Global Residence and Citizenship Handbook. Christian H. Kälin

the acquisition of alternative citizenship, it is important to always obtain proper advice from reputable legal advisors, and to check the citizenship laws and procedures of the relevant country. This is particularly important if citizenship is sought on the basis of an investment or other direct contribution to a country. Unfortunately there are many illegal activities and it is safe to assume that many offers are fraudulent. What makes matters worse is that sometimes even seemingly reputable professionals have been found to be involved in what turned out to be fraudulent offers. For example, between November 2010 and May 2011 a Canadian immigration lawyer and a private client lawyer based in Switzerland simultaneously offered citizenship in Iceland for a USD 400,000 investment in some private equity fund. Iceland’s citizenship law requires the passing of a parliamentary bill in order to grant citizenship to a foreigner outside the normal naturalization procedures. A simple check of the Citizenship Act would have revealed this, yet the “marketing” activities of these lawyers made it necessary for the Icelandic Government to publish an unequivocal statement. The government statement underlined that Iceland has never had in the past and has no intention to establish any kind of citizenship-by-investment program.⁴³

      Bulgaria has an Investor Immigration Program that leads to permanent resident status if certain investments are made and conditions are met, which later on can lead to citizenship. However, Bulgaria does not have a citizenship-by-investment program as such (although provisions in its law would allow it, and are sometimes used to give citizenship to business people under unclear circumstances). Despite this, some agents mislead interested investors to make them believe that Bulgaria does in fact offer a formal citizenship-by-investment program.

      Likewise, there are many companies now which provide services under legal programs (like St. Kitts and Nevis) but where either the company or persons involved have a questionable reputation or are linked to government officials, or real estate developments are being promoted which do not pass closer scrutiny.

      2.4Criteria to consider when acquiring citizenship

      The most important criterion when acquiring alternative citizenship is that the acquisition is in accordance with the constitution and laws of the country, i.e. that it is legal. This seemingly obvious premise needs to be pointed out specifically in this context.

      Citizenship documents and passports obtained by illegal means such as bribery are sadly not uncommon. In many countries it is possible to make (illegal) direct payments to corrupt government officials in return for passports and citizenship documents. Holders of such documents run a serious risk of exposure, arrest and deportation. Even in those countries where the law gives the President, Prime Minister or other government ministers relative discretion regarding the granting of citizenship, if any payments are involved, these are bribes – a crime in almost every country. Often the result is a revocation of previously granted citizenship and passports, for example after a change of government. Persons who have acquired documents this way are also frequently blackmailed and forced to pay further ‘fees’ later on.⁴⁴ It is therefore crucial that citizenship is obtained based upon specific provisions in the law and clear, official procedures.

      A related criterion is that the granting of citizenship and the passports issued in conjunction therewith have to be recognized by other countries. If full citizenship has been granted based on the legal provisions of a country, it will normally be recognized by other countries. However, if only non-citizens passports are granted, generally this is not a good option. One example is Panama where a (legal) non-citizens passport under the retiree residence program can be acquired.

      Other important points to consider when intending to become a citizen of choice include the geographic location of the country, the official language, political and economic stability, the legal system, the banking and business environment, visa-free travel possibilities for passport holders of that country, the reputation of the country and the passport, and of course initial and future overall costs.

      You will also need to consider restrictions on dual citizenship. Some countries do not allow you to hold any other citizenship besides theirs. About half of the world’s countries allow dual nationality, and the other half does not allow you to be a citizen of another country at the same time. Among those countries which do not allow dual nationality, various degrees of strictness can be observed, but often the acquisition of another citizenship without first obtaining a formal permission (which may or may not be obtainable) leads to the automatic loss of one’s current citizenship. Therefore, one needs to carefully check the legal situation in the home country with regard to dual citizenship, prior to taking any steps to acquire another citizenship.

      The following is an overview of citizenship regulations in selected countries.⁴⁵

      Selected countries which allow dual citizenship

      

       Source: KALIN (2014)

¹ Generally not allowed; persons retain their former citizenship only if they apply for permission so prior to taking out another citizenship. Otherwise citizenship is generally lost ex lege; in Austria: additionally Austria allows dual citizenship if Austrian citizenship is acquired under § 10 (6) of the Austrian Citizenship Act

      ² According to Chapter 14, Annex J-Article 6* of 1951 Pakistani Nationality Law and the amendments 1952,1972,1973 and 2000, holding dual citizenship was not permitted. But now the government of Pakistan recognizes and allows its citizens to also hold citizenships of 16 countries, including Australia, Belgium, Canada, France, Iceland, New Zealand, Sweden, Switzerland, the United Kingdom, the United States, and others

      ³ Only under limited circumstances, cf. http://www.dualcitizenship.com/countries/lithuania.html; https://usa.mfa.lt/usa/en/travel-and-residence/consular-issues/citizenship-of-lithuania

      On the other hand, countries which do not allow the acquisition of another citizenship include the following:

      Selected countries which prohibit dual citizenship

       Source: KALIN (2014)

      ²⁰Wallerstein (1974) and Zolberg (1981)

      ²¹See Ong (1999)

      ²²See for example Torpey (2000), Lloyd (2005), Joppke (2010), Hokema (2002)

      ²³See The Henley & Partners Visa Restrictions Index (HVRI); www.henleyglobal.com/hrvi

      ²⁴This can happen even to citizens of small and generally neutral countries, as Danish citizens experienced following the publication of Mohammed cartoons in the Jyllands-Posten newspaper in Denmark on 30 September 2005

      ²⁵The Economist, 19 February 2013 “Tourist visas: You’re not welcome”

      ²⁶For a good discussion of the differences between residence and citizenship statuses, see Joppke (2010)

      ²⁷See Betten (1998) and Chapter 3 in this book

      ²⁸See Ong (1999)

      ²⁹For example in St. Kitts and Nevis

      ³⁰Although some countries, such as the UK and New Zealand, have introduced limits to the passing on of citizenship infinitely through blood line if not also remaining a resident

      ³¹See Hokema (2002) and Hansen/Weil (2001) on multiple citizenship