Article by Kotie Geldenhuys
Photos/images courtesy of Pexels
Each year, tens of thousands of people acquire citizenship or permanent residency in countries other than their own by making substantial financial investments. Known as Citizenship by Investment (CBI) or Residency by Investment (RBI) programmes, these government-administered programmes offer a fast track to legal status in return for economic contributions. While these initiatives aim to stimulate foreign investment and economic growth, they increasingly face scrutiny over national security, financial integrity and ethical concerns.
CBI and RBI schemes or programmes, colloquially dubbed “golden passports” and “golden visas”, are attractive to high-net-worth individuals. For many wealthy individuals, the appeal lies in enhanced global mobility, potential tax advantages and a safety net from political instability or civil unrest. According to Fernando, Pampolina and Sykes (2021), citizens from autocratic regimes with weak rule of law are among the most eager applicants for a second citizenship.
However, experts warn that criminal and corrupt actors may also exploit these programmes. Transparency International (2025) warns that “while many applicants have legitimate sources of wealth and lawful intentions, the programmes can be misused to launder illicit funds or obscure financial crimes”.
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[This is only an extract of an article published in Servamus: August 2025. This article is available for purchase.]