IMMIGRANTS WELCOME
Experts highlight what you need to check before signing up for that coveted dualcitizenship status
Considering putting down roots in a foreign country to ensure your family’s future? With the advent of the golden visa in recent years, permanent residency and citizenship options are available around the world. While they appear to be the perfect solution for the rootless expat, there’s often more to it than meets the eye, professionals operating in the sector say.
With substantial investments at stake for buyers,
GN Focus asked several agents at this week’s International Real Estate and Investment Show in Abu Dhabi what investors should beware of before signing on the dotted line. The event takes place from Thursday to Saturday at Adnec.
Here’s what they had to say:
Do your homework
Research different programmes, make up your list of requirements, and see which programme is best suited to serve your particular needs, says Pej Mohyeddin, Senior Immigration Consultant at Bayat Legal Services. The boutique law firm specialises in providing consultation and legal services to high-net-worth individuals on business migration, corporate immigration or residency and/or a second citizenship.
“People are now becoming more aware of the benefits attached to having alternative passports, residencies or travel documents. The benefits can be ease of travel, banking and tax planning and of course [peace] of mind in unsecure periods.”
Munaf Ali, CEO of Range Developments, agrees, but adds “Due diligence on the selected country and the investment is vital. Investors must carefully research the developer’s pedigree and background before making an investment.”
Range Developments focuses on developing ultra-luxury hotels and resorts in countries that benefit from citizenship by investment programmes. The company’s flagship project is Park Hyatt St Kitts, located on the island of St Kitts.
Beware of fakes
That due diligence extends to the agents themselves. As with any sector reliant on third-party players, scams and fraud are not uncommon.
“There are always fake offers or illegal companies offering similar services mainly on the internet,” says Zsuzsanna Bereczki, Immigration Specialist and Owner at Bereczki Immigration Services.
The Dubai-based immigration services agency is the regional representative agent for the Hungarian Investment Residency Bond Programme in the Middle East and North Africa.
“So make sure that the company you are in contact has all licences Shutterstock and authority,” explains Bereczski.
Citizenship vs residency
With several countries now offering competing programmes, it’s vital to understand the differences between them. There are many different solutions available and all come with their own limitations. One broad differentiating factor is between citizenship and permanent residence, says Micha-Rose Emmett, Group Managing Director at CS Global Partners, an agency with several years’ experience in the business across different countries.
“The core difference between citizenship and residence is stability,” says Emmett. With citizenship, there is the certainty of a status that the investor should not be deprived of for the rest of his or her life. Residence, on the other hand, may be easily lost, for example if the person holding the residence permit does not abide by minimum stay requirements, she adds.
“Furthermore, citizenship may be inherited by your children through your line of descent, whereas residence does not necessarily extend to your family of today or that of tomorrow.”
Know your goals
Alexander A. Petrosov, Director of the Cyprus Alliance, a club of developers in the real estate and citizenship sectors of the Mediterranean country, says the little details matter. “Watch out for hidden conditions… by comparing the options and educating yourself.
He gives the example of Caribbean citizenship, some types of which cannot be passed on. “An applicant may not know that somewhere they can be inherited, like EU pass-
ports.” When moving abroad, it’s important to know one’s goals, he adds. “What’s expected from the passport? If it’s just visafree travelling, the Caribbean passports would do. If it’s a powerful passport with unlimited stay in Europe, no need for working permits or student visas for children, inherited to all future generations, etc., then [consider] EU programmes.”
Ask about fees
Agents may not always be ready to discuss fees transparently and such behaviour should act as a red flag, says Bereczki. “Be familiar with all elements and all additional fees of the service,” she explains. “The basic investment level can be attractive but with all extra costs or service limitations it can turn to a nightmare.”
Her advice is particularly relevant when planning a move for the entire family. Costs usually multiply when several applicants are involved. “Secondly, starting business or family life in a new country is never easy. In many agencies clients are just files and they are selling residency as a product. My advice is to find an expert who is ready to take time with you and can provide a specialised service with follow-up and support in all related topics,” Bereczki says.
In general, additional professional fees for a family of four could add up to between $15,000 (Dh55,094) and $20,000, insiders say — although this varies according to the jurisdiction and the experience of the agent or lawyer involved.