Acquiring a second passport provides a myriad of life long benefits to you and many generations. The benefits will be passed on to your children, grandchildren and even to great grandchildren which in turn provides them the flexibility to remain internationally mobile. When turmoil hits a country, moving out to a secure place would be a major concern for most high net worth citizens especially that have international businesses. Here are some of the incredible benefits that come along with a second citizenship.
1. PROTECTION FROM TRAVEL AND GOVERNMENT CONTROL.
Your passport belongs to your government, and it is as easy for them to take it back as it is to give it to you. Meaning that if you have only one passport, then a single government holds total control over your right to travel, and therefore where you can live.
2. YOU SECURE A PLACE TO GO ON CERTAIN CONTINGENCIES.
When crisis strikes a country, getting out can become very difficult. If you had an adequate second passport or a second residency, they could have watched the chaos happening on their televisions, rather than out of their bedroom window. Depending on your passport, without a valid visa, citizenship, or residency in the destination country, you might not even be allowed to board a plane.
3. THWART FROM FOREIGN POLICY REPERCUSSIONS
Certain nationalities have more enemies than others and it would be wise to keep a second passport to distance from the foreign policy repercussions.
4. TAX BENEFITS
Taking advantage of your second citizenship or residency by moving abroad has the potential to significantly reduce your tax burden.
5. VISA FREE TRAVEL.
There are certain nationalities that need to apply for visas to go to a number of countries every time which can be time consuming and costly. If you obtain a passport you can visit European countries without Schengen visa. Twenty-two of the twenty-eight European Union (EU) member states participate in the Schengen Area.
6. OPEN TO MORE INTERNATIONALIZATION OPTIONS.
Obtaining a second passport will provide you more internationalization options which will be beneficial for certain nationalities since their current nationality will restrict them to do so. The US government's extra-territorial FATCA legislation has effectively extended US reporting requirements beyond US borders. As a result, many institutions and people do not want to do business with US citizens. Thus, a second passport can help expand the options available to you.
Acquiring a second passport means you will have the option of repudiating your current citizenship. This will also enable you to say "no" to an oppressive government.
8. EXTRADITION BENEFITS.
Depending on the country of your new citizenship, you may even get other benefits such as you will not be extradite from that country. For instance Brazil and Russia do not extradite their own citizens.
9. AUTOMATIC SECOND CITIZENSHIP TO YOUR NEWBORN CHILDREN.
This is one of the major advantage that your new-born children would also receive your second citizenship, which is one of the biggest life time gifts you could ever gift them.
We share with you basic criteria on two of the most popular jurisdictions for acquiring second citizenship under an investment route.
1. Cyprus Investment Programme.
- Freely travel, reside and work within the EU
- Application covers investor and spouse and any adult children up to 28 years. Parents of the investor have the right to obtain citizenship under certain conditions
- Visa free travel to 157 countries worldwide
- Investment made for 3 years only
- Citizenship is transferable to descendants
Direct Investments in Cyprus amounting to a minimum of €2 mn, held for at least 3 years, in any of the following:
- Investment in real estate, land development and infrastructure projects
- Purchase, creation or participation in Cyprus businesses and companies based and Operating in Cyprus. Such companies are required to have a physical presence in Cyprus and to employ at least 5 Cypriot citizens
- Investment in Alternative Investment Funds ("AIFs") established in Cyprus and licensed by CySEC which invest exclusively in Cyprus. This criterion includes financial assets of Cypriot companies or organizations issued after approval by CySEC.
- Combination of the aforementioned criteria amounting to €2mn. In the context of this criterion, the applicant may also purchase Cyprus government bonds of a maximum amount of €500.000
2. Dominican Citizenship.
Dominican citizenship offers key benefits such as free movement of individuals in more than 115 countries (including all countries in the Schengen area), no income, wealth or inheritance tax, and no requirement to physically reside or visit Dominica. In addition, Dominica has the only program in the Caribbean to consider under graduate and unmarried daughters of the main applicants who are under the age of twenty-five and fully supported by the main applicant as a dependent.
To qualify for citizenship of Dominica under the Real Estate Option under the Citizenship by Investment program, an applicant must purchase authorised real estate to the minimum value of US$200.000, held for a minimum of three (3) years. This investment amount includes the main applicant and up to three dependents (normally wife and children).
To qualify for citizenship of the Commonwealth of Dominica under the Donation Option, the applicant must make a donation to the Economic Diversification Fund (EFD) of US$175.000 for the main applicant and spouse, of US$200.000 for the main applicant an up to 3 dependants .
To qualify for citizenship of the Commonwealth of Dominica under the Donation Option, the applicant must make a donation to the Economic Diversification Fund (EFD) of US$100.000 for a single applicant.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.