El Salvador and Turkey Lead Jurisdictions with Crypto-Friendly Investment Migration Schemes 

Bitcoin was born in 2009 as an alternative electronic cash system. But nobody expected it to spawn a move from investors to aim for a second passport. Countries around the world are now adjusting their Residency and Citizenship by Investment (RCBI) programmes to accommodate the birth of crypto enthusiasts. While certain nations are hellbent on cracking down on crypto, other jurisdictions are making the necessary accommodations to attract individuals operating in the digital asset industry who are looking to add a second citizenship.

Even though the level of crypto adoption worldwide is nearly as volatile as crypto itself, certain nations want to stand out. El Salvador is the obvious example, having passed a law that made Bitcoin legal tender in Sep. 2021, and which prides itself on being the only truly crypto-native country for RCBI schemes. But El Salvador isn’t alone. Dubai, Portugal, and a spat of Caribbean countries have been following suit, as authorities in those nations slowly–and sometimes begrudgingly–warm up to the idea of crypto.

Accepting cryptocurrencies to get individuals interested in a second country of residence is no small matter, however. Especially since governments have been relentlessly applying Anti-Money Laundering (AML) and Know Your Customer (KYC) best practices, all to fulfill the narrative that crypto funds illicit activities.

Nevertheless, certain countries are spearheading the siren’s call for crypto, including:

• Singapore
• Portugal
• El-Salvador
• Saint Kitts
• Antigua and Barbuda
• Turkey
• Egypt

Some of these aren’t incorporating crypto as part of their RCBI schemes yet, but they are progressively advancing the industry in commercial and regulatory terms. Turning towards crypto as part of RCBI schemes, one nation takes the top spot.

What an underdog story. El Salvador has transformed from the most violent country in the world in 2015 with 103 murders per 100,000 inhabitants to just 2.3 in 2023. That’s thanks to its Millennial President, Nayib Bukele, who has been using somewhat unorthodox means to reduce the savage amount of gang violence plaguing the nation. His millennial attitude, which understands the digital economy and the place for internet-native currency, has also beckoned Bitcoin into his agenda.

In Sep. 2021, the small Central American nation passed a law that made Bitcoin legal tender in the country. The move has been a game-changer, with technological companies flocking to what’s been called “Bitcoin Country.” Bitcoin Country isn’t solely focused on companies, however. Now it is testing out a program for individuals gearing for a second passport.

Towards late 2023, El Salvador’s Congress approved a migration law that grants expedited citizenship to foreigners who make bitcoin “donations” to government social and economic development programs.

The government, alongside the stablecoin company Tether (which issues USDT, a token which tracks the price of the US Dollar 1:1), announced a joint initiative dubbed “Adopting El Salvador Freedom” last week that allows foreigner to obtain a Salvadoran passport in exchange for: $1 million–and has been capped for the time being at 1,000 persons.

Nevertheless, the bill offers a way to skip the normal requirement for the naturalization process of five years of permanent residence for anyone from a non-Spanish speaking country, or two if the person has a Salvadoran spouse. For successful applicants, the process shouldn’t take more than three months.

Individuals are considered residents in El Salvador if they remain in the country for an uninterrupted period of at least 200 days within a year. And the income rate in the country is progressive, ranging for 10% to 30%. That said, capital gains taxes are set at 10%, although Bukele’s government has hinted at removing it altogether for Bitcoin-related activities.

Why is El Salvador important? It is the only truly crypto-native RBCI scheme in the world, accepting bitcoin and USDT payments for citizenship. While others are slowly opening up to the idea, it remains the first and foremost option for bitcoiners.But El Salvador isn’t alone. There are a few other nations also bidding for crypto investors to land their hard-earned digital cash in their territories.

The nation living at the border of Asia and Europe has been experimenting with Bitcoin payments.

With 85 million inhabitants, and capital growth in the city by 10-15% per year, Turkey has an RCBI scheme that offers citizenship for individuals that invest a minimum of $400,000 in real estate.

Going the real estate investment route allows investors to invest in projects that include residential homes, apartments, and commercial properties. Individuals can also purchase multiple properties that collectively add up to $400,000 and are required to hold the property for three years.

What’s notable is that Turkey’s real estate developers are now allowing for payment in Bitcoin and USDT. With the nation’s proximity to Europe, and Asia–which counts many anti-crypto policies in places such as India or China–Turkey could prove to become a safe-haven for crypto-native investors.

Much like the internet, crypto is on a near-vertical growth path. Its adoption is exponential and will likely continue to expand as the world turns ever more digital.

A second passport from nations that open the doors to crypto investors will be attractive for individuals looking to hedge against potential unruly governments in their own nations, tax regimes that are unfavorable, or civil unrest.

The race for an exit strategy will continue, as long as crypto continues.