From Vanuatu to Austria: What a “Golden Passport” really offers

How easily you can travel around the world and how long you can stay in your chosen destination depends on your passport. In fact, it’s a more complicated geopolitical issue than you might think. The ultra-rich gain a lot of privileges by holding two or three passports and multiple citizenships. These passports are often issued by money-loving countries and serve as a luxurious status symbol for the wealthy to show off at gatherings. At the same time, a “golden passport” is also a window of opportunity for escape when personal life or the country of birth is in danger.

What is a “golden passport”?

Citizenship by Investment (CBI) programs offered by some countries are sometimes called “golden passport programs.” Through such programs, individuals have the opportunity to acquire foreign citizenship in exchange for a certain financial investment. According to Immigrant Invest, this can usually be real estate, government bonds, or investments in local businesses.

One of the main advantages for investors is the expansion of global mobility. Citizens of countries with weak passports can purchase a “golden passport” and gain visa-free or visa-on-arrival access to many countries.

A second passport can serve as a security guarantee in times of political or economic instability, allowing them to live or do business in another country. For host countries, these programs are beneficial in attracting large amounts of foreign investment.

7 benefits of a “golden passport”

Global mobility. A “golden passport” allows you to obtain visa-free or visa-on-arrival access to many countries, which ensures the passport holder’s freedom of travel.
Investment opportunities. A “golden passport” gives its holder access to new markets, real estate, and businesses, as well as the opportunity to earn income from the investment itself.
Tax optimization. Some countries that offer golden passports have favorable tax systems. For example, many countries in the Caribbean do not tax personal income, and Vanuatu imposes a 20-year tax payment of only $300 per year for companies.
Security. A second passport guarantees a safe haven in times of political, economic or social unrest. The passport holder can enter this country at any time and stay for an unlimited period.
Education and healthcare. The holder of a golden passport has the right to use the education and healthcare system of the new country like local citizens.
Benefits for family members. Most golden passport programs also grant citizenship to family members (usually spouses and children), which provides access to the same benefits.
Improved quality of life. Citizenship in a new country offers advantages such as a better climate, culture, and quality of life.

Despite these advantages, most countries in the world are against the “golden passport” policy. Because such programs mean “giving more opportunities to the rich” and question security and honesty. However, there are also many countries that sell their citizenship in exchange for a large investment. Here are some of them.

Dominica. To obtain citizenship in this country with very low investment requirements, it is enough to donate $200,000 to the Economic Diversification Fund or buy real estate worth the same. Real estate can be sold after 3 years and the investment returned.

Dominica passport holders can travel to more than 140 countries without a visa. Another advantage is tax optimization: there are no wealth, gift, capital gains, and inheritance taxes in the country.

Antigua and Barbuda. You can obtain citizenship in this country by donating at least $230,000 to the National Development Fund. You can also obtain citizenship by investing in a local company, which requires a minimum of $400,000. It takes 6 months to obtain a passport.

Citizens of Antigua and Barbuda can travel to more than 150 countries without a visa in advance, and are also entitled to a 10-year visit visa to the United States. Residents of this country do not pay taxes on personal income, inheritance, capital gains or dividends.

Vanuatu. This country has the cheapest and fastest IEF program in the world, where you can obtain citizenship for just $130,000 in donations. This money goes to the state fund and is used to support the country's economy and combat natural disasters.

Another option is to buy shares in CNO Future Fund. It specializes in producing renewable energy from coconut oil. The minimum investment is $157,000, which can be returned after 5 years.

There are no language or history exams, but you must visit Vanuatu or one of its embassies in Brussels, Dubai, Hong Kong, or New Caledonia to submit biometric data.

Investors are exempt from corporate income, personal, and capital gains, inheritance, or charity taxes for 20 years by establishing an international business company. Instead, an annual fee of $300 is applied.

Egypt. This country, which launched the IEF program in 2020, has four options for obtaining a passport:

• Non-refundable donation – $250,000;
• Real estate purchase – $300,000;
• Business investment – $350,000;
• Deposit in the Central Bank – $500,000.

Real estate and business investments can be returned after 5 years, and bank deposits after 3 years.

Also, to become an Egyptian citizen, there are no Arabic language or history exams required, and there is no requirement to reside in the country. In addition, it is possible to open a business in 9 free economic zones that are exempt from corporate taxes.

Turkey. Citizens of this country can travel to more than 120 countries without a visa. Turkey offers five options for the IEF program, and among them, buying real estate is the cheapest and most popular. To apply for this method, you need to invest at least $400,000 in residential or commercial property. Other options:

• Investment in a business – $500,000;
• Deposit in a bank – $500,000;
• Purchase of investment fund units – $500,000;
• Purchase of government bonds – $500,000.

All options allow the investor to return the money three years after obtaining citizenship.

Austria. This country has one of the most expensive IEF programs in the world. Holders of the Austrian passport, considered one of the most powerful, can travel visa-free to more than 170 countries.

For their application to be considered, the candidate must actively invest in the country's economy for three years. There is no strict requirement for Austrian citizenship, but it usually involves investments in the range of 2–10 million euros.

The dark side of the “golden opportunity”

According to foreign media reports, in recent years, programs like these golden passports have been used to evade sanctions. After Russia’s invasion of Ukraine in 2022, a US official described such programs as a means for wealthy Russians to obtain citizenship in other countries and access certain financial systems.

According to reports, the “golden passport” also serves as a bridge for several illegal activities:

• Money laundering;
• Tax evasion.

One of the most common negative aspects of immigrant investor programs is that they legalize the activities of individuals on the sanctions list.

For these and other reasons, many countries are ending or revising their IEP programs.