Investing in Second Citizenship: Why Is this Investment Option So Popular Today?

Vavianne Bell, Writer and editor at NTL Trust

06.03.2023 03:15 pm

#dualcitizenship

Nowadays, citizenship by investment is a lucrative option for many foreigners and wealthy entrepreneurs. For businessmen, a second passport is a getaway to business opportunities abroad. So, a holder of two passports can take loans with beneficial interests and open accounts in foreign bank accounts.

They can do business internationally and open new business ventures abroad. In this case, they will acquire the full benefits of doing business in another state and taking advantage of the scope of business opportunities.

Obtaining a second passport offers many benefits, for instance, leverage of tax burdens, insurance against instability in the country of origin, freedom to travel to more than 100 countries, lifestyle benefits, better healthcare and education systems, and many more.

In this guide, we’ll talk about the common reasons why citizenship by investment is a popular way of acquiring an alternative passport.

What Are the Countries that Provide Dual Citizenship?

Many countries provide services for obtaining a second passport for a certain investment in exchange.

Cyprus

If you invest 2-5 million euros in the economy of Cyprus, you’ll get unrestricted traveling opportunities all across Europe, prospects of doing business in offshore areas, and tax optimization benefits.

Caribbean Countries

The Caribbean countries have CBI programs in place that enable foreign investors to invest a minimum of $100,000 in their economies and obtain a second passport. However, the investment amount depends on the country you’ll apply for a second passport and the investment option.

Grenada

The Grenada Citizenship by Investment Programme allows investors to travel to 146 countries worldwide, including China, the UK, and the Schengen states. The legal system in the country is built in a way that enables dual citizens to keep their first passports. The Grenadian passport can be passed down to future generations so they can get dual citizenship by descent.

Grenada is the only Caribbean country where citizens can obtain the E2 treaty visa to live and work in the United States.

St. Lucia

St. Lucia provides an excellent option of getting dual citizenship for at least $100,000 in the National Economic Fund, $300,000 investment in real estate, $500,000 in government bonds, or more than $3.5 million investment in an enterprise or established business. If the investor decides to invest in a business, they have to employ at least three people.

Why Invest in a Second Passport?

Citizenship by investment offers an abundance of benefits and opportunities, and many foreign investors are becoming aware of the possibility of obtaining a second passport. This trend of obtaining a second passport through investment is becoming increasingly popular around the world, especially in the USA.

The Covid-19 pandemic has highlighted the need of having a backup plan and a haven in the case of a national emergency.

The main reasons why many wealthy individuals and foreign investors invest in dual citizenship include, but are not limited to:

Enhanced global mobility - to cut travel short and avoid the complexity of obtaining a travel visa to certain areas of the world;

Efficient tax planning - many investors invest in countries with zero or low taxes on capital gains, wealth acquired offshore, or inheritance;

A getaway to business opportunities - entrepreneurs can conduct global business in foreign countries;

Lucrative banking opportunities;

Alleviate tax burdens;

Trust funds;

Asset and wealth protection - well-preserved and hidden assets since these nations offer multiple protection tools to their citizens;

Improved security and safety systems - a plan “B”;

Lifestyle benefits;

Better healthcare and education systems;

The Investment Migration Market in 2023

With a large number of positive Covid cases around the world, China has implemented a Zero Covid Policy that would help the government reduce the impact on the economy and people’s lives. Many of those with the financial ability to leave the country opted for second citizenship.

According to IMIDAILY, the Caribbean Citizenship by Investment Programs will adapt the requirements and the application process to be competitive in the investment migration market in 2023 compared to the rest of the countries.

Recently, St. Kitts and Nevis announced competitive changes in its program, offering competitive terms and conditions in response to the Covid pandemic restrictions and the newly-arisen circumstances.

Grenada will lose market share once the new US law that restricts the E2 treaty visa eligibility comes into force. Grenada has enjoyed the competitive advantage of the E2 visa and attracted thousands of foreign investors worldwide; however, this advantage will be lost once they’ve obtained a Grenadian passport.

Invest

Now that you’re familiar with the benefits of obtaining a second passport, it’s time to get yours! Contact an authorized entity to learn more about the latest CBI programs, their requirements, and their costs.