Savory & Partners: Citizenship by Investment - Taxes & Fees to Consider

DUBAI, UAE, May 21, 2022 /PRNewswire/ -- Investing in a second citizenship abroad is one of the most fruitful ventures any high net worth individual (HNWI) can pursue. It unlocks the doors for global travel while simultaneously providing its holder with an elevated investment status. 

HNWIs tend to consider obtaining a citizenship not only for themselves but their family members as well; providing their children with a platform upon which to build their success. This approach means adding as many family members to an application as possible, maximizing the return on investment. 

However, with the addition of other family members to an application, the investment, or more accurately, the associated fees could increase. We at Savory & Partners always highlight the exact amount applicants have to consider when choosing their citizenship by investment program, and in tune with that philosophy of transparency, we want to share with you the most important fees and taxes to take into account when budgeting for your application. 

Any additional fees are payments alongside the investment, which do not go into the investment itself. 

These fees can come in various shapes or sizes, such as taxes, stamp duty, government fees, application processing fees, due diligence fees, or otherwise.

Each citizenship by investment program has its own set of particular fees, many of which coincide with the nation's tax regime. To understand the nature of these fees better, we will look into some of the most popular citizenship by investment programs in the world. 

The most popular citizenship by investment programs are clustered in the Caribbean region. All of these programs have a donation option as well as a real estate investment option that allow investors to obtain their citizenship. However, there are some additional fees, especially with real estate options, that one should consider before choosing their preferred investment route. We will take a look at each country and its additional fees below. 

The twin-island nation of Antigua & Barbuda has three investment options: 

• Donation to the National Development Fund (NDF) option starting at US$100,000 
• Donation to the University of West Indies (UWI) for a family of six starting at US$150,000 
• Real estate options starting at US$200,000 

The additional fees in Antigua's citizenship by investment program are as follows: 

• Application fee: US$100 
• Processing fee (NDF & Real Estate): US$30,000 for a family of up to four people plus US$15,000 for any additional dependent. 
• Processing fee (UWI): US$15,000 for any additional dependent after the sixth family member 
• Passport fee: US$300 for each member 
• Due diligence fee: US$7,500 for each of the main applicant and spouse, as well as US$4,000 for each dependent above 18 years of age, and US$2,000 for each dependent between the age of 12-17. 

Dominica is home to the second oldest citizenship by investment program in the world, having launched its version in 1993. 

The Dominican government provides applicants with two investment options: donation or real estate. Both have additional fees attached to them as follows: 

• Stamp duty: The buyer of real estate in Dominica must pay a stamp duty of 4% 
• Processing fees: US$1,000 
• Due diligence fees: US$7,500 for the main applicant and US$4,000 for additional dependent above the age of 16 
• Certificate of naturalization: US$250 per person 
• Expedited passport fee: US$1,200 per person

As for the real estate option, the applicant will have to pay additional government fees as follows: 

• US$25,000 for a single applicant 
• US$35,000 for a family of up to four people, including the main applicant and up to three dependents other than a dependent sibling 
• US$50,000 for a family of up to six people, including the main applicant and up to five dependents other than a dependent sibling 
• US$70,000 for a family of seven people or more, including the main applicant and at least six dependents other than a dependent sibling 
• US$50,000 for a sibling of the main applicant or of the spouse of the main applicant aged 18-25 
• US$25,000 for a sibling of the main applicant or of the spouse of the main applicant below the age of 18 

The island of Grenada offers two investment options to applicants, buying real estate and donating to a government fund. Both come with additional fees, but much like Dominica only the real estate option comes with government fees. Here is a breakdown of the fees: 

• Real estate acquisition tax: 10% of the property value 
• Processing fee: US$1,500 per person 
• Application fee: US$1,500 per person 
• Due diligence fee: US$7,500 for the main applicant and US$5,000 for any dependent above 17 years of age 
• Government fee (for real estate only): US$50,000 for a family up to three, and an extra US$25,000 per each additional dependent afterwards 
• Passport fee: US$250 per person 

Home to the oldest citizenship by investment program, St. Kitts & Nevis has been perfecting its program since 1984 and currently has two investment options: donation or real estate investment. 

Both options come with additional fees, but, like the other programs, the real estate option also requires extra government fees. The breakdown is as follows. 

• License to obtain land: Foreigners who wish to purchase property in St. Kitts & Nevis must obtain a special certificate to do so. This certificate requires a payment of 10% of the property's value. 
• Property tax rate: There is an annual property tax of 0.002% for residential property and 0.003% for commercial property. 
• Processing and due diligence fees: Applicants must pay US$7,500 for the main applicant and US$4,000 for each dependent aged 16 years or older.
• Government fees (for real estate only): these fees are paid for the real estate option as follows: 
• Main applicant: US$35,050 
• Spouse of the main applicant: US$20,050 
• Any other qualified dependent of the main applicant regardless of age: US$10,050 

The island nation offers three routes of investment: 

• Donation to a government bond 
• Real estate option 
• Government bond option 

The real estate also has an extra government fee, which is not applicable in other options. The breakdown is as follows: 

• Property transfer tax: A flat rate of 10% is paid in property transfer tax 
• Due diligence: A fee of US$7,500 for the main applicant and US$5,000 for any dependent above 16 years of age. 
• Processing fee: US$2,000 for the main applicant US$1,000 for each dependent

Real estate government fees are paid as follows:

• Applicant applying alone: US$30,000
• Applicant applying with spouse: US$45,000
• Each qualifying dependent (18 years of age and over): US$10,000
• Each qualifying dependent (under 18 years of age): US$5,000
• Applicant applying with spouse and more than four qualifying dependents: US$10,000 each 

Turkey's citizenship by investment program has various investment options, the majority require investments in securities or long-term deposits for half a million dollars, but the most popular option is investing in real estate for US$250,000. However, while all investment options require applicants to pay residence permit and passport issuance fees, only the real estate option requires a property transfer tax.

Here are the additional fees to keep in mind: 

• Residence permit fee: ₺160 per person 
• Passport issuance fee: ₺1,270 per person 
• Citizenship certificate fee: ₺30 per person 
• Property transfer tax (for real estate): 4%, however, half is paid by the buyer and half by the seller, so the applicant shall only bear 2% in taxes 

There is also the matter of military service, as male children below 18 years may be required to serve in the military once they finish school. However, this requirement can be waived for a payment of ₺31,000 (as of 2022), which can be paid in instalments as well.

At Savory & Partners, we take pride in providing transparent, comprehensive consultations to our clients. Our experts will help you budget your investment and avoid any unwelcome surprises. All you need to do is contact us today for a comprehensive consultation.

Savory & Partners is an accredited agent for multiple governments where citizenship by investment is offered. Founded in 1797, the agency has evolved from pharmaceuticals to family assets and legacy protection through second citizenship and residency. The company's professional, multinational staff is made up of expert advisors who have guided thousands of clients, including many North African investors, on their journey to find the most suitable CBI program for them. The Savory & Partners team will be happy to answer your enquiries in English, Arabic and French.  

For more information, please send an email to contact@savoryandpartners.com. You can also call +971 04 430 1717 or send a WhatsApp message to +971 54 440 2955.  

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