We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Law

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is an Economic Citizenship?

By Felicia Dye
Updated: May 17, 2024
Views: 4,700
Share

Economic citizenship is sometimes called citizenship by investment. These terms refer to an arrangement that allows people to acquire citizenship in a foreign country if they make notable contributions to that country’s economy. The requirements that must be met generally include an initial investment or donation and a clean criminal record. In addition to citizenship, the benefits to the investor usually include a passport and tax savings.

There are generally several ways that a person can become a citizen of a foreign country. One, which many people are unfamiliar with, is economic citizenship. This is generally considered a quick investor's option, but it is not one for small investors. The goal of economic citizenship programs is to offer an exchanged benefit to people who will have a substantial impact on a country’s economy.

It is often possible for an investor to become a citizen of a foreign country if he does a significant amount of business and resides in that nation for an extended period of time. One of the advantages of acquiring economic citizenship is that there is usually no residence requirement. In some cases, the applicants for this citizenship option are not even required to visit the country that they are planning to become citizens of.

There are usually substantial costs involved with acquiring economic citizenship. A person may have to make a sizable donation to the government or to an entity specified by the government. In lieu of the donation, a person may be required to make a sizable initial investment. In addition to this, there are usually several other categories of costs, such as registration and application fees.

Economic citizenship can be acquired for an individual or for a family. Family applications usually have higher associated costs. When economic citizenship is granted, however, it generally comes with a number of benefits. To begin with, the citizenship is usually granted for a lifetime and is irrevocable.

A benefit that may be especially attractive to individuals from third world countries is that the new citizen will be granted a passport. This may allow him increased travel potential, such as the ability to enter all Schengen nations, the Unites States, or other countries without a visa. The exact list of places that the individual will have easy access to will depend on the country where he has acquired citizenship. There are also commonly a number of financial benefits offered. For example, the new citizen may not be charged taxes on any foreign income or inheritances.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
By anon236575 — On Dec 24, 2011

Economic citizenship is not about a protection against terrorism. Generally, people believe that economic citizenship program is the solution for avoiding the chances of getting out of the terrorism prone areas, which is a pure myth.

Share
https://www.wisegeek.net/what-is-an-economic-citizenship.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.