El Salvador has introduced a new citizenship-by-investment program, aiming to attract wealthy investors by offering residency visas and a path to citizenship. This program requires a substantial investment of $1 million in Bitcoin or Tether, targeting 1,000 applicants.
Set at a notably higher price point than similar programs in neighboring Caribbean nations, which start at $100,000, El Salvador’s program was announced on December 7 as the “Adopting El Salvador Freedom Visa Program.” Participants must initially pay a $999 nonrefundable deposit, which is credited towards the total investment amount.
If fully subscribed, this initiative could generate $1 billion for El Salvador. This revenue model is significant for countries with analogous programs, such as Vanuatu, which earns millions annually from its citizenship-by-investment scheme.
Alistair Milne, founder of Altana Digital Currency, a crypto hedge fund, critiqued the program on X (formerly Twitter), labeling it as “uncompetitive in the global market.” He pointed out that for a lower cost, one could obtain citizenship in a European Union country, such as Malta, which offers citizenship for 750,000 euros ($810,000). This investment grants access to the EU’s Schengen Area, comprising 23 countries.
Henley & Partners, an investment migration consultancy, notes that Caribbean nations like Antigua and Barbuda, Dominica, and St. Lucia offer citizenship for a $100,000 contribution to their sovereign development funds. Grenada and St. Kitts and Nevis have similar programs, with starting contributions of $150,000 and $250,000, respectively.
However, El Salvador’s pro-Bitcoin stance under President Nayib Bukele, including recognizing Bitcoin as legal tender and eliminating income and capital gains taxes for tech companies investing in the country for the next 15 years, might appeal to crypto investors.
President Bukele, who took office in June 2019, has also focused on reducing El Salvador’s high murder rate. His crackdown, beginning in March 2022, has been effective but has led to 66,000 mostly arbitrary detentions and serious human rights concerns, as reported by Amnesty International in April.
On December 1, Bukele stepped down as president to concentrate on his reelection campaign for the February 2024 general election.
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