A new player has entered the ‘golden passport’ market—the Solomon Islands. The country recently announced the launch of its citizenship by investment program. In this article, we’ll take a closer look at the opportunities this program offers and the general conditions for obtaining citizenship of Solomon Islands by investment.
Program preparations
On September 10, 2024, Solomon Islands Prime Minister Jeremiah Manele announced that the first draft of the citizenship by investment law had been finalized. The draft is going to be submitted to parliament for review soon. The program aims to attract foreign investments to support the country’s economic growth.
This program promises investors and their families a fast and simple path to obtaining a Solomon Islands passport on the condition that they pass a strict due diligence process.
Legislative changes
The citizenship-by-investment program is based on legislative reforms in the Solomon Islands such as the 2017 removal of the ban on dual citizenship. This was an essential step for launching the citizenship-by-investment scheme, as it allows foreign investors to retain their original citizenship. Further amendments in 2023 made it easier for foreign investors to be naturalized.
Benefits of a Solomon Islands passport
The Solomon Islands passport grants visa-free access to 135 countries, including the United Kingdom, Canada, the Schengen Zone, and Israel. This makes it an attractive option for international investors looking to enhance their mobility.
Potential risks and precautions
Citizenship by investment programs often come with risks, such as abuses and violations. To maintain the international reputation of their passport, the government of the Solomon Islands has pledged to enforce strict transparency requirements and legal compliance. The program includes mandatory consultations with local citizens to discuss its details before the final draft of the law is approved.
Vanuatu’s program as an example and Solomon Islands’ prospects
The Solomon Islands is taking inspiration from neighboring countries, such as Vanuatu that already operates a successful citizenship-by-investment program. It is expected that a similar scheme in the Solomon Islands will attract millions of dollars in direct foreign investment.
Estimating the program’s cost
Although the final terms of the Solomon Islands program have yet to be published, the predicted cost of obtaining citizenship by investment may start at $100,000 (the cost of second citizenship in neighboring Vanuatu is only slightly higher). Additional expenses, such as administrative fees and agent costs, could also make up a significant portion of the overall investment. Without doubt, the program is going to have other requirements too.
Solomon Islands’ competitors in the citizenship-by-investment market
It’s hard to say how successful the Solomon Islands’ citizenship-by-investment program is going to be. The country faces stiff competition, especially from Caribbean nations that offer relatively low-cost passports.
Caribbean Region: Antigua and Barbuda, Dominica, St. Kitts and Nevis, Grenada, and Saint Lucia
The Caribbean countries are some of the best-known and most affordable jurisdictions where you can obtain citizenship by investment. Their programs appeal to investors thanks to relatively low investment thresholds and broad visa-free travel opportunities.
- Antigua and Barbuda
Investment threshold: From $230,000 for a donation to the National Development Fund or from $325,000 for a real estate investment.
Benefits: Visa-free access to over 150 countries, including the UK and Schengen Zone.
Drawbacks: Requires physical presence in the country for at least 5 days during the first five years of citizenship. - Dominica
Investment threshold: From $200,000 to the government fund or the same amount of investment in real estate.
Benefits: The Dominican passport allows visa-free travel to over 140 countries, including the UK, Hong Kong, and Singapore.
Drawbacks: The country periodically revises the program’s terms and so it may change. - St. Kitts and Nevis
Investment threshold: From $250,000 for a donation or $400,000 for real estate.
Benefits: The oldest citizenship by investment program in the world, in operation since 1984. Visa-free access to 157 countries.
Drawbacks: High administrative fees and additional costs. - Grenada
Investment threshold: From $235,000 for a donation or $270,000 for real estate.
Benefits: Visa-free travel to China and eligibility for a U.S. E-2 visa.
Drawbacks: Higher costs compared to some other Caribbean programs. - Saint Lucia
Investment threshold: From $240,000 for a donation to the National Economic Fund or $300,000 for real estate.
Benefits: The program offers access to over 140 countries and the application processing time is relatively fast.
Drawbacks: The rules are relatively new and may be subject to change.
Europe: Malta and North Macedonia
European countries offer more expensive citizenship-by-investment programs but they provide access to EU countries, which makes them very appealing to investors.
- Malta
Investment threshold: From €750,000 for a contribution to the state fund, plus real estate purchase of at least €700,000 or property rent for at least €16,000 per year.
Benefits: Full EU citizenship and visa-free travel to 186 countries, including the U.S. and Canada.
Drawbacks: One of the highest entry thresholds and a strict vetting process. - North Macedonia
Investment threshold: From €200,000 for investments in state projects.
Benefits: Fast citizenship processing and a strategic location in Europe.
Drawbacks: Limited visa-free access compared to Malta.
Asia and the Middle East: Turkey, Egypt, Jordan
Citizenship by investment programs in Asian and Middle Eastern countries attract investors with their flexibility and affordable terms.
- Turkey
Investment threshold: From $400,000 for purchasing real estate.
Benefits: Quick citizenship with access to strategic markets in Europe and Asia.
Drawbacks: A Turkish passport offers fewer visa-free travel opportunities compared to European and Caribbean programs. - Egypt
Investment threshold: From $250,000 for a donation or $500,000 for real estate.
Benefits: Citizenship can be obtained quickly and Egypt is a significant business hub in the Middle East.
Drawbacks: Limited visa-free access and strict application conditions. - Jordan
Investment threshold: From $750,000 for business investments.
Benefits: The chance to do business in the rapidly growing Middle Eastern market.
Drawbacks: High entry threshold and lack of visa-free access to the EU.
Pacific Region: Vanuatu
Currently, only one Pacific country offers a citizenship-by investment program and this is Vanuatu. The program is popular with international investors for its affordability and ease of application.
- Vanuatu
Investment threshold: From $145,000 for a donation.
Benefits: One of the fastest economic citizenship processes (takes less than 2 months) and a passport of Vanuatu comes at the lowest price compared to all other countries mentioned above.
Drawbacks: Limited visa-free access to the U.S. and EU.
Conclusion
Each of these programs has its unique characteristics and the choice depends on the individual needs and goals of the investors. Caribbean nations offer affordable and flexible solutions for obtaining second citizenship while European and Asian programs provide more significant opportunities but require larger financial investments.