-rises. Two of his most impressive projects: the glassy aeries downtown on Fifth Avenue called Fifth & Jackson and Fifth & Yesler. (He also built and owned the 76-floor Columbia Center–the city’s tallest building when completed in 1985–before selling it for $354 million in 1989. Back in the day he was often spotted jogging up the flights for a workout.) He still owns all of Martin Selig Real Estate and its 4 million square feet of office space (“When I see it, I go after it,” he says). With an Amazon-fueled commercial real estate boomlet, Selig is developing an additional 1.5 million square feet and is now worth an estimated $1.1 billion. One of his most anticipated projects includes turning the historic federal reserve building into a glassy skyscraper. The 78-year-old arrived in the Pacific Northwest under less than auspicious circumstances. He and his family fled Nazi Germany in 1939 after a latenight warning to get out, traveling east through Poland to Russia, where they snuck onto the Trans Siberian Railroad. From there came Korea and Japan before they secured a place in steerage to America, getting off–apparently on a whim–in Seattle. He’s been there ever since. Selig worked at his father’s children’s clothing store before putting up his first shopping center in 1962. He jokes about why he got into real estate: “I didn’t trust the stock market.” Right place, right time: By the 1980s Selig owned as much as a third of all

office space in Seattle. FORBES estimated his fortune at $210 million in 1987. An avid art collector, Selig is also an artist in his own right: “I paint quite a bit. I don’t have enough walls.” He also inherited a small but impressive collection which includes a few Rembrandt etchings and some Toulouse-Lautrec works from his father, who purchased it all with the monthly reparation checks he received from the German government, known as “Wiedergutmachung.” Translation: “To Make it Good,” Selig explains. Selig also enjoys riding his Harley motorcycle and skiing. “I skied 42 days last year. This year, I’m going for 50,” he says. A typical day starts at 4:30 a.m. with classical music. He’s married with three children. One daughter produced two films which debuted recently at the Venice Film Festival, where Selig accompanied her. 1st Quarter 2019 - 37

CANADA

Where Canada stands in current residency by investment industry by Kianoush Mahmoudi We are living in a world in which currently there are more than 436 million wealthy individuals whose assets total 84 percent of the worldâ&#x20AC;&#x2122;s private wealth. the number of wealthy individuals and their assets have considerably been growing in the past years. As there are more wealthy people in the world, it is no surprise that there is higher demand for residency and citizenship by investment. For example, in 2016, some 82,000 millionaires immigrated globally, compared with 64,000 in 2015. Canada is one of the most popular destinations among all kinds of immigrants, it launched its programs since 1978 and is a pioneer in the field, Canada also has raised the number of its immigrant intake from 260,000 to 300,000 in 2016. However, the number of business immigrants to Canada have not raised accordingly, quite on the contrary the number of wealthy people moving to Canada has been decreasing significantly.

38 - Citizenship Navigation

Kianoush Mahmoudi

director and head of business development in Cankash company

One of the major advantages of investor programs for host countries is that they can increase foreign capital inflows when countries are experiencing capital deficit and/or when interest rates are high. However, due to low and sustained interest rates, these advantages are currently inconsiderable in Canada. A 2015 analysis shows that, Quebecâ&#x20AC;&#x2122;s net financial gain from QIIP funds has been around $39,600 per investor which is incredibly low and it almost is as much as what immigration firms collect as commission for each QIIP client who chooses the financing option. Canada business immigration has the most burdensome application requirements among all similar programs in the world. Canada investor and entrepreneur programs are the only programs of the kind which not only require applicants to prove their business management experience, but also they have to show how they earned all their net worth with exact documentation which in some cases especially if the documents are related to old times they are difficult and very time consuming to collect. European investor programs do not require investors to show any managerial experience or heavy documentation on the source of fund. Even the U.S investor EB5 program does not require investors to show managerial experience and requires an immigrant to report lawful sources of funds for their investment amount only and not the entire wealth. In addition to the onerous application requirements, Canada business immigration programs are among programs with the longest processing and waiting times for applicants. For instance, it currently takes the federal government around 4 years to process a QIIP application plus the length of time it takes an applicant to obtain a CSQ,

making the whole processing time as long as 6 to 8 years for applicants. Itâ&#x20AC;&#x2122;s while applicants can obtain the residency of most European countries within some months and even obtaining an American green card through EB5 program, does not take more than few years for most nationalities. It is also very worth considering that mostly investors apply for RCBI programs seeking comprehensive visafree travel and having a contingency plan in case political or economic situations deteriorate in their own country and usually they are not willing to permanently leave their current country of residence in which they have worked hard to build their successful business and business network in order to live in a new country and starting everything from scratch, also because of their typical lifestyle and their business, entrepreneurs and investors tend to travel frequently around the world and it would be challenging for them to fit themselves into the staying requirements of Canada programs, as if instead of gaining more freedom for traveling they are losing it.

the number of investors applying to each country depends on how welcoming the country is to the foreign capital for its economic development, the appeal of its programs to prospective investors, and global competition. In order to look into why less wealthy immigrants are moving to Canada we have to look into these 3 factors.

Canada requires immigrants not only to remain in the country but even expects and tries to retain them in a specific province or territory and the obvious, not surprising low immigrant retention rates in Canada is an alarm to its programsâ&#x20AC;&#x2122; integrity.

Stories of applicants who spent considerable years and a fortune to finally get Canada residency but lost it not being able to remain in Canada, are not rare. Consequently, it is quite natural that other competitive programs with no or low staying requirements are more appealing to the globally mobile investors. HNWIs generally prefer the ease of investor programs, for which they do not have to launch and manage a business, and get temporary or permanent residency or citizenship only in exchange for an investment. Currently, the federal government of Canada does not have an

investor program and the only route to enter the country as an investor is through the QIIP, which accepts only 1,900 applications yearly (a maximum of 1,235 applications from China, Hong Kong and Macau, and only up to 665 from other nations). In 2018 this only option, experienced an increase in the investment threshold requirement of $1.2 million, up from $800,000 and net worth requirement of $2 million, up from $1.6 million. Also, the government has decided to reduce by more than 50% the number of CSQs it hands out in 2019, as a result a steep CSQ backlog is expected to happen in 2019; one can surmise that the both recent changes to the program make it even less appealing to investors and harm the popularity of Canada as a destination for investors. All in all, while Canada due to its special economic situation and business immigration programs do not reap considerable financial benefit from its business immigration programs, it evaluates its success on retaining immigrants in the country to benefit from their purchase power, social values and job creating power. this is directly in conflict with what investors seek by and large when they apply for an RCBI program. Even for those who apply to a program in order to move and physically reside in a new country, the very long and onerous processing time and application requirements of Canada programs are very discouraging making them seriously consider other existing RCBI programs even if the popularity of Canada as a stable and welcoming country is very attractive for them. That is why while countries with new emerging RCBI programs are rapidly attracting HNWI and direct foreign capital, Canada, the most popular country for immigrants and the oldest country in this field is experiencing a decrease in the number of HNWI moving there. Sources: CIC news, Credit Suisse Conference Board of Canada

1st Quarter 2019 - 39

CANADA

INVESTOR PROGRAMS by Alex Khadempour

Canada: Nature’s Bounty Canada is the second largest country in the world, situated in North America and is a federation made up of ten provinces and three territories. It is one of the most beautiful countries in the world with varied landscapes. It is abundant in natural resources and one of the most industrialized and technologically advanced nations in the world. Canada is a federation that is governed as a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state. It a bilingual nationwith both English and French as official languages. One of the world’s highly developed countries, Canada has a diversified and stable economy that is reliant upon its abundant natural resources and upon trade. It also has a highly developed science and technology sector. D u e to i ts con servative and sensible banking system, it has been affected to a far lesser extent 40 - Citizenship Navigation

by the recession that has plagued the United States and many European countries in recent years. Canada is a prominent member of the G8, G20, NATO, OECD, WTO,Commomwealth, Francophonie, OAS, APEC, and UN. Canadian culture has been greatly influenced by immigration from all over the world. Many Canadians value multiculturalism and see Canada as being inherently multicultural. Canadians value human rights very deeply and its constitution guarantees basic human rights to each and every one of its residents. Canada is known for the quality of life and high standard of living it offers to its citizens. It has been voted repeatedly, for several years in a row, as one of the best places in the world to live in by the United Nations. Residency by Investment in Canada: Businesspeople and entrepreneurs who

wish to immigrate to Canada have two categories open to them under which they can apply for immigration. 1. Immigrant Investor Venture Capital Pilot Program (Federal) 2. Investor & Entrepreneur Program (Quebec) 3. ALL PROVINCIAL NOMINEE

PROGRAM Summary December 2017 Investor programs:

1. Immigrant Investor Venture Capital Pilot Program: Canada welcomes successful business people and international investors with the skills and abilities needed to contribute to the Canadian economy and integrate into Canadian society. Investors seeking new opportunities and challenges may be eligible to apply for permanent residence in Canada under the Immigrant Investor Venture Capital (IIVC) Pilot Program. This program is designed to encourage and facilitate the admission of such people to Canada. Who can qualify? 1. Personal net worth Investors must have a personal net worth of CDN $10 million or more. The net worth must have been acquired through lawful, private sector business or investment activities. For example, these could include: • income or capital gains acquired through the ownership or management of commercial, for-profit entities

Proof of personal net worth – Citizenship and Immigration Canada requires applicants whose applications can be considered for the second stage review to obtain a due diligence report at their expense from one of the following designated service providers: • BDO USA, LLP • Deloitte Forensic Inc. • EY • KPMG LLP • PricewaterhouseCoopers (PwC) LLP • Raymond Chabot Grant Thornton Consulting Inc. The due diligence report is an independent examination and validation of the applicant’s past business or investment experience, source of funds and personal net worth.

2.Non-guaranteed investment in a venture capital fund The applicant must be willing and able to make an at-risk investment (nonguaranteed) of CDN $2 million in the Immigrant Investor Venture Capital (IIVC) Fund. The applicant is required to enter into an agreement with Citizenship and Immigration Canada (CIC) committing a sum of CDN $2 million to the IIVC Fund for approximately 15 years. As with any venture capital investment, the applicant could receive proceeds over time or at the end of the investment term. Proceeds will depend on the fund’s performance and will be based on its gains or losses, including expenses and fees incurred to manage it. 3. Language skills The applicant must prove his/her proficiency in English or French in all four language abilities (speaking, reading, listening and writing) and must take a language test approved by CIC. The applicant must include the original language test result when applying under this program. 4. Education The applicant must have completed a Canadian post-secondary degree, diploma or certificate of at least one yearORa foreign equivalent, as validated by an original Educational Credential Assessment (ECA) report from a CICdesignated organization. The ECA report must indicate that the applicant’s completed foreign education credential is equal to a completed Canadian postsecondary education credential of at least one year.

2. Quebec Immigration Investor Program(QIIP):

Following the closure of the Federal Investor Program in June 2014, the Quebec Immigrant Investor Program remains the sole option for high net worth individuals wishing to secure permanent residence in Canada (in the province of Quebec) on the basis of a passive investment. Who can qualify?

In order to qualify for this program as an investor, an applicant must –

• funds acquired through private sector activities, such as public equity investments or private equity placements Note that personal net worth acquired through inheritance or in the value of applicant’s primary residence does not count, as these are not considered “business or investment activities” for the purpose of this program.

– Have, alone or with an accompanying spouse, including de facto spouse, net assets of at least $2.0 million CD obtained legally. Money / assets received by inheritance or donation or gift can be included in making the total of $ 2.0 million CD in net assets.

However, amounts received by donation less than six months before the date on which the application was filed are ineligible and will be excluded. – Have management experience in:(i) A legal farming, commercial or industrial business, or (ii) A legal professional business (doctor, lawyer, engineer, etc.) where the staff, excluding the investor, occupies at least the equivalent of two full-time jobs, or (iii) An international agency or the government or one of its departments or agencies. The applicant must have management experience for at least two years in the last five years from the day of filing the application. Management experience is defined as the exercise, of duties related to the planning, management and control of financial resources and of human or material resources under your authority; the experience does not include experience acquired in the context of an apprenticeship, training or specialization process attested to by a diploma. The applicant must invest $1.20,000 CD in a government bond for a period of five years at no interest. A 100% loan of this investment amount can be arranged with help of a government improved bank or financial institution and the applicant will have to pay only a onetime financing fee that will include the interest amount on this loan. The assessment of the application will also take into account other factors such as applicant’s age, the nature and duration of his/her professional training and language skills.

The applicant is not required to start a business in Quebec.

Some interesting features of the Quebec Immigration Investor Program are: 1. Unlike the old FIIP, the applicant does not have to manage a ‘qualifying business’. Hence there is no restriction on the size and turnover of the business. 2. Investors are not required to start any business in Canada, there is no age limit to apply and knowledge of either of Canada’s two official languages is not mandatory, but definitely desirable. However, the applicant and each of his accompanying dependents must pass medical and security clearance. No conditions are imposed on the final visa. 3. Investments are fully guaranteed by the Province of Quebec. 4. The Province of Quebec controls the investment during the 5 year lock-in period. 5. Under the new definition of an Investor, a senior manager of a company who has never owned a business, but whose net worth is $2.0 million CD can also qualify under this program. 6. A previous requirement that the investor must create his net worth by his own endeavors have been removed and has been replaced by a requirement that the net worth be legally obtained. For example, a senior manager who meets the business experience requirements and has received a big fortune from his family’s estate is eligible to apply for immigration to Canada under the investor program. 7. Spousal assets can also be included when calculating the net worth.

Benefits of Quebec Immigrant Investor Program

1. Immigrate with spouse and children. 2. Free medical care for all and free school education for children up to grade 12. 3. No visitor visa required to visit the USA once you become a Canadian citizen. 4. Sponsor your parents and other family members. 5. Visit your home country as and when you wish. 6. Apply for citizenship after three years of your arrival in Quebec. 7. Once you are a Canadian citizen, you can expand your business in the USA under the NAFTA agreement. 8. Under the investor program, there is no need to start a business in Quebec. 9. Short processing time. 10. High quality of life in a vibrant and multicultural society and low crime rate. 11. Access to the huge North American market. Visa free countries for Canadian citizens: Canadian passport is a document well respected throughout the world and permits its holders to travel freely to many countries around the world without the need to apply for a visa. alex@cicsimmigration.com cicsimmigration.com 1st Quarter 2019 - 41

Caribbean CBI Investment Programs Visa Free Travel with a Grenada Passport A Grenada passport allows visa free travel to more than 130 countries, including all European Union countries, the United Kingdom, Ireland, Caribbean and Commonwealth Nations, Russia, as well as an opportunity to obtain the USA E-2 visa.

PERSONAL REQUIREMENTS In order to protect its people and Grenada’s international standing, the Government of Grenada will only grant citizenship to individuals who are truly deserving of that honour. Therefore, the Government will deny the application of any applicant who: Provides false information on his or her application form; Has at any time previously been convicted in any country of an offence for which the maximum custodial penalty for the same or similar offence in Grenada is in excess of six months imprisonment (unless he or she received a free pardon); Is the subject of a criminal investigation; Is considered to be a potential national security risk to Grenada or to any other country; Is involved in any activity likely to cause disrepute to Grenada; or Has been denied a visa to a country with which Grenada has visa-free travel and who has not subsequently obtained a visa to the country that issued the denial Moreover, the main applicant must demonstrate that he or she: Is at least eighteen years old; Is in good health; and Has enough funds to make the required investment. The source of these funds must be legal. In order to ensure that the requirements listed above are fully adhered to, the Government of Grenada subjects each applicant to strict due diligence procedures. Moreover, each applicant must supplement his or her application with supporting documents. These include, but are not limited to, original or certified copies of: A certificate by a medical practitioner, indicating that the main applicant and his or her applying family members are not suffering from any communicable disease and that they are otherwise in good health; and A police certificate. ROUTES TO CITIZENSHIP: CONTRIBUTION OR INVESTMENT In addition to fulfilling the personal requirements listed above, applicants must also choose between two potential routes for citizenship. These are: 42 - Citizenship Navigation

A contribution to the National Transformation Fund; and An investment in an approved project (real estate) in Grenada. The National Transformation Fund (NTF) The National Transformation Fund (NTF) is a Government fund responsible for financing projects that will benefit Grenada’s economy and help its diversification. Applicants who choose this route must make a onetime contribution to the NTF. It is important to note that applicants may not contribute to the NTF in person, but rather that they must use the services of an Authorised Local Agent. Under the NTF route, applicants may either immediately apply for citizenship, or first apply for permanent residence and apply for citizenship at a later stage. Please refer to your Authorised Local Agent for more information on the NTF route and the criteria that applicants must fulfil. Approved Project (Real Estate) in Grenada The process of approving a project for the purposes of citizenship by investment begins with the Citizenship by Investment Committee, which reviews viable projects and recommends them to the Minister. The Minister then decides whether to approve the project, and publishes his or her approval in the Gazette. Currently, the vast majority of approved project consists of real estate developments on the island of Grenada. These include luxury hotels, resorts, and villas. Applicants who choose to invest in an approved project must make the investment through an Authorised Local Agent. Investments in real estate must be maintained for at least three years from the date on which citizenship is granted. Please refer to your Authorised Local Agent for more information on the approved projects route and the criteria that applicants must fulfil. Under both the NTF route and the approved project (real estate) route, the contribution or investment must be accompanies by application, due diligence, processing, and – in the case of approved projects only – government fees.

Grenada

Grenada restructured, redeveloped, and re-launched its Citizenship by Investment Programme in 2013, and has since then become a popular option among foreigners, particularly thanks to the unique visa-free travel opportunities offered by the nation to its citizens. The Programme is managed by the Citizenship by Investment Committee (CBIC). INVESTMENT OPTIONS 1. Real Estate Investment With its economy shifting from agricultural-dominant to service-dominant, one of the most viable options for foreign nationals is investment in a pre-approved real estate project. Mount Cinnamon The Mount Cinnamon Resort is situated on a lush hillside on almost two miles of the Grand Anse beach, which is recognized by many as one of the most beautiful beaches in the world. Looking towards the historic capital of St. George’s, the resort sets the tone for an irresistibly elegant, yet intimate, relaxed beach hideaway. An award-winning destination, Mount Cinnamon is the most successful development under Grenada’s Citizenship by Investment Program, having attracted more than 80 per cent of all investment applications. Comprising 22 gorgeous, privately owned villas on 23 acres of freehold land, Mount Cinnamon is currently adding 250 new residences as well as new luxury facilities thanks to the CBI Program. Investors may sojourn at the resort for a period of 10 days per calendar year.

Applicants must invest a minimum of US$350,000, which must be maintained for a minimum of four years. This reduced investment amount means our valued investors take on less risk. The minimum amount includes the main applicant, main applicant’s spouse and two qualifying dependents. An extra US$25,000 is required for each additional dependent. The opportunity to own shares of Mount Cinnamon is an invitation to become a citizen of Grenada, begin a long and fruitful relationship with the island and its culture, and contribute to its future. 2. National Transformation Fund Donation Applicants may donate a minimum of US$150,000 to Grenada’s National Transformation Fund. The minimum amount covers the main applicant only. For a family of up-to four people, the requirement is set at US$200,000. An extra donation of US$25,000 is required for each additional dependent. 3. Your estimated cost Donation : 150.000 USD + Application fee : 1.500 USD Real estate : 350.000 USD + Application fee : 3.500 USD 1st Quarter 2019 - 43

Investors Include:

Fully Financed Project with over 10,000 Jobs Created More than Double the EB-5 Requirement Project Construction Complete and Full Production Commenced Manufacturing Facility in the World Loans Secured by a First Priority Security Interest in the Bank Account of the Borrower Prominent Equity Investors and a Trusted Regional Center under Arkansas Capital Corporation Pine State Regional Center Little Rock, Arkansas, USA + 1.501.374.9247 | www.eb5pinestate.com

+84 121 4335357 Le Trieu Vy LetrieuvyGlobal@gmail.com

SAINT LUCIA Saint Lucia has the newest and arguably the best-positioned citizenship by investment program in the Caribbean. Vibrant, discerning and alluring, Saint Lucia offers all the tropical benefits of the region while remaining exclusive, authentic and engaging. WHY CHOOSE SAINT LUCIA? Saint Lucia has inherited decades of experience from its Caribbean neighbors. By hand-picking only the best practices, the Citizenship by Investment Board is committed to making the program the most efficient for investors while providing unmatched benefits for the country and its people. Saint Lucia recognizes dual citizenship, which can prove advantageous for business expansion and tax relief. Other benefits include the following: • Fast processing within three months. • Inclusion of dependent children under 25. • Inclusion of dependent parents above 65 who are currently residing with the applicant. • Inclusion of mentally or physically challenged dependent children and/or parents. • No physical residency requirements. • No requirement to travel to Saint Lucia during the application process. • No interview, education or managerial experience required. • Visa-free travel to more than 100 countries, including the Schengen Zone, the U.K. and Hong Kong. • No tax on worldwide income. QUALIFICATIONS Saint Lucia’s Citizenship by Investment Program was established in 2015 under the regulations of the Citizenship by Investment Bill 2015, making it the most recent addition to the CIP programs in the Caribbean region. Saint Lucia has masterfully positioned its program for the global elite by limiting application numbers and raising the overall net worth requirement. To qualify for citizenship in Saint Lucia, applicants must fulfill one of the investment requirements below in addition to the following criteria: • Be of outstanding character. • Hold no criminal record. • Have excellent health. INVESTMENT OPTIONS 1. National Economic Fund Contribution High net worth individuals may choose to make a monetary contribution to the NEF organization via one of the prescribed contribution levels. • US$100,000: Single applicant. • US$165,000: Main applicant with spouse. • US$190,000: Family with up to 3 dependents (spouse + 2 children). • US$25,000: Each additional dependent. 2. Real Estate Investment Applicants may purchase property valued at a minimum of US$300,000 in a preapproved real estate development area. The property must be owned and maintained for a minimum of five years. Property registration, processing fees and taxes must be paid in addition to the property purchase.

3. Government Bond Investment Upon approval an applicant and accompanying family may opt to invest in Saint Lucia government bonds, which must be held for five years. The bond amount will vary depending on the size of the family. • US$500,000: Single applicant. • US$535,000: Main applicant and spouse. • US$550,000: Family with up to 3 dependents (spouse + 2 children). • US$25,000: Each additional dependent. The government bond option carries an administration fee of US$50,000 per application.

làm cho nó trở thành chương trình được cập nhật gần đây nhất trong khu vực Caribê. Saint Lucia đang giữ vững vị thế của chương trình trong con mắt của giới thượng lưu toàn cầu bằng cách giới hạn số lượng đương đơn và tăng yêu cầu khối tài sản cá nhân lên cao. Để đủ điều kiện nhập tịch tại Saint Lucia, người xin nhập quốc tịch phải thực hiện một trong các lựa chọn đầu tư nêu dưới đây, cũng như cần phải đáp ứng các tiêu chí sau: • Có tính cách nổi bật. • Không có tiền án tiền sự • Có sức khỏe tốt.

4. Enterprise Project Investment Applicants may invest a minimum of US$3.5 million in an approved enterprise project and create at least three jobs. Two applicants may share an investment of US$6 million and create six jobs to qualify. Approved enterprise projects must fall under one of the following categories: specialty restaurants, cruise ports and marinas, agroprocessing plants, pharmaceutical products, ports, bridges, roads and highways, research institutions and facilities, or offshore universities.

LỰA CHỌN ĐẦU TƯ 1. Đóng góp vào Quỹ Kinh tế Quốc gia Các cá nhân có khối tài sản cá nhân cao có thể chọn đầu tư tiền vào Quỹ Kinh tế Quốc gia Saint Lucia thông qua một trong các mức đóng góp quy định như sau: • 100.000 USD: Một đương đơn. • 165,000 USD: Đương đơn cùng vợ/chồng của họ • 190,000 USD: Gia đình đương đơn, tối đa 3 người phụ thuộc (vợ/chồng + 2 con). • 25.000 USD: Áp dụng cho mỗi người phụ thuộc ngoài số lượng trên.

5. Your estimated cost Donation : 100.000 USD + Application fee : 9.000 USD Real estate : 300.000 USD + Application fee : 59.000 USD Government bonds : 535.000 USD + Application fee : 59.000 USD Saint Lucia là Chương trình Đầu tư Nhập tịch mới nhất và được coi là có vị trí thuận lợi nhất ở khu vực Caribê. Sôi động, sành điệu và đầy lôi cuốn, Saint Lucia sỡ hữu các lợi thế của một khu vực nhiệt đới trong khi vẫn giữ được nét độc đáo, chân thực và hấp dẫn của riêng mình. TẠI SAO PHẢI CHỌN SAINT LUCIA? Saint Lucia đã kế thừa được rất nhiều kinh nghiệm từ các chương trình tương tự của các nước láng giềng Caribê. Bằng cách chỉ chọn lựa các phương pháp hay nhất, Hội đồng Đầu tư Nhập tịch Saint Lucia cam kết sẽ đem lại một chương trình hiệu quả nhất cho các nhà đầu tư đồng thời cung cấp những lợi ích chưa từng có cho đất nước và con người nơi đây. Saint Lucia thừa nhận quốc tịch kép, điều đó sẽ mang lại thuận lợi cho các nhà đầu tư trong việc mở rộng kinh doanh và giảm thuế tại đây. Ngoài ra, còn có các lợi ích khác như: • Quy trình xử lý đơn nhanh gọn trong 3 tháng. • Được bao gồm người phụ thuộc là con cái dưới 25 tuổi. • Được bao gồm người phụ thuộc là cha mẹ trên 65 tuổi, và đang cư trú cùng với đương đơn. • Không yêu cầu phải cư trú trên thực tế. • Không yêu cầu phải đến Saint Lucia trong quá trình nộp và xử lý đơn. • Không yêu cầu phỏng vấn, học vấn hay kinh nghiệm quản lý. • Miễn visa đến hơn 100 quốc gia, bao gồm cả Khối Schengen, Vương quốc Anh và Hồng Kông. • Không đánh thuế trên thu nhập toàn cầu. TIÊU CHÍ Chương trình Đầu tư Nhập tịch Saint Lucia được khởi xướng từ năm 2015 theo quy định của Dự Luật Đầu tư Nhập tịch Saint Lucia 2015. Điều này

2. Đầu tư bất động sản Đương đơn phải mua bất động sản có giá trị tối thiểu là 300,000 USD trong khu vực phát triển bất động sản đã được Chính phủ phê duyệt. Tài sản phải được sở hữu và duy trì trong vòng tối thiểu là 5 năm. Việc đăng ký tài sản, phí xử lý và thuế liên quan không được bao gồm trong giá tiền mua tài sản. 3. Đầu tư Trái phiếu Chính phủ Khi được chấp thuận, đương đơn cùng với gia đình có thể chọn mua trái phiếu chính phủ Saint Lucia và số vốn này phải được giữ trong vòng 5 năm. Số tiền trái phiếu sẽ khác nhau tùy thuộc vào số người trong gia đình. • 500.000 USD: Một đương đơn. • 535,000 USD: Đương đơn và vợ/chồng của họ. • 550.000 USD: Gia đình đương đơn, tối đa 3 người phụ thuộc (vợ/chồng + 2 con). • 25.000 USD: Áp dụng cho mỗi người phụ thuộc ngoài số lượng trên. Nếu lựa chọn đầu tư trái phiếu chính phủ, nhà đầu tư sẽ nộp thêm lệ phí quản lý là 50.000 USD cho mỗi đơn đăng ký. 4. Đầu tư vào Dự án Doanh nghiệp Đương đơn phải đầu tư tối thiểu 3,5 triệu USD vào một dự án doanh nghiệp đã được phê duyệt và dự án đó phải tạo ra ít nhất 3 công việc. 2 đương đơn có thể cùng chung đầu tư với tổng vốn đầu tư là 6 triệu USD và phải tạo ra 6 công việc. Các dự án doanh nghiệp được phê duyệt phải kinh doanh một trong các lĩnh vực, ngành nghề sau: nhà hàng đặc sản, cảng du lịch và bến du thuyền, nhà máy chế biến nông sản, dược phẩm, cảng, cầu, đường bộ và đường cao tốc, cơ sở nghiên cứu và cơ sở vật chất, hoặc trường đại học nước ngoài. 5. Chi phí ước tính Quyên góp tài trợ: 100.000 USD + Phí đăng ký: 9.000 USD Mua bất động sản: 300.000 USD + Phí đăng ký: 59.000 USD Mua trái phiếu Chính phủ: 535.000 USD + Phí đăng ký: 59.000 USD

1st Quarter 2019 - 45

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THE COMING OECD BLACK LIST

The OECD has not ‘black listed’ these countries – at least not yet. But the stage has been set for punitive action, unless there is a proactive and unified response by all these countries. Essentially what the OECD said in its latest resistance to any form of tax competition is: CBI/RBI schemes can be misused to evade tax legitimately due to their countries of tax residence by the beneficiaries of these schemes. In the statement, issued on 17 October, the OECD makes no distinction between CBI and RBI schemes, contrary to announcements from one Caribbean minister that suggest a differentiation. In other words, the eight CARICOM countries are all in this together, along with twelve other jurisdictions that have been named specifically. The eight CARICOM countries (in alphabetic order) are: Antigua and Barbuda, Bahamas, Barbados, Dominica, Grenada, Montserrat, St Kitts-Nevis, and St Lucia. They join only two member-states of the European Union (EU) – Malta and Cyprus – even though at least nine other EU countries operate a form of CBI/RBI schemes. Among the nine EU countries are Britain, Ireland, Italy and Portugal. No explanation is given for the omission of these 9 EU states from the concerns over CBI/RBI programmes, and none is given for not including the EB-5 programme of the United States or the Quebec Immigrant Investor Programme in Canada. These omissions apart, at least the EU admits that all of its member-states “have various incentives in place to attract foreign investment from non-EU nationals” and that “most of them have CBI or RBI schemes (so-called ‘golden passports’ and ‘golden visas’), characterised by the provision of access to residency in exchange for specified investments”. All of that seemed to be well and good, until two of the smallest jurisdictions in the EU (Cyprus and Malta) and other small nations, such as the eight CARICOM

states, joined in the schemes because of economic necessity. Now, the EU and the OECD (in which the EU plays an influential role) have decided that CBI/RBI programmes pose risks for “corruption, money laundering and tax evasion”. This bold claim is made even though the countries identified in the OECD October 17 statement have in place strong anti-money laundering regimes, Tax Information Exchange Agreements and Mutual Legal Assistance Treaties, and are implementing both the US Foreign Account Tax Compliance Act (FATCA) and the OECD’s Common Reporting Standards (CRS). FATCA and the CRS require jurisdictions to exchange automatically financial information of foreign persons and companies to other countries in which they are liable for tax. The new OECD claim is that “identity cards and other documentation obtained through CBI/RBI schemes can potentially be misused abuse (sic) to misrepresent an individual’s jurisdiction(s) of tax residence and to endanger the proper operation of the CRS due diligence procedures”. Of course, this claim can be settled easily by a requirement for all jurisdictions, everywhere in the world, to necessitate that account holders or controlling persons declare any residence rights they have in each jurisdiction in which they have it. In this way, submissions would be made to all the jurisdictions of residence of account holders and controlling persons, thus stopping any misrepresentation. But, that is not the only new claim now being made by the OECD. The Organisation also asserts that “highrisk” CBI/RBI programmes are those which “give a tax payer access to a low personal income tax rate of less than 10% on offshore financial assets and do not require significant physical presence of at least 90 days in the jurisdiction offering the CBI/ RBI scheme”. This latter situation, which the OECD clearly wants terminated, would materially affect CBI/RBI programmes in CARICOM jurisdictions. It effectively dictates what tax rates should be and the conditions, which in their sovereign right, the CBI/RBI jurisdictions have set. Given all this, if the CARICOM jurisdictions are to save their CBI/RBI programmes from decimation, they should form an alliance with the other 12 named jurisdictions to fashion a joint response before the OECD moves to its next step which, undoubtedly, will be a black list that calls for sanctions

against them. None of their interests will be served by any jurisdiction that chooses to enter an individual agreement with the OECD, setting a precedent which all the others will be obliged to follow.

Reports are wrong in stating that eight Caribbean Community (CARICOM) countries are on a ‘black list’ recently released by the Organisation for Economic Cooperation and Development (OECD) over Citizenship by Investment (CBI) and Resident by Investment (RBI) schemes that they operate.

CBI/RBI programmes pose risks for“corruption, money laundering and tax evasion”.

Once any jurisdiction readily accepts the OECD dictates, unified action is disrupted, and all jurisdictions will be forced to acquiesce. This disruption of unified action has been the pattern of past responses to the OECD’s so-called ‘rules’. The consequence has been the steady destruction of the financial services sector and an attendant loss of revenues and jobs to the countries. The affected jurisdictions should take the OECD at its word that its concern is the misuse of CBI/RBI programmes by beneficiaries to hide their assets and escape reporting under the Common Reporting Standard. As explained earlier in this commentary, that issue could be easily satisfied, and CARICOM countries could collectively offer to do so. What is more problematic because it invades the sovereign rights of states is the branding of CBI/RBI jurisdictions as “high risk” because they might have a low tax rate and no requirement for physical presence. Indeed, it is eminently arguable that these two claims do not obviate the obligations of the CRS and FATCA to report on the financial assets of account holders or controlling persons. However, if these are conditions that the OECD implements, the CBI/RBI programmes in all but powerful countries will be decimated with disastrous effects on their economies. That is why common cause to confer urgently with the OECD should be a priority of CARICOM countries. The decline of the economies of eight of them will impact the neighbourhood in which the other seven exist. All are involved, and all can be consumed. Author: Sir Ronald Sanders, Antigua & Barbuda’s Ambassador to the US and the OAS 1st Quarter 2019 - 47

MONACO The interest of Monegasque residency in the context of international exchange of information

In most countries tax regulations are becoming more stringent. We can mention the anti- avoidance legislation, measures fighting tax evasion and money laundering, "treaty shopping" provisions, FATCA disclosing obligations, the new OECD BEPS program and, last but not least the expected entry into force of the multilateral Convention on the automatic exchange of information. In this context, the Principality of Monaco wants to comply with international standards but at the same time to keep its attractiveness to foreign investors mainly due to a particularly advantageous personal tax system. In maintaining this balance Monaco preserves its place as a privileged location in the heart of Europe.

48 - Citizenship Navigation

Its determination to combat tax evasion and tax fraud is illustrated by concrete actions: the signature of 49 bilateral agreements relating to the exchange of tax information and also the implementation of global standard anti-money laundering legislation. Monaco is one of the few countries that allow its residents to benefit from an advantageous tax system, political stability and a favourable economic environment within a legal framework that meets high international standards. In order to benefit from this attractive environment it is necessary to become resident. The future resident must simply have sufficient resources and accommodation in Monaco. The procedure can take up to eight weeks. Non-EU nationals must first obtain a long-stay visa at the French consulate.

To be tax efficient, the Monegasque tax resident should also ensure that he is not resident in another state. Becoming tax resident in Monaco does not prevent other countries treating you as resident. All residents of Monaco should take care to analyse the residency rules of each country where they could be resident. Although Monaco has low taxes for its residents, it is still recommended that each Monegasque resident performs a review of their worldwide tax and estate situation. Indeed, any income received outside of Monaco should be structured to optimize the distribution of such income to the Monaco resident. Monaco has only signed a few tax treaties to avoid double taxation. Some countries also still consider Monaco as a country with a privileged tax regime. This may result in the unfavourable taxation of income and assets located out of Monaco. From an inheritance point of view, the change of residence often leads to a change of the applicable law to the succession. This is why it is necessary to review all existing structures (trusts/foundations etc.) or existing Wills in order to ensure their compliance with the applicable rules. Monegasque succession law provides reserved portions that can be in opposition with the provisions of a trust or a Will. Draft law n°912 which plans to introduce greater flexibility in the choice of the applicable succession law will be a useful legal instrument to plan the succession of Monaco residents. A change of residency could also have effect on the law applicable to a marriage, to a divorce and the law governing the protection of minors; all this should be considered to organise and protect family wealth. A Monegasque tax residence, if correctly planned, can be an efficient international tax planning option and a useful tool for the development of a business. Rosemont Consulting provides qualified and multilingual expertise to international clients in these areas. www.rosemont.mc

Nicolas TRUCCO, Tax manager Jeremy LEFORESTIER Senior Lawyer n.trucco@rosemont.mc j.leforestier@rosemont mc Rosemont International, Monaco

- In Netherlands -

Temporary residence permits sent to UK nationals

The Immigration and Naturalisation Service (IND) has begun to send temporary residence permits to UK nationals as the Brexit date approaches. 18 March 2019

Preparations for Brexit Over the next two weeks the IND will send temporary residence permits to British citizens (and their family members) who are registered in the Personal Records Database. Brexit negotiations and debates within the UK Parliament surrounding the UK’s departure of the EU are still underway and the outcome of these is not yet known. The temporary residence permits will provide British citizens with proof of their right to live in the Netherlands in the event of the UK leaving the EU without a withdrawal agreement. The Dutch government has confirmed that in the instance of such a ‘no-deal’ scenario, UK nationals who currently have lawful right of residence in the Netherlands on the grounds of their EU citizenship will retain their rights to live, work and study here.

Residency rights for UK citizens The temporary residence permit is needed in the case of the UK leaving the EU without a deal. It is a form of proof that the holder is a resident of the Netherlands and would need to be shown when travelling to and from the Netherlands in combination with a valid passport. British citizens are also asked to keep the document if there is a delay or extension of the UK withdrawing from the EU, because that means a ‘nodeal’ scenario is still a possibility. The permit would be valid during a national transition period, which would last until 30 June 2020 and during which British nationals would be invited to apply for a permanent residence permit. If the UK leaves the EU with a withdrawal deal, the temporary permits will not be needed, because such a deal will include a general transition period. 1st Quarter 2019 - 49

COUNTRY

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50 - Citizenship Navigation

Luxurious apartments of castle prices : 40m2 (220.500E), 90m2(360.000E) Guarantee : 5% per year CountryClubLoches@gmail.com YouTube : French Castle Golden Visa WhatsApp : +33 750521847 (en/fr/jp/kr) +44 7466 782323 (en/jp) Japan Desk Mobile +33 634 10 54 47 (en/ch/fr) China WeChat : parisneko

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French Castle Golden Visa FREE EDUCATION PURPOSE EU To read the detailed legal provisions for the “Personal Passport” residence card, please visit the official website of the French government, Legifrance. Click on the hyperlink above to reach the website : www.legifrance.gouv.fr

FRANCE THE NEW STAY "TALENT PASSPORT" Consulate General of France. Visas.The law of March 7, 2016 has changed in depth the right of foreigners. One of the central provisions of this law is the creation of the residence card "talent passport" which aims to attract and simplify the procedures of highly qualified people and international talent. This residence permit, which is normally for 4 years, is issued upon first admission to French territory but can also be issued to foreigners already present on the national territory. For the employees, the duration of the residence permit corresponds to that of the employment contract which justifies its delivery. For other cases (such as entrepreneurs, performers, etc.), the duration will normally be 4 years unless the Administration has reservations about the quality of the project, and in this case, " a title of two years may be issued to avoid a refusal of residence permit and verify the effective implementation of the project at renewal. (Circular of November 2, 2016) Businessman touching TalentFor employees, the advantage of the residence permit "passport talent" is not to have to apply for authorization of prior work with the foreign labor services of 1.DIRECCTE. In addition, members of the family of the holder of this residence permit will be able to benefit from a specific residence permit of a duration equal to that of their spouse (or parents) with a right to work.

_____________________________________________________________________ 1.

DIRECCTE: les Directions régionales des entreprises, de la concurrence, de la

consommation, du travail et de l'emploi

Advantages of Talent Passport Residence Card There are no hard academic and language requirements for the investor (the main applicant); - Valid for up to four years! As long as the investor has been holding an investment project (original project or new project) in France, the residence card can be renewed; - Investors' dependents (subsidiary applicants: spouses and children under 21 years of age) can obtain the same "Talent Passport - Family Members" residence card; - Investors and their families can integrate into France’s social security system and enjoy social benefits; they have the right to study, work or do business in France; - After the investor and his family have resided in France for five years, they are eligible to apply for a permanent card or passport.

Immigration Act Application conditions for “Personnel Passport” residence card ? - Applicants must be at least 18 years of age; - The applicant needs to issue a detailed personal resume and a “No bankruptcy record statement” to prove that it has the ability to implement and manage the investment project; - The applicant needs to invest in a commercial project in France. The investment project should meet the following conditions: • The real estate investment should be greater than 300,000 Euros; • Create or retain jobs; - The applicant needs to issue a "tax payment certificate"; The applicant needs to issue a "Certificate of Source of Funding"; - Applicants and family members need to issue a certificate of no criminal record 1st Quarter 2019 - 51

SERBIA Banking in Serbia for non-residents, interview with Bojan Timotijevic

- Firstly, we would like to ask what do you think are the advantages of opening a bank account for non-residents sin Serbia. There are a lot of benefits of Serbian market and I am going to talk about few. First benefit I would like to mention is that Serbian banking system, being that Serbia is on direct crossroad from West Europe to Turkey and far on to the middle east, we have six groups of the banks. Local, EU, Russian, America, Turkish and one UAE bank form Dubai. This gives us clients a freedom of choice and it guaranties good conditions because of the competition in the banking market. Second benefit of Serbian market according to my opinion is general attitude of Serbia towards some jurisdictions that other countries consider problematic, like Venezuela and for example. Serbia has no sanction to Russia and Serbia is only one of three countries that has no visas for China. Third is flexibility of the law and worldwide unique legal entities that provides lots of options for business optimization. “Welcome to Serbia” association can provide consulting regard this matter. Fourth is a fact that Serbia is not in the CRS. -What about CRS? Is Serbia one of the countries included in the agreement? No. Serbia is one of the countries that have not implemented Common Reporting Standard. -What does this mean? (here, please explain the importance of Serbia not being a part of the CRS and how it benefits clients). 52 - Citizenship Navigation

Being that Serbia did not sign Common Reporting Standard agreement that means that clients are not in obligation to report companies, personal bank accounts, property or real estate outside Serbia. This fact is very important to some clients from the identity protection point of view. -Is easy is for a non-resident to open a bank account in Serbia? Our clients can always count on “Welcome to Serbia” association team for full support. With our assistance in opening bank accounts process is very simple. -What types of accounts can a non-resident open in Serbia? Banks do not have restrictions regarding types of account for non-resident. Basically, all accounts that be provided for residents, non-residents can have as well (current account, savings account etc.) -What documents are required? Documentation required for opening bank accounts for non-residents are: Individuals: 1. Passport 2. Proof of Address Legal Entities: 1. An extract/s, depending of jurisdiction some of this documents are Certificate of Incorporation/Certificate of Formation/ Registry extract, Certificate of Incumbency from the register (not older than 3 months) of the country of incorporation of the company, certified with an apostille. 2. Copies of passports and ID cards of all owners to determine the address of their

residence. 3. Form Sample of signatures (we will send the form) certified by any notary and with an apostille in case certification of this form isn't being done in Serbia. -How fast can the account be opened? Bank accounts for individuals can be opened in one day. For legal entities when complete documentation requested by is provided not more then 5-10 days. Please note that sometimes banks ask for additional information or documents, which sometimes prolonged the process. -Is it possible to open an account remotely? Yes, there is a possibility to remotely open the account, but some banks treat that way of opening as an additional risk. We always advise our clients to, if they are able of course according to their business activities, to come Serbia for account opening. Serbia is a beautiful country and clients will enjoy their stay here. -What currencies are accepted? All currencies that banks operate with are accepted RSD, USD, EUR, RUB, JPY etc. But banks retain discretion right to deny some currencies to some clients according to their jurisdiction, main activity and general impression of clients profile and business. -What is the minimum required deposit? There is no required deposit regarding bank account opening. Of course, that banks treat differently clients who are willing to deposit certain amount of funds because of the trusts that deposit shoes towards the bank.

EU Citizenship by Investment Program Comparison General info Serbia is a country located in the Balkans, in southeast Europe. Serbia is situated on one of the major land routes from Central Europe to Turkey and further on to the Near East. Serbia stands out through welleducated high-quality labour, very competitive operating costs, as well as through a favourable company and personal tax system. The wide range of business opportunities in various sectors attracts international investors mainly from China, Russia, Middle East and the United States. Serbia is the hotspot amongst the non-EU countries in South East Europe. The banking and financial services landscape promotes various business opportunities, allowing the business environment to thrive. Area: 88,361 km2 Population: 7.224 million citizens (2012 est.) Capital: BELGRADE 1,252,618 habitants (2016 est.) Currency: Serbian dinar (RSD) Why Serbia Competitive Operating Costs (Average salary 400 EUR, Accountant services: minimum 600 euros/year. Depends on activity, Rental of premises from 2400 euro/year) Customs Free Access to 1.1bn Consumers Serbian Law flexibility. Serbian law flexibility comes form the fact that it is a successor of an old Yugoslav law, so it is still not in compliance with most EU tax and law standards. This fact offers unique business solutions regarding business optimisation. The most interesting legal forms in Serbian market are Association and Endowment.

SERBIA

Key Points: Serbian Residency

• Practical “No stay” requirement • No requirement to speak the Serbian language • Permanent residency can be obtained in 5 years • Residency via the incorporation of a Serbian company, or via an offshore company branch in Serbia or buy purchasing real estate with no minimum investment • Simple procedure based on strict laws • Only 2 visits to Serbia required • Very favourable company and personal tax systems • No CRS (Serbia did not sign CRS) • Straight and fast bank account opening (as fast as 7 – 10 days) • Serbia has free trade and custom free agreements with the EU, Russia, Turkey etc. (total of 1.1bn consumers) • Availability of high-quality and not expensive labour • Very competitive operating costs

Association Association is a perfect legal form for protection of identity because of the Unique way of the legal treatment of the UBO. The founders are not shareholders or the owners of the part of the NGO, which legally disconnects them from the ownership or the status of UBO. The founders can change at any time, be added or taken out from the list of founders, replaced in full. This is a unique proposition comparing to other jurisdictions and entities where, according to the international laws and regulations both founders and directors are treated as UBO’s. Association can perform commercial activities. Endowment legal entity without members similar to Anglo-Saxon Trust Concept and it is a perfect legal form regarding protection of assets. The founder has allotted certain assets (basic assets) for benevolent cause or private purpose. Endowment allows the founder/

beneficiary to be legally separated from its assets but to have a full control over the assets and unlimited possibility for its utilization, which was not fully the case in existing legal systems propagating trusts and foundations. The Serbian Foundation can own other companies and legal entities which makes it the perfect low-cost replacement for the Swiss Holdings and some other leading jurisdictions with full tax advantages as well. Taxation of companies: Corporate Tax in Serbia is 15 %, Dividend Tax 15%, in case when representative office receives funds from the parent company – 0%, VAT: 20%. Corporate tax worldwide is Armenia 20%, Austria 25%, China 25%, Croatia 18%, Czech Republic 19%, Estonia 20%, Latvia 20%, Netherlands 25%, Romania 16%, Russia 20%, Slovakia 21%, Panama 25%, Venezuela 34%, Mexico 30%. Europe average is 19.48%, South America average 28.08% and worldwide average is 23.03%. Double Taxation Avoidance. Republic of Serbia has 54 effective double taxation agreements in place that cover income, capital and property, with most European countries, Turkey, Russia, Ukraine, Belarus, Canada, UK and UAE etc. 14 Free Trade Zones, more than 200 Multinational companies, €5 billion turnover in 2015. No CRS. Serbia still did not sign CRS. No need to report companies, personal bank accounts, property or real estate outside Serbia. „Serbia” association through its Family office agreement offers full consulting regarding how to operate in Serbian market as well as all kind of services like Nominee, Trust and Fiduciary services and audit, Business structuring (de-offshorization and optimization), Real estate development projects, legal services (services provided by certified Lawyer, Litigation and Arbitrage). 1st Quarter 2019 - 53

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нϵϳϭ ϰ ϱϮϰ ϳϴϮϰ House : Full citizenship,ǁǁǁ͘ϯϲϬĐŝƚŝǌĞŶ͘ĂĞ with passport rights, for the

Key benefits of Moldovan citizenship

World : Visa-free access to 122 destinations around the world, including Russia, Turkey, and the countries in Europe’s Schengen Area

applicant and included family members

People : Easy inclusion of dependent children up to 29 years of age and parents (of either the main applicant or the spouse) from 55 years of age in the application Money : Citizenship transferable to future generations

Wine : Citizenship in a country that has a continental climate, a world-class wine industry, and picturesque, varied terrain, including forests and rocky hills

Globe : Citizenship in a member state of the Organization for Security and Co-operation in Europe, the World Trade Organization, and many more

Passport : A reasonable contribution amount and a highly efficient application process

ID : Citizenship in a state that has entered into an association agreement with the EU and is aiming to become a candidate country for EU membership

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Powering progress. The Moldova Citizenship-by-Investment (MCBI) program is the latest European citizenship-by-investment opportunity. It provides access to 122 destinations, including the countries in Europe’s Schengen Area as well as Turkey and Russia. It is the first program of its kind to offer this unique combination of visa-free travel destinations. Strategically positioned, with easy access to Europe, the Middle East, and Asia, the Republic of Moldova is a modern European country with a picturesque, varied landscape and a world-renowned wine industry. The country has already spearheaded a number of global technological advances, and it aims to use the foreign direct investment generated by the MCBI program to power its progress across all sectors. Moldova, a country of about 3 million inhabitants, offers its citizens visa-free access to 122 destinations, including the countries in Europe’s Schengen Area as well as Turkey and Russia. It is the first program of its kind to offer this unique combination of visa-free travel destinations.

About the MCBI Program About the Program Launched in the second half of 2018, the MCBI program was developed by the Government of the Republic of Moldova in partnership with its service provider Henley & Partners and the Moldovan Investment Company. The MCBI program requires applicants to make a defined economic contribution to the country through the Public Sustainable Development Fund of Moldova (Public Investment Fund). In exchange, and subject to a stringent vetting and due diligence process, including thorough background checks, applicants and their families are granted citizenship.

Taxation Moldova has one of the most competitive tax systems in the region and has 48 operational tax treaties in place, which safeguard against double taxation with other jurisdictions. Residents of Moldova who do not carry out entrepreneurial activity have to pay tax on income from sources located inside the country, as well as from sources located outside the country. Real estate and wealth taxes are charged for residents of Moldova. Wealth tax is charged on taxpayer’s wealth in the form of residential real estate, including holiday cottages (except for land plots), if a) the total estimated value is EUR 1.5 million or more and b) the total area is 120 m2 or more. The wealth tax rate is 0.8% of the taxable base. The standard VAT rate is 20%, while the reduced rate is 8%. The recent fiscal reform established a unique tax rate on the income of individuals and legal entities at the level of 12%.

To qualify for citizenship, the main applicant must be over 18 years of age, meet the application requirements, and make the primary qualifying contribution: A minimum non-refundable contribution to the Public Investment Fund: EUR 100,000 for a single applicant EUR 115,000 for a couple EUR 145,000 for a family of four EUR 155,000 for family of five or more Post-approval government service provider fees of EUR 35,000 per application. In addition, applicants are required to pay government fees of EUR 5,000 for the main applicant, EUR 2,500 for a spouse, EUR 1,000 for a child aged 0 to 15 years, EUR 2,500 for a dependent child aged 16 to 29 years, and EUR 5,000 for a dependent parent — of the main applicant or of the spouse — who is 55 years of age or older. Due diligence fees are EUR 6,000 for the main applicant and EUR 5,000 for a spouse, dependent children older than 16 years, and/or dependent parents. Biometric passport fees amount to EUR 300 per individual. It is imperative that main applicants and their dependents have a completely clear background, with no criminal record. The MCBI program regulations further stipulate that a person who has been denied a visa to a country or territory with which Moldova has visa-free or visa-on-arrival travel arrangements and who has not subsequently obtained a visa to that jurisdiction shall not be accepted to the MCBI program. Moldova has implemented a four-tier due diligence system, which is considered the most thorough in the world. 1st Quarter 2019 - 55

BULGARIA

Citizenship by Investment in Bulgaria Overview and advantages OVERVIEW

Bulgarian law provides a fast-track route to citizenship by investment. This is an accessible, transparent and respectable gateway into the European society, way of life and economy. The qualifying investment size is low, at approx. EUR 500,000 (Standard Track) and approx. EUR 1 million on the Fast Track. The investment may be financed with borrowed funds. The requirement is to invest, rather than donate to a government fund. The investor expects to get back the principal, together with any return. A wide range of qualifying investment classes are eligible. You are not limited to real estate; there is no requirement to create a minimum number of jobs. The fast track process leads to citizenship within approx. 18 months of investment. The investments made must be kept for two years from the date on which you become a citizen.

WHY BULGARIA?

Bulgaria joined the European Union in 2007. Its citizens can live, work, study and travel freely in all of the EU’s 28 member states. Bulgarian passport holders can travel visa- free to over 140 countries and territories. Within the EU, Bulgarian citizens cross borders through priority EU citizen channels and are not subject to immigration control. Bulgaria has E2 reciprocity with the US, and its citizens can therefore qualify for US permanent residence. Bulgaria is a mid-sized European country with a beautiful nature, an interesting history and good food, Its economy offers continuing opportunities as it expands faster than the rest of Europe. Local universities are attractive to international students in a number of areas of study and Bulgarian qualifications are automatically recognised across Europe and beyond. Bulgarian citizens studying elsewhere

in the EU benefit from being treated as domestic students (with free tuition and other privileges).

STANDARD AND FAST TRACKS TO CITIZENSHIP

On the Standard Track, having invested approx. EUR 500,000 or more in one of the qualifying investment classes, an investor acquires a permanent resident status, Having held this status for 5 years, a permanent resident investor qualifies for citizenship. An investor using the Fast Track initially makes a qualifying investment (as above, this needs to be of approx. EUR 500,000 or more), identical to an investor on the Standard Track above, At the end of the first year from acquiring his or her residence, he or she makes a second qualifying investment (once again, of approx. EUR 500,000 or more). This makes the investor immediately eligible for citizenship, without having to wait the 5 years to run out.

Practical aspects - finances INVESTMENT AMOUNT An investment of approx. EUR 500,000 (USD 576,000) or more must be made. An investor may acquire, e.g: a) shares of a company admitted to trading on the Sofia stock exchange; b) bonds, related instruments or their derivatives, issued by the Government of Bulgaria or by Bulgarian local government, with at least 6 months to maturity; c) Bulgarian intellectual property, including patents, trade marks, service marks and industrial designs; 56 - Citizenship Navigation

d) the capital of private Bulgarian corporations (in this case an investment of at least (approx. EUR 3 million, USD 3.5 million) is required). We would be happy to discuss your investment plans and to help you make an investment that suits your needs, and is eligible. If you are already considering an investment in Bulgaria – or indeed elsewhere in the EU – you may find that it also qualifies you for citizenship: we are happy to advise. Most of our existing clients choose government bonds, which are perceived as safe.

Armenia Becomes The Economist’s ‘Country of the Year’

The nation once shadowed by a history of struggle for survival now enters a renewed era driven by optimism, innovation, and democracy. There is a sense of warmth and comfort that radiates within Armenia; infants and elderly walk hand in hand, the young are loud and lively, the families affectionate and welcoming—and once immersed into the day to day, it feels as though the entire population is part of one big family. In a distance, the scenic hillside of the region’s fertile vineyards adorned by apricots and pomegranates lay beneath the majestic Mount Ararat. Armenia is known to cherish the many layers of its past, and Ararat is a symbol of that. A once-ancient empire, Armenia stretched from the Mediterranean to the Caspian Sea before it lost a major part of its territory to neighbouring Turkey. But despite the decades of turbulence, its people have never been more fiercely proud of their nation’s history, as a promising future rises to conquer another day. This is the new Armenia. Its population is celebrating the end of a month-long peaceful protest that led to the resignation of President Serzh Sargsyan and consequently, an end to the autocratic government that had controlled the former Soviet republic since 2008. In his place, Nikol Pashinyan, a prominent journalist, activist, and former parliamentarian, was elected Prime Minister. This model of democratic engagement, and the series of opportunities and fortunes it has brought to the nation since, has prompted The Economist to name Armenia the ‘Country of the Year’. Today, Armenia and its ‘Velvet Revolution’ have become as a testament to the rest of the world that bringing about political change and positive renewal through peaceful protests is not only possible, but promising. The Armenian people are a prime example of the belief that migration sparks innovation, uncovers potential, and facilitates

adaptation to the evolving challenges of our world. Though involuntary, the migration of Armenians as a result of the atrocities of genocide in 1915, also created a movement of unity and hope for the future of their diaspora. As the month of April becomes a global dedication to the commemoration of the 1.5 million Armenians lost, this time is also served to demonstrate the power of perseverance, and the emergence of global citizens that have changed the world as a result of it. Sharing that same vision, Founder of the Global Citizen Forum (GCF), Armand Arton, decided to host the next GCF in Yerevan, Armenia in October 2019. “I am delighted to be hosting such an essential gathering in this beautiful nation and incredibly proud to advocate my Armenian heritage,” shared Arton. “With a mission to empower unity through dialogue, this year’s Forum will focus on technology to achieve the transformation that the next generation of global citizens deserve.” Embodying an open-air museum, Yerevan beautifully weaves modern cosmopolitan with thousand-year old history, connecting East to West with its rich cultural heritage and traditions that have evolved to fit the modern age. Its compelling hospitality and vibrant culture is celebrated amongst its lively streets, historical landmarks, rich harvest, unique architecture, and natural attractions. One minute, it feels as though you have time-lapsed into the past, and the next, you are wandering about the city streets flooded with modern cafes, art galleries, upscale restaurants and luxury hotels. Within the last year, the nation is glowing again. There is an evolving elegance and richness that incites a newfound energy to the land—and the world is taking notice. As Armenia continues its journey to rebuild a stronger, united, and prosperous nation; voices of optimism, fortune, and freedom grow louder and louder for the world to hear: Armenia has been reborn. 1st Quarter 2019 - 57

Australian Real Estate Market-Insights by Patrick Conheady

My preferred investment advice is to ‘follow your own instincts’ and if the resulting investment choices make you a ‘contrarian investor’ then so be it. Following the herd presents a real danger of just becoming a lemming and your investments ending at the bottom of the proverbial cliff. What has all this got to do with investing in Australian Property, as distinct from The Australian Real Estate Market? Well everything! The experts who are paid to predict global and national investment trends can advise you on as many reasons as you have time to listen as rationale why the present is a very dangerous time to invest; pending interest rate increases (or decreases), economic slow downs in many countries (read China), trade wars, hyper inflation in Latin America and amongst others political instability from the UK to the Middle East to the international waters between Vietnam, China and Japan. Yes, the Australian real estate market is not immune to any of the present possible and/or real economic challenges facing global economies as we near the 2020’s. However, Australian Property presents great opportunity for international investors and HNW individuals; for those patient enough to read on I will proceed to explain both why and in what particular micro markets and geographical locations you will find medium to long term opportunities, offering strong returns and safety in a politically and economically stable environment. Others have already acted. Australia is attracting more 58 - Citizenship Navigation

HNWI as migrants than any other country, according to analysis by consultancy New World Wealth (based in Johannesburg, South Africa) in its 2018 Global Wealth Migration Review. According to a report commissioned by the Property Council of Australia foreign investors directly fund $20 billion in commercial real estate and approved foreign purchasers funded up to $7 billion in residential development in 2015-16. Estimates for year 2017-18 are well in excess of these figures. Geographically perfect for The Asian Century. Australia as a sub-region of Asia will benefit from economic growth in the East Asian and South Asian regions. Economic and to a lesser extent political ties are being formed with the powerhouse economies of China and India and emerging ‘next gen’ economies of Singapore, Malaysia, Bangladesh and Vietnam. Migration. Historically, Australia has benefited from the skills of migrant workers and in more recent times overseas investment (particularly from China and India) has contributed to the capital and physical growth of our property market. There has always been and will continue to be internal debate concerning the correct levels of migration. Equally, there will be continuing high levels of Asian immigration to Australia and while this continues there will be a consequent demand for more residential development, apartment development, commercial development and corresponding community infrastructure spending. In my opinion, migration will continue to drive demand for property development with subsequent long-term positive results for property investors in Australia.

The Twelve Apostles The Great Ocean Road, Melbourne

Australia is still a ‘young nation’ with strong visions for continued economic growth and population growth. Therefore, the intermediate and long-term prospects for Australian Property are very positive and the flow-on to the Australian Real Estate Market will offer canny international investors opportunities over and above property investment in other nations.

Gold Coast Australia

The micro markets. In my opinion the following service sectors and commercial industries offer great opportunity. Health care and scientific research relating to disease and human aging, retirement living accommodation and aged care accommodation are industries with immense growth potential. All are heavily dependant on land availability and investment capital.

Australia remains a nation of residential property owners and aspiring property owners who prefer to live in detached dwellings built on individually titled land lots. Asian immigrants have added to the demand for new residential subdivisions that offer this lifestyle. As a result, many Australian cities have residential Land Developments, Melbourne_ strategic development plans already in place allocating land for residential development up to 2050. Commercial developments will be required to keep pace with both population increase and the geographical expansion of our major cities. Nationally we have momentarily come to the end Residential Development Point of the present residential development cycle and now there will be a catchup phase where infrastructure and commercial developments will be the major drivers to prosperity in the property and development industries. Sydney has a new second international airport under construction (Western Sydney Airport $5.3b), Melbourne has another Proposed Towers Melbourne Australia tunnel (West Gate Tunnel $5.5b) under construction to cater for east west Òtraffic coming from the growing population

in the western suburbs, Adelaide has $1200m being spent on two commercial shopping developments plus major high rise developments occurring in the CBD, and all major cities have similar levels of investment taking place. Development hot spots. Australia has always experienced the greatest concentration of residential, commercial and manufacturing growth along the eastern seaboard. Melbourne and Sydney have experienced the greatest growth rates, driven in large part by immigration numbers and their respective international reputation. With demand being the key to property growth it follows that these cities and their surrounding districts (States) have also experienced the greatest increases in property values. Timing. With all investments timing is a crucial element to determining maximum returns. Australian Property will always be a good intermediate to long term investment. The Australian real estate market however, is currently experiencing a decline in sales and sales values. Property cycles and economic cycles are currently at their low points. Analysists have been predicting a dip in global real estate values around the 2019 to 2020 period for several years. History predicts the period between 2021 and mid to late 2020’s will be years of exceptional growth as the global property market enters the end stage of its 25 year cycle. Given all the positives in favour of investment in Australian Property, now is the time to be ‘buying the dip’ and securing a longer-term investing position in the Australian Real Estate Market. As the saying goes, ‘your money will be as safe as houses’. (Patrick commenced his first property development in 2000 and is currently Project Managing a small 65 lot residentialdevelopment in Melbourne’s western suburbs). Owner/Principal - Land Lease and Acquisition, Melbourne Australia patrick@landlaa.net - www.landlaa.net 1st Quarter 2019 - 59

cyprus "changes"

THE CYPRUS INVESTMENT Programme

The “Cyprus Investment Program” (CIP).

Important changes are coming to the Cyprus Investment Program. As time is getting closer to the date of changing regulations apply today to become a European citizen and save 150.000 euro. 24 | Flagship Developments INVESTMENT – 2million euros plus Vat when buying a new build property – no change on this. 2.5million euros plus Vat when buying a second hand property which has already been included in a citizenship application The changes include the following: • Limitation to 700 Applications Per Annum • Applicants should be in possession of a Schengen visa; • Applicants who were rejected by another EU country shall be excluded from the CIP; • The investment should be maintained for 5 years

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following the date of naturalization, instead of 3 years; • During the 5-year period the investor will be able to change his investment, provided that a consent will be granted in this regard by the Ministry of Finance; • A planning permit shall be mandatory for properties under construction; • A donation of €75,000 for research and development shall be mandatory; • A donation of €75,000 to the land development organization to fund affordable housing schemes shall be mandatory; • Due diligence and background checks shall be carried on by a specialized foreign firm on each applicant. • Bank Waiver needs to be submitted as part of the application The above is valid for application from 15.05.2019 Feel Free to contact us for further details at citinaviglobal@gmail.com or +33 75052 1847 WhatsApp

Cyprus properties investment ICONIC ADDRESS - LIMASSOL

ONE OF A KIND For exceptional seafront living, exclusivity, rarity and security of invest ment, ONE is the most sought after address in Cyprus. 37 storeys with 83 ultra-luxurious residences ensure its the tallest residential tower of its kind. ONE is a landmark of progress oering residents all the advantages of esteemed hotel service in the comfortable embrace of a secure, private home. N aThe t amonumental s a K y rheight g i aof, ONE e xredenes p e rthe t , ultimate Limassol view - it has the greatest perspective on the city and is an altogether Giovani group elevating prospect. As the eervescent Mediterranean Sea stretches out to the earth’s gentle curve, you have the world in front of you. You command the horizon.

Why Ayia Napa is Attracting Smart Investors

ONE ADDRESS ONE is situated on 28th October Avenue, Limassol’s most prized address. This prime seafront boulevard traces the coastline and runs parallel to its enchanting palm-lined promenade. Accented with boutique shopping and chic café culture, the select avenue eortlessly links its residents to the cen tral business district, the most fashionable shopping quarter, the charming old town and the modern marinas. ONE gives the Limassol skyline a striking new de nition. The tallest residential tower of its kind, ONE is a landmark of tourism in progress, recognisable from anywhere in the city.

CYPRUS Golden Visa

the area is expected to change dramatically if Mayor Yiannis has his way. ONE COLLABORATION In recent years there has been an influx A collection of the world’s most renowned architects, designers and of engi quality restaurants, coffee shops, and neers have been brought together to originate ONE. They share an anity boutique spa style hotels, all of which are for the exceptional, the unique and the genuine. The many perspectives aimed at families and discerning tourists. that have combined to realise a building of such unrivalled quality are -evi All of these are palpable signs that the dent in its striking aesthetic, its performance and its breathtaking elegance An Insight into the Mayor of Ayia Napa’s profile of the town and surrounding area within the Limassol skyline. Strategy for Foreign Investments in the Apartments have been ingeniously designed with an uninterrupted isow rising and this can only be good news Town between one side of the tower and the other. And with a maximum just forofwould-be investors. No other resort three apartments per oor, every residence at ONE oers unrivalled views. on the South East Coast has seen such Clever investors an eye On one side, the sea provideswith the ultimate naturalon vista.the On the other, the prolific view of the city and the distant Troodos is magnetic by day and investment as Ayia Napa and if Cyprus property market will Mountains be well aware Mr Karoussos has his way it looks set to enchanting night. that thebyMunicipality of Ayia Napa has continue well into the future. enjoyed continuous prosperity for several

decades. Much of this success can be attributed to the huge amounts that have been reinvested in innovative projects over recent years. Such projects include a 6.5 million beachfront upgrade and the highly acclaimed and prestigious marina that are both scheduled to be completed as early as 2020.

This is already apparent

in the highly buoyant holiday rental market where many villa and apartment owners are The town’s Mayor, Yiannis Karoussos Flagship Developments| 25 revealed that he is focused on attracting already fully booked for more foreign investment into the area. the forthcoming season. As part of his strategy to lift the area’s profile, the Mayor has also sent out signals that the town of the future will be a place that attracts families and quality investors. This is a definite move to shake off the town’s image as the islands clubbing capital and instead attract toplevel venture capital into the area. What will the Ayia Napa of the future look like? With berthing for luxury yachts and ocean-going cruisers at the new marina, it is obvious that the Mayor is optimistic about the kind of investors and the development the area is looking for. This is a clear indication that the face of

3 major reasons why you should invest in Ayia Napa Thanks to the outstanding work that Mayor Yiannis and his team has done i n p r o m o t i n g t h e a r e a , Ay i a N a p a has become a prime target for savvy investors with an eye on the future. If that alone wasn’t enough to make it an attractive place to speculate, here are 3 more major reasons to consider. 1. The scheduled completion of the new marina will put the town squarely on the map for discerning tourists and owners of upmarket marine craft. The marina is

also set to become a highly desirable area for both residential property and associated commercial enterprise including hospitality and upper market retail outlets. 2. Property both in Ayia Napa town and the surrounding areas is already experiencing an unprecedented upturn. Many South Eastern Cyprus property experts are anticipating that this merely signals the beginning of a sustained increase in the areas property values. The Mayor further believes that as many of the exciting projects in the area near completion, property values in the area will further increase. 3. Lucrative returns on investments are likely in both the retail, hospitality, and accommodation sectors due to the inevitable augmentation in demand. This is already apparent in the highly buoyant holiday rental market where many villa and apartment owners are already fully booked for the forthcoming season. If that wasn’t strong enough evidence of an impending upturn, the demand for long-term residential rentals in the area has already outstripped the limited supply. All in all, the signs are that Mayor Yiannis has started an investment ball rolling that will continue to gather speed and momentum long into the future. A future that will see Ayia Napa and the surrounding areas enjoying new levels of foreign investment and increased prosperity for the communities that live and work there.

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Thin and thick conceptions of citizenship Citizenship is often described as having three dimensions: 1) membership/status, 2) rights and 3) identity or citizenship as a practice. In addition, the literature identifies the following conceptions of citizenship, ranging from thin to thick: legal positivism and libertarianism; civic republicanism; and nationalism and communitarianism. Rainer Bauböck has provided the following insightful table visualizing these dimensions and conceptions: As the table shows, the thinnest conception of citizenship is that of nationality as a legal status under international law. Indeed, nationality is often considered an ‘empty notion’ which only acquires substantial meaning as a result of the legal consequences which individual national legal systems connect with it. This view is wholly compatible with the fact that international law requires a ‘genuine link’ between an individual and a State for a nationality to have effect on the international plane, and the idea of nationality as an empty notion seems confirmed in the statement by the International Court of Justice in the Nottebohm judgment that ‘nationality serves above all to determine that the person upon whom it is conferred enjoys the rights and is bound by the obligations which the law of the State in question grants to or imposes on its nationals’. On the thick end of the spectrum, citizenship represents a collective cultural identity. This is characteristic for nationalist ideologies, be they of an ethnic or civic kind. For ethnic nationalists the nation is first and foremost a cultural community, while for civic nationalists it is a political community. Civic nationalism was therefore espoused mainly by liberal states invoking Enlightenment values. Both forms of nationalism could lead to human rights violations, however, in the form of ethnic cleansings and genocide (ethnic nationalism) or enforced assimilations and oppressed minority cultures (civic nationalism). Republicanism differs from nationalism in emphasizing the political rather than cultural nature of membership. According to Bauböck, ‘for civic republicans citizenship is a common bond that must be strong in order to unite the members of a liberal democracy who 62 - Citizenship Navigation

are thoroughly divided by their private interests and affiliations but need not be thick with cultural particularity’. What this shows is that the terms ‘nation’ and ‘nationality’ can be used to describe both the thinnest and thickest conceptions of citizenship. As a result, terms such as ‘citizenship’ and ‘nationality’ have traditionally been surrounded by a considerable degree of confusion. This also follows from the fact that different meanings may be attached to them depending on the legal tradition in a particular country or the academic discipline. A similar problem arises in respect of the terms ‘Nation’ and ‘State’. These concepts are sometimes used as synonyms, but authors such as David Miller argue for the sake of conceptual clarity that a distinction should be made: ‘“Nation” must refer to a community of people with an aspiration to be politically self-determining, and “State” must refer to the set of political institutions that they may aspire to possess for themselves’. In the continental European tradition the distinction between nationality and citizenship is fairly straightforward. Nationality (French: nationalité; Spanish: nacionalidad) is normally used to indicate a formal, legal bond between an individual and a State; the term citizenship (French: citoyenneté; Spanish: ciudadanía) is used to denote political membership of a State. There are, however, exceptions to this basic distinction between nationality and citizenship. In Germany, Italy, Poland, and Sweden the terms Staatsangehörigkeit, cittadinanza, obywatelstwo, and medborgarskap are employed to describe a legal link; all these countries except for Germany also use this term to denote ‘political’ citizenship. The words Nationalität, nazionalità, narodowosc, and nationalitet are less frequently used because of their ethnic connotation, although a trend can be observed that – clearly under the influence of the English language – some of these terms are also used as a translation of ‘nationality’ in the legal sense. by Olivier Vonk, Future Citizen Institute

Normative problems surrounding citizenship deprivation The FCI reported last year about citizenship deprivation. This non-consensual withdrawal of nationality from an individual by a State is also called denationalisation. We saw on that occasion that Australia as well as numerous other countries have recently expanded their powers to take away citizenship on the ground of disloyalty from nationals who take part in terrorist activities. In 2018 Italy decided to adopt similar legislation, ‘allowing the revocation of citizenship based on a decision of the Minister of the Interior when a person has been convicted for terrorist offences’. It is important to note that this measure is specifically directed at immigrants and their children because the new deprivation tool is only applicable to naturalised citizens, those who acquired Italian nationality because they married an Italian citizen or those were born and resided in Italy until the age of 18. Also, and in contrast to Dutch legislation for example, someone can be rendered stateless under the new Italian legislation. Denationalisation has gained much political and academic attention in recent years. Despite deprivation cases being modest in absolute numbers, the involuntary loss of citizenship remains hugely controversial and some see statelessness resulting from citizenship deprivation as the public law equivalent of the death penalty in criminal law. Citizenship stripping is also associated with totalitarian regimes, such as the Nazi policy to denationalise Jews. While citizenship revocation was the first step towards the killing of the Jewish population under the Nazi regime, current denationalisation powers are primarily aimed at deporting undesirable individuals – the modern equivalent of banishment. Denationalisation only began to replace the historical practice of banishment with the development of formal migration controls and the introduction of travel documentation, which we have seen in our discussion of passports is a relatively recent phenomenon. The growing body of denationalisation literature is usefully summarized by Matthew Gibney in the Oxford Handbook on Citizenship. In discussing the legitimacy of the expansion of deprivation powers, Gibney identifies three major questions: 1) do individuals have an absolute right to keep citizenship lawfully obtained; 2) under what conditions is denationalisation arbitrary and thus unacceptable; and 3) are other states obliged to accept another state’s denationalisation decision?

The answer to the first question is a cautious no, because there seems to be broad agreement that denationalisation is only unacceptable when it leads to statelessness. This does raise problems of discrimination, as only dual citizens can then be stripped of one of their nationalities. This is all the more problematic if the remaining nationality cannot be renounced, making individuals from countries that adhere to the principle of ‘perpetual allegiance’ more vulnerable than individuals who have the option of (pre-emptively) renouncing the nationality they value least. On the second question, deprivation practices are considered more acceptable if there are sufficient procedural safeguards. The involvement of a court is thus to be preferred over administrative decisions. A related point, and supported by many legal scholars, is that denationalisation has such a huge impact that it should be considered a form of punishment and can therefore only be lawful when it follows a criminal conviction for serious offences against the State. The third question is generally answered affirmatively, as one of the foundational principles of international law is that countries are under an obligation to take back their nationals. From the perspective of international justice, however, it is problematic that citizenship deprivation in combination with deportation will shift the responsibility for undesirable individuals to another country. by Olivier Vonk, Future Citizen Institute

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MIPIM - The world's leading property market 12-15 March 2019 - Palais des Festivals, Cannes, France

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MIPIM PropTech focuses on the challenges of tomorrow.

the revolution of the real estate sector MIPIM PropTech Europe 2019 MIPIM Cannes 2019 A successful 30th MIPIM edition, the international market for real estate professionals. This 2019 edition gathered 26 800 players from all sectors of the international property industry with more than 5,400 investors, 560 political leaders coming from more than 100 countries. The MIPIM PropTech brings together the startups of real estate that have a broad and futuristic vision of the real estate industry. The show is part of a trend where real estate startups are becoming increasingly important. --------------------------The major challenges of innovation such as Big Data, artificial intelligence and blockchain have been on everyone's lips. After a first edition in September 2017 in New York, following last year Reed Midem organized MIPIM Cannes PropTech 2019. If they do not all have the same concerns and do not intervene in the same markets, all recognize the major issues to consider for the real estate of tomorrow, namely, the new opportunities offered by Big Data, the artificial intelligence and the blockchain. Sell a â&#x20AC;&#x2039;â&#x20AC;&#x2039; property on the blockchain? Some start-ups are also interested in blockchain, this technology of storage and transmission of information without control organ. This is the case, for example, of

My Notary, a start-up that offers a collaborative platform that brings together all stakeholders in real estate sales. "We have pre-sale contracts on Ethereum, a public blockchain," says Sacha Boyer, co-founder. For us, the blockchain makes it possible to find a notion of original in a completely dematerialized world, to give a perfect proof. The blockchain offers for the moment a storage solution, but it could become much more interesting if, tomorrow, the cadastre is put on the blockchain. If the blockchain is still in its infancy, they are more than promising. That's what HBS-Research, which specializes in real estate information management, has proven, for the first time, to reproduce the sale of a building on the live blockchain of this MIPIM PropTech Europe. Big Data to recover money orders Big Data continues to drive Prop Tech entrepreneurs and remains a topic for real estate professionals to follow. "Enabling professionals to save time with the possibilities offered by deep machine learning and OCR" is a goal of Big Data. "The tools we offer based on Big Data provide access to information that can enable professionals to improve their prospecting, collecting information on property, or even to recover mandates," says one of the initiators of the new French PropTech movement. For its part, artificial intelligence offers solutions that can simplify administrative processes. Several companies like Drooms offer "Datarooms", document management platforms that allow to share the necessary documents for a real estate transaction between the various actors involved and to exploit these documents in order to identify, for example, the essential clauses of a document. contract. 1st Quarter 2019 - 65

PropTech - How customer-centric real estate companies should be by Jorge Prospero dos Santos

Real Estate companies that are able to anticipate customers’ needs are more likely to satisfy them with products and services they'll love Customer centricity it’s a strategy that’s based on putting your customer first, and not just about offering great customer service, but offering a great experience from the awareness stage, through the purchasing work and finally through the post-purchase process. Only a small percentage of real estate companies are able to translate this kind of culture due to the lack of information about the customer. The secret ingredient is to put the customer at the core of the business, collecting a significant amount of data that can be used to anticipate client has needs and enhance the customer experience, creating loyalty and future sales. PropTech is giving us the means to turn companies into customercentric organisations. A study made by Deloitte shows that being customer-centric increases profits by 60% compared with traditional ones. One of the main advantages of PropTech and the development of new business models is, in fact, switching mentalities when providing services. By collecting data, companies can now predict customers choices and timeframes. This reduces the risk when building a strategy. As the process of defining the product for each customer’s need gets more accurate, so will be his satisfaction and loyalty. PropTech also benefits in several ways the customer by helping the supplier to be a customer centric organization. From the point of view of a startup, be able to demonstrate the advantages of its PropTech model by proving focus on the customer; 66 - Citizenship Navigation

it can be a game changer in this industry. For that, the product has to provide a more efficient way of satisfying professionals and customers of the global real estate industry. Nowadays the most valuable asset is information. So inevitably, the model has to provide and analyze data efficiently, from the professional perspective, the customer perspective or both. Data is the only asset that leads to evolution, which is beneficial for the overall supply and demand of real estate services. A couple of examples of customer-centric startups in the real estate environment are: – Knotel, a company focused on the corporate client’s needs and progression, as well as giving valuable options to landlords and brokers. – Skyline AI is also a good example of using technology in real estate to collect data and give the best investment vehicles to commercial real estate customers. – Bowery is also a good example. This tech-enabled appraisal firm brings traditional models together with technicians and gives an accurate idea when pricing a real estate asset. – REEVO Platform is also a customer-centric example due to the capacity given by its business model to gather behavioural real estate data about customers worldwide. By offering several real estate services and being a global referral network, all sorts of data are monitored and can be used to predict customer’s behaviours. The qualification process is the main ingredient of this network. It is amazing how technology is actually building bridges for a better relationship with customers, based on better services, faster answers and accurate data. source : Mipim PropTech

Why Open platforms are the key to real estate’s future by Jeanne Massa The idea of building the digital economy on open and interconnected platforms is not new. But, while the digital transformation and the "platformisation" of our economy are underway, much remains to be done in the real estate sector. Many industry players are still reluctant, and there is a widespread view of the future of the sector which is overly conservative. The customer is their “property”. He must be protected from competitors, and channeled into closed and value-destroying solutions. It is time to encourage the development of an ecosystem built on open and interconnected platforms. That is where the value lies. That is where the real estate of tomorrow can be found. Change software! I was talking recently with the head of a large group in the sector, about the difficulties he was experiencing in digitising his company. No fewer than 10 systems (CRM, ERP, etc.) were being used in the company without any interconnection between them. None internally and none externally either. A customer could have ten separate identities without any information being shared. You can easily imagine the profit opportunities being missed in this situation.

start on the Internet. This means putting the customer at the centre of our focus and providing him or her with expertise and personalised advice. Transparency is key And that means transparency of information. The only story the customer is interested in is their own. We can see this in today’s communications: where four years ago we were talking about architecture and facilities, today we are talking about square meters and life experiences. The customer also wants to plan his or her future purchase, especially in new build real estate, which by its very nature does not yet exist. Habiteo was also born out of an observation: it is difficult to sell off plan. 3D allows you to appeal to the customer’s emotions, help them to fall in love with the idea, and to immerse themselves in their future home. At the end of the day the customer wants customisation and tailor-made solutions. Whether you’re buying a car or a pair of shoes, brands offer you a personalisation experience. Not just a trend, this has become a must-have. Responsiveness and customer knowledge are also major differentiating assets, especially in new build real estate.

There is an urgent need for real estate professionals to stop using systems that no longer meet customer requirements. There is no point hiding behind issues such as confidentiality or data security that are no longer valid. Whatever solution or system is chosen, it must be open. That is now a prerequisite.

Innovation is everywhere and in everything, but it is ephemeral, and over and above technological innovations it is business innovations that the real estate sector needs. Simplifying access to information, to future homes and making life easier for all those in the chain from developer to builder to sales team; and making tools collaborative. This will help support the digital transformation of the sector and meet all its needs.

Open and customer-centric platforms

Time for a true shift in the sector?

Customers have changed. They are not a captive audience, or anyone’s property. Their only requirement is to find the right answer to their needs and to enjoy a smooth and efficient user experience. In real estate perhaps even more than elsewhere.

In real estate there are a number of solutions emerging now. A property developer, for example, can now be assisted end-to-end on his project: from the identification of the site to the construction phase, from the first visit to the handover of keys or even marketing of add-on services (insurance, maintenance, legal documents, etc.). His sales and marketing teams communicate, sharing their knowledge about the end customer, and the marketing process is managed from end to end thanks to open, interconnected, personalized solutions, guaranteeing complete confidentiality and security.

The customer needs to be at the heart of your strategy. Rather than trying to keep them captive, companies need to understand their needs and adopt the best position in the value chain. Using open platforms, interconnected with complementary services and products, alongside competitors. Using an open platform is an opportunity to benefit from others. That is my value proposition that keeps me going and enables me to differentiate myself. An inspiring example is Salesforce, which has allowed the emergence and development of a new ecosystem where complementary and competing offerings are found together. Are you using the Salesforce CRM and want to carry out a survey amongst your customers? Dozens of partner solutions are available in one click. It’s up to you to choose the one that suits you. Furthermore, customers have changed their habits, notably the way they go about house hunting. They want more autonomy and to only talk to a salesperson and answer questions when they want to, and not the other way around. They already have all the information: 85% of real estate searches

While much remains to be done, many real estate players have understood the importance of this transformation. Believing that a customer offering from one company can enhance the solutions offered by others, and that strength lies in unity, startups and established players in the sector have joined together in the French Proptech movement, to imagine and build the digital source : Mipim PropTech and open real estate industry of tomorrow. Author : JEANNE MASSA Jeanne Massa is CEO and Co-Founder of Habiteo.com. Habiteo is a start-up developing various 'sales boosting' solutions aiming at newly-built real estate agents. Habiteo enables developers to reduce global marketing delays and their sales teams to enhance their productivity ratio. 1st Quarter 2019 - 67

INVESTMENT IMMIGRATION SUMMIT IIS MENA in DUBAI 24-26 february 2019

The summit addressed the overseas investment and migration interests of HNWIs of Middle East and North Africa regions. Beacon Events, partnering with IIUSA banquet event 24th, returned to Dubai, UAE for the fifth annual Investment Immigration Summit MENA held on February 24–26, 2019 at the Shangri-La Hotel Dubai. The two and a half day conference / exhibition / workshop provided one of the most up to date and comprehensive view simultaneously on : - the Stream 1. : the world’s immigrant investor programs (US, the EU, Canada, the Caribbean, Australia and others country programs - the Stream 2 - Wealth Management (private investment, family office) including regional perspectives : 'the family office perspective' of Saudi Arabia of Karim Ghandour, Strategist CEO, Family Legacy and 'Investment Immigration and wealth planning in Pakistan' of Bilal Zahoor, immigration lawyer, MISLegal.

Keynote speakers included: Bruno L’ecuyer, Chief Executive, Investment Migration Council; Christian Nesheim, Founder, Investment Migration Insider; James Hall, Managing Director, ANZ Migration; Maxim Simonov, Head of Tax, Duvernoix Legal; Nestor Alfred, CEO Citizenship by Investment Unit, Saint Lucia; Rahul Soni Associate, Fragomen; Roger Bernstein, Partner, Saul Ewing Arnstein & Lehr; Sam Bayat, Managing Director, Bayat Legal Services; and Zac Lucas, Founder, Centenal Pte Ltd This year’s event gathered together 200+ industry professionals such as immigration lawyers, migration advisory firms, property developers, tax firms and Government representatives, migration agents, wealth managers, family offices, and potential investor clients. Since 2016 this IIS MENA event is the partnership with Bayat Legal Services (BLS), a Dubai headquartered boutique law firm which specializes in the Middle East investor market.

Residency and Global Citizenship opportunities at the 5th Annual Investment Immigration Summit in MENA The 5th Annual Investment Immigration Summit MENA in Dubai, organised by Beacon Events, is an industry conference and exhibition that provides the latest and comprehensive information on immigration investment programmes from around the world including the USA, European Union, Canada, the Caribbean, Australia and the Pacific Islands.

Immigration agents, lawyers, property developers and government representatives from across the world gathered together to network and exchange business cards, as well as hear from industry experts and what they had to say about the changing developments currently happening in different regions. For more information, please visit the website: https://investmentimmigrationsummit.com/mena/ For further inquiries, please contact: Ms. Maeva Lier / Ms. Louise Lim Beacon Events Email: marketing@beaconevents.com

This year’s event saw major developments to the IIS MENA agenda. Key topics included: • Assessing new developments in MENA and their impact and implications for the investment immigration industry • Discussing the potential for future FDI across the region with leading figures from wealth management and private banking • Doing Business in a Tax Transparent World • Post migration wealth planning – tax and trust services • BEPS and its impact on the investment immigration industry • What you need to know about CRS Avoidance and new Mandatory Disclosure Rules (MDRs)

ABOUT BEACON EVENTS Beacon is a major conference and exhibition organizer, producing first class international events that meet the challenges facing major business sectors today. Beacon’s focus is on large-scale, must-attend events that are independently researched and tailored to deliver unbiased and focused market information. From Finance & Investment, Mining & Technology, to Gaming events and conferences, we deliver the critical business information which enables success. www.beaconevents.com

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Ho Chi Minh City 9 – 11 April 2019 Ho Chi Minh City, Vietnam W: InvestmentImmigrationSummit/hcmc

Global Migration & Overseas Wealth Management Southeast Asia

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4 – 5 November 2019 Hong Kong, SAR China W: InvestmentImmigrationSummit.com/eastasia

For more information or to register W: InvestmentImmigrationSummit.com • P: +852 2219 0111 • E: iis.team@beaconevents.com @InvestImmigrate

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