The concept of Citizenship by Investment isn’t new. In 1984, St Kitts and Nevis introduced their Citizenship by Investment Program (CIP) – several years before the introduction of Immigrant Investor Programs by countries like Canada (1986), the United States (1990) and the United Kingdom (1994). Since then, a number of countries in the Caribbean have introduced their own versions of these CIPs. Enshrined in solid legislation with a robust regulatory framework, these five Caribbean countries offer a CIP:
- Antigua and Barbuda
- Commonwealth of Dominica
- Grenada
- St. Kitts and Nevis
- St. Lucia
Similar to the immigrant investor programs of Canada, the US and the UK, CIPs were created as a way to attract foreign direct investment. In exchange for a significant contribution to its economy, the country grants immigration status to the investor applicant. In the case of Canada for example, permanent residence is conferred. But with CIPs, the advantage is that clients are offered a direct path to citizenship and passport without the need to live or even travel there.
So why do your clients want a second passport? Well, there are many reasons, and it might surprise you to know that most are the very same reasons why an investor might want residency in another country:
- Ease of travel
- Security for future generations
- Business and financial diversification
- Geopolitical risk diversification
- Freedom
Since my colleague already wrote a piece which covered many of these reasons, in this article, we thought we’d dive a little deeper into why an increasing number of Canadian immigration lawyers and consultants offer Citizenship by Investment Programs to their clients.
1) Expand your business, and diversify your revenues
Immigration is a challenging business, and subject to changing regulations and program modifications. In the last few years, the Quebec Investor Program was suspended, the Provincial Nominee Entrepreneur Streams moved away from offering a direct path to permanent residence, and the Federal Skilled Worker Program has not had an Express Entry draw in over 12 months.
For immigration practitioners, this has meant lost revenue and looking for other ways to maximize their referral networks and the return on each dollar spent on marketing.
It is no surprise then that since the onset of the pandemic, ClientReferrals has seen a 40% increase in practitioners processing their first CIP application. And we know, that in most cases, the first application is only the beginning. Many of our partners are now generating more revenue for their business through CIP applications, than by offering their Canadian immigration services.
2) Meeting the needs of your wealthy clientele
Almost every immigration practitioner we have met has a different version of the same story: “I have this wealthy prospect from [insert country here]. He really wants Canadian immigration, but we can’t find a program that works for him / he can’t accept Canada’s residency requirements”. The reality is that as welcoming as Canada is, its business immigration programs are limited and in the current absence of an investor program, often not a good fit for wealthy clientele.
It is in these discovery calls with your clients that you can develop a better understanding of their needs, and their priorities, and may come to the conclusion that they are best suited to apply for a CIP – a program with a straightforward process, that results in a highly sought after passport within a few months.
Investing in order to acquire citizenship was once thought of only to be for the extremely wealthy. but that isn’t the case anymore. CIPs are no longer only a niche program, available only to a few: by some reports, over 10,000 families submitted a CIP application in 2021.
This is proof that your clients are looking for these solutions, and looking for the right professional to assist them.
3) Fast results for your clients
Since the start of the pandemic, western nations have experienced massive increases in immigration delays. As an example, a recent publication reported that there are as many as 1.8Million applications currently waiting to be processed by Immigration Canada. Conversely, Citizenship by Investment Units in the Caribbean have made significant investments in their processing power – hiring additional staff, investing in new technologies, and committing themselves to faster processing.
From start to finish, you can expect to deliver your client’s new citizenship papers and passports within 6 months.
Immigration is largely a referral business and happy clients will refer.
By delivering the results so quickly to your first clients, you will begin to reap the benefits of referrals in the first year.
4) Simple applications
Whether it is an Entrepreneur application or a skilled worker application, we all know that the demands from immigration authorities are typically very arduous. Most CIPs by contrast, have kept their lists of required documents and their application processes simple.
In our experience, documentation to support an application can usually be collected within 1 to 2 weeks. And because applications are processed so quickly, there is no need for updates to be sent later. This makes it relatively easy for an immigration practitioner to learn this business quickly. You will spend less time preparing the client’s application, and more time focusing on growing your business.
Keeping the documentation simple, also ties back into making these programs a great fit for a lot of applicants who might not qualify for immigration to Canada because of stringent requirements (age, language, education, etc.) And this leads to…
5) High approval rates, and predictable results
The approval rate for CIPs is generally very high. Does that mean they don’t vet their candidates? Does that mean they aren’t doing due diligence?
To the contrary, programs like the Antigua and St. Kitts CIPs have robust due diligence processes which involve many of the same procedures in place in Canada and the US. What keeps the approval rates high is that the requirements are simple and clear:
- No age limits
- No education requirements
- No language requirements
- No minimum experience needed
- Etc.
Rather than an arbitrary set of minimum requirements that candidates must possess in order to be eligible, CIPs have established reasons that would exclude someone from applying. Applicants must not have a criminal record, must not pose a reputational risk to the Country, and must be free from contagious disease. This means that before onboarding a client, you can be confident about the chances of their success in the process because the refusal criteria are clear from the beginning.
6) If you don't, someone else will!
The reality is that the immigration landscape is changing, and more and more investors are looking for immigration practitioners who can help them on a variety of fronts. They might come to you at first on a Canadian immigration matter like a student visa application. Well, when the time comes around that this same client comes to you looking for a second passport, if you can’t assist him, you can be sure he will continue looking until he finds someone who can. That practitioner may not only benefit from assisting on the CIP application, but by having delivered the CIP results so quickly, may actually earn the trust of the investor for future Canadian immigration issues.
As I mentioned earlier, CIPs are no longer only for the uber wealthy. Depending on the family composition, options can start at $100,000. With over 10,000 families having applied last year, there is a good chance that the same client who is coming to you for Canadian business immigration advice, may simultaneously be looking into his CIP options.
How To Get Started
We recognize that doing anything for the first time can seem daunting. The hardest thing can be knowing where to start. At ClientReferrals, our team is uniquely focused on serving our network of immigration lawyers and consultants, to provide you with the tools and services you need to get your clients approved. We can:
- Educate you on the programs;
- Help you design your marketing material, and even provide you with templates;
- Assist you with sales calls;
- Provide training sessions for your staff and sub agents;
- Work with you to review your clients’ documents and prepare their applications
In short… A to Z services, so you have the confidence to add Citizenship by Investment to the list of your services, and can take the first steps to building this into your practice.
