History and evolution of citizenship by investment—from an option for elites to a tool for smart people

The history of citizenship by investment is fairly recent, beginning in the 1980s when several small countries sought to attract capital by offering nationality in exchange for investment. Over time, these citizenship by investment (CBI) programs became a key tool for international mobility, asset protection, and tax planning, initially for elites and now for all kinds of smart people.

Their evolution reflects how citizenship has gone from being something given, like eye or hair color, to being a strategic choice. Citizenship by investment programs are becoming increasingly popular, especially in recent years. Not only are they an extremely lucrative method of filling the coffers of the countries that offer them, but they are also a powerful tool for buyers who want to gain a little more individual freedom internationally.

Not surprisingly, citizenship is considered the queen of flag theory.

However, over the years, these programs have also caused geopolitical tensions, leading some nations to offer the possibility of purchasing their passport, only to later eliminate it and then offer it again.

Today, we are going to take a closer look at the history of citizenship for sale and analyze the reasons behind these somewhat extraordinary dynamics.

In recent years, it seems that more and more nations are offering citizenship in exchange for investment. Our chart, in which we have compiled and listed all citizenship offers since the start of the first program, shows that this is not just a perception, but a concrete trend.

The number of citizenship by investment (CBI) programs has been increasing worldwide in the period from 1982 to 2025. The data illustrates the extremely growing trend: since 2012 alone, offers have tripled by 2025.

In principle, CBI programs can be summarized historically in three phases. We refer only to official state programs in which citizenship is offered remotely, without the need for a (long) residency (naturalization) phase, in exchange for a donation or investment. We do not intend to be exhaustive here:

1. Initial phase (1982-1990):

• In the 1980s, the number of citizenship-by-investment programs was very small. In 1982, there was only one such program, which slowly increased in the following years to a total of seven programs in 1990.
• This phase shows the introduction and establishment of the concept in a small number of countries.

2. Stagnation (1991-2011):

• Between 1991 and 2010, the number of CBI programs remained virtually constant, with between six and seven programs. This indicates that, although the model remained in place, it did not experience significant expansion.
• The reasons for this stagnation were, in particular, regulatory challenges, but also historical events such as 9/11.

3. Dynamic growth (2012-2025):

• Starting in 2012, we see a significant increase in programs. From six programs in 2012, the number will increase to 18 in 2025.
• This growth reflects growing acceptance and demand, both from investors and from countries using these programs as an economic tool.

Let’s now look at these events explicitly throughout history:

Events in 1982

Tonga

The first passports sold by a nation were the so-called “Tonga protected person passports,” which were a kind of travel document but conferred virtually no rights: no citizenship, no right of residence, not even visa-free entry to Tonga. The only concrete advantages were that the passport allowed a certain freedom of travel (a few countries accepted Tongan passports) and diplomatic protection from the South Pacific nation.

The passport was already attractive at that time to people from regions in crisis or with restricted freedom of travel. However, many countries refused to recognize this passport, so shortly after the introduction of Tonga’s special passports, the country began selling full citizenship. This suggests that the original program may have served as a test or preliminary stage for a broader citizenship by investment (CBI) program. In any case, this first field test, followed by the sale of “real” citizenship, was the first, then still completely unregulated, initiative to sell nationality.

Events in 1984

Saint Kitts and Nevis

The second program was initiated by the Caribbean islands of Saint Kitts and Nevis and dates back to a time when many small island states were facing economic challenges after independence. Thus, after achieving full independence from the United Kingdom, Saint Kitts and Nevis also sought ways to strengthen its economy.

Events in 1985

Belize

The so-called “Belize Economic Citizenship Program” (CBI) was introduced in 1985. The aim was to attract foreign capital and investors by selling citizenship. The program offered full citizenship rights, except for the right to vote, and was particularly popular with Chinese investors, including immigrants from Hong Kong and Taiwan, in the 1990s. One of the main reasons was also the relatively low price, at only $40,000 for individuals and $50,000 for families.

Events in 1987

Marshall Islands

The Marshall Islands has close ties with the United States for historical reasons. The introduction of the CBI program in 1987 was particularly controversial, as there was no clear legal basis or transparent record for granting citizenship. In addition, security concerns were raised, as, in the opinion of the alliance partners, the identity and background of applicants were not sufficiently checked.

The Marshall Islands introduced the program primarily to generate much-needed revenue for its economy. At the time, the country was heavily dependent on international aid, especially from the United States. The sale of citizenship was intended to create an additional source of income.

Events in 1988

Ireland

In the late 1980s, the first European country attracted attention with a CBI program. The Passports for Investment Scheme required an investment of 1 million Irish pounds (approximately US$1.7 million) and had to contribute to the creation or maintenance of jobs in Ireland. In addition, applicants had to purchase real estate in Ireland. In return, the investor obtained full Irish citizenship, with all the European rights that this entails.

Events in 1991

Samoa

This CBI program, created in 1991, is considered one of the most controversial and, without a doubt, one of those that has given the entire sector the worst image.

The program is riddled with scandals, irregular sales, and often secret sales, leading to allegations of corruption. There was no public transparency about the number of passports sold or the revenue generated. Samoan passports were openly advertised in Hong Kong and Macau newspapers for US$70,000.

There were reports of dubious intermediaries selling passports for US$4,000. The prices of passports and citizenships varied considerably. Some sources mention prices ranging from US$26,000 to US$50,000 per person, depending on family status.

Events in 1992

Peru

The 1992 Peruvian citizenship-by-investment program was the first and, to date, the only one of its kind in South America. It shows the first attempts by states to attract investment by selling citizenship, which, however, met with strong public opposition. It was not necessary to be physically present in Peru, as citizenship could be obtained without ever setting foot on Peruvian soil. New citizens obtained voting rights and were subject to Peruvian tax legislation.

Events in 1993

Dominica

The program was officially launched in 1993, making it the second Caribbean country, after Saint Kitts and Nevis, to introduce such a program. Among other things, the loss of visa exemption for entry into Canada for Dominican passport holders in the 1990s brought the program to a near standstill by the end of that decade.

Peru: end of the program

Due to strong public criticism, Peru closed its program after only one year, making it the only country in South America to date that has dared to introduce CBI programs. Incidentally, the program continues to exist unofficially to this day: through certain channels, it was possible to obtain citizenship after two years—Peru has one of the shortest naturalization periods in the world—without the minimum required stay of six months per year, thanks to legal loopholes that justify absence from Peru for work reasons.

Events in 1996

Grenada

The introduction of the so-called “Honorary Citizenship Program” was highly controversial in public debate from the outset. There was considerable political resistance to the idea of granting citizenship in exchange for investments. In addition, concerns were expressed about due diligence processes.

Cambodia

In the 1990s, Cambodia suffered the aftermath of a devastating civil war that severely affected the country’s economic development. Although the main conflict officially ended with the 1991 Paris Peace Agreement, fighting with the Khmer Rouge continued until the late 1990s.

Thus, in the 1990s, the country was considered one of the least developed. To gradually counteract this situation, a CBI program was implemented, for which the country also reformed its nationality law and allowed dual nationality. Cambodia is therefore the only country in Southeast Asia to offer a CBI program. Due to the possibility of changing one’s name to a Khmer identity and the limited selection of applicants, the program has a very poor reputation.

Tonga: end of the program:

The country of the first CBI program is ending its offer. Studies estimate that, until 1996, Tonga sold around 8,450 passports, generating gross revenue of approximately US$92.95 million, or 6.5% of gross domestic product. The decision to end the program appears to have been the result of a combination of domestic political pressure, international criticism, and the achievement of economic goals.

Marshall Islands: end of the program

The program was suspended following international pressure. The United States in particular insisted on this, as it saw security risks and feared that the passports would be used primarily for illicit purposes. Even today, the Marshall Islands, like many other island states, are associated more with tax evasion. However, companies in the Marshall Islands remain one of the most attractive anonymous offshore companies, especially for shell companies.

Events in 1997

Samoa: end of the program

Samoa’s scandalous program closes a few years after its launch. It contrasts sharply with modern, regulated citizenship-by-investment programs and highlights the risks of an unregulated system for the sale of citizenship. During an investigation, Samoan officials were unable to account for 4,422 passports and ten receipt books. This pointed to massive abuse of the system and damaged the reputation of all CBI programs. However, Samoa is only temporarily withdrawing from the international CBI scene.

Events in 1998

Nauru

Following the decline of phosphate mining (one of the country’s main sources of income), Nauru attempts to diversify its economy with its “Nauru Economic Citizenship Program” and enters the international competition for financially powerful investors. The introduction of the program met with considerable resistance, especially from Australia. The Australian government even threatened to revoke the recognition of Nauru passports, which would have affected many Nauruans living in Australia. The cost of a passport under the first program was only US$15,000.

Pakistan

Pakistan launched its CBI program with a minimum investment of $1 million, which is no longer active in this form today. Instead, there is another program specifically for citizens of Commonwealth countries, which requires a relatively insignificant investment compared to the original amount, around $18,000, to acquire Pakistani citizenship. However, according to official figures, no one wants to become Pakistani.

Ireland: end of the program

Ireland ended its CBI program a few years after its launch. The reason was public scandals and the resulting fear that Ireland would lose its international reputation. In addition, analyses revealed that, in the long term, the program did not bring economic benefits to Ireland, so the country did not want to continue justifying the controversies. With the imminent introduction of the European Economic and Monetary Union (EMU) in 1999, Ireland also came under external pressure to bring its rules into line with EU expectations. The sale of citizenship no longer fit in with the new economic and political conditions, so it was decided to eliminate the program. However, until 2023, Ireland continued to offer a golden visa, i.e., a permanent residence permit that can lead to citizenship after five years of residence. However, with an investment of €1 million, it was not exactly cheap either.

Events in 2001

Comoros

The Comoros program was one of the first of its kind in Africa and attracted international attention due to its relatively low investment threshold. The main applicant only had to pay around US$45,000. The investment was conceived as a non-refundable “donation” to government projects. However, it proved particularly attractive to people who were more interested in obtaining a new identity document than in the freedom to travel the world. Arab countries, in particular, were generous in providing local “stateless persons” with new citizenship.

Grenada: end of the program

The events of September 11 had a significant impact on several CBI programs, as they were called into question in the international debate for posing a potential security risk. Some CBI programs were identified as potential weak points in the fight against terrorism. Due to political pressure and growing concerns about due diligence processes, Grenada closed its CBI program. Temporarily.

Events in 2002

Belize: end of the program

Belize also closes its program for the same reasons as Grenada.

Events in 2003

Nauru: end of the program

And for Nauru, too, after 9/11, the CBI program came to an end. After specific concerns arose about terrorists obtaining Nauruan passports, the program was permanently closed under pressure from the United States.

Events in 2011

Cyprus

Cyprus, the first country to offer full EU rights, freedom of travel, and other privileges, introduced its first structured CBI program in 2011. This required a minimum investment of €10 million. These investments could take various forms, such as the purchase of real estate, the creation of companies, or investment in shares and, for example, government bonds.

The introduction of the structured program in 2011 marked an important milestone in the development of the Cypriot CBI program and laid the foundation for further adjustments and expansions of the program. By requiring the submission of a criminal record certificate, Cyprus sought to establish its program as a particularly “clean” and structured CBI program.

Events in 2013

Grenada

Grenada’s CBI is back. Following the suspension of the “Honorary Citizenship Program,” a new, revised CBI program was introduced in Grenada in 2013. This program took into account the experience gained with the previous Honorary Citizenship Program and introduced stricter controls and higher investments.

The 1996 Honorary Citizenship Program was therefore an early precursor to today’s citizenship-by-investment programs in the Caribbean, which, despite initial controversies, paved the way for better-structured programs later on.

Antigua and Barbuda

The Antigua and Barbuda program is another program that not only guarantees excellent travel freedom but also offers advantages within the CARICOM community. With a minimum investment of US$230,000 for individuals or US$260,000 for families, the program is one of the most affordable. However, it also shows the increasing professionalization of CBI programs, which have fallen into disrepute with the public due to scandals, suspicious machinations, and security concerns following 9/11.

Events in 2014

Malta

The Malta Individual Investor Program was launched in 2014 following an amendment to Maltese citizenship law. The introduction of the program led to discussions with the European Union. As a result, a requirement to reside for one year before obtaining Maltese citizenship through investment was added. Malta also created a specific authority responsible for conducting due diligence checks and recommending candidates for citizenship.

The original 2016 program had a cap of 1,800 accepted main applicants. When this quota was reached at the end of 2020, Malta introduced a revised program, known as “Maltese Naturalization for Exceptional Services through Direct Investment.” Today, it is considered one of the best-structured programs and has almost nothing in common with the early days of CBI programs worldwide.

Vanuatu

Vanuatu’s CBI program is one of the most interesting and, after some reforms since 2014, is now one of the fastest and easiest programs to obtain citizenship in an internationally recognized country, whose passport opens many doors to strategically interesting destinations. We liked the program so much that founder Christoph Heuermann decided to obtain this citizenship as a second passport. We have dedicated a page with all the details to the Vanuatu program, where you can find out in detail about one of the most solid options for obtaining a second passport. The application is simple and the procedure clear and easy.

Events in 2016

Saint Lucia

Although the Saint Lucia program is not particularly old, it has already undergone several reforms to make it more competitive with other Caribbean CBIs. There is the possibility of investing in real estate, businesses, and government bonds, making Saint Lucia the only Caribbean country to offer government bonds as an investment option for obtaining citizenship.

Turkey

The Turkish CBI program has undergone very dynamic development since its introduction, with continuous adaptations. Initially, a minimum investment of US$1 million was required, but this investment threshold was subsequently reduced to US$250,000 due to low demand. Currently, investments range from US$400,000 to US$500,000, depending on the route chosen, and the program is one of the most successful in the world.

Comoros: end of the program

Following the election of a new president in 2016, the program was reviewed and eventually closed. It was later discovered that the program had been characterized by widespread corruption and abuse. Between 2009 and 2016, around 52,000 passports were sold under the program, a figure far higher than officially authorized. No evidence of large sums of revenue could be found in the Comoros’ public accounts. This program continues to be advertised, which constitutes fraud.

Events in 2017

Samoa

Samoa is back on the CBI map. However, with moderate success. The previous program was unregulated and caused considerable damage to Samoa’s reputation. In contrast, the 2017 program is well structured and transparent, but has so far been largely unsuccessful due to its high requirements. The differences show Samoa’s efforts to learn from past mistakes and create a serious CBI offering, albeit under conditions that are difficult to compete with (e.g., a three-year waiting period or investments that are unusual in the area).

Events in 2018

Jordan

One of the few options in the Middle East. When it was introduced, investment thresholds ranged from $1 million for investments in small and medium-sized enterprises to $2 million for job creation projects. These amounts were partially reduced by half for the different investment routes. Although the investment remains high for a passport with limited travel capacity, the program is one of the few options in the Middle East.

Moldova

The Republic of Moldova also attempted in 2019 to attract foreign direct investors and promote the country’s economic development with a minimum investment of €100,000. As the country constantly faces accusations of corruption, partly due to the unstable legal situation with Transnistria, the program was subject to scrutiny from the outset.

Montenegro

Montenegro’s CBI program was initially planned for a three-year period, until December 31, 2021, and was to be limited to 2,000 applications. Initial investment options included a €250,000 investment in development projects in underdeveloped regions or a €450,000 investment in developed regions, plus €100,000 in government fees. These fees were subsequently increased and pending applications were processed until the end of 2023. The program has generated around €500 million in total investments, mainly in real estate and luxury tourism projects along the coast. Its reintroduction has not been ruled out.

Events in 2019

Moldova: end of the program

The Republic of Moldova’s brief foray into the world of citizenship-by-investment programs ends after just one year, as in 2019 the country suspends the program and the Moldovan Parliament finally repeals the citizenship-by-investment law entirely. The reasons for the suspension were concerns about corruption, tax evasion, and money laundering, pressure from the EU, which viewed the program critically, and changes in Moldova’s domestic politics. According to reports, the Moldovan CBI program only contributed €545,000 to the state budget, much less than the €1.3 billion that was initially expected.

Events in 2020

Egypt

The first country on the African continent launches its CBI program. With a minimum investment of $250,000, you can acquire a passport from this Arab country. Despite initial doubts about possible money laundering, the program has established itself as an important economic factor for Egypt and continues to attract investors from around the world.

Cyprus: end of the program

The main trigger for the abrupt end of Cyprus’s CBI was a scandal caused by a revelation by Al Jazeera. The investigation revealed that high-ranking politicians were involved in questionable practices in the granting of “golden passports.” This led to serious allegations of corruption and undermined confidence in the program, resulting in its immediate suspension and termination. In addition, due to high real estate investments, the program was largely responsible for extreme inflation in real estate prices in some areas of Cyprus, far removed from actual market value.

Events in 2021

North Macedonia

With a minimum investment of €200,000, North Macedonia is also opening its CBI program, which in previous years had a rather unofficial and unstructured framework.

Events in 2022

Montenegro: end of the program

As planned, the Montenegrin program, which was of limited duration, comes to an end, although pending applications were processed until 2023.

Events in 2023

El Salvador

The first country in Central America introduces its “freedom visa,” which is unique in that bitcoin is accepted as official currency in the country. Those willing to pay the US$1 million investment can pay for the passport in either fiat currency or cryptocurrency. Compared to other programs, the investment is relatively high, but the due diligence is very low.

Events in 2024

Nauru

The so-called “Nauru Economic Citizenship and Climate Resilience Program” offers investors the opportunity to acquire citizenship of the island state of Nauru while supporting sustainable projects to strengthen the country’s climate resilience, an important issue for the country. The program can be completed entirely remotely, including virtual interviews, and there are no residency requirements. The investment requirement is US$105,000 for individual applicants. The program combines sustainable engagement with a passport that allows for easy travel and a straightforward application process.

Events in 2025

Sierra Leone

The newest of all CIB programs and the first in West Africa. This citizenship gives you access to the countries of the Economic Community of West African States (ECOWAS) and offers simplified investment and travel opportunities in the region. With a DNA test proving your African origin, the process is not only faster but also cheaper. Residence can even be obtained through an investment in gold. A program that offers more opportunities than meets the eye.

Further countries for obtaining citizenship by investment

As experts in the field of residence and citizenship by investment, we know that this dynamic sector still has a lot to offer. More and more countries are introducing programs of this type, despite strong pressure from the EU, for example. In 2025, there could be some very interesting announcements in this area. With us, you will be one of the first to know!

If you are interested in acquiring citizenship under the CBI principle, let us advise you. Not only do we have years of experience in the programs and in mediation, but we ourselves have gone through the process in a very short time. Get in touch with us!