OECD releases consultation document on misuse of residence by investment schemes to circumvent the Common Reporting Standard


19/02/2018 - More and more jurisdictions are offering "residence by investment" (RBI) or "citizenship by investment" (CBI) schemes, which allow foreign individuals to obtain citizenship or temporary or permanent residence rights in exchange for local investments or against a flat fee. Individuals may be interested in these schemes for a number of legitimate reasons, including greater mobility thanks to visa-free travel, better education and job opportunities for children, or the right to live in a country with political stability. At the same time, information released in the market place and obtained through the OECD's CRS public disclosure facility, highlights the misuse of RBI and CBI schemes to circumvent reporting under the Common Reporting Standard (CRS).


As part of its CRS loophole strategy, the OECD is releasing a consultation document that (1) assesses how these schemes are used in an attempt to circumvent the CRS; (2) identifies the types of schemes that present a high risk of abuse; (3) reminds stakeholders of the importance of correctly applying relevant CRS due diligence procedures in order to help prevent such abuse; and (4) explains next steps the OECD will undertake to further address the issue, assisted by public input.


Public input is sought both to obtain further evidence on the misuse of CBI/RBI schemes and on effective ways for preventing such abuse. Such input will be taken into account in determining the next steps that will be taken. Interested parties are invited to send their contribution by 19 March 2018 at the latest by e-mail to [email protected]. They should be addressed to the International Co-operation and Tax Administration Division, OECD/CTPA.


Media queries should be directed to Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration (+33 1 45 24 91 08) or Achim Pross, Head of the International Co-operation and Tax Administration Division (+33 1 45 24 98 92).