We live in a world where you can hop on a plane from Dubai to Lisbon and London all on a single day. That’s why the idea of second citizenship has gained traction, especially among expats and high-net-worth individuals.
Answering to this call, several European countries — from Portugal and Spain to Greece — offer foreign nationals the opportunity to obtain residency or citizenship through investment. Here’s why obtaining second citizenship through golden visas makes sense.
Benefits of Second Citizenship
More Freedom with Visa-Free Travel
Increased global mobility is a no-brainer benefit of holding a second passport. With a second citizenship, you can enjoy visa-free travel to numerous countries, often over 180 nations across the globe. This convenience simplifies international travel, saving both time and effort.
For example, Portuguese citizenship (which you can get after 5 years on the golden visa) grants visa-free access to 186 countries, including the European Union and the Schengen area.
Do More Business Faster
For entrepreneurs and business owners, a second citizenship can open doors to new markets and business opportunities. With the ability to travel more freely and establish residency in another country, individuals can expand their business footprint on an international scale, facilitating cross-border operations and investments. Spain's Golden Visa program, for instance, provides a gateway to the European Union's single market.
Tax Benefits
There’s nothing that sounds sweeter to an investor than tax benefits. Depending on the program, second passport holders may benefit from savings on income tax, wealth tax, inheritance tax, and capital gains tax, potentially minimising their overall tax burden. For instance, Portugal's Non-Habitual Resident (NHR) tax regime (soon to be phased out) offers attractive tax benefits, including a flat 20% income tax rate and exemptions on foreign-sourced income.
Enjoy a Flexible Lifestyle
Golden visa programmes often grant the right to live, work, and study in the respective country. This flexibility allows you and your family to enjoy varied lifestyle opportunities. Portugal's Golden Visa program, for example, enables investors and their families to live, work, and study in the country, providing access to its renowned educational institutions and vibrant culture.
Have a Plan B
The world we live in has become increasingly uncertain. Second citizenship gives you and your family a back-up plan and greater flexibility in managing your affairs. It also helps you diversify your assets and wealth. This helps prevent any risks associated with having all your investments tied to a single country.
Wrapping Up
It’s clear as day that holding a second residency or citizenship can perk up almost every aspect of your life. However, there are lots of moving parts that must go right to obtain a second passport through investment. Experts at International Wealth Ventures can help every step of the way.