El Salvador has introduced a new citizenship-by-investment initiative, the “Adopting El Salvador Freedom Visa Program,” allowing wealthy investors to obtain residency and a pathway to citizenship in exchange for a $1 million investment in Bitcoin or Tether (USDT). The program, unveiled on December 7, aims to attract 1,000 participants.
However, the El Salvador citizenship offer comes at a significant premium compared to similar programs in neighbouring Caribbean nations, which typically start at $100,000.
Under the terms of the program, interested investors must make a nonrefundable deposit of $999, which will be credited towards the total investment. The total amount raised could reach $1 billion if all available spots are filled. This type of citizenship-by-investment program has been a lucrative income source for countries like Vanuatu, which generates millions annually.
Alistair Milne, the founder of crypto hedge fund Altana Digital Currency, expressed his views on the offering, stating that El Salvador’s program is “uncompetitive in the global market.” He emphasized that citizenship in a European Union country, such as Malta, can be acquired for less, with Malta offering a citizenship-by-investment at 750,000 euros ($810,000), providing access to the EU’s visa-free Schengen Area comprising 23 countries.
Other Caribbean nations like Antigua and Barbuda, Dominica, St. Lucia, Grenada, and St. Kitts and Nevis offer citizenships with contributions starting at $100,000, $150,000, $100,000, $150,000, and $250,000, respectively.
Despite the higher cost, the appeal of the El Salvador program may lie in the country’s pro-Bitcoin policies enacted by President Nayib Bukele. These policies include recognizing Bitcoin as legal tender and offering tax incentives to tech companies investing in El Salvador for the next 15 years. Bukele’s efforts to address crime in the country have also been noteworthy, although they have been met with concerns about human rights violations.