As an entrepreneur making deal around the globe or as an avid traveler, one often wishes to travel hassle free. However, most of the times this is not the case since there are many restrictions one has to face when planning trips for leisure or for business. The type of passport you possess plays a major role in how freely you are able to travel.
Even if you can get to your chosen destination, there will be a high probability that you will require a visa. This is often a long and time-consuming process with unsure results. A quick look at the passport rankings reveals that the European passports are most favorable.
All that being said, there is good news to follow. Many countries around the world welcome citizens from other nations to hold dual nationality with them in return for investment, usually in government bonds or real estate. For those with the means, these second citizenship programs can open up a world of opportunities.
Following are the 5 key benefits of having a right second passport.
Visa free travel to key locations
This is one of the main reasons due to which people opt for a second passport. The ease of travel that comes with a second passport is what people look for. Hassle free and convenient, the list of visa free countries depends on the kind of passport you have for example, holders of Dominican passports can travel freely between approximately 130 countries including UK & Schengen countries, while citizens of Portugal can get visa-free (or visa-on-arrival) access to around 160+ countries.
Tax benefits
The tax benefits will depend on where you are from and your country of second citizenship. Some countries around the world, particularly in the Caribbean, offer much lower tax rates than many other countries and therefore it is a better option for those looking for tax benefits. Make sure that if you have a dual nationality, you are clear about the taxing requirements for both countries since some countries require you to pay tax on overseas assets and earnings.
Investment opportunities
Another prime benefit of a second passport is the number of investment opportunities that open up to you as a holder of a second passport. Many countries do not allow foreign investment from certain nations which is why some foreign nationals may not be able to take advantage of generous interest or exchange rates or be allowed to invest in lucrative property markets. With the help of a second passport however, these obstacles can be easily overcome.
Avoiding political and social instability
Political or economic instability in one’s home country is a troublesome scenario. A second passport can help here in two primary ways. Firstly, it lets you escape and potential conflict or war with visa free access to countries and secondly, it gives you the option of relocating your assets to another more stable country should your home country undergo a major financial, social or political upheaval.
Lifestyle and generational benefits
This category is not business related but still an integral part of the list since we all need some time off. Should you choose to become a citizen of a more exotic location such as the Caribbean and you will benefit from unlimited, visa-free travel to and from your own tropical paradise– perfect for a last-minute vacation. Other options may offer a long-term retirement plan.
Depending on the citizenship requirements of your chosen country, you may be able to pass on the benefits of dual citizenship to your children and grandchildren.
These were the top 5 benefits of a second passport. While gaining a second citizenship can be complex and require a substantial investment along with professional guidance, it can be a small price to pay for the potential advantages on offer. It opens up a whole new world to both individuals and businesses.