Investment immigration programs have become an integral part of the portfolio of high net-worth individuals, as well as the economic policies of nations seeking to attract FDI.
Golden visa programs allow an investor to acquire permanent residence of a country with the option of applying for citizenship, subject to conditions.
Citizenship-by-investment, meanwhile, offers a direct path to citizenship for a candidate and their family, although there are several considerations worth highlighting.
Is Dual Citizenship Permitted?
Nations offering citizenship-by-investment programs permit the applicant to hold dual citizenship. But some of those offering an indirect path to citizenship via a permanent residence-by-investment program do not permit dual citizenship.
A candidate’s planning needs to include whether dual citizenship is important.
Citizenship-Related Obligations
Citizens of a nation enjoy certain privileges and benefits, like the right to vote, that are not available to permanent residents. Yet, these privileges may come with additional obligations and responsibilities.
Mandatory military service, for example, is rarely imposed on permanent residents or their family members. Yet, citizens may find it impossible to avoid this requirement. Even if you are old enough to be exempt from military service, your children may end up facing the difficult choice of mandatory military service or relinquishing their citizenship.
Twice the Tax Compliances
Nations offering CIPs often offer a liberal tax regime to attract investors. Yet, you will have to be prepared for compliance with tax rules and formalities of two different nations.
Advantages Galore
The benefits of citizenship by investment far outweigh the potential risks and difficulties. You acquire the right to reside, buy property, work, invest, or set up a business in two countries with virtually no restrictions. Your dependents, including your children, automatically acquire dual citizenship, which can have a significant impact on future education and career prospects.
Choosing a passport with greater travel privileges will grant you greater international mobility. While programs offered by nations in the Caribbean region offer visa-free travel to the EU, choosing the more-expensive options offered by Malta or Cyprus will make you a citizen of the EU and entitle you to all accompanying privileges and benefits.
If you belong to a country plagued by economic, social, or security problems, then the second passport can serve as your ticket to a more stable, secure, and fulfilling life.
Further reading