As capital markets continue to expand in places like China and India, while access to Western countries continue to become more restrictive, entrepreneurs from around the world continue to find innovative ways to access residency or secondary passports. The model of exchanging residency rights for a sizable investment has fueled the demand for governments to diversify their immigration programs and include these options. As the immigrant investor programs have increased with popularity, they have proved to be pertinent tools for the growth of various countries’ economies. While the main reason prospective investors choose such routes is to have a guaranteed way to obtain a second passport or residency in developed countries and to further secure their multigenerational future. These prospective investors must also be aware of the maximum potential in terms of benefits that these programs bring to the individual.
The benefits that come with these programs are clear, an investor invests a specific amount of money and in return they get residency rights in that particular country. While the specifics of each program will differ as per the country that offers it, the general idea is that money is invested into the country’s economy and residency rights are passed on to the deserving party. Now the question is can these investors use these programs as a dual benefit model, where on the completion of their application they end up with investment and residency rights for themselves and dependants?
The answer is yes, so long as the investor chooses a country that uses the investment in a private-sector asset model and chooses the right project to invest in. The private-sector investment model requires for the investor to invest their money into an in-country asset (barring government bonds), after the completion of the investment cycle the investor can get their money back provided that their investment was a success. While the investment is in its investment cycle the petition for the residency rights will be in process and the two will be working simultaneously for the benefit of all parties concerned.
For instance the United States EB-5 immigrant investment program follows this model, but with the key factor that the investor has complete knowledge that his investment is a true investment. This means that the investment made to a U.S. commercial enterprise is done so at the risk of the investor. It must be noted that failure of an investment will not necessarily result in the denial of the immigration petition, provided that the failure of the investment is not due to the investor choosing a project that does not meet the United States Citizenship and Immigration Services requirements. To increase the chances of a successful investment the investor must ensure that they do their diligence. Prior to making the investment the investor must check the capital structure of the project, the chances of its success, the number of jobs created, and whether the appropriate certifications are in place to qualify for the minimum $900,000 investment threshold. Choosing the right investment project can provide the investor with a rate of return on investment post the investment cycle and in many cases they would receive their investment funds back after a specific period.
The key for individuals who want to use immigration by investment as true investment models is to ensure that they do their due diligence. They need to consult with experienced immigraion consultants along with independent financial advisors prior to making any permanent investments.