Why is it important to have a "plan B"?
How can Ukrainians abroad cope with new restrictions and maintain their legal status? Strategies for obtaining a second passport and investment residency permits can help avoid document-related complications.
The new Ukrainian mobilization law, which has sparked widespread public debate, came into effect on May 18, 2024. Ukrainians living abroad are concerned about new provisions that complicate obtaining consular services for military-eligible individuals if certain conditions are not met. For example, there are difficulties in obtaining a new foreign passport—an important document outside of one’s homeland. More details on how these changes affect Ukrainians abroad and what solutions are available can be found in the article "Strategies for Ukrainians Abroad."
There are three main ways to obtain citizenship:
- By Descent: Obtaining citizenship in a country where you have ancestral roots and where citizenship is granted based on this descent.
- By Investment Program: Participating in a citizenship-by-investment program, where you receive citizenship in exchange for significant investments in the country’s economy.
- By Naturalization: The process of obtaining citizenship after living in a country for an extended period and fulfilling all the requirements for naturalization, but without yet acquiring citizenship.
Let’s examine the key differences between a passport and a residence permit .
What are the fundamental differences between a passport and a residence permit?
Why do many people seek a second passport? A second passport offers versatility and allows maintaining an active status without the need for permanent residence in the issuing country. This is especially important for those facing difficulties obtaining a new passport at their country's consulate. Here are two examples:
- Lost Passport: If you lose your foreign passport and are unable to obtain a new one at a Ukrainian consulate, your European residence permit may become invalid. A second passport does not affect this issue, allowing you to use it to manage your residence permit in other countries.
- Filled Pages in Passport: If your Ukrainian foreign passport is full and you cannot obtain a new one from the consulate, this can complicate the renewal of your residence permit in Europe. A second passport allows you to continue with your residence permit without needing a new Ukrainian passport, as it serves as a standalone document.
Thus, if you plan to live in one country while obtaining citizenship in another, arranging a residence permit with a second passport is a sensible solution. You can start the process of obtaining a second passport and residence permit simultaneously and then link the residence permit to the new passport.
There are several options for obtaining a second passport. Let's explore them in more detail.
Citizenship by National Origin
Many countries offer citizenship based on national origin. For Ukrainian citizens, the most likely options include Poland, Hungary, Romania, Moldova, Bulgaria, Israel, Germany, Armenia, Serbia, Latvia, Lithuania, and Slovakia.
Israel has specific rules: you must be Jewish by maternal lineage or the widow/widower of a Jew, complete a conversion (Giyur) to Judaism, and not belong to another religion. In practice, religious affiliation is not always checked, but it is important to note that mandatory military service applies to both genders (conscription age up to 27 years), and the country is in a state of conflict. Therefore, it is crucial to thoroughly research the conscription rules.
For other countries on the list, proof of descent from citizens or ethnic groups of that country is required. This may include birth certificates, church records, or evidence of maintaining national customs and culture. In some countries (e.g., Romania, Armenia), it is sufficient to prove lineage up to the level of grandparents, while others (e.g., Hungary) may require knowledge of the language.
Remember: Obtaining a passport based on national origin is a popular scheme among fraudsters who offer to "find" roots in the desired country using fake documents. Using such documents can lead to serious problems in the future.
Citizenship by Investment
If you wish to quickly acquire citizenship in another country and cannot claim citizenship by national origin, consider investment citizenship programs. These programs allow you to obtain a second passport within a short period. Currently, 10 countries offer citizenship programs for investors, and all but Malta, Saint Kitts and Nevis are available to Ukrainians. When choosing a program, consider the following factors:
- Investment Options: Programs offer both passive investments (non-refundable contributions to development funds, stock investments, real estate investments) and active investments (starting a business, creating jobs, running a business). Often, both options are available but with different minimum investments.
- Investment Amount: Investment requirements range from $100,000 to $1 million. The stated amount typically applies to an individual. Don't forget to factor in additional processing fees, which also vary.
- Passport Strength: Different countries with investment citizenship programs offer varying visa-free destinations. Determine where you plan to live and which regions are important for you to access without a visa.
- Processing Time: In conditions of instability in your home country, a fast citizenship process is crucial.
- Residency Requirements: Most countries do not require physical presence for citizenship, but there are exceptions that may involve minimum residency.
These criteria guided us in selecting the most relevant programs for Ukrainian citizens:
- Malta Program:The cost starts from €610,000, which includes a donation to the National Development Fund and a €10,000 charitable contribution to a non-governmental organization. Additionally, you’ll need to rent property for 1 or 3 years at €16,000 per year. If you prefer to purchase, the total amount will be from €1,300,000, with €600,000 for the donation and at least €700,000 for the property purchase.
- Jordan Program: The minimum investment is $750,000, but for most investors, the optimal amount is $1 million. The passport allows visa-free access to only 55 countries.
- Turkish Program:The investment amount is $400,000, but only the real estate investment option is available.
- Egypt: Accepts non-refundable contributions starting from $250,000. However, in terms of passport strength and visa-free destinations, this program is more suitable for those working with the African market.
- Antigua and Barbuda:The conditions are similar to other Caribbean countries but require investors to spend 5 days on the islands. The passport is issued for 10 years and allows visa-free entry to 145 countries.
- Dominica: The document verification process in Dominica is simpler compared to other Caribbean countries, and the minimum investment amount starts from $200,000. However, the lack of visa-free entry to the UK makes Dominica less popular among other Caribbean options.
After analyzing all available programs for Ukrainians, we identified three optimal options: Vanuatu, Saint Lucia, and Grenada. These programs offer relatively low costs, quick passport issuance, the possibility of processing documents entirely remotely, and no requirements for minimum residency in the country. Investors can obtain a passport without visiting the new country of citizenship. Additionally, these countries do not impose taxes on international income for tax residents (Vanuatu does not tax any income), which is especially relevant for those looking to reduce their tax burden and who are willing to spend at least 183 days a year in the country.
Vanuatu
Processing Time for Passport: 3-6 months.
Features:
- Fastest passport acquisition process for investment globally.
- Simple document verification procedure (fewer additional requirements).
- Low cost for families.
- No visa-free access to EU countries and the UK.
- Siblings cannot be included in the application.
Eligible Family Members:
- Spouse.
- Unmarried children.
- Parents of the main applicant and their spouse.
Investment Options:
Non-Refundable Donation to the Country Development Fund:
- For one applicant: $130,000 + fees $5,000.
- For a family of two: $150,000 + fees $5,000.
- For a family of four: $180,000 + fees $5,000.
Investment in Coconut Oil Fund:
- Available for a family of 1 to 4 persons.
- Investment amount: $157,000 (regardless of the number of applicants) + fees $8,000.
- Partial refund of $50,000 after 5 years.
Investment in Cocoa Development Fund:
- Available for a family of 1 to 4 persons.
- Investment amount: $150,000 (regardless of the number of applicants) + fees $5,500.
- Income-generating opportunity.
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Saint Lucia
- Processing Time for Passport: 6-10 months.
- Features:
- Visa-free entry to the Schengen Area, the UK, and other countries, plus the possibility of obtaining an e-visa for Canada.
- Simple document verification procedure in Caribbean countries (fewer additional requirements).
- Ability to include minor siblings in the application.
- Eligible Family Members:
- Spouse.
- Unmarried children up to 30 years old.
- Parents of the main applicant and their spouse.
- Unmarried siblings of the main applicant under 18 years old.
Investment Options:
Contribution to the Saint Lucia National Economic Fund:
- For a single applicant: $240,000 + fees of around $12,000.
- For a family of two: $240,000 + fees of around $19,000.
- For a family of four: $240,000 + fees of around $21,500.
Investment in Government Bonds:
- For a single applicant: $300,000 + fees of around $62,000.
- For a family of two: $300,000 + fees of around $69,000.
- For a family of four: $300,000 + fees of around $71,500.
Contribution to Enterprise Projects:
- For a single applicant: $250,000 + fees of around $12,000.
- For a family of two: $250,000 + fees of around $19,000.
- For a family of four: $290,000 + fees of around $21,500.
Investment in Real Estate:
- For a single applicant: $300,000 + fees of around $42,000.
- For a family of two: $300,000 + fees of around $64,000.
- For a family of four: $300,000 + fees of around $96,500.
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Grenada
- Processing Time for Passport: 6-10 months.
- Features:
- Visa-free access to the Schengen Area, the UK, Singapore, Hong Kong, China, and other countries.
- eVisa access to the UAE, Australia, India, and other countries.
- Long-term visa for the USA.
- Eligible Family Members:
- Spouse.
- Unmarried children up to 30 years old.
- Parents of the main applicant and their spouse.
- Unmarried siblings of the main applicant over 18 years old.
Investment Options
Contribution to the National Transformation Fund (NTF):
- For a single applicant: donation of $235,000 + fees of around $12,000.
- For a family of two: donation of $235,000 + fees of around $21,500.
- For a family of four: donation of $260,000 + fees of around $26,000.
Investment in Real Estate:
- For a single applicant: real estate starting from $270,000 + fees of around $62,000.
- For a family of two: real estate starting from $270,000 + fees of around $71,500.
- For a family of four: real estate starting from $270,000 + fees of around $76,000.
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Which country to choose?
Vanuatu is ideal for:
- Those who want to obtain a second passport as quickly as possible without emphasizing freedom of movement.
- EU residence permit holders.
- Families with a large number of members.
St. Lucia would be a smart choice for:
- Those who want to apply more quickly, as the document requirements are simpler than in the rest of the Caribbean.
- Investors who want to include underage brothers/sisters in the application.
Grenada is the best option for:
- People who work with the Chinese market and plan to travel to China frequently.
- Those who want to include adult siblings in the application.
Which Residence Permit to Obtain in Europe in Addition to a Caribbean or Vanuatu Passport
If you plan to live in Europe with a passport from a Caribbean country or Vanuatu, consider the following investment residence permit programs:
- United Kingdom: Investment in startups. The UK offers a pathway for investors in innovative startups, though this option may require substantial involvement and commitment to the business.
- Switzerland: Requires an annual tax of 450,000 Swiss Francs. Switzerland’s residence permits are tied to high financial contributions, making it suitable for those who can afford significant tax commitments.
- Austria: German language proficiency is required. Austria’s residence programs may involve integration requirements, including language skills.
- Spain: High taxes and potential recognition as a tax resident even with short stays. Spain’s residence permits can be expensive due to high tax rates, and the tax implications may affect your financial planning.
- Italy: Possibility of citizenship after 10 years of residence. Italy offers a long-term residence permit with the potential for citizenship, but it involves a lengthy stay.
Particularly Attractive Options:
- Portugal: No minimum stay requirement and the possibility to apply for citizenship after five years. Portugal’s Golden Visa program is popular for its flexibility regarding residency and citizenship.
- Greece: Accessible residence permit through real estate investment, though costs may increase. Greece offers a relatively affordable investment route through property, though prices and requirements can change.
Each program has its unique advantages and requirements, so it’s important to choose based on your long-term goals, financial situation, and desired level of commitment.
Greece
To qualify for a residence permit in Greece, you must invest in real estate with a minimum value of €250,000. Starting from September 1, 2024, investment conditions in popular regions have changed, with the minimum amount now set at €800,000. The investments must remain in ownership throughout the entire duration of the "Golden Visa."
The "Golden Visa" provides residence rights for family members, including spouses and children up to 21 years old. They can live, work, and study in Greece and travel within the Schengen Zone without a visa. The visa application process takes several months, but a temporary certificate is issued upon application to allow entry into the country without a visa.
After seven years of legal residence in Greece, you can apply for citizenship. For more details about the "Golden Visa" program, you can learn more here or consult a Migronis lawyer.
Portugal
In 2023, Portugal made significant changes to its investment residency program. The option to obtain a "Golden Visa" through real estate investment was removed from the program.
Currently, investors have the following options:
- Create at least ten jobs.
- Invest at least €500,000 in research.
- Invest at least €250,000 in artistic production, restoration, or maintenance of cultural heritage.
- Invest at least €500,000 in investment funds based in Portugal, with a minimum term of five years, provided that at least 60% of the investment is made in Portuguese companies.
- Invest at least €500,000 in a company based in Portugal, either by opening a new company and creating five permanent jobs or by investing in an existing company and ensuring it creates at least five permanent jobs or maintains at least ten jobs. These investments must be retained for at least three years.
The average processing time for the "Golden Visa" in Portugal is 1.5 to 2 years. Do not delay your decision about obtaining a passport from a Caribbean country or a "Golden Visa" in Europe—the costs of investment programs are rising. This is especially crucial for Grenada, Saint Lucia, and Greece.
When choosing a country for residence, consider the taxes, which depend on your tax residency and source of income. For a free consultation and assistance in choosing the best option, please leave a request below, and our specialist will get in touch with you.