Introduction

Money used to be a fairly straightforward concept. You would have coins and notes in your wallet, and a balance on your bank account. You might have had access to credit but other than that, most people’s finances were fairly simple. 

Things have changed quite dramatically. Not only do we do most of our banking online, but most of us don’t carry a lot of cash if any. Online investment platforms mean anybody can invest in stocks and bonds, and you don’t even have to use “real” money to do it. Cryptocurrencies like Bitcoin have turned our idea of money and investments upside down. However, while it might be easy to figure out what the policies and procedures are for cryptocurrency in your home country, it’s not always so easy when you’re dealing with a foreign government.

So, if you’re in the process of (or thinking of) immigrating to another country, you might be wondering what their rules about cryptocurrency are. You might even be wondering which citizenships can you acquire with crypto ? Let’s take a closer look.

Which Citizenships Can You Acquire with Crypto ?

The first thing you should know about the question can cryptocurrency buy citizenship, or cryptocurrency in general, is that there is no universal rule. Some countries are more welcoming to cryptocurrencies like Bitcoin while others have banned it outright. So, you really do need to look into the country that you’re thinking of moving to, to find out what their regulations are.

However, while some countries like Turkey have banned payments by cryptocurrency, most do still allow you to have cryptocurrency investments. So, you always have the option of cashing out your Bitcoin or cryptocurrency and using that to pay for immigration by investment.

What Are the Benefits?

Most countries, even those that are cryptocurrency friendly, still generally don’t accept coin directly for payment in citizenship for investment or golden visa programs. That might very well change at some point, just like everything else immigration related.

For now, the two countries that have decided to accept cryptocurrency for their citizenship by investment programs El Salvador and Vanuatu. They might not be the most common countries for immigration, but if you are looking for places that are forward thinking in terms of cryptocurrency that might move them up your list.

It’s worth noting that while they’re not already on the list of countries that do accept crypto as payment for citizenship programs, Antigua and Barbuda are in the process of moving towards this option – so keep watching for that news! 

The most obvious benefit to being able to pay for citizenship by investment with cryptocurrency like Bitcoin, is that you don’t have to cash out your coin first. This means there is fewer processing fees depending on what platform you are using, and you can take advantage of growth in the value of your coin for longer.

Cryptocurrency payments are also instant and can be done from anywhere. So, unlike a cheque or even a credit card payment that may take some time to move to your new country’s bank, Bitcoin would arrive instantly.

How to Provide Legal Proof of Income with Crypto?

A major catch 22 when it comes to paying for citizenship with cryptocurrency, is that cryptocurrency by its nature is hard to track. Most countries not only want proof of funds to make sure that you have the money available, but they also want to be sure that it had been obtained by legal means.

With crypto you can’t simply go to your bank to get a record of all your transactions. But there are few ways around this problem.

Hopefully you have done your cryptocurrency trading and investing on a credible and legitimate currency marketplace. Records from that marketplace is one way that you can prove where your money came from, particularly when it comes to growth in your investments.

If you can prove that you have paid taxes in the form of capital gains tax or some other type of tax on your cryptocurrency, that’s another way that you might be able to prove the legitimacy of your coin. 

Finally, and assuming that you have used your traditional bank account to purchase coin, you can provide bank transactions outlining those coin purchases. Since your traditional bank will have much more of a paper trail, it can help to legitimize and verify your cryptocurrency investments.

Can I Use Crypto to Pay Donations or Buy Funds?

With the exception of the two countries, we’ve listed above, no other governments as yet except crypto as payment in any immigration by investment scheme. However again you can always convert coin into the local Fiat currency and use that to pay donations or buy funds.

So, while you can’t yet directly use Bitcoin and other cryptocurrencies to buy citizenship in any countries aside from the two mentioned, you can still use your coin investments. It is a bit of a convoluted system for now, but time will tell how many more countries decide to accept crypto.

Which Countries Offer Citizenship by Crypto Investment?

As we’ve already mentioned Vanuatu and El Salvador are the two countries that currently accept crypto payments for citizenship by investment.

Vanuatu has one of the most flexible and easy to navigate citizenship by investment programs. There’s no requirement to become a permanent resident first, the entire process takes between six and eight weeks, and the investment required starts at $130,000 for a single person. So, it is both affordable and relatively easy as far as immigration goes.

El Salvador has taken their Bitcoin commitment to an even higher level. In fact, they are the first country in the world that accepts Bitcoin as legal tender. There is even a government backed. cryptocurrency wallet for El Salvadorian citizens so you don’t get more coin friendly than this. Currently you can pay for citizenship by investment directly with Bitcoin or other cryptocurrencies, but the monetary value assigned to this is still measured in dollars, and the value is currently 100,000 U.S. dollars.

It is important to note however that El Salvador does not have a direct to citizenship path for their immigration by investment program. So unlike Vanuatu where you can skip permanent residency, if you decide to move to El Salvador you will need to stay in the country for five years before you can apply for citizenship. The only exception would be if you are from Spain or Latin American country, where the residency requirement for citizenship is reduced to one year.

FAQ

What is citizenship by investment?

Citizenship by investment is a term that describes program sometimes known as golden visas, where countries around the world have decided to allow people who invest or buy property in that country a fast track to residency and citizenship. Some require you to be a resident of the country for several years before you can apply to be a citizen, but some allow you to apply for citizenship without ever living in the country.

Do all countries allow cryptocurrency?

While you might be asking can cryptocurrency buy citizenship, you might also want to ask whether the country you are thinking of moving to allows crypto currency at all. Well not all countries have gone to the extremes of China where Bitcoin is banned outright, many do have stricter regulations. So, if you are a Bitcoin collector an investor, all you have other cryptocurrency investments, you probably want to find that out before you make your move.

Do I have to give up my current citizenship?

That really depends on where you decide to move to. Vanuatu allows its citizens to have dual citizenship, so you can retain the citizenship you have now and simply add their passport to the mix.

El Salvador also allows dual citizenship, but since you will probably need to be a resident of the country for five years before you can become a citizen, it will be some time before you need to make that decision.

You are also not required to retain your primary citizenship when you become the citizen of another country. So, if you want to take advantage of favorable tax laws in your new country, you can choose to renounce your original citizenship. 

Will they accept any cryptocurrency?

Again, when it comes to accepting different types of cryptocurrencies, the regulations will vary from time to time and from country to country. Both Vanuatu and El Salvador accept Bitcoin, but if you want to pay with Ethereum or another type of cryptocurrency, you will have to confirm that this is acceptable to them.

Will I pay tax on my cryptocurrency?

Another key consideration if you are a crypto investor and planning a move to a country like Vanuatu or El Salvador, is how their tax system will affect your investments. Vanuatu has no income tax and no capital gains tax, so you won’t need to worry about that if you move there. El Salvador is in the process of creating new tax laws for cryptocurrency, so it remains to be seen what the tax situation will be like there.

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