Why Second Citizenship by Investment Is A Viable Option?

Posted by Josephine Martin on January 11th, 2018

Second citizenship by investment has now become a viable proposition for many high net worth individuals. There are many countries in the world offering citizenship by investment and some even allow for dual citizenship, which can give the applicant extra confidence in having a second passport whilst still retaining their original. It is also worth noting that by completing a second citizenship by investment programme within a European Union country will give the applicant and his family the rights of freedom of movement within any of the European Union member states.

As the world is becoming a more volatile and insecure place, most people seek the second citizenship for giving them that extra security should things change in their home country. Whilst others could seek a second citizenship for fiscal and taxation benefits, it is also possible for others to seek a better quality of life in a new country that their home residence does not afford them.

Most citizenship by investment programmes is available to an applicant and his family members. This can vary between the programmes with some allowing direct dependants such as children under a certain age or still in education and others, allowing ascendants such as the applicant's parents to be included within the application.

Many citizenships by investment programmes have attractive taxation benefits for the high net worth applicant. This can be in the form of a lower flat rate of taxation or in the form of a remittance basis of taxation, meaning you are only taxed on the income that is remitted to that country. The Malta tax system, as well as the Cypriot tax system, offers several beneficial tax incentives for the high net worth individuals as well as for certain corporate structures.

Obtaining a second citizenship by investment can take some time and most programmes range between three months and a year to complete. There is usually an extensive due diligence process to go through and this differs per country, so you should be prepared with all your paperwork. Most countries appoint licensed law firms or mandatories to help facilitate this process and there will be usually professional fees associated with any application process.

Each citizenship by investment programme will have its own conditions, but as the name suggests you can expect to make a sizeable investment. This can be in the form of government bonds, equity investments or in real estate to name a few. Most programmes have a physical presence condition, meaning that you physically must move or be present in the country during the process. The length of time can vary depending on each citizenship by investment programme. The conditions will also usually require that the applicant and his/her family are fit and proper, have valid travel documents such as a passport and have valid health insurance to cover their family.

With the world becoming more accessible, these second citizenship by investment programmes is giving serious options for high net worth individuals to consider. As more countries compete to attract the investment it is expected that much more citizenship by investment programmes will develop soon.

About The Author: The author has an interest in travelling and has an interest in citizenship by investment programmes around the world. She has a particular interest in the Malta residency programmes and the special tax status if offers to applicants of the programme.