Birthright citizenship is in the news right now, thanks to a certain Donald Trump. One of his slew of early Executive Orders made on his return to the White House banned the right to citizenship via birth in the US.
In response, more than 20 states announced their intention to sue his administration for rescinding this privilege. In a further twist, a judge has temporarily blocked Trump from carrying out this particular Executive Order.
RIF Trust's Regional Director – India is Binu Varghese. She realizes this is a developing story: "The smart HNWIs monitor the news, to see which way the wind is blowing. However, we don't yet know what the final outcome regarding this Executive Order or others facing legal challenges will be."
Our US Residency by Investment specialist points out the window when birthright citizenship impacts investors: "As it will require 5 years of residency before you naturalize as a US citizen, the only way a new child can become a US national before you is being born within those 5 years."
"There are other countries that will continue to grant citizenship by virtue of birth should the US decide to stop this. Importantly these include ones running Residency by Investment and Citizenship by Investment programs."
"At the same time, should Donald Trump manage to abolish birthright citizenship, this will lead to an increase in interest in the US EB-5 Investor Visa. That's because other routes will see it become even more difficult to guarantee American citizenship for your children born in the country."
What Is Birthright Citizenship?
Birthright citizenship is the automatic granting of citizenship to any child born in that country. Is is given irrespective of where the mother or father of the child come from. So, currently, a child born in the US to Indian parents is instantly American.
This type of citizenship is based on the notion of jus soli. Right of the soil is the meaning of this Latin term. It originates in English common law and contrasts to jus sanguinis, right of blood, which confers nationality on you according to the citizenship of your parents.
Jus soli is prevalent in the Americas whereas jus sanguinis dominates in Europe. In the United States, jus sanguinis applies to a new-born child only when one of the parents is a US citizen.
Jus soli is enshrined in the 14th Amendment of the U.S. Constitution: "All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.
Which Countries Allow You Citizenship By Being Born There?
There are 34 countries that offer birthright citizenship. They are as follows:
How to Use Birthright Citizenship with Residency by Investment
We've already seen how the Americas are home to the most jus soli countries. This makes North America a more alluring base. Canada and the US run relevant Residency by Investment programs.
The Canada Start-up Visa is available from C$275,000. You, your spouse, and any unmarried children up to the age of 21 qualify for Canadian citizenship after 5 years of residency. Should any new children be born on Canadian soil in that period they will become a Canadian national automatically.
On the other side of the border, the US EB-5 Investor Visa requires a minimum investment of $800,000. You, your spouse, and unmarried children under the age of 21 become eligible for American citizenship following 5 years of residency. Again, should any new children be born in US territory within that time frame, they are instantly American.
Helping Your Children Become a National via Birth Using Citizenship by Investment
$230,000 Antigua and Barbuda Citizenship by Investment allows you to add newly-born children to your dependents for an additional cost. Yet, should your new child be born in the country during your physical residency requirements, they qualify for birthright citizenship. You need to spend at least 5 days a year on the islands within your first 5 years.
Dominica Citizenship by Investment, available from $200,000, is another Eastern Caribbean program. Like in Antigua and Barbuda, you can increase your number of dependents by paying for the privilege. There are no physical residency requirements, but if you base yourself in the country you not only enjoy reducing your tax liability but also giving future offspring the gift of jus soli.
You have to pay a minimum $235,000 to secure Grenada Citizenship by Investment. This is for a family of up to 4 with any further dependents incurring an extra charge. The alternative is 0% personal income tax and birthright citizenship for new members of your family if the island becomes your main base.
St Kitts and Nevis Citizenship by Investment costs at least $250,000. Again, this allows you to include at least 3 dependents with any additional family members triggering further expenditure. Alternatively, you can become a tax resident and ensure jus soli for generations to come.
The final Caribbean program worth investigating is St Lucia Citizenship by Investment. This requires a minimum investment of $240,000 for families of up to 4 with future add-ons allowed after paying an extra charge. By residing in St Lucia for 183 days a year, any new children born during that period will be eligible for birthright citizenship.
How to Invest in a New Residency or Second Citizenship
There are many other factors to consider when it comes to Residency and Citizenship by Investment programs. You can see the added benefit of applying in a country that also offers birthright citizenship but no doubt you have additional needs on top of generational legacy. The next step is to consult a new residency and second citizenship program specialist like RIF Trust to fully discuss your individual circumstances.
It's not only at the consultation stage that experts such as RIF Trust are indispensable, however. Ordinarily, you can't apply for Residency and Citizenship by Investment programs directly and have to go through an accredited intermediary.
By RIF Trust.