Traveling is part of an entrepreneur’s typical itinerary. If you are a hands-on businessperson, you have to visit your different branches or offices regularly to check operations, engage with employees, meet with clients or potential investors and partners, and resolve issues and disputes several times annually.
If your travels take you overseas frequently, having a second passport can help you in various ways. These benefits make obtaining a second passport by investment a smart business move.
Second Citizenship by Investment Programs
Citizenship by Investment Programs or CIPs are pathways offered by different countries to foreigners to enable them to become legal citizens. These residency routes have been existing for several years now.
To get a second passport, you have three options: donate to the local government, purchase a property, or invest in a business.
When you meet the background check, submit the requirements, and donate or invest in a government-approved property or business, you can get your second passport within three to six months.
At present, several countries in the Caribbean and Europe offer Citizenship by Investment programs. These include Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Kitts and Nevis, Cyprus, Malta, and Moldova.
What Entrepreneurs Can Gain From a Second Passport
Below are the top benefits entrepreneurs can experience from obtaining second citizenship:
Increased Travel Convenience
One of the most noteworthy benefits you can enjoy when you have a second passport is visa-free travel or visa-upon-entry to key locations.
Many of the countries that have CIP have the most powerful passports in the world. Having a Malta passport, for instance, allows you visa-free travel or visa-upon-entry to more than 180 destinations.
Antigua and Barbuda and St. Kitts and Nevis passport holders, on the other hand, can enjoy visa-free travel to over 130 countries including the UK, the Schengen Zone, Hong Kong, and Singapore.
If you go overseas often, you will experience hassle-free travels during your business trips with a second passport. You won’t have to apply for a visa before your flight. You also won’t have to spend money applying for one that you might use for only one or two journeys.
With the right second passport, you can enjoy the same freedom of movement as the other holders of the same document.
Another great benefit of getting a second passport under a citizenship by investment program is that you don’t have to renounce your current nationality to get another one.
CIPs allow applicants to hold dual citizenship. You can own two passports and decide which one to use for your travels and other purposes.
This benefit also means you can stay as long as you want in your countries of residence. If you obtained an Antigua and Barbuda passport through CIP, you can visit and reside in this country anytime. You can also go back to your country of nationality whenever you please.
Your dual citizenship also allows you to enjoy the benefits that the countries that issued your passports offer.
Access to More Tax Benefits
Being privy to more tax benefits is a big perk that you shouldn’t miss out on if you are an entrepreneur.
The tax benefits of second citizenship depend largely on the country you are from and the country that issues your new passport. Caribbean nations that have a CIP offer much lower tax rates.
Most Caribbean countries with this program also withhold capital gains, estate, inheritance, and wealth taxes on their new citizens.
With a second passport, you can experience greater tax efficiency. Additionally, you may also be allowed to classify the expenses associated with your citizenship application as a business expense (for example, trips between the two countries), which can reduce your tax liability.
More Banking and Investment Opportunities
Obtaining second citizenship also means gaining access to more business and investment opportunities.
Some countries do not permit foreign investment from certain nations. If you are interested in breaking into a market that you are not allowed into for now, your second passport can turn things around.
With the right second passport, you will be able to take advantage of generous interest or exchange rates and be allowed to invest in lucrative property markets that you otherwise can’t do now.
Additionally, since CIP involves investing in a business or real estate, aside from getting the opportunity to invest in your target markets, you also have the chance to create an additional income stream in the issuing country.
For instance, if you opted for real estate investment, you can turn the property into a holiday or long-term rental.
Avoidance of Political Unrest
Political conflicts can happen in any country. If this occurs in your country of residence, a second passport gives you the option of leaving legally if you need or want an escape.
Having second citizenship allows you to relocate your assets to another, more stable nation in case the country where your business is based experiences a significant financial, social, or political upheaval.
Additionally, your second passport provides you with an escape route from possible conflict, civil unrest, or travel sanctions imposed upon your home country.
In case your home country becomes unsafe, you can leave to live and work in a more secure, safer, and peaceful place without going through costly and time-consuming bureaucracy.
Access to Generational and Lifestyle Benefits
Finally, CIPs also grant second citizenship to the immediate family of applicants. As such, your spouse and children can also get a new passport from the issuing country, which they can hold and use throughout their lifetime.
If you acquired a second passport from a Caribbean country, you have the perfect destination where you can relax and unwind. Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Kitts and Nevis have some of the best beaches in the world.
Having a vacation in these places allows you to get some well-deserved rest and recreation.
Another great thing about having a Caribbean second passport is that you can visit and have a quick getaway in the other nearby countries without getting an entry visa beforehand. Because of this, you can also explore the other gems in this part of the world hassle-free.
Having a second passport also gives you a retirement option. With the Caribbean being a popular retirement destination, you will have a place where you can readily enjoy your golden years.
A second passport can help you manage your people and business overseas more efficiently. Moreover, you can enjoy other benefits now and in the future.