by Simon Black
I’m in New York City this week meeting with the Prime Minister of a Caribbean nation about his country’s citizenship-by-investment program.
Citizenship-by-investment is exactly what it sounds like: foreigners invest a certain sum of money in a country in exchange for citizenship and a passport.
Depending on the country, the investment amount can vary from just over $100,000 (Dominica) to over $2.5 million (Cyprus).
Now, it might seem crazy to drop that kind of money on a passport.
And in most cases it would be crazy.
A second passport is an insurance policy designed to protect you against various sovereign risks.
But just as you wouldn’t spend $10,000 on a car insurance policy that covers a $40,000 SUV, it doesn’t make sense to spend $250,000 on a passport designed to safeguard total assets that are worth, say, $1 million or less.