Eric Schmidt's Move To Cyprus: Exploring The Implications Of Citizenship By Investment

Eric Schmidt, the former CEO of Google, is looking to leave the U.S. He and his family are actively pursuing immigration to Cyprus, aiming to secure citizenship within this European nation. The Schmidts have successfully obtained approval for their citizenship application. So, what does this mean for Schmidt? For starters, it enables him to navigate around the travel restrictions imposed by the coronavirus, granting him access to other European countries that currently restrict entry to Americans.

Additionally, becoming a citizen of Cyprus presents a significant financial advantage for Schmidt. The island nation has a program called "Citizenship by Investment," which provides tax benefits to individuals who invest a certain amount of money, typically several million dollars, in the country. Cyprus's program is among the most sought-after globally, with the cost to acquire citizenship being approximately $2.5 million. It is likely that Schmidt submitted his application within the past year, although he has not publicly discussed his motivations. However, it seems plausible that he is seeking a contingency plan amid the ongoing pandemic.

Since the onset of COVID-19, "passport-for-sale" schemes have gained immense popularity. High-net-worth individuals worldwide are seeking secondary citizenship to circumvent travel limitations caused by the pandemic. Cyprus, in particular, has witnessed a surge in passport applications, witnessing a 75% increase since the pandemic began. While this is remarkable, it pales in comparison to Montenegro's staggering 142% increase during the same timeframe. Tech billionaires from Silicon Valley have long been interested in acquiring additional citizenships, with New Zealand being a notably attractive option for many tech executives.

Cyprus has faced scrutiny in recent years for its associations with international money laundering and its controversial visa programs. This year, the country announced plans to tighten the requirements for its "passport-for-sale" program to align more closely with European Union regulations. As the global landscape shifts, Schmidt's move to Cyprus may signal a broader trend among wealthy individuals looking for secure havens during uncertain times.