What's Happening?
Grenada's citizenship-by-investment program, costing US$235,000 for a single applicant or US$270,000 in approved real estate, offers a unique route to the US E-2 investor visa for nationals of countries without a direct E-2 treaty with the United States,
such as India, China, Nigeria, and the Gulf states. The E-2 visa allows individuals to invest substantially in and direct a US business, renewable indefinitely. However, a new condition introduced by Section 5902 of the National Defense Authorization Act for Fiscal Year 2023, signed in December 2022, requires individuals who obtain treaty-country citizenship through financial investment to have been domiciled in that country for a continuous three years before applying for the E-2 visa. This rule applies to both Grenada and Turkey, the two citizenship-by-investment countries with E-2 eligibility. Domicile is assessed based on residence with the intention to remain, evidenced by a home, financial and tax ties, and time spent in Grenada.
Why It's Important?
This pathway is particularly significant for entrepreneurs from non-treaty countries who seek to establish or expand businesses in the United States without the lengthy wait times associated with green cards. The E-2 visa's indefinite renewability and allowance for spouses to work and children to study make it an attractive option for families. For U.S. industries, this program can stimulate foreign direct investment and job creation, as E-2 visa holders are required to invest substantially in and operate a U.S. business. However, the new three-year domicile rule adds a layer of complexity and commitment, ensuring that applicants have a genuine connection to the treaty country rather than merely acquiring a passport for convenience. This change impacts the strategy of investment migration firms and individuals, requiring more long-term planning and a deeper engagement with the adopted country, potentially shifting the demographics of E-2 visa holders and the nature of their investments.
What's Next?
Individuals interested in this pathway must first obtain Grenadian citizenship, a process that typically takes six to nine months and includes interviews and due diligence. Following citizenship acquisition, applicants must establish continuous domicile in Grenada for at least three years, demonstrating genuine ties to the country. Concurrently, they can prepare their E-2 business in the United States, ensuring it is a genuine, operating enterprise with substantial, at-risk capital. After fulfilling the domicile requirement, they can apply for the E-2 visa at a US consulate, presenting evidence of both treaty nationality and domicile. For those who need to enter the U.S. sooner, the EB-5 program remains an alternative, as it does not depend on nationality and leads to permanent residence. Passport Legacy, an authorized agent for the Grenada program, works with US immigration counsel to guide applicants through these processes.
Beyond the Headlines
The introduction of the three-year domicile rule reflects a broader effort by the U.S. government to prevent the misuse of citizenship-by-investment programs as mere transactional shortcuts to U.S. visas. This rule underscores the importance of genuine ties and intent in immigration processes, moving beyond a purely financial transaction. It raises ethical considerations about the commodification of citizenship and the integrity of national immigration systems. For Grenada, this program offers economic benefits through contributions to its National Transformation Fund and real estate investments, while also potentially fostering a more engaged and integrated expatriate community. The rule also highlights the evolving landscape of global mobility, where countries are increasingly scrutinizing the pathways to residency and citizenship, balancing economic benefits with national security and immigration policy objectives. This shift could lead to more stringent requirements across other investment migration programs globally.
