In these turbulent times, and amid the global macro-economic events such as higher inflation, the Russia-Ukraine war, China lockdown, and rate hikes, many top business executives, and other high-net-worth individuals (HNWIs) are exploring footpaths to dual citizenship around the world.
Interest in obtaining a second citizenship by investment has grown in tandem with epidemic recovery. Nations such as the Caribbean and other European countries had eased their residency rules, making them more appealing to investors.
As a dual citizen, you have the right to live, study, work, invest, and use the public services provided by both nations. You can also collect the perks and privileges granted, or even retire in you second country without any additional procedures, and have access to social services in any country, depending on local regulations.
Here are 6 reasons why you should obtain a second citizenship by investment.
Visa-Free Access, Travel Privileges
Obtaining a second citizenship from a country with a strong passport instantly grants you visa-free travel to further countries as well as the ability to stay for a longer time. Some passports even allow you to travel without a visa to over 130 countries and destinations, where you can remain for up to six months at a time. Due to visa limitations and sanctions imposed on their countries, some Middle Eastern citizens find it difficult to cross borders. Dual citizenship may also protect you from being picked out or investigated at borders.
Attractive tax incentives
Acquiring a second citizenship by investment, particularly from nations with low tax levels, can provide enormous financial savings. Many countries that provide citizenship or residency through investment do not levy estate taxes, property taxes, capital gains taxes, or even foreign income, wealth, inheritance, or worldwide taxes. They are recognized as top tax havens around the world because they enable international business owners wishing to invest in a tax-friendly environment and financial secrecy.
Furthermore, for the people residing in fluctuating currency valuation countries, one\’s net worth is always at risk of devaluation; nevertheless, having a second citizenship or residence from a stable currency country provides a sense of security and stability.
Diverse business opportunities
Having a second citizenship can open doors to do business, expand, and get a foothold in multiple countries. Successful and large business almost means global trading, but that is accompanied by a host of potential complications concerning laws, taxes, and borders, for these reasons, businessmen opt for dual citizenship. Making business in new potential markets can offer direct access to millions of new patrons as well as red-tape-free business relationships.
Moreover, many nations that provide citizenship by investment programs offer a political and economically stable business environment, along with diverse investment opportunities in several sectors including hospitality and tourism, real estate, as well as competitive cost levels, well-educated workforce, and business facilities to house operations. It has signed global trade agreements with other countries for the free movement of goods and services. The prospects dual citizenship delivers are for the long term and include the opportunity to expand across a truly global market.
Passports for some nations that rank low globally, are left with fewer options to escape the conflicts taking place in their regions. However, acquiring a second citizenship remains an option to travel more freely and capitalize on opportunities worldwide.
Top-notch healthcare and education services
Despite the reality that good healthcare, quality education, luxury, and peace of mind are a few of the things in life but are sometimes, unfortunately, out of reach in their homelands. Having a second citizenship by investment puts all these requirements into reach. Various reputable countries that give citizenship programs, provide you a safe and stable political and social environment that are also aesthetically pleasing. These citizenship by investment programs allows you and your family to live, work, and own an additional property, and provide you with benefits that would pass to your entire generation.
Backup plan in a secure country
Peace of mind is invaluable in today\’s uncertain world. It\’s an unobserved safety net that allows for a more stable or pleasing way of life abroad in the event of unforeseen situations such as market failures, political instability, conflicts, or other calamities. You can live and work in a stable and secure country if you have a second citizenship.
For HNWIs, dual citizenship is a wise decision and kind of hedging or insurance policy. Investors are always thinking about worst-case scenarios and want a plan B, which is why demand for citizenship by investment has soared recently. While a $200,000 investment is for most of us a substantial sum, for HNWIs it’s a way of diversifying their portfolio. So rather than buying an apartment in a specific country, they can invest in a property and at the same time leverage from residency or citizenship.