Video Briefing

Nomad Capitalist: Hypocrisy at its Finest

Oct 30, 2021Video Briefing11:44Watch on YouTube

Turkey’s recent decision to declare ten Western ambassadors persona non grata after they called for the release of imprisoned philanthropist Osman Kavala underscores how quickly diplomatic relations can shift and why many high‑net‑worth individuals are looking beyond traditional Western passports.

The diplomatic row

  • Date: 18 October (year not specified)
  • Trigger: Ambassadors from Canada, Denmark, Finland, France, Germany, the Netherlands, New Zealand, Norway, Sweden and the United States issued a joint statement demanding a “just, speedy” resolution and the “urgent release” of Osman Kavala, who has been detained for four years on charges of financing the 2013 protests and a failed 2016 coup—charges he denies.
  • Turkish response: President Recep Tayyip Erdogan ordered the foreign ministry to declare the ten diplomats persona non grata and expel them, stating they “do not understand Turkey.” The announcement was made in the north‑western city of Eskişehir.

The episode illustrates how geopolitical disputes can directly affect the ability of foreign nationals to travel, work, or reside in a country, even when they hold passports from traditionally “friendly” nations.

Visa discretion in Western countries

  • Arbitrary rejections: High‑net‑worth applicants from Eastern Europe have reported multiple denials for U.S., Australian, New Zealand and Canadian visas despite having substantial assets, families and no intention to seek employment locally.
  • Criteria often opaque: Reasons range from criminal records (e.g., DUI) to “political” considerations, such as perceived alignment with controversial viewpoints.
  • Impact: A single visa denial can block access to entire regions, forcing travelers to rely on alternative passports.

Citizenship‑by‑investment (CBI) as a hedge

Turkey’s CBI program offers a relatively low‑cost route to a second passport compared with many Caribbean schemes:

Feature Turkey Typical Caribbean CBI
Minimum investment Real‑estate purchase of US $400 k (or other qualifying investments) Donation or real‑estate often US $200 k–$500 k
Processing time 3–6 months 2–4 months
Passport strength Visa‑free/visa‑on‑arrival to ~110 countries (including EU Schengen, UK, Japan) Similar range, but often stronger for EU travel
Geopolitical risk Subject to regional tensions (e.g., EU‑Turkey relations, Middle‑East dynamics) Generally lower geopolitical exposure, but islands can be affected by global sanctions or policy shifts
Residency requirement None for citizenship; optional residence permit Usually none, but some require a short stay

Practical considerations for a Turkish passport

  • Investment options: Beyond the standard real‑estate route, investors can choose government‑approved business projects, capital‑market investments, or a combination of assets.
  • Cost efficiency: The Turkish program avoids the high donation fees common in Caribbean schemes, making it attractive for those who prefer a tangible asset (property) that can be rented or sold later.
  • Travel flexibility: The Turkish passport provides access to most of Europe, the Middle East and parts of Asia, offering an alternative to Western visas that can be revoked abruptly.
  • Risk assessment: While Turkey’s strategic location offers broad travel options, its foreign‑policy volatility (e.g., recent diplomatic expulsions) means the passport’s value can fluctuate with regional politics.

Diversifying a passport portfolio

  • Avoid reliance on a single jurisdiction: Combine a Western passport with a non‑Western CBI (e.g., Turkey, Montenegro, or a Caribbean nation) to mitigate the impact of sudden diplomatic bans.
  • Evaluate “uncorrelated” passports: Look for countries whose foreign‑policy alignments differ from your primary citizenship, reducing the chance that a single geopolitical event blocks all travel routes.
  • Consider residency options: Even without full citizenship, long‑term residence permits in stable jurisdictions can grant similar mobility benefits with lower investment thresholds.
  • Stay informed on visa policies: Regularly review the latest entry‑restriction updates for the countries whose passports you hold, as criteria can change with little notice.

Bottom line

The Turkish expulsion of ten Western diplomats highlights the fragility of relying solely on Western passports for global mobility. For high‑net‑worth individuals and entrepreneurs, a second citizenship—particularly one that offers a strong passport and a lower investment barrier like Turkey’s—can provide a pragmatic hedge against sudden diplomatic shifts, visa denials, and broader geopolitical uncertainty. Diversifying across multiple jurisdictions remains the most resilient strategy for maintaining unrestricted international movement.