A second passport is a useful instrument for those who travel frequently, want to make international investments, open a bank account abroad, or facilitate tax planning. There are a lot of economic citizenship programs in the market, and there are also citizenship-by-naturalization opportunities (however, they take much longer). Entrepreneurs usually choose the first option as they need a passport as a working instrument and they cannot wait for years. Read the post to see the main points awaiting holders of a second passport and click on the link for more details.
Dual Citizenship: What Is It?
Dual citizenship means that you are a citizen of two countries at the same time. Some countries use “the right of soil”, which means that anyone born in their territory automatically becomes a citizen. If a child is born in such a country and his or her mother is a foreigner, he or she becomes a citizen of two countries – mother’s and father’s.
You can also acquire dual citizenship by marrying a foreigner or by naturalization in another country. In addition, some jurisdictions grant citizenship to non-residents if they invest a required amount in real estate or governmental bonds.
Having two or even more passports may bring a lot of benefits to an entrepreneur who wishes to take his/her company to the global level.
Benefits of a Second Passport for an Entrepreneur
Let’s look at the main advantages of having two or more passports:
- Tax benefits. Some countries that have economic citizenship programs offer low or even zero tax rates. That is, if the tax burden in your home country is too high, you can reduce it by becoming a tax resident of another country. This possibility is not used by all entrepreneurs, though, as it requires living in the country of fiscal residence for 183 days a year.
- Simplified travel. Many people want to get a second passport because it is strong enough to ensure visa-free access to multiple countries. For instance, a US citizen acquires a Grenada passport to take advantage of visa-free access to China as US citizens need a visa to cross the Chinese border.
- More banking/investment opportunities. A second passport can be used to set up an account in a foreign country without much hassle as non-residents usually need to apply more effort to do the same. This is especially valuable to those whose home countries are not given a warm welcome by banks across the globe. For instance, there are a lot of banks in Europe that do not open accounts to US citizens due to FATCA requirements. However, an American citizen can acquire Maltese citizenship and open accounts in Europe with convenience.
- Wide opportunities for business relocation. If the business environment in your country turns for the worse, you will have an opportunity to easily re-domicile your company to the new homeland.
- Access to more markets. If you arrange one more platform to conduct your business operations, you will be able to access numerous markets. Enter the huge Chinese market, for instance, by acquiring a Grenada passport and thus getting free access to the country.
- An “escape hatch” in case of trouble back home. The world has become a much more dangerous place, with rebellions occurring in many European countries. If things go wrong in your current country of residence, it will be very convenient to relocate to another country along with your family as full-fledged citizens.
Dual Citizenship: Disadvantages
Second citizenship is not just about advantages. There are certain drawbacks that have to be kept in mind, and here is an approximate list:
- Double taxation. If you are a citizen of two countries, you may be taxed twice. For instance, US citizens who earn money abroad have to pay taxes locally and to their home country. There are double taxation treaties, of course, and you may benefit from them. Nevertheless, tax planning is a complicated issue if you are not a specialist, so we strongly recommend discussing this matter with an expert to avoid unexpected outcomes.
- Double obligations. Citizens of two countries are naturally required to comply with the laws of both jurisdictions. Some laws, for example, business regulations, may differ considerably, which means that you will have to adapt your business in the second country. In addition, you may have some extra obligations, like military service.
- Administrative tasks. Citizenship is not granted overnight unless you are born to parents with a different nationality. If you become a citizen by naturalization, you may need to spend years (from 3 to 30). And if you acquire economic citizenship, you will need to handle quite a number of administrative issues.
Quick and Affordable Citizenship
Citizenship by naturalization is a time-consuming affair, and business people usually dislike waiting for years. Fortunately, there are options in the market that make it possible to acquire second passports for you and your family members in a matter of several months without much hassle. This will require investments, but there are opportunities that will allow you to return the amount invested – usually in five years.
Countries that offer citizenship by investment understand that the market is very competitive, which makes them keep the prices reasonable and offer interesting benefits to foreign investors. The choice depends on your top priorities: some destinations offer low taxes, others have strong passports, and still others offer excellent opportunities for businesses.
If the country offers a strong passport, it will naturally cost more. The strongest passport that you can acquire by investment is the Maltese one, and you will need to invest 700,000 euros into the local economy and buy local real estate. And if you are looking for the most affordable passport, take a good look at Caribbean programs. Here are three countries whose program requires an investment of just 100,000 US dollars + administrative fees:
- Antigua and Barbuda
- Lucia
- Dominica
You will not have to travel to the Caribbean to get your second passport as everything can be done remotely. As for Dominica and St. Lucia, you don’t ever have to visit the countries. In the case of Antigua, you will have to spend no less than five days in the country over the first five years.
Interested in obtaining a second passport? Please click on the above link to discover more details or talk to an expert using a live chat. We will help you make the right choice free of charge!
