{"id":30303,"date":"2018-02-17T16:23:00","date_gmt":"2018-02-17T12:23:00","guid":{"rendered":"https:\/\/www.savoryandpartners.com\/?p=30303"},"modified":"2020-08-13T11:33:46","modified_gmt":"2020-08-13T07:33:46","slug":"citizenship-by-investment-programmes-are-helping-people","status":"publish","type":"post","link":"https:\/\/old.savoryandparnters.com\/blog\/citizenship-by-investment-programmes-are-helping-people\/","title":{"rendered":"Trading Nations: How Citizenship by Investment Programs Are Helping People"},"content":{"rendered":"

Arabian Business, Tue 13 Feb 2018 10:27 AM<\/strong><\/p>\n

Savory & Partners founder and CEO Jeremy Savory discusses citizenship-by-investment programs<\/a> and how they safeguard people and their assets. We live in a very uncertain world, currently fraught with geopolitical tensions, social upheaval and economic ups and downs.<\/p>\n

For these reasons \u2013 and more \u2013 people around the world, and especially in the Middle East, are increasingly looking for second citizenships<\/a> to protect their assets and, more importantly, ensure a secure and prosperous future for themselves and their families.<\/p>\n

This is where Savory & Partners founder and CEO Jeremy Savory comes in.<\/p>\n

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\u201cThere are certain countries in the world where it\u2019s legal to obtain citizenship, provided you meet certain criteria, one of which is the financial contribution you need to make, [through] real estate, financial products, or a one-time investment, which is non-refundable,\u201d Savory explains.<\/em><\/p>\n<\/blockquote>\n

The motivations for seeking a second citizenship, Savory is quick to note, are as diverse and varied as Savory & Partners\u2019 clients, ranging from a desire to avoid difficult and often painfully long visa application processes to a desire for the peace and stability that often eludes many countries.<\/p>\n

Then there\u2019s simply seeking to feel more at home in a country that isn\u2019t yours by birth.<\/p>\n

\u201cWe\u2019ve had a lot of European, Western clients that want to be strategic with their tax planning and passing on inheritances. We also have Middle Eastern clients facing challenges.<\/em><\/p>\n

“Right now there are a lot of countries in this region where people don\u2019t feel like they can travel freely into the Schengen zone in Europe, or to the UK or the US\u201d, he says.\u00a0<\/em><\/p>\n

For some, it\u2019s even deeper than that. You can look at an attempted coup d\u2019etat in some countries, or loss of faith in your country\u2019s leadership and sometimes no leadership at all. In some countries, it\u2019s all of the above.\u201d<\/em><\/p>\n<\/blockquote>\n

Other cases, however, are more unique. Savory recalls one memorable instance when he helped a Bedoon, one of the more than 100,000 officially \u201cstateless\u201d individuals that call the GCC home.<\/p>\n

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\u201cThis wasn\u2019t about getting a second passport. It was actually this person\u2019s first passport. Trying to prepare a file for someone that doesn\u2019t have much to go on in terms of showing they exist is very tricky,\u201d he says of the case.<\/em><\/p>\n<\/blockquote>\n

In another example, a second passport<\/a> is simply a way to keep families together \u2013 as when Savory had a client whose adopted children had their passports revoked due to paperwork complications in their country of origin, a unique case but one that was also successfully resolved.<\/p>\n

Some clients may simply not feel any connection with their home country, or may never have a base to return to, having lived their entire life abroad.<\/p>\n

And then some clients simply have accumulated enough assets that the only asset left to obtain is the European citizenship that ringfences all those assets in the same way as a trust or a life insurance policy would.<\/p>\n

For some, having a second passport is nothing more than a sound financial decision. \u201cWe\u2019ve had royal family members come to us, and say that whenever they want to buy a property, they submit their passport copy, it says \u201cHRH\u201d on it and the price goes up,\u201d Savory notes. \u201cThe cost of getting the passport will save that price increase.\u201d<\/p>\n

From St Kitts and Nevis to Cyprus and Malta<\/strong><\/span><\/h2>\n

Citizenship and residency programs around the world are vastly different, each with their own requirements, benefits, timeframes and obligations.<\/p>\n

Citizenships from St Lucia<\/a> and Dominica<\/a>, for example, can be obtained in a few months with investments from as little as $100,000 without any obligation to live there for any amount of time.<\/p>\n

Permanent residency from countries such as Spain\u00a0and Portugal, on the other hand, require investments of \u20ac500,000 ($623,000) and can take as long as ten years to process.<\/p>\n

Perhaps understandably, the most in-demand citizenships are those for countries in the European Union.<\/p>\n

\u201cThe benefits that come with it [EU citizenship] are innumerable. Having said that, it\u2019s priced accordingly,\u201d Savory says.<\/p>\n

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\u201cIn Malta, you\u2019re looking at not less than \u20ac1m ($1,23m) worth of investments when it\u2019s all put together of which typically 55 percent \u2013 75 percent is non-recoverable whereas Cyprus is \u20ac2m ($2.45m) in real estate of your choice as long as the paperwork process is correct.<\/em><\/p>\n<\/blockquote>\n

An individual\u2019s chosen second citizenship, Savory remarks, is largely based on their particular needs. An ultra-high net worth individual, for example, is likely looking for more than ease of travel.<\/p>\n

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\u201cThey\u2019re looking to disrupt their legacy if you will,\u201d he says. \u201cThey want to go from one nationality, say Afghan, Iranian or Nigerian, and become a European citizen for generations to follow. The status change is unquantifiable, as they and their children can immediately benefit from world-class healthcare, education, unlimited business opportunities and no tax, due to Malta<\/a> and Cyprus<\/a>\u2019 generous tax positioning.\u201d<\/em><\/p>\n<\/blockquote>\n

An important distinction \u2013 which Savory says he often finds himself explaining to potential clients \u2013 is between citizenship programs and residency programs.<\/p>\n

A residency program, for example, will only lead to citizenship if one actually resides in the country and is able to demonstrate both a tangible physical presence in the country as well as a physical presence. In some cases, applicants need to pass language tests. These types of programs, Savory adds, can often take significant amounts of time to complete.<\/p>\n

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\u201cYou\u2019re talking five, six, seven, eight, nine or ten years. A lot of things can happen in ten years. If you look at today, most of the challenges we face didn\u2019t exist ten years ago,\u201d he says.<\/em><\/p>\n

\u201cPublic opinion can go from pro-immigration to anti-immigration. Leadership, mandates and [criteria can change. Residency is not a definitive way to citizenship. We are very clear with our clients when they ask that.\u201d<\/em><\/p>\n<\/blockquote>\n

A legacy of due diligence<\/strong><\/span><\/h2>\n

While Savory & Partners<\/a> today dedicates itself fully to helping people acquire new citizenships, the company\u2019s history dates back over 220 years to 1797, when \u2013 under the name Savory and Moore \u2013 it began operating in a very different industry: pharmaceuticals.<\/p>\n

Not long after the company was founded, it obtained Royal Warrants from King William IV and Queen Victoria, soon earning the right to title itself \u201cChemists to the Royal Family\u201d, which continued well into the 20th century as the company\u2019s products were sent as far afield as the Americas, Asia and Africa.<\/p>\n

A particularly proud moment for the company occurred in 1953 when Savory and Moore was chosen to provide the \u201canointing oil\u201d used in the coronation of Queen Elizabeth II as monarch of the UK.<\/p>\n

While over time Savory & Partners traded in medicines and healthcare products for passports and residency applications, Savory says that the company\u2019s original motto of \u201cdiligence and hard work\u201d is equally applicable to the business it finds itself in today. \u201cWe are very diligent about who we take on, and we have to vet our clients. That involves hard work.\u201d<\/p>\n

The success the company has had in acquiring additional citizenships for clients, Savory says, is largely a reflection of the careful vetting process designed to weed out applicants unable to demonstrate they are \u201cclean\u201d \u2013 not involved in money laundering, fraud or other dubious activities \u2013 as well as that they have the financial means necessary to make the process successful.<\/p>\n

\u201c[People should be] transparent in the application, and there should be nothing to hide. That\u2019s never truer than in today\u2019s times when the topic of sovereignty is highly sensitive,\u201d he says. \u201cIf they aren\u2019t truthful with us, then I can tell them that it won\u2019t go any further and they are only fooling themselves.\u201d<\/em><\/p><\/blockquote>\n

Additionally, Savory says the company is very straightforward with potential clients about their chances of success \u2013 even if there aren\u2019t any \u2013 which differentiates it from the many companies operating around the world that promise what they can\u2019t deliver. \u201cI think maybe sometimes clients come to our company because we can tell them \u2018it\u2019s not going to happen\u2019, or that they need to do this and change that. There are a lot of companies that say \u2018yes\u2019 without actually knowing what the solution is, or saying \u2018yes\u2019 and knowing full well that \u2018no\u2019 is the answer. Clients need to know they are getting qualified [expertise] and are aware of the situation,\u201d he says.<\/p>\n

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\u201cWe don\u2019t take on all files because we are happy with the success rate we have and the high volume of files we have already. I don\u2019t want to have a client that isn\u2019t successful, especially if it\u2019s something we could have avoided. We really invest our time and in-house due diligence policies to make sure the clients we take on get their citizenship. Contractually, if they don\u2019t, we have to refund them the full amount of our fees.\u201d<\/em><\/p>\n<\/blockquote>\n

The right time<\/strong><\/span><\/h2>\n

For those inclined to seek a second citizenship, Savory says \u201cthe timing is right. Affordability is there, although application checks are becoming more and more stringent. If you are rejected for a visa then you are automatically ineligible for half the country programmes.\u201d<\/p>\n

While this strong demand has led new countries \u2013 such as Montenegro, Armenia, Kazakhstan and others \u2013 to introduce or plan to introduce citizenship or residency by investment programs, it has also brought with it problems that make finding the right citizenship by investment agent essential.<\/p>\n

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\u201cIt\u2019s getting tougher to obtain a second passport definitely, but I think that gives me comfort. The higher levels of governance then the longer such programs can continue to exist for those seeking second passports. I had to earn every government accreditation available, so I welcome increased industry scrutiny and regulation.\u201d<\/em><\/p>\n<\/blockquote>\n

Getting what you paid for<\/strong><\/span><\/h2>\n

Savory helps to unpack the murkier world of the second-passport business<\/p>\n

Although Jeremy Savory says it\u2019s impossible to gauge how many unscrupulous or unethical companies exist in the industry, he believes it is a problem that is \u201cgetting worse and worse\u201d as more people become interested in the possibilities that come with a second citizenship.<\/p>\n

While Savory & Partners is authorised and vetted to operate by the governments it works with, there are many companies that aren\u2019t, he says. \u201cUnfortunately, we have a lot of competitors that aren\u2019t accredited because they don\u2019t meet the criteria,\u201d he notes.<\/p>\n

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\u201cIn this business, there is limited industry data or qualified guidance and too much distrust and misinformation. There must be four or five \u2018passport strength indices\u2019, each one provided by a different company. How impartial is that data?\u201d<\/em><\/p>\n<\/blockquote>\n

Another problem, Savory finds, is that many clients shop around for the best deal \u2013 an approach that can be problematic when it comes to finding a second citizenship.<\/p>\n

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\u201cOur clients are typically self-employed business owners. They want a good deal and thrive on opportunities to buy a house or a car for a good price. The problem is that, unlike cars and houses, passports don\u2019t arrive for a few months. You don\u2019t get to \u201ctry before you buy\u201d. You are either successful or not. Since 2017 there has been a one strike rule. If you are rejected once then you are rejected everywhere. It\u2019s not worth the risk.\u201d<\/em><\/p>\n<\/blockquote>\n

Our Availability<\/strong><\/h3>\n

We are available on every channel convenient for you.<\/p>\n