Citizenship by investment programs have come under increasing scrutiny in recent years, with countries like Cyprus facing strong criticism over transparency and national security concerns.
While CBI schemes remain attractive to global investors, they have sparked debate over ethics, effectiveness, and long-term impact.
In this guide, we’ll explore:
- What criticisms are made against citizenship by investment?
- What are the countries that offer citizenship by investment?
- Which country offers citizenship by the lowest investment?
- What are the benefits brought by citizenship by investment to host countries?
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
What is the meaning of economic citizenship?
Economic citizenship, also known as citizenship by investment (CBI), is a legal process through which individuals can obtain a second passport by making a qualifying financial investment in a country.
This investment typically takes the form of a non-refundable contribution to a national development fund, a real estate purchase, or an approved business venture.
While it offers benefits like enhanced global mobility and asset diversification, the concept has sparked debate over its ethical implications and long-term consequences for the host nations.
Why Do Critics Oppose Citizenship by Investment Programs?
Critics argue that CBI programs commodify national identity and citizenship, reducing a country’s passport to a luxury good for the wealthy.
Major concerns include:
- Lack of transparency and oversight – In some jurisdictions, the CBI process is opaque, with limited public accountability or independent review mechanisms. This raises the risk of corruption or misuse of funds.
- Weak due diligence procedures – When vetting is inadequate, there’s a heightened risk of passports being granted to individuals with criminal records, sanctioned backgrounds, or dubious sources of wealth. This has led to several high-profile scandals.
- Reputational and diplomatic risks – Host countries may suffer reputational damage if passports are misused, prompting visa restrictions or scrutiny from other nations. For instance, the EU has pressured some member states to tighten or suspend their CBI programs due to security concerns.
- Legal and geopolitical tensions – In regions like the EU, where one country’s passport grants access to all member states, weak CBI safeguards in one nation can compromise the entire bloc’s border integrity, creating both legal and diplomatic friction.
- Erosion of public trust – Many citizens feel that their nationality is being sold, especially when investors gain citizenship faster than long-term residents. This can fuel societal resentment and undermine support for immigration or investment policies.
Misuse of citizenship and residency by investment programs
There have been notable cases where CBI or residency by investment (RBI) programs were misused:
- Individuals with criminal backgrounds or under international sanctions obtaining passports.
- Use of second citizenship to evade taxes or judicial proceedings.
- High-profile scandals, such as the Cyprus Papers, which revealed systemic failures in vetting.
These cases have amplified calls for stronger international cooperation, standardized due diligence, and increased accountability in how countries run their programs.
How Has the EU Responded to Citizenship by Investment?
The European Union has consistently voiced concern over the security and ethical risks posed by CBI programs within its member states.
Key developments include:
- Malta facing infringement procedures over its investor citizenship scheme.
- Cyprus terminating its CBI program in 2020 following revelations of abuse.
- Bulgaria repealing its program in 2022 under EU pressure.
The EU argues that these programs undermine the concept of EU citizenship, as they allow access to the entire bloc through one member state’s passport.
The European Commission continues to call for the phasing out of all investor citizenship programs within the EU.
Citizenship by investment countries
- Caribbean nations like St. Kitts and Nevis, Dominica, and Antigua and Barbuda are known for some of the most affordable and straightforward CBI programs.
- Typical investment: from $100,000 via government donation.
- Benefits: Fast processing times (as little as 3 months), and visa-free access to over 140 countries, including the Schengen Area, UK, and Singapore.
- European countries including Malta and, until recently, Cyprus and Bulgaria have drawn interest due to their access to EU benefits.
- Malta’s MEIN program requires a minimum of €600,000 contribution (plus residence and real estate).
- Cyprus and Bulgaria suspended their programs after EU scrutiny over due diligence failures and alleged corruption.
- Vanuatu, in the South Pacific, offers one of the fastest CBI processes.
- Minimum donation: around $130,000.
- Benefits: Approval in about 60 days, though visa-free access to the EU was suspended in 2022.
- Turkey, Egypt, and Jordan also operate citizenship by investment schemes.
- Turkey: Requires a $400,000 property investment.
- Egypt and Jordan: Offer passport access with investments ranging from $250,000 to $750,000, depending on the route.
Some programs, especially in the Caribbean, are relatively affordable and offer visa-free access to desirable regions like the Schengen Area and the UK.
What is the cheapest CBI program?
As of 2025, the cheapest CBI programs are generally found in the Caribbean.
Dominica and St. Lucia offer entry-level contributions starting at around USD 100,000 for a single applicant.
These programs are popular among investors seeking mobility and a backup residency option without the high costs associated with European schemes.
However, the affordability often comes with increased scrutiny.
Critics argue that low-cost programs are more vulnerable to abuse if due diligence is not robust.
What is the fastest way to get EU citizenship?
Technically, CBI programs offer the fastest path to EU citizenship, especially Malta’s MEIN program, which can lead to naturalization in as little as 12 to 36 months.
However, such fast-tracked paths are now under intense scrutiny.
Other pathways to EU citizenship, such as naturalization through residency or descent, usually require longer timelines and cultural integration.
The trend suggests that fast-track routes are narrowing in favor of more traditional, merit- or residency-based systems.
What benefit do investors bring to the host country when they invest?
- Revenue generation – CBI programs often require direct contributions to national development funds or real estate investments. This influx of capital provides governments with non-debt financing that can be allocated to public infrastructure, social programs, or economic recovery efforts.
- Job creation – Investment in approved real estate developments or local businesses stimulates employment, particularly in construction, hospitality, legal services, and tourism-related industries.
- Economic diversification – For countries heavily reliant on one sector, such as tourism, CBI funds offer an alternative source of income and investment, helping to stabilize the economy during downturns or global disruptions.
In small island nations, CBI revenue has funded critical projects such as hospitals, roads, and hurricane recovery.
Conclusion
The debate around citizenship by investment reflects a broader tension between economic opportunity and national sovereignty.
While such programs offer short-term financial gains, the long-term implications from security to ethics, continue to challenge both host countries and the global community.
As international scrutiny increases, the future of CBI lies in stricter regulation, greater transparency, and a shift toward more sustainable and equitable models of global mobility.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
