Other expensive options include New Zealand ( at NZ $ 1.5 million ) and Australia ( at at least A $ 1.5 million ). While both nations have been enormously attractive to foreign investors , they tax at 33 percent and a hefty 45 percent , respectively . Austria , however , takes the cake with the most expensive program . One can either make a charity donation of at least € 2 million to an Austrian charity or else make a recoverable € 10 million investment into the economy . Even more incredible is the fact that the effective tax rate is 50 percent .
On the other hand , for investors not interested in splurging , the island federation of St . Kitts and Nevis , with its tempting tropical climate and zero personal income tax , allows two relatively cheap alternatives . The first is a $ 250,000 contribution to the country ’ s Sugar Industry Diversification Foundation , while the second is a real estate investment of at least $ 400,000 . The twin-island nation of Antigua and Barbuda offers investment options at the same rate . The most attractive option price-wise of all , however , is the island of Dominica , which only requires a $ 100,000 deposit to the National Bank of Dominica . For the sophisticated investors that cannot be bothered to attend the mandatory interview with a government-appointed committee , he or she can opt to fly a three-member interview panel to his or her respective country . This is certainly a rare perk .
The consideration of where to invest goes beyond the price of the passport , as investors typically look at the form the investment must take , and the benefits and demands that citizenship will offer . An investor may be willing to pay more for access to a country with characteristics they value .
If I buy a house , can I get a passport ?
The most common investment forms are government-backed loans , real estate acquisitions , and bank deposit-type investments . Each of these investment models has differing perks that appeal to narrow groups of investors . Some investors prefer the security of a short-term government backed loan , some have the proclivity for acquiring real estate , and others still prefer the purchase of securities in the hopes of residency and a return on investment .
One of the chief benefits of the recently shuttered Canadian program was that would-be immigrant investors posted up to CAD $ 800,000 in zero-interest five-year loans to one of Canada ’ s provincial governments . The fact that the funds were guaranteed by the provinces and therefore almost certain to be returned , was extremely attractive . In Canada ’ s absence , Bulgaria has picked up on the appeal of this model and currently offers a very similar opportunity for BGN 1 million , which is much cheaper than the United Kingdom ’ s option of at least £ 1 million . The security attached to a guaranteed return of funds is in stark contrast to the EB-5 program ’ s “ at-risk ” requirement , but it also offers no opportunities for returns on investment .
Another attractive structure is the purchase of government backed bonds or similar securities offerings . For example , Hong Kong requires investors to invest at least HK $ 10 million in permissible investment asset classes that include certain government backed debt securities , certificates of deposits , or a few other collective investment schemes . As long as the value of the investments continues to be maintained in accordance with the current rules
Continued on page 66
www . EB5Investors . com
Spotlight on the Shutdown
by Courtney Creedon
In February of this year , Canada announced its plan to shutter its federal Immigrant Investor Program and Federal Entrepreneur Program . Citing “ limited economic benefit ” and extensive backlogs in applications , the Canadian government has decided to abandon the programs in favor of new , yet-to-be-revealed , pilot programs .
The programs , previously popular alternatives to the U . S . EB-5 program , were structured quite differently from their American counterpart . Instead of an at-risk investment , investors in the Canadian IIP were asked to make an $ 800,000 ( CAD ) loan to be divided between provinces and territories . The interest free loan would be used to fund projects and create jobs for a period of five years , and was guaranteed to be repaid .
Perhaps because of this loan structure , the Canadian program never provided the desired economic benefit . Despite the lack of results , the IIP alone had 65,000 individuals queued for processing — more than any other investment immigration program in the world , according to Citizenship and Immigration Canada ’ s Feb . 11 , 2014 news release . Those jilted investors are now likely looking elsewhere for immigration opportunities .
The cancellation of the Canadian program has occurred at the same time that the EB-5 program is experiencing explosive growth , with a record number of investor applications in 2013 . The U . S . EB-5 program is not the only alternative immigration avenue , however . Though EB-5 remains highly competitive with its relatively low minimum required investment and attractive U . S . green card , immigrant investors have a wealth of options , as evidenced in Rohit Kapuria ’ s accompanying article .
Until the Canadian government discloses further details of its suggested venture capital program , EB-5 may just be perfectly poised to pick up the slack .
★
65
Other expensive options include New Zealand (at NZ$1.5
million) and Australia (at at least A$1.5 million). While both
nations have been enormously attractive to foreign investors,
they tax at 33 percent and a hefty 45 percent, respectively.
Austria, however, takes the cake with the most expensive program. One can either make a charity donation of at least €2
million to an Austrian charity or else make a recoverable €10
million investment into the economy. Even more incredible is
the fact that the effective tax rate is 50 percent.
On the other hand, for investors not interested in splurging,
the island federation of St. Kitts and Nevis, with its tempting
tropical climate and zero personal income tax, allows two relatively cheap alternatives. The first is a $250,000 contribution to
the country’s Sugar Industry Diversification Foundation, while
the second is a real estate investment of at least $400,000. The
twin-island nation of Antigua and Barbuda offers investment
options at the same rate. The most attractive option price-wise
of all, however, is the island of Dominica, which only requires
a $100,000 deposit to the National Bank of Dominica. For the
sophisticated investors that cannot be bothered to attend the
mandatory interview with a government-appointed committee,
he or she can opt to fly a three-member interview panel to his or
her respective country. This is certainly a rare perk.
The consideration of where to invest goes beyond the price of
the passport, as investors typically look at the form the investment must take, and the benefits and demands that citizenship
will offer. An investor may be willing to pay more for access to
a country with characteristics they value.
If I buy a house, can I get a passport?
The most common investment forms are government-backed
loans, real estate acquisitions, and bank deposit-type investments.
Each of these investment models has differing perks that appeal
to narrow groups of investors. Some investors prefer the security
of a short-term government backed loan, some have the proclivity for acquiring real estate, and others still prefer the purchase of
securities in the hopes of residency and a return on investment.
One of the chief benefits of the recently shuttered Canadian
program was that would-be immigrant investors posted up
to CAD $800,000 in zero-interest five-year loans to one of
Canada’s provincial governments. The fact that the funds were
guaranteed by the provinces and therefore almost certain to
be returned, was extremely attractive. In Canada’s absence,
Bulgaria has picked up on the appeal of this model and currently offers a very similar opportunity for BGN 1 million, which is
much cheaper than the United Kingdom’s option of at least £1
million. The security attached to a guaranteed return of funds
is in stark contrast to the EB-5 program’s “at-risk” requirement,
but it also offers no opportunities for returns on investment.
Another attractive structure is the purchase of government
backed bonds or similar securities offerings. For example, Hong
Kong requires investors to invest at least HK$10 million in permissible investment asset classes that include certain government
backed debt securities, certificates of deposits, or a few other collective investment schemes. As long as the value of the investments
continues to be maintained in accordance with the current rules
Spotlight on
the Shutdown
by Courtney Creedon
In February of this year, Canada announced its plan to
shutter its federal Immigrant Investor Program and Federal
Entrepreneur Program. Citing “limited economic benefit”
and extensive backlogs in applications, the Canadian government has decided to abandon the programs in favor of
new, yet-to-be-revealed, pilot programs.
The programs, previously popular alternatives to the U.S.
EB-5 program, were structured quite differently from their
American counterpart. Instead of an at-risk investment, investors in the Canadian IIP were asked to make an $800,000
(CAD) loan to be divided between provinces and territories.
The interest free loan would be used to fund projects and
create jobs for a period of five years, and was guaranteed to
be repaid.
Perhaps because of this loan structure, the Canadian program never provided the desired economic benefit. Despite
the lack of results, the IIP alone had 65,000 individuals
queued for processing—more than any other investment
immigration program in the world, according to Citizenship
and Immigration Canada’s Feb. 11, 2014 news release. Those
jilted investors are now likely looking elsewhere for immigration opportunities.
The cancellation of the Canadian program has occurred at
the same time that the EB-5 program is experiencing explosive growth, with a record number of investor applications
in 2013. The U.S. EB-5 program is not the only alternative
immigration avenue, however. Though EB-5 remains highly
competitive with its relatively low minimum required
investment and attractive U.S. green card, immigrant
investors have a wealth of options, as evidenced in Rohit
Kapuria’s accompanying ar XK[[ H[YX[ݙ\Y[\\\\]Z[ و] Y\Y [ \H\][ ܘ[KPMHX^H\B\X H \Y X \ H X˂[YYۈ YH
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