CITIZENSHIP EUROPEAN

FREQUENTLY ASKED QUESTIONS

WHAT IS CITIZENSHIP BY INVESTMENT SCHEME?

Citizenship by Investment (CBI) scheme is offered by many countries and jurisdictions, which can allow a foreign person to get citizenship, and passport of another country. With the Citizenship by Investment program, you can get a second passport and permanent residence in many countries all over the world. Foreign persons can get citizenship by investment by donation or investment in the county’s economy.

This program can help you with your business, you can start or expand your business in a legitimate way, with greater mobility because of the visa-free system travel. If you are coming with your family, your children can get a better education, and later better opportunities for job. You can choose a country which has political stability and gains security and a peaceful life for you and your family. The potential problem can come up when the person does not reside in the particular jurisdictions of tax residence but claims to be inhabitant for tax purposes only.  

WHICH CBI SCHEME PRESENT A POTENTIALLY HIGH RISK?

Only a CBI scheme that presents potentially high risk is the scheme that gives taxpayer access to a low personal income tax rate of less than 10% on offshore financial assets. Those CBI schemes do not require your presence of 90 days in the jurisdiction of the CBI scheme. Most persons want to avoid the CRS via CBI scheme, but they do not want to leave their origin country and change their lifestyle. You must change your location by many CBI jurisdictions, and many people are not willing to do that. Is this happen, only this specific residence documentation should be seeming as a potentially high-risk in the context of the CRS due diligence procedures, and subject of the check for Financial Institutions.

WHAT SHOULD FINANCIAL INSTITUTIONS DO?

Financial Institutions may not rely on a self-certification or Documentary Evidence if it suspects that the documents are incorrect and unreliable. The Financial Institution should include also the results of the OECD’s CBI analysis before the decision that a self-certification or Documentary Evidence is incorrect or unreliable. When they enter all relevant information into account, the facts and circumstances, the Financial Institution would have no doubts about the tax residency of an Account Holder or Controlling Person.
The Financial Institutions can ask further questions, which you can read down below if they find any potentially high-risk CBI scheme: 
• Did you get home rights under a CBI scheme?
• Do you have already residence rights in any other jurisdiction?
• Have you spent more than 90 days in any other jurisdiction during the preceding year?
• Have you filed any personal income tax returns during the preceding year, and in which country that would be?

The answers to these questions will help Financial Institutions to find out if the self-certification or Documentary Evidence improper or unreliable. 

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