The idea of a government selling citizenships — often called “citizenship‑by‑investment” (CBI) — has become a recurring topic in discussions about how nations might raise revenue. While several countries already run formal CBI programs, the notion of larger economies like the United States or Switzerland offering passports for tens of millions of dollars raises questions about feasibility, demand, and geopolitical fallout.
Existing CBI models
- Malta (EU) – Offers citizenship to investors who contribute to a national development fund, purchase real estate, and meet a residency period. The program is priced in the high‑hundreds of thousands of euros and grants full EU passport benefits.
- Cyprus (EU) – Previously ran a similar scheme, requiring a multi‑million‑euro investment in real estate or businesses. The program was suspended in 2020 after criticism over due‑diligence standards.
Both programs rely on the attractiveness of an EU passport, which provides visa‑free access to 190+ countries and the right to live and work across the bloc.
Hypothetical large‑scale sales
United States
- Scenario: Sell 10,000 U.S. citizenships at $10 million each, generating roughly $100 billion.
- Potential demand: A niche market of ultra‑wealthy individuals seeking the United States’ economic and legal protections.
- Challenges:
- The U.S. does not currently have a legal framework for selling citizenship.
- Political backlash would be severe; the U.S. passport is already highly valued, and a commercial sale could be seen as compromising national security.
- Even if implemented, 10,000 new citizens would represent a tiny fraction of the population, limiting any meaningful impact on the federal debt.
Switzerland
- Scenario: Offer 1,000 passports at 10 million Swiss francs each, netting about CHF 10 billion.
- Potential demand: Wealthy investors attracted by Switzerland’s stable banking system and neutral reputation.
- Challenges:
- Swiss law requires a genuine link to the country (residence, language proficiency, integration).
- The Swiss passport’s strength lies in its neutrality; a commercial program could damage that perception.
- The number of passports is too small to affect the nation’s fiscal position significantly.
Russia
- Scenario: Sell a few thousand passports, leveraging the country’s large landmass and relatively low cost of living.
- Potential demand: Individuals seeking a passport that allows travel to many non‑Western nations, but not to the EU, the U.K., the U.S., or Canada.
- Challenges:
- Russian passports are less desirable for Western travel, limiting the pool of buyers.
- International sanctions and diplomatic tensions could further reduce appeal.
- Domestic political considerations may prevent the government from commodifying citizenship.
Why most countries avoid large‑scale sales
- Reputational risk: A passport’s value is tied to the perceived integrity of its issuing nation. Commercializing citizenship can erode trust among existing citizens and foreign partners.
- Security concerns: Granting nationality without thorough vetting may expose a country to illicit financial flows, terrorism, or espionage.
- Legal constraints: Many constitutions and immigration statutes require a genuine connection—residency, language, cultural integration—making a pure “sale” incompatible with existing law.
- Limited fiscal benefit: Even multi‑billion‑dollar inflows represent a small share of national budgets, especially for wealthy nations with low debt ratios.
Practical considerations for prospective investors
- Passport strength: Evaluate visa‑free access, especially to target regions (EU, North America, Asia).
- Due‑diligence requirements: Most CBI programs demand background checks, source‑of‑funds verification, and minimum residency periods.
- Tax implications: Citizenship does not automatically confer tax residency; separate rules determine where income is taxed.
- Long‑term stability: Political shifts can alter the benefits of a passport (e.g., Brexit’s impact on EU travel rights).
In summary, while the concept of selling large numbers of high‑priced citizenships is intriguing, real‑world constraints—legal, political, and reputational—make it unlikely for major economies to adopt such schemes. Existing CBI programs remain limited to smaller nations that can balance revenue needs with the maintenance of a reputable, secure passport.
