JORDAN ISICOFF – The U.S. has treaties of trade or investment with a limited number of countries around the world. [1] Notably absent are treaties with Venezuela, Brazil, China, Russia and India.[2] Nationals of these countries have no pathway of seeking nonimmigrant visas through investment in the U.S.[3] Though there is no limitation on nationality for those seeking U.S. lawful permanent residence through the EB-5 immigrant investor program, many high net worth individuals do not want U.S. permanent residence and the tax liability that comes with it.[4] Oftentimes, these individuals seek a safe place to park their families while they continue to count their days in the U.S. so as not to become subject to U.S. taxation on their worldwide income.[5]
Nationals of countries where the U.S. has no treaty of trade or investment, or where the U.S. has a treaty, but the visa reciprocity schedule for that country makes the treaty largely unusable, now have options. These nationals can purchase citizenship in third countries.[6] Citizenship in many of these third countries offers various benefits including, visa free travel throughout Europe and the U.S., beneficial treaties of trade and/or investment with the U.S. and third countries, and preferential tax treatment.[7]
Countries where acquisition of citizenship is readily available include Grenada, St. Kitts and Nevis, Antigua and Barbuda, Cyprus, Malta, and Austria.[8] A foreign national from a country that does not have an investment treaty with the United Sates who acquires citizenship in Grenada can subsequently apply for an E-2, investor’s visa, to the U.S.[9] A foreign national acquiring citizenship in an E.U. country will be able to work in the E.U.[10] Foreign nationals have many reasons why they seek third country citizenship. These reasons should be carefully explored before acquiring citizenship in a third country so that they obtain the most appropriate citizenship for their goals.
Investors can acquire residence in other countries including the Bahamas,[11] Portugal, Australia, Canada, Monaco, Singapore, and Switzerland.[12] Residence in these countries offers various benefits and paths to citizenship.[13] The wealthy foreign national should explore the benefits of acquiring citizenship or residence in third countries.
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[1] Treaty Countries, U.S. Department of State, https://travel.state.gov/content/visas/en/fees/treaty.html.
[2] Id.
[3] Id.
[4] About the EB-5 Visa, USCIS (2016), https://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/about-eb-5-visa.
[5] Online Tools & Updates, Substantial Presence Test (2015), https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test.
[6] Joe Myers, Countries where you can buy citizenship World Economic Forum, World Economic Forum (2016), https://www.weforum.org/agenda/2016/07/countries-selling-citizenship/.
[7] Christian Reeves, 10 Best Second Passports and Citizenship by Investment Programs For 2016, Premier Offshore Company Services Premier Offshore Company Services (2016), http://premieroffshore.com/10-best-second-passports-and-citizenship-by-investment-programs/.
[8] Joe Myers, Countries where you can buy citizenship World Economic Forum, World Economic Forum (2016), https://www.weforum.org/agenda/2016/07/countries-selling-citizenship/.
[9] Treaty Countries, U.S. Department of State, https://travel.state.gov/content/visas/en/fees/treaty.html.
[10] Joe Myers, Countries where you can buy citizenship World Economic Forum, World Economic Forum (2016), https://www.weforum.org/agenda/2016/07/countries-selling-citizenship/.
[11] The Advantages of Bahamas Immigration Status, HG.org Legal Resources, http://www.hg.org/article.asp?id=18930.
[12] Best Citizenships, Best Citizenships, http://best-citizenships.com/ (last visited Sep 10, 2016).
[13] Joe Myers, Countries where you can buy citizenship World Economic Forum, World Economic Forum (2016), https://www.weforum.org/agenda/2016/07/countries-selling-citizenship/.
