Former Google CEO Eric Schmidt is finalizing plans to become a Cypriot citizen, Ricode learned, becoming the highest profile American to take advantage of one of the world’s most controversial “passports-for-passports”. Sales ”programs.
Schmidt, one of America’s richest men, and his family have been granted Mediterranean citizenship, according to a previously reported instruction in the Cypriot publication in October. While it is not clear exactly why Schmidt adopted this foreign citizenship, the new passport gives him the ability to travel to the European Union with a potentially favorable personal tax regime.
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The move is a window into how billionaires around the world can maximize their liberties and financing by relying on the permissive laws of countries where they do not live. In some ways, Schmidt’s decision is a reflection of another famous tech billionaire, Peter Thiel, who in 2011 controversially managed to gain citizenship in New Zealand.
Interest in American non-American citizenship is growing during the coronavirus epidemic, which severely limits the ability of Americans to travel abroad. Experts say some of these increases are also due to concerns about political instability in the United States.
It is still unusual to see Americans applying to the Cyprus program, according to published data and citizenship advisers working with the country. The program is very popular with people from the former Soviet Union and the Aligarh people of the Middle East, and has been embroiled in a series of scandals that the Cypriot government announced last month that would be shut down.
Schmidt’s representative declined to comment on the move or Schmidt’s thinking.
The Cyprus program is one of nearly half a dozen programs in the world where a foreigner can effectively purchase citizenship rights, residency requirements or long lines of investment by making an investment in the host country. They have become the latest way for global billionaires to go “borderless” and take advantage of foreign laws, just as they can move their wealth sh fashore, an event documented by journalist Oliver Ballo in an existing book Moneyland.
Small, economically struggling countries – starting in St. Kitts and Nevis in the Caribbean – have embraced the idea over the past few decades, making money that they would never see in exchange for citizenship papers. But what is good for a country can be bad for the world: anti-corruption activists are worried about the competition at the bottom of these programs, worrying that criminals could buy foreign citizenship to operate in their country, or through friendly borders. To funnel drugs or hide their assets from tax officials.
In particular, Cyprus’s program – bringing in છતાં 5 billion despite helping save the country after the 2013 bankruptcy – has become notorious.
The lion’s share of the 4,000 Cypriot citizens who have obtained citizenship since 2013 are wealthy Russians who have advised these individuals about obtaining Cypriot citizenship. Historically it has not even been sold to Americans, whose passports usually allow them to travel freely in Europe. The American people have not heard of taking advantage of this program, and advisers say it has been happening many times over the last few months.
Al Jazeera’s investigation found the identities of 2,500 people who bought Cypriot citizenship between 2017 and 2019 – and only 32, or about 1 percent, were Americans.
This investigation helped spell the end of the program, which had been tested for years. Hidden reporters found out that Cypriot government officials were saying the man was a criminal, a scam that ended with officials resigning. Cyprus announced in mid-October that it was closing the program “due to abusive exploitation”. (Which coincidentally is also around when Schmidt’s approval was published.)
“European values are not for sale,” an EU official said.
It is unknown at this time what he will do after leaving the post. According to advisers, Schmidt could apply between six months ago, when the epidemic broke out, and about a year ago, when it was yet to begin. According to the Cypriot publication, Elithya’s list, Schmidt’s wife, philanthropist Wendy Schmidt and their daughter, media executive Sophie Schmidt, have also applied and been granted.
Theo Andrew, chairman of the Cyprus program for investment immigration firm Astons, said 90 per cent of Payne’s customers obtain Cyprus citizenship in their home country as a backup plan or insurance policy due to concerns such as coronavirus. , Or for financial reasons. Andre speculated that Schmidt could move for two possible reasons.
“One reason is to have a Plan B during the covid. Another reason is that they are expanding their business in Europe, ”he said.
Nuri Katz, a Canadian who has advised the Cypriot government on immigration, speculated that Schmidt “felt the need to diversify his citizenship.”
“Eric Schmidt can’t travel to Europe,” Katz noted. “It’s like everyone else – like so many other high-net-worth people who want to have options.”
People who claim Cyprus citizenship may also be attracted by the reduction in their tax burden, especially if they are U.S. citizens. Be willing to renounce citizenship. Immigration attorney Yandi Samotyuk said his only American client who claimed Cypriot citizenship was a U.S. citizen. Done to avoid paying income tax.
The way the program works is that once a foreigner invests between $ 2 million and 3 3 million in Cyprus, especially through real estate purchases, they can technically apply for a “citizenship by investment” program. After the government reviews the applicant’s background, conducts security checks and visits the foreigner, their application can be approved.
With a fortune of 15 15 billion and many homes around the US, Smith is a titan of the technology industry: Google’s longtime CEO helped the company become an international powerhouse and served as the spearhead of the company’s US lobbying. Program. When he left the CEO position in 2011 and left the board last year, he still serves as a technical advisor to the company and is one of its largest shareholders. These days, he spends most of his time as a socialist, investor and Democratic political donor in Schmidt futures, giving money to the organization and his wife, and speaking out on issues such as competition with China and how Silicon Valley can cooperate. U.S. Army.
On Google, Schmidt was the proponent for a company that paid as little tax as possible, even if it meant making money on foreign tax rules. The company has long alleged that it does not pay its fair share of American taxes using foreign tax rules in places like Bermuda or the United Kingdom.
“I am very proud of the structure we have set up. We did so based on the incentives that governments offered us to work with, “Schmidt told an interviewer in 2012. This is called capitalism. “
