Second citizenship is becoming a widely used term among the world’s elite, as the world becomes smaller, it becomes even more challenging to roam. The solution to a world full of borders is apparent, obtaining second citizenship knocks down those barriers with exquisite ease.
High-society quickly saw how second citizenship could ease their global mobility issues. Second citizenship is much more than just an enhanced travel document; it is a framework for a transcendent life.
In this article, we will show you how investing in second citizenship can transform your life, and how it will positively affect every aspect of it, but let’s shed some light on what second citizenship is.
What is second citizenship?
Second citizenship is when you become a national of another country in addition to your home nation. Almost all countries allow dual citizenship, which means that people can hold citizenship certificates and passports of two different countries at one time, and the world’s elite have taken advantage of these laws, creating citizenship portfolios that allow them to benefit from being global citizens.
For example, suppose you only have citizenship X. In that case, you are then at the mercy of that country’s economy, taxation system, political decisions, and laws. It’s true that most people in life, journey through it living life dependent on a single government’s whim, but an increasing number of pioneers are discovering new types of freedom to alleviate this claustrophobic setting into something better, something more.
Obtaining more than one citizenship can make you more than just a citizen of nation X, but a citizen of the world. It is worth noting that countries allowing dual citizenship usually allow you to hold more than two, giving you the opportunity to build up a robust citizenship portfolio that lets you take advantage of everything the world has to offer.
But how do you do that? Easy; citizenship by investment (CBI). A plethora of countries offer global investors the prospect to obtain their citizenship by investing in pre-defined ventures. The most prestigious of the citizenship by investment programs (CIPs) are located in the Caribbean Sea, as the nations of Antigua & Barbuda, Dominica, Grenada, St. Kitt & Nevis, and St. Lucia provide investors with the opportunity to obtain commonwealth citizenships through investing in real estate or donating to a government development fund starting at 100,000 USD.
Vanuatu features a CIP similar to that of the Caribbean nations, while Turkish citizenship by investment became one of the world’s well known CIPs since its 2017 launch, where investors can become Turkish nationals by purchasing 250,000 USD worth of property within the Anatolian nation.
Since various countries around the world offer the elite citizenship including some European citizenship programs for their investments through easy programs which has a processing time of 3-6 months between them, it is no wonder more people are investing in another citizenship for themselves and their family, especially when the entire investment amount is similar to a luxury car.
Historically, second citizenship was obtained as a way to mitigate risk, a plan b. As the Coronavirus came and changed everything; the pandemic’s effects spread, humanity reassessed its priorities, changing how we view everything. Adopting a proactive mindset has become a priority for everybody to mitigate the risk of a crisis like the pandemic.
Plan A: Global Mobility
Your global mobility increases instantly once you obtain a second citizenship. This travel enhancement is not just an additional perk or a contingency, but a tool to use immediately to your advantage.
Let’s take St. Kitts & Nevis passport as a prime example, the 24th best passport globally, which grants access to over 155 destinations worldwide, including the EU, UK, Hong Kong, Singapore, and many more. Holding a St. Kitts & Nevis passport essentially opens up the world’s most exciting, and economically vital, destinations.
Instead of being reactive and trying to obtain a visa to a crucial event or conference, you can be proactive and roam the continent making good deals and finding hidden investment opportunities which might be undetectable.
Enhanced global mobility eradicates the fog of uncertainty, supplying you with access to the top locations throughout the world . You can hop from one place to another, ensuring you don’t miss an opportunity.
It doesn’t just end at business and investment, but affects something far more important, your family. All CIPs allow you to include specified familial relations, with the Caribbean nations having a comprehensive dependent allowance, which is when your loved ones get to enjoy the perks of second citizenship along with you.
While your kids might not have an interest in attending a worldwide summit just yet, you can benefit from your second passport by vacationing with them in countries that might have otherwise proven a hassle to obtain a visa to, either due to complex requirements or because they do not have a visa application center in your home country.
Take time for leisure and spend time with your family to the fullest, something which can be significantly enhanced when you can just point to a destination on a map and go.
The benefits of elevated global mobility don’t stop there, as you’ll easily accompany your children on their quests to fulfilling their potential. Let’s say your children wants to pursue an undergraduate degree in The Netherlands; you’ll easily travel with them and inspect the campus, help them arrange their living situations, and enter with ease without having to plan weeks ahead to accommodate a visa application. Everything just becomes much more straightforward.
The Caribbean CIPs are extremely popular when it involves global mobility thanks to the strength of the passports they provide. Grenada, Dominica, and St. Lucia offer passport-free travel to more than 140 locations, while Antigua & Barbuda and St. Kitts & Nevis permit travel to more than 150 locations.
These passports all provide visa-free access to hotspots such as the Schengen Zone, the UK, Hong Kong, and others, and the simplicity of the process only adds to the elegance of their CIPs.
Coming to a close second, Vanuatu offers visa-free access to 133 destinations worldwide, with an identical visa-free destination list.
Plan B: Financial Freedom
While global mobility dominates the headlines, there’s another major advantage of obtaining second citizenship, one that the savvy investor will take full advantage of; financial freedom.
The best way to safeguard and increase your wealth is to become financially independent. You can make a huge difference in how you accumulate and grow your assets by choosing where you pay taxes, or if you need to pay any taxes at all.
Many CBI countries like Dominica, Vanuatu, and St. Kitts & Nevis are tax havens, offering their residents and citizens a favorable tax regime that is rarely found elsewhere in the world.
Take Dominica, for instance, where the government does not tax its citizens on worldwide income, inheritance, capital gains or wealth, or withhold taxes.
Consider that Jordan, for instance, has an income tax rate that reaches 30%, or that Egypt has capital gains taxes set at 22.5%, or that Japan has an inheritance tax rate of a whopping 55%. As a result, you can see how second citizenship could save you hundreds of thousands, if not millions of dollars over the years.
In addition to tax benefits, there are many advantages to financial freedom. Offshore banks, for instance, can make international transfers easier, help with foreign investment, and avoid economic fluctuations. Both Dominica and St. Kitts & Nevis offer a robust financial service and banking landscape that allows for comprehensive offshore banking.
Along with the rest of the Caribbean nations mentioned earlier, both of these countries are regulated by common law, making them safe and efficient to store your wealth. Additionally, it allows you to move money across the globe without having to face any of the problems associated with transferring money from certain afflicted or sanctioned countries.
For global entrepreneurs, the ease of setting up an offshore business or corporation is also important. For businesses looking to set up shop on their shores and make the most of their long-term tax incentives, the Caribbean nations and Vanuatu fit the bill.
Nevertheless, it is important that you don’t overlook Turkey when it comes to establishing a new HQ; being centrally situated, it offers a robust marketplace, excellent workforce, competitive operating costs, and abundant resources. Setting up shop in one of the world’s leading markets may be worth the few extra dollars in corporate tax for business owners who are looking to expand rapidly.
An expanded asset base can also play a major role in evolving your financial setup, and a second citizenship can open up a variety of investment opportunities in developing markets that can maximize your return.
The Caribbean CIPs, as well as the Turkish CIP, are excellent ways to increase your investment portfolio. You can invest in the Caribbean’s real estate market by purchasing shares in some of the world’s most beautiful tourist hotspots, such as five-star resorts.
As long as you meet the minimum threshold of 250,000 USD, you can buy one or more properties in Turkey to qualify for citizenship. Having the option of combining residential property, commercial property, or agricultural property makes Turkey’s CIP a great investment alternative.
Financial sovereignty entails the ability to make significant investments without government interference, pay taxes on your own terms, move money around freely, safeguard your wealth in secure locations, conduct seamless global banking, and expand your business on a global scale. Getting the right second citizenship allows you to do all that and more.
Plan C: Contingency Asset
We are compelled by our nature to protect ourselves, our families, and what we own. It is instinctive for us to protect what we love, and ensuring it is safe gives us the peace of mind to sleep at night.
CBI is a strong contingency asset because of the investor’s inherent tendency to take precautions. The pandemic provided proof of this statement, as those with multiple citizenships had something others rarely had: options.
Pandemic spreading, borders closing, and governments scrambling to deal with the new normal put the majority of people at the mercy of their own governments’ decision-making process. It was difficult for those with underlying health conditions or housing loved ones who were at risk due to the government’s policies – unless they had invested in a second citizenship.
Again, let’s look at Jordan as an example; the country was able to contain the initial outbreak, but at an overwhelming economic cost. Business owners and employees reached the brink of ruin during a two-month-long lockdown with no apparent plan to reopen the market. When the market opened, COVID cases shot up, and temporarily the country became the 4th highest in the world in terms of cases per capita per day.
People in Jordan without a second citizenship had no choice but to follow the government’s fluctuating decisions. In contrast, dual nationals had another home, another market, and hope.
In Jordan, more than three-quarters of a million COVID cases have been registered to date, which is approximately 0.075% of the country’s population. While Dominica reported just 192 cases, less than 0.026% of its population. The nation of Vanuatu registered only four cases of COVID-yes, only four-and was among the first to declare itself a COVID free nation.
Due to lockdowns and curfews, Dominica and Vanuatu second passport holders could have waited out the pandemic on tropical islands while conducting their work remotely, and they could have made a greater standard of living during the pandemic.
However, contingency planning isn’t just about protecting yourself from external factors like pandemics, but it’s also about safeguarding your family against internal risks. The MENA region has had political unrest for the past few decades, during which any government can spiral out of control.
Second citizenship mitigates that risk, and it provides them with options, so your children won’t have to worry about the economic crisis affecting their education or their well-being.
Having that backup passport available when things go wrong is essential. CBI, however, also provides protection against other instabilities.
When you diversify your portfolio, you reduce your risk of currency fluctuation, economic depression, and others. When something goes wrong in your country, owning real estate in Turkey or the Caribbean reduces the risk of losing all of your major assets. Furthermore, they provide a variety of passive income streams depending on your investment portfolio.
If there are any disruptions in your country, you may choose to relocate, so you need to obtain citizenship of a country that you would be comfortable living in. The vast country of Turkey is a great example of this, as it has a diverse landscape, excellent healthcare and education, and a robust infrastructure.
The living standard in Turkey is also excellent for retirees, many of whom are looking for a country that is affordable, offers a pleasant climate, good healthcare, and is relatively close to their home country.
Turkey also shares something good with Grenada: its citizens are eligible to apply for the USA’s E2 visa; a US resident permit that only select nationalities are eligible for. As a result, Turkish and Grenadian citizenship open up even more doors for you as a backup plan, which is ideal for those wanting to protect themselves from the worst possible scenarios.
Second citizenship is a lifestyle
Being a second citizen is no longer a contingency plan; it is a complete transformation of your lifestyle. The best way to travel the world, gain financial sovereignty, and shield your family from instability is by investing in a second citizenship.
For this to work, you must understand which second citizenship is best for you. Fortunately, here at Savory & Partners, we have been mastering the concept of CBI since it was relatively unknown. Your needs will be understood, and we will find you solutions that meet your goals. Our goal is to listen, advise, and transform lives.
You can start your journey to becoming a global citizen today by contacting us and letting us handle the rest.