Panama Scraps Threshold Hikes, France Flirts with Citizenship Tax, 200k Indians Renouncing Citizenship, ++

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Investment Migration This Week

Summaries prepared by James Nuveen

Panama has decided to maintain its $300,000 minimum investment threshold for the Qualified Investor Permanent Residency (QIPR) program's real estate option, while also introducing new flexibility in payment methods and allowing property co-ownership with family members. Offering immediate permanent residency and a path to citizenship after five years, the program has seen record-breaking success in 2024. The decision to maintain the lower threshold comes amid strong demand across Panama's immigration programs, with the country maintaining an impressive 98.6% approval rate for all capital-based visa applications.

?Taiwan's new Global Elite Card visa policy targets high-end global talent in fields like AI and semiconductors, requiring applicants to earn an annual income of NT$6 million (US$187,000) in Taiwan to qualify for benefits including fast-track permanent residency. The income threshold is significantly higher than Taiwan's average salary and the requirements of its previous Gold Card visa program. IMI Pro Siren Chen argues this approach focuses more on wealth than talent acquisition, especially when compared to more flexible talent visa programs in Hong Kong, Macau, and Singapore that emphasize professional background and past achievements rather than future income potential.

The European Court of Justice's Advocate General has issued an opinion favoring Malta in the EU Commission's case against its citizenship by investment program. Professor Dimitry Kochenov argues that the Commission's case rests on ancestry being superior "genuine links" to citizenship, which contradicts the EU's founding principles of non-discrimination and free movement.?

The potential Court ruling in favor of Malta’s CBI could lead to growth in citizenship by investment programs across Europe, as the Commission would need to cease its opposition to such programs.

France's Finance Committee has adopted an amendment proposing a "targeted universal tax" that would require French citizens living in low-tax countries (those with tax rates at least 50% lower than France's) to pay the difference between their current tax obligations and what they would owe in France, including income, inheritance, capital gains, and dividend taxes. The system would affect French nationals who lived in France for at least three years within the decade before relocating.?

While supporters like the National Rally party view this as a matter of citizenship duties, opponents raise concerns about implementation challenges (e.g. modifying 129 bilateral tax agreements) and its impact on French citizens abroad who don't access French public services.

Through September 2024, St. Kitts & Nevis experienced a dramatic 60% decline in CBI program revenue, dropping from EC$669 million in 2022 to EC$218 million this year. Recent reforms, including doubling minimum investment amounts and establishing stricter oversight measures which PM Drew blames for the program’s decline, were enacted in response to international pressure and threats to visa-free access privileges from the UK and EU.?

However, IMI Pros Kevin A. D. Hosam? , Nisha Mc Intyre IMCM , and Richard Hallam IM(Cert), IMCM, IGSD anticipate a recovery in 2025, citing new investment options and program adjustments that align with pan-Caribbean CBI standards.

Antigua & Barbuda’s brinkmanship on MoA implementation, which saw it remain the cheapest Caribbean CIP for a month, appears to have paid off. The Citizenship by Investment Program (CIP) has shown exceptional growth in the last year, with the first half of 2024 receiving 739 applications, surpassing any previous full year and showing an 8% increase over 2023's total of 685 applications. The National Development Fund remains the most popular investment option, generating US$63 million of revenue in H1 2024 and interest from Chinese (12%), Americans (11%), and Nigerians (9%). The CIP has generated nearly 60% of the government’s non-tax revenue and continues to be a vital economic driver for Antigua & Barbuda.

India's Liberalized Remittance Scheme (LRS) has seen remarkable growth from $1.1 billion in fiscal year 2014 to $31.7 billion in 2024, a 2,808% increase. Allowing Indian residents to remit up to $250,000 annually for various purposes, the scheme has experienced significant shifts in remittance patterns, with travel remittances showing the most dramatic growth at 106,000% over the decade, while investments in deposits, property, and equity/debt instruments have also shown substantial increases. Moreover, more than 200,000 Indians are now giving up citizenship each year.

In another installment of “10 on the Weekend,” IMI Daily interviews Eren Cicekdagi , Managing Director at Golden Gate Global , about his business focus and expectations for the future. Cicekdagi notes, “What surprised me most in the past year was the significant improvement in USCIS processing times following the RIA EB-5 adjustments in 2022.” Read the full interview at IMI Daily [dot] com.

Graph of the Week