Entrepreneurs looking to scale up, explore numerous business opportunities across the globe, improve efficiency and increase profit margins have to consider obtaining a second citizenship. In today\’s fast-moving world, entrepreneurs have access to a plethora of tools such as forefront technologies, high-quality automation, up-to-date financial services, and a skilled workforce, that can help them grow their businesses worldwide. However, none of these tools raises the business outreach and opens an ocean of opportunities as much as residency and citizenship through investment.
There are many benefits of having second citizenship for entrepreneurs starting from the ease of travel to tax exemptions, reaching the myriad investment opportunities. So, let’s check them out.
Wider exposure
Owing second citizenship helps entrepreneurs increase their exposure in global markets and boosts the possibility of reaching out to millions of potential clients. It also allows an entrepreneur to do business in the host country and avail of the well-developed infrastructure, and high-quality internet, electricity, and transportation services. Second citizenship also enables businessmen to trade with other nations, and benefit from the free trade treaties and partnerships the country of citizenship has signed, along with preferential access to the world’s largest markets.
Economic and political stability
Because economic and political stability is critical and impacts the business in many ways, entrepreneurs must consider such incidents. Amid the current geopolitical and economic landscape, a second citizenship can provide entrepreneurs an escape route from civil unrest, political conflicts, or sanctions imposed on their homeland. If the country where your business is based undergoes any significant financial, social or political upheaval, second citizenship gives you the option to relocate your assets and live and work in a more stable and secure country without time-consuming protocols. Due to visa limitations and sanctions imposed on some countries in the Middle East, entrepreneurs find it difficult to cross borders. But second citizenship may limit prejudice directed at you at border crossings.
Visa-free access
Entrepreneurs and business owners travel frequently and most of the time on such short notice, so they do not have time to handle visa paperwork. Expanding a business in a globally connected market dictates travel, so obtaining a visa for countries where entry is limited or restricted can be costly and time-consuming. With a second citizenship, an entrepreneur will be able to travel to many countries without a visa, depending on the country of the second citizenship. The Caribbean countries, for example, allow dual citizens to travel to over 130 countries, including the UK, Schengen Zone, Hong Kong, China, Russia, and Singapore. A Portuguese citizen can travel without a visa or get a visa-on-arrival in more than 160 countries.
Tax exemptions
Entrepreneurs seeking to expand their businesses may face significant tax burdens, but obtaining second citizenship allows them to reduce tax liabilities. However, any potential tax benefits of second citizenship depend largely on the investor’s homeland and the country providing the second citizenship. Some countries require citizens to pay tax on money earned abroad, which means you must pay tax in both countries, whereas others have Double Taxation Agreements in place, which allow you to avoid double taxation. Caribbean countries have lower tax rates than many developed countries, therefore, becoming a second citizen of such a country could offer greater tax efficiency. In other countries like UAE, dual citizenship holders have zero tax liabilities.
Investment opportunities
Foreign nationals may face restrictions in conducting business or investing within the borders of many countries. Therefore, they will not be able to benefit from the favorable exchange or interest rates or invest in profitable markets. For these reasons, having second citizenship is beneficial and opens new business and investment opportunities. Strong connection with business partners in a foreign country is crucial for the business and its sustainability. It entitles entrepreneurs to a variety of financial benefits, including consistent banking options, favorable exchange rates, lower interest rates, tax incentives, and much more. Entrepreneurs can also take advantage of the massive opportunities available in countries providing citizenship programs like the Caribbean. They can invest in many lucrative sectors such as tourism, renewable energy, and agribusiness, and benefit from unrestricted foreign ownership. They can also take advantage from the thriving startup ecosystem and tailored incentives in Turkey, as well as Portugal’s robust economy that would open a world of opportunity for entrepreneurs looking to bolster their career.
Second Citizenship: Ideal option
Having a second citizenship is certainly an ideal option for entrepreneurs seeking greater exposure on a global scale, growth, and lucrative investments. Choosing a suitable citizenship by investment scheme depends on what they are looking for and which markets they want to explore. For more guidance and assistance in selecting the appropriate program that does not require physical presence for a minimum number of days, please sign up now HERE.