Many countries offering Residency and Citizenship by Investment (RCBI) programmes generate a large percentage of their GDP through business travel and tourism, two activities that have been significantly affected by the Covid-19 pandemic. Combine this with the general decline in global business and we expect governments to turn to RBCI programmes to aid in their country’s recovery.
The number of governments offering RCBI programmes increased significantly after the 2008 global financial crisis and the investments that resulted played a big part in bringing these countries out of recession. More governments are now realising that, with the correct due diligence procedures in place, establishing and implementing RCBI programmes will enable them to:
- Secure much-needed foreign investment;
- Increase the financial well-being of their economies and citizens;
- Attract people with proven business success and valuable networks.
RCBI funds are currently being used to help keep economies afloat. A good example is the Maltese government, which usually allocates 70% of its RCBI-related income to the National Development and Social Fund (NDSF). By mid-March this year, the accumulated savings in the NDSF had reached more than €600 million. The following month, the government further announced that it had increased the allocation rate to 80%.
During the current pandemic the governments of Malta, Cyprus and Portugal have all acknowledged how valuable their RCBI programmes are to their respective economies. The same is almost certainly true for their investors, who will have experienced unprecedented personal and business restrictions and concerns for the welfare of their families.
In fact the pandemic has served to highlight the wide range of benefits that investing in an RCBI programme can provide for whole families, from grandchildren through to grandparents:
- Security and second option – A secure second option for the family to live, work or study
- Mobility – Travel internationally for business or pleasure without visa restrictions
- Education – Enable children to benefit from greater education opportunities
- Healthcare – Benefit from better healthcare services
- Family legacy – Provide descendants with greater opportunities
- Tax Efficiency – Multiple potential personal and corporate tax benefits
- Wealth management – Enhanced protection and diversification of assets
- Business expansion – Enter and operate in new markets
Comprehensive Solutions and Successful Applications
Sovereign’s extensive network of offices, collective experience and professional services ensures that we are well placed to assist, advise and support applicants in determining the most suitable RCBI strategy for their needs. We work closely with applicants during each stage of the process, ensuring that they successfully qualify, apply and ultimately receive their preferred residency or citizenship through investment.