Wealthy Kenyans are seeking alternative citizenship in exchange for minimum qualifying investments in real estate, according to a citizenship scheme concessionaire.
South Africa-based Henley Estates told the Star it has received numerous enquiries from Kenyans interested in citizenship-by-investment programmes.
“Even as recently as this month (April) we have had a number of enquiries sent to us,” the firm said in email response to the Star.
It however declined to give details of applicants to the citizenship-by-real estate, citing client confidentiality.
“We are not at liberty to reveal any particulars or demographics of these applications,” it said.
Such clients, it said, are looking to benefit from visa-free travel, international tax planning and education for their children. Individuals from tumultuous countries seek secure destinations for their families when need arises.
Countries offering these programmes seek to boost investments that stimulate their economies. They allow investors to legally acquire citizenship without the need to physically relocate.
“Currently there are four such programmes of real interest – two in the Caribbean (St Kitts and Nevis and Antigua and Barbuda) and two in Europe (Cyprus and Malta),” Henley said.
To qualify, an individual must invest a minimum of $300,000 (Sh26 million), providing citizenship and passports that allow visa-free travel to the EU, UK and Canada in exchange.
Henley Estates said demand for alternative citizenship in East Africa is less compared to North, West and Southern Africa, attributing this to “lack of awareness”.
“Kenyans are often interested in the Antigua and Barbuda programme mainly because the citizenship offers visa-free access to South Africa,” the company said.
Malta and Cyprus programmes are the most attractive, according to Henley, as they give immediate EU citizenship. They are however the most expensive as they require investments starting from €1 million (Sh120.68 million).
For Cyprus, the investor only pays tax if they opt to reside there for 183-plus days in a year, though tax on real estate is “unavoidable”.
“Annual taxes on immovable property are very common as they are easy to asses and collect. The Cyprus property tax system is also based on the market value of your property, and the percentage charged increases based on the value. The minimum charge is 0.06 per cent of the property value up to the maximum of 0.19 per cent,” it said.
In light of increasing anti-money laundering regulations worldwide, those applying for the Cyprus programme are required to have no criminal record from countries of origin and be cleared by Cyprus police as well.
“We also insist on confirmation that the applicant’s name is not included on the list of persons whose property is ordered to be frozen within the boundaries of the European Union,” Henley.
“We strongly discourage people who have been involved in money laundering from partaking in such investments.”
Starting last month, the Cypriot citizenship now requires a qualifying investment of €2.1 million (Sh253.43 million) including a five per cent VAT charge, which is half of what was required hitherto. It lasts for 10 years with a renewal option.
“Investors have the flexibility to re-sell their investment after three years without attracting any penalties or suffering a loss of their citizenship, however they must retain at least a €500,000 (Sh60.34 million) property as their private residence,” Henley said.