Chapter 7. Managing Economic Citizenship Program Inflows: Reducing Risk and Maximizing Benefits


The number of economic citizenship programs (ECPs) has surged in recent years. An increasing number of countries, especially in the Caribbean, are offering opportunities to obtain citizenship or residency in exchange for a substantial financial contribution to the domestic economy. Following recent large inflows to St. Kitts and Nevis and Dominica under these programs, three other Eastern Caribbean Currency Union (ECCU) countries—Antigua and Barbuda, Grenada, and St. Lucia—launched their own ECPs during 2013–15. ECPs (also referred to as citizenship-by-investment programs) are particularly attractive to small states, for which inflows can be so large as to have a significant economic and fiscal impact. An increasing number of advanced economies are also offering economic residency programs. These programs are being mainstreamed because high-net-worth individuals consider citizenship or residency to be a means for improving international mobility, tax planning, and family security while also seeking investment opportunities.