Second passport, which is also called golden visa, allows a person to become a citizen of another country. Second citizenship has become very popular and valuable in recent times. Many countries now have programs where they allow individuals from other places to make citizenship applications by making an investment, usually by making a property purchase. Some of these countries are Spain, Greece, Austria, Malta, Cyprus, Grenada, Dominica, Saint Lucia, and Portugal.
The approval process in many countries is very quick. You will get the approval in only 3 months. You will get the citizenship for life. Your entire family, like your spouse, kids, and even grandparents can get citizenship on making an investment. It may, however, take longer elsewhere. Austria, for instance, has a strict process, where the entire process may take longer than 12 months.
Why have these citizenship programs become so popular? Why are so many individuals buying realty to get their second passport? You will find a variety of reasons and many advantages of this. Let us take a closer look.
Benefits of Making the Investment
According to Mirabello Consultancy the various reasons to invest in the golden visa include personal safety, business growth, family reasons, education, and global mobility, which allows traveling to several countries visa free with the new passport. It almost always improves your net worth when you make an investment.
Reason #1: Security – Unfortunately, not all corners of our world are safe. The passport of a peaceful and stable country will make a huge difference if there is political unrest in your home country. It can protect your life, the future of your family, and your money. See this as insurance for the future.
Reason #2: Global Mobility – All nations are not equal. Residents of several nations must get the visa before they can visit other places. Their passports often are very restrictive, which hampers their mobility. For instance, a Pakistani passport will give you entry to only 40 nations visa-free, most of them Muslim countries.
Whereas, with a Cyprus passport, you do not need a visa to visit 164 countries. This means, you can save plenty of hassles and time as well for filing the visa application. There will be less paperwork. This is very useful for both business and leisure travelers who are frequent travelers. Citizenship by investment opens the world for you. There will hardly be any travel restriction.
Reason #3: Business – You may want to protect your business, consolidate it, or look for growth. Whatever your reason, the investment will be invaluable for you. It will open up new opportunities for you. It will help you protect the business if the situation is unsafe in your home land. It may even help you if you are seeking a new job. The pay will usually be higher. You can continue doing business in your home country as well, because most second-passport countries don’t require you to give up your original passport when you apply for citizenship in another place. The only exception to this is Austria, which doesn’t recognize dual citizenship.
Reason #4: Education – Many individuals apply for second citizenship for joining a school or university to further their education in another nation. This way, you can make the application more easily to the world’s best schools. For example, most universities will have a quota for those with a Chinese or Indian passport. There will be fewer openings for them. But as a local, there will be far more openings.
Your child will be required to pay tuition fees at the domestic price instead of the international fees, which are much costlier. Which means, your child doesn’t have to work part-time to finance the living costs. He or she can focus more on education.
Reason #5: Family Benefits – Members of the family of a primary applicant also gain immensely. This gives everyone in the family a better future. The kids can go to better schools and universities and later on have more job opportunities. The salary will also be almost surely better. Plus, everyone in the family will now have access to better healthcare. There will also be improved lifestyle in a better country to live. The future will be much brighter in many ways.
Reason #6: Taxation Benefits – Dual citizenship could also be good for taxation purposes. There are a few countries, for example, which will only tax all incomes from that particular nation only. They don’t calculate capital gains for taxation either. Which means, you might have to pay less money towards your tax. Those who invest can manage the wealth more effectively and efficiently.
Reason #7: Benefits for the Family – In many countries, the CBI or citizenship through investment plan also includes the applicant’s family people. So, the investor or the primary applicant can ensure that everyone in the family has better prospects for the future by having their own second passports.
As we have already discussed, they will have improved lifestyle, access to better health care that can often be world class in the top countries, may get admission to better schools and universities, and can also get better and more high-paying jobs. Overall, the life quality will improve. All the immediate relatives gain from such an investment.
How Countries Gain from Such Investments?
Not just the investor and the family, naturally the nations that accept such investments and give away citizenship gain a lot too.
Usually, these countries accept the money for providing an incentive to the foreign investors. The additional influx of money is very valuable. The countries use the funds for advancing various development projects, which provides more jobs to locals and also the new citizens. Also, the new citizens improve the talent pool, so the projects can be implemented more efficiently.
For instance, the Caribbean island of St. Kitts invests the money into their sugar industry, which is an important part of the island’s economy. It helps this small country employ more workers and diversify the economy. In excess of US$55 million has already been invested into the sugar industry through these funds. There are many more such examples where the investment funds have helped.