How will the new 2022 CBI Index transform and reshape the future prospects of citizenship through investment?
The CBI Index is a publication of PWM, a subsidiary of the Financial Times, and is a particularly important and relevant research tool for anyone looking to really understand what a CBI program can offer them. The way the CBI index is created is that there is an overall ranking and then a separate ranking of each of the nine pillars that exist. Depending on the client’s needs, they may be short on time and therefore need to find an efficient and fast citizenship option, or they may seek to find out how many family members they can add to their application. Thus, using the CBI Index as a general overview of the CBI industry, as well as examining each of the components separately, can help make better decisions when choosing another citizenship.
How will the new CBI index benefit Indian investors?
The CBI Index is designed as a handy tool, both for those who want to compare CBI programs as a whole and for those who want to compare specific aspects of each program. Some of the many ways Indian investors can benefit from alternative citizenship include, but are not limited to:
- Increased mobility that would help them expand their access to a range of global markets.
- The advantage of being a citizen of a country whose stable currency is pegged to the US dollar. This makes all the difference for astute entrepreneurs, as they can then make investment plans and reap the benefits without worrying too much about future shocks to the global economic system. Although several reasons contribute to overseas investments, the basic incentives are rate of return, investment policy and tax advantage. Indian HNWIs mainly invest in CBI to set up shop in another country, set up a second home and take advantage of the booming real estate market.
- Education abroad has always been an important part of investment for many Indian families. Their children will have access to a high-level education in modern, state-of-the-art facilities.
Explain in detail the nine pillars that have defined the CBI index for different countries.
The CBI Index rates CBI programs based on these nine pillars: freedom of movement, standard of living, minimum investment, travel or residency requirement, citizenship timeline, ease of processing, due diligence, family, and product certainty.
Freedom of movement measures the relative strength of each country’s citizenship based on three equally weighted factors: the number of destinations to which a country’s passport allows unrestricted travel, the number of prime business centers to which it gives access and the extent to which a given citizenship offers rights of establishment in other countries.
The Standard of Living Pillar is a measure of the quality of life offered by the 13 CBI assessed jurisdictions and this pillar is vital for those aspiring to relocate and ensure a prosperous and fulfilling lifestyle. Likewise, it is essential for those who want to take advantage of local business opportunities or need to transfer and protect their assets.
The Minimum Capital Expenditure pillar measures one of CBI’s most practical and important considerations – the amount of capital required for the investor to become an eligible applicant for the program of their choice. The cost of applying for CBI increases with the number of dependents – or eligible family members – included in an application. In some jurisdictions, this increase is proportional, while in others the cost only increases as a result of the inclusion of multiple dependents.
Mandatory Travel or Residence examines the travel or residence requirements imposed on applicants before and after the grant of citizenship.
The Citizenship Timeline pillar examines the average time it takes for citizenship to be obtained by the applicant.
The Ease of Processing pillar measures the end-to-end complexity of the CBI application process. In some jurisdictions, the application process can be a cumbersome and tedious task that takes time for the applicant; in others, it is streamlined and the applicant receives clear instructions on what to do. The overall simplicity of the application process is particularly important, and the promise of a smooth and hassle-free process can generate willingness to commit to a program. The Due Diligence Pillar focuses on each nation’s commitment to ensuring that its program remains transparent and efficient in assessing potential applicants for citizenship. It is therefore a measure of the integrity of each program.
The Family Pillar measures the extent to which investors can obtain citizenship for their immediate and extended family. The CBI Index recognizes that the rise of increasingly complex family relationships is driving investors to seek programs that allow a more diverse range of family members to be included in a primary application.
Finally, product certainty encompasses a series of factors that measure the certainty of a program across five different dimensions: longevity, popularity and fame, stability, reputation, and adaptability. Additionally, it assesses a program’s responsiveness to major global events, such as the Covid-19 pandemic and the war in Ukraine, which have had a significant impact on global mobility and due diligence requirements.
How are Indian families and investors improving their global mobility through citizenship by investment?
By having an alternative citizenship, especially one that provides access to global business hubs, it allows Indian families and investors to have a much wider reach globally, conduct their business, attend schools and even in the case of medical tourism if they need it. rush to Singapore for an urgent operation. Having that flexibility of knowing that you have citizenship, which allows you access to a country to visit for those purposes, becomes very valuable.
Share a brief summary of your geographic expansions, if any
At CSGP we find it particularly important to understand our local or regional market and so we are careful not to jump into a market until we have a good understanding of the customer’s pain points, looking for the potential of the market and market demand. We’ve noticed there are changes in a few markets that were previously less exciting, and a lot of that is because Covid has caused a huge shift in the way we think about freedom, opportunity and access. Therefore, we find that jurisdictions that were less inclined to consider alternative citizenship in the past have become more interested in it and, in particular, I would include the Indian market in this area. That said, we have several new locations that we are looking to expand into.
Your thoughts on market analysis for 2022.
The start of 2022 seemed filled with brightness and excitement and the promise that it would be a better year than the previous two, but with the war in Ukraine and the energy crisis, married to the politics of division, 2022 turned out to be be very different from what we had anticipated. In our industry this means an opportunity as people look at the inner workings of their environment to understand what is going on in their environment and often when things are not going well they then look outside their borders to see where other opportunities lie. Of course, the countries we deal with specifically have had a very bright and prosperous 2022 so far, so they become interesting and exciting opportunities for future growth.
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