As some European countries begin to tighten so-called golden visa programs, one Caribbean country is taking a different tact and establishing the world's first official "citizenship by invitation" program.
Grenada will launch the program with the goal of selecting "hand-picked investors" that the country hopes will bring entrepreneurial innovation to the country. Most citizenship by investment programs are inherently exclusive, typically requiring interested parties to invest hundreds of thousands of dollars—if not more—to attain an expedited residency or citizenship. But Grenada's new offering is even more so.
"The concept of 'citizenship by invitation' is set to revolutionize the way that investment is channelled into communities," reads the press release announcing the initiative. "It will empower governments such as Grenada to tailor their citizenship programs and attract hand-picked investors with the talent, experience, and capital to make an impact."
It comes as popular golden visa programs in countries like Spain and Portugal begin to wind down. While those countries make moves to limit how many wealthy investors can gain residency and eventually citizenship, Grenada is doubling down on its efforts.
Investors "who will bring the most value to the Caribbean Island" are being nominated and vetted by Forbes Global Talent and Arton Capital, a global citizenship financial advisory services firm which designed the program in partnership with the Grenada government. Once officially invited, there are a few avenues investors can take to attain their citizenship: They could make a non-refundable donation to the sovereign or through the already-existing business or real estate investment programs.
The first wave of invitations are set to go out February 1, says Armand Arton, president of Arton Capital. Recipients should receive their citizenship within three to four months of applying, Arton says, calling it an "extremely efficient and smooth process in comparison to other investment migration programs worldwide."
"We think this model is a valuable way for countries to attract the investment and expertise they require," says Arton, noting his firm plans to launch a similar program in the United Arab Emirates.
In addition to receiving Grenadian citizenship, the hand-picked high net worth investors will form the Global Citizen Council, which will also advise the Grenadian government on "how to drive innovation" in different industries, according to the press release. The investors will be able to attend an annual two-day advisory session with Grenada Prime Minister Dickon Mitchell, flown by private jet.
"The people of Grenada are set to welcome a new wave of investment and innovation to our shores," Mitchell said in the release.
European countries move to curb golden visas
The benefits of attaining a second (or third) passport are plentiful, and the practice is a status symbol among the world's ultra wealthy. Residency—and citizenship—in countries located in the European Union is especially prized, as residents and citizens can live and work in other member states.
But some countries have seen too much of a good thing: Popular destinations like Spain and Portugal are limiting their programs because they say the popularity has led to increased housing costs for locals and exacerbated each country's housing crisis.
Earlier this month, Spain's Prime Minister Pedro Sánchez announced his intent to implement a tax of up to 100% on homes purchased by buyers outside of the European Union. Buying real estate is a popular avenue for residency in the Mediterranean country: For 500,000 euros, Americans and other wealthy buyers, many of them Chinese and Russian nationals, could buy property, gain residency, and have the ability to live, work, and study in the country freely. Spain also announced its intent to wind that program down.
Rising housing costs isn't the only concern when it comes to these types of programs: concerns about money laundering also abound.
