The President of El Salvador has announced on his Twitter that a number of legislative proposals have been sent to Congress. One of them is related to the granting of citizenship by investment in El Salvador.

“I’m sending 52 legal reforms to congress, to remove red tape, reduce bureaucracy, create tax incentives, citizenship in exchange for investments, new securities laws, stability contracts, etc. The plan is simple: as the world falls into tyranny, we’ll create a haven for freedom,” the president tweeted.

Last year, El Salvador officially recognized bitcoin as legal tender, which was attractive to crypto investors. The next step was to create and launch a residency by investment program. There was even information about the approximate size of the investment (US$100,000). Through this program, foreign investors could obtain citizenship after five years, and Volcano bonds would represent a qualified investment.

However, the country is not limited to the residence permit for investment program only. The possibility of opening citizenship by investment program is also being considered. However, for its existence, the president faces certain restrictions in the form of Article 92 of the Constitution.

A Salvadoran passport through naturalization can be obtained by:

1 — Native Spaniards and Hispano-Americans with one year’s residence in the country;

2 — Foreigners of any origin, with five years’ residence in the country;

3 — Those who obtain this status from the Legislative Organ for noteworthy services rendered to the Republic;

4 — A foreign man married to a Salvadoran woman or a foreign woman married to a Salvadoran man with two years’ residence in the country, prior to or after the time of marriage.

However, according to Article 93 of the Constitution, "by residing for more than two consecutive years in the country of origin or by absence from the territory of the Republic for more than five consecutive years, unless permission was granted in conformity with the law." Thus, in order for the citizenship by investment program to exist, it is necessary to formalize the interpretation of the existing Constitution.

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