May 15, 2020 Last updated May 15th, 2020 573 Reads share

4 Reasons Why You Need a Second Passport

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Have you ever thought about acquiring a second passport? There are a number of countries that now provide citizenship by investment programs that give you a second passport through a cash or land investment.

In the last thirty years, we have seen an explosion in the amount of citizenship by investment programs being offered by countries around the world.

As an alternative to traditional forms of naturalization, such as by getting a passport through:

  • birth
  • ancestry
  • marriage

Citizenship by investment program offers individuals a possibility of becoming a citizen through special local investment programs aimed at developing local infrastructure in the country.

St Kitts & Nevis is perhaps the world’s most popular program that was first introduced over 30 years ago. Since then there have been dozens of countries around the world that have opened up similar programs for individuals looking to expand their citizenship portfolio.

A second citizenship gives you many benefits such as a greater opportunity for visa-free travel, having the freedom to live in a second country, a greater range of mobility, and being able to pass down the opportunity of a second passport to your children.

Why You Need a Second Passport

If you live in an economically fragile or politically repressive state, a second citizenship can drastically change your life. Having access to a second opportunity and everything that comes with it including better social care, health care, education and quality of life is priceless especially if you live in a fragile part of the world.

Many second passport countries such as Malta, Dominica, Vanuatu have low crime, financial and political security, a strong and safe banking system as well as a great quality of life.

If you are a high-net-worth individual, having a second citizenship is an important diversification strategy for your portfolio. Having investments, assets and accounts in a second country helps ensure financial longevity.

Being tied to one territory or government makes your future dependent upon the political and economic conditions of a single actor. Taking back your own authority frees yourself from subservience to any single institution.

Getting a second passport offers advantages such as (1)travel benefits, (2)tax incentives, (3)investment opportunities and (4) passports for the whole family.

Travel Benefits

Generally, most second passport programs provide visa-free access to many countries around the world making it simpler for you and also your family to take a trip for business or leisure.

St Kitts & Nevis passport, for example, gives you visa-free entrance to over 130 countries, whereas a Malta passport gives visa-free access to over 160 countries. This is especially beneficial for citizens of authoritarian countries, or passports that offer very limited travel possibilities. For instance, if you are a citizen of India, Iraq, or China you have access to only 21, 27, 71 visa-free travel opportunities.

Investment Opportunities

Nations that offer citizenship by financial investment programs are pro-business fully-developed and fast-growing economies offering many incentives for foreign capital and business opportunities.

There are many tax reduction and optimization programs that give rebates and credits for foreign investments in a number of different sectors most notably in infrastructure and developmental projects.

Developing countries have huge potential for investments that are often not available or accessible if you live and have all your investments in the US or UK for example. Many Caribbean countries have interest rates and mutual funds that offer returns that can not be found in traditional western banking systems.

Tax Obligation Optimization

Typically, most countries offerings second passports do not have inheritance, gift, capital gains as well as many other forms of taxation. Citizens of Antigua and Nevis, for instance, are not taxed on any personal income.

Countries that offer citizenship by investment programs, offer extremely enticing tax benefits in order to attract foreign investments and capital into the country. These programs also suffer from brain drains as many younger generations have left for opportunities elsewhere and so also are looking to attract international entrepreneurs, skilled workers, and investors to help boost the local economy.

Nevis and Dominica have greatly benefited from the investments and continue to support the program by decreasing their fees and requirements.

Citizenship for the Entire Family

Citizenship by Investment programs gives citizenship to all members of the immediate family and for future generations. This opportunity is perhaps one of the most significant advantages you can give your children.

Being welcomed into a second country and being treated as a first-class citizen is a gift that can not easily be replicated. Especially in times of uncertainty, having a second residence in place is an important aspect of anyone looking to develop a plan b.

Program Requirements

In order to meet the requirements for most programs, you must have due diligence forms complete, as well as a certificate of good health, and the required fee or investment in real estate. The process can take anywhere from 1-6 months depending upon the nation though this can be significantly shortened through fast track possibilities.

Nations also have different real estate requirements, with investments ranging anywhere from 250,000 in Nevis to upwards of over 1 million USD for Malta. Cash fees range anywhere from 100,000 USD to the more expensive programs in Europe which range from half a million to several million dollars.

The cheapest programs to date is the Dominica which are currently priced at 100,000 USD.

Every program differs in their residency requirements and specifics. One of the advantages of this program is that there are no live-in requirements. While most residency programs require you to live in the country for 180 days per year citizenship by investment programs have no residency requirements allowing you to come and go as you please without having to spend any time in the country in order to claim a second passport.

Is a Second Passport for You?

Getting a second passport requires either time or money if you don’t already qualify through birth, ancestry, or marriage. Whatever your life situation, a second passport opens up the realm of possibilities for you and your family.

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