The life of modern-era affluent people is full of uncertainties and challenges. Hence, the idea of having an alternative citizenship and holding a second passport has gained significant traction. So-called ‘Golden Passports’ can be a valuable asset for personal freedom, financial security, or enhanced mobility.
Here are seven compelling reasons why you should consider investing in one.
1. Easy International Travel
One of the most significant advantages of a second passport is the increased freedom of movement it can offer. Each country is capable of implementing immigration policies, including visa regulations, on its own, sometimes, aligning them with partners on the international stage. Nationals of countries with weak passports are encountering obstacles while traveling internationally – the host countries may ask for visas making the trip a hassle. If you are considering enhancing your and your family members’ global mobility, a second passport can provide visa-free or visa-on-arrival access to vast majority of jurisdictions worldwide. It will make your international travel more convenient and less stressful.
2. Business Opportunities
A second passport can unlock doors to new investment and entrepreneurship prospects. Some countries offer favorable tax regimes and stable socio-political systems, while others, with strategic locations and promising economic indicators, can give you access to markets you are interested in. Additionally, having citizenship in a country with a stable economy can guarantee your business’ sustainability.
3. Hedge Against Instability
In times of political turmoil or economic downturns, having a second passport for you and your beloved family members can be a game-changer. It provides a so-called “Plan B” – an escape route and a place to relocate if the situation in your home country becomes untenable. This added layer of security can be priceless in the face of possible future turbulences.
4. Reducing Tax Burden
Some countries that offer economic citizenship programs have attractive tax incentives, such as no taxes on capital gains, inheritance, or wealth. This can be particularly beneficial for those individuals seeking to optimize their tax liabilities.
5. Better Healthcare and Education
Some countries with citizenship by investment programs offer high-quality healthcare and education systems. By obtaining a second passport, you can ensure that you and your family have access to these essential services. Selecting a proper educational route for your children can be decisive for their further development for good. Access to advanced healthcare facilities is also always a subject to consider.
6. Asset Diversification and Wealth Protection
An alternative citizenship allows you to diversify your assets geographically. This can protect your wealth from potential risks in your home country, such as political instability, economic crises, or drastic changes in taxation. Diversification can be a useful strategy to preserve and grow your fortune.
7. Improved Lifestyle
For many, a second passport is a gateway to high living standards. Whether it’s the allure of a tropical paradise lifestyle, the cultural richness of Europe, or the economic opportunities in Asia, a second passport can provide the flexibility to live and work in a country that aligns with your personal and professional goals.
Available Citizenship by Investment Programs
Multiple nations across the globe operate citizenship by investment programs, each with its own set of requirements and opportunities. However, it was St. Kitts & Nevis in the Caribbean that first launched the economic citizenship program back in 1984. Now, the country boasts one of the oldest and most reputable programs in the Caribbean, offering citizenship in exchange for investments and contributions.
A family of four can qualify for St Kitts & Nevis citizenship by investment program if at least USD 250,000 is contributed to the Sustainable Island State Contribution (SISC) or invested at least USD 400,000 in a government-approved real estate development. Applicants must also cover government fees.
The Commonwealth of Dominica has been operating a citizenship by investment program since 1993 and now offers two options to qualify for Dominica citizenship: a single applicant must contribute at least USD 200,000 to the Economic Diversification Fund (EDF), or USD 250,000 if applied with three additional dependents. Alternatively, a real estate investment worth at least USD 200,000 in a government-approved real estate project makes the investor eligible to apply for the citizenship program. However, the government fees apply to the real estate investment option, which may reach USD 100,000 for a family of four.
Grenada is another country in the Caribbean offering a similar citizenship by investment program to foreign investors. Like Dominica, there are two options either to contribute to the National Transformation Fund (NTF), where the threshold starts from USD 235,000 for a family of four, or make an investment of at least USD 270,000 in a real estate project approved by the government. Applicants are also liable to pay the government fee under the real estate option, which stands at USD 50,000 for a family of four. The application process also implies covering processing and due diligence fees.
Saint Lucia introduced its citizenship by investment program in 2015. It allows foreigners to obtain citizenship in exchange for an investment or a financial contribution to the country. You can choose from four different investment options: (1) Contribution to the National Economic Fund (NEF), with a USD 240,000 threshold for a family of four; (2) Purchase of non-interest-bearing National Action Government Bonds (NAB) of at least USD 300,000 plus the administration fee of $50,000 and with any number of dependents; (3) Investment in a government-approved real estate of at least USD 200,000 plus the administration fees; or (4) investment in a business, where the thresholds range from USD 250,000 to USD 3,5 million.
Antigua & Barbuda has been operating a citizenship by investment program for more than a decade. Now the country is also offering four different options to qualify for it. You must either (1) contribute to the National Development Fund (NDF) at least USD 230,000 and apply together with three dependents, or (2) donate to the University of West Indies Fund of at least USD 260,000, which makes a family of six (minimum number of persons in the application) eligible to apply, or (3) make a real estate investment of at least USD 300,000 in a government approved project, or (4) invest in business with thresholds varying from USD 400,000 to USD 1,5 million.
Vanuatu joined the ‘CBI Club’ in 2017 offering citizenship and passports through its Development Support Program (DSP) and Capital Investment Immigration Plan (CIIP). These programs are available to foreigners and their families who meet the eligibility criteria and make the required financial contributions and investments. For the DSP the minimum contribution amount starts at USD 130,000, increasing per added family member. On the other hand, the minimum contribution for the CIIP is USD 115,000 plus a redeemable investment of at least USD 50,000. Since 2021, the program also includes a Real Estate Option (REO) with minimum investment in a government-approved development of.at least USD 200,000
Malta – a European Union member country is also operating a citizenship by investment program, granting the Malta Citizenship for Exceptional Services by Direct Investment policy, launched in November 2020. It allows non-EU nationals to obtain residency and citizenship in Malta through investment and donation. Applicants must make a non-refundable contribution to the National Development and Social Fund (NDSF) of either EUR 600,000 (for citizenship after 36 months) or EUR 750,000 (for citizenship after 12 months), plus EUR 50,000 for each family member. They must also retain real estate in Malta for at least five years, either by purchasing property worth at least EUR 700,000 or renting with an annual rent of at least EUR 16,000. Family members can be included in the application for an additional fee of EUR 50,000 per dependent.
Türkiye allows foreigners to obtain citizenship through a property investment of at least US$ 400,000 or other investment options all starting from USD 500,000 such as fixed capital transfer, bank deposits, government bonds, investment funds, private pensions, or creating at least 50 jobs. Your can include your spouse and children in the citizenship application. You have to be at least 18 years old to apply, with no illegal stays in Turkey, cover taxes and costs, and pass a Due Diligence review. Remarkably, disclosure of the source of funds is not required.
Egypt accepted its first citizenship by Investment applications in 2021. The program allows foreigners to obtain Egyptian citizenship through various investments or donations. The investment options include purchasing real estate (threshold of USD 300,000), business investments (starting from USD 350,000), bank deposits (at least USD 500,000), and donations of at least USD 250,000 to the public treasury. Payments can be made in installments over a year, with temporary residency granted during this period and citizenship upon completion. The main applicant’s legally recognized spouse can obtain citizenship two years after the main applicant. Up to four wives and their children under 21 can be included. You must be at least 21, have a clean criminal record, have good health, and possess the financial means for the investment or donation.
Jordan is offering a citizenship by Investment program that allows affluent foreign individuals to obtain Jordanian citizenship through substantial investments. The program ensures a swift three-month processing time for applicants and their immediate family members. Investment options include (1) a Bank Deposit or Treasury Bonds of at least USD 1 million with a minimum holding period of six years; (2) a company Investment of at least USD 1,5 million with a minimum holding period of three years; (3) investment in a project that creates at least 10 or 20 jobs in Jordan. Investors can extend their Jordanian citizenship to their spouses, children under 18 years old, and dependent parents. You have to be at least 18 years old with a clean criminal record and good health to apply.
Countries are constantly evolving their immigration and citizenship policies. Economic citizenship programs not only provide a pathway to citizenship but also contribute to the economic development of the host countries. They are designed to attract foreign investment and talent, making them mutually beneficial for both the investor and the country.
Conclusion
Investing in a second passport is more than just a luxury; it’s a strategic move that can offer numerous benefits. From enhanced mobility and economic opportunities to personal security and improved lifestyle, the advantages are clear. As the world becomes more uncertain, having a second passport can provide the freedom and flexibility to navigate an ever-changing global landscape.