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Angel or real estate listings? Angel investment and its relationship with economic citizenship

4/9/2024 8:00:00 AM
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At Mundo, we are on the hunt for every opportunity that can help the international investor. We love topics of interest for those trying to leave their comfort zone also on the financial field. Today we’ve run across this topic and we want to discuss it. Let’s find out how it can fit in a business person’s plan. 

Angel investment is an approach that can certainly help a new business while bringing advantages to the investor. However, where does this apply? Are there such opportunities in the Caribbean when it comes to second citizenship? What can I find here if not a property for sale and what are the options?

Angel investment: what is it and how can it help me?

There are many ways of kickstarting one’s startup, and angel investment is one of them. The essence of this type is to support new products or projects. Those who choose this approach are usually familiar with the sector or trust the team that will develop the product. But, Like everything else in life, it has its ups and downs. 

One of the main advantages of pursing angel investment is speed and straightforwardness. The absence of assessment from board members, shareholders, or institutional investors surely helps reduce bureaucracy. Moving fast can sometimes make the difference between a regular and a perfect deal. 

It also provides a certain degree of involvement that is not easily found in other options like, for example, regular investment funds, venture capital funding, or stocks and bonds. The knowledge of the market or sector also helps the angel investor to get more involved in the process. 

On the other hand, this lack of structure means more attention. Since there is no board or a stock exchange scheme in between, the investor must make sure to receive thorough reports. Otherwise, there is a risk of lower returns or downright losses.

Angel investment vs Caribbean real estate 

If you want to make a Caribbean investment, there are plenty of options and this includes citizenship eligibility.

The right to apply for citizenship is given to those who invest, but not in any project. Angel investment, for example, is not an option among the Caribbean CBIs. To sum up there are three possible pathways to Caribbean opportunities through citizenship. 

Find a property for sale and invest in Caribbean real estate 

One of the most popular ways of obtaining citizenship by investment is to acquire a real estate property. Although more expensive, this option brings returns and the possibility of reselling after the property price increases.

Naturally, there’s also the possibility to use the place as a residency for the investor and his/her family. 

On the other hand, this approach requires a larger sum and a higher level of commitment. Are you wondering “can I sell my property after getting citizenship”? The answer is yes, but only after a certain period which is usually 5 to 7 years. 

Moreover, the property can’t be just any that you pick from real estate listings as it must be government-approved. In general, these projects consist of luxury apartments, units in hotels, or shares in high-end resorts.

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Donate and contribute to the country’s economy 

The donation option is much cheaper and simpler, but it doesn’t bring any returns or money-back possibilities. On the other hand, you save yourself the trouble of going through real estate listings to find property for sale and can also forget about the question: how to sell my property. Nowadays, the five Caribbean countries offer a donation option and Antigua, Dominica, and St Lucia offer the cheapest ones.

Here is a comparison between Antigua and Dominica which can come in handy at the time of choosing. Regarding donation thresholds, everything points to a change after four of the countries signed a memorandum of understanding. 

Invest in government bonds 

Currently, the only country in the region offering this alternative is St Lucia. Government bond donation is the perfect solution to Caribbean real estate complications and the donation’s lack of returns. By investing in government bonds, the applicant can avoid going through real estate listings, and won’t have to find a real estate agent or a property for sale. Nonetheless, bonds bring returns and after five years the investment can be fully recovered plus the interest obtained. 

Angel investment as an economic migration method

Following the model of countries like the US, Japan has announced a residency permit based on angel investment for 2024. Although the thresholds are not yet stipulated, the objective of the program is to stimulate new projects that will bring returns to the angels, who will start the cycle again by investing some more. 

The initiative was set out in order to encourage angel investment into Japanese startups, which has been growing through the years but is still quite below when compared with places like Silicon Valley.

All in all, the future of this program is still uncertain as we don’t know the exact numbers, the follow-up strategies, or how will the due diligence work. Moreover, it’s a residency option which only leads to citizenship after 5 years and under certain conditions. 

Disclaimer: The information described here is merely informative. This article must not be considered financial or legal advice. Before applying for a second citizenship, consult with a professional.

Caribbean real estate is available through Mundo 

The picture is clear: the fastest way to citizenship is still through the citizenship by investment programs. Mundo can help you obtain citizenship through renowned countries which have been standing firmly for years. Any of the five Caribbean nations and Vanuatu offer excellent opportunities for those looking to expand their horizons. 

Our team has close connections with agents and realtors, which means we can help you find the right property for sale or the most suitable project for your particular needs. 

In our days, having a second passport is becoming a necessity, and having a reliable advisor is vital for a successful process. Contact us and find out which is the best program for you. 

Find out what is the best program for you

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