Over the past few years, second citizenship schemes have become extremely popular. Earlier, it was thought that CBI (Citizenship-By-Investment) schemes were advantageous to people seeking a peaceful life for their families. But now entrepreneurs and business people are also benefitting from it.
For entrepreneurs, having global mobility is essential as they have to travel to multiple places to expand their business spectrum. Moreover, the Covid-19 pandemic has made it clear that the modern business world requires investors and business people to have unrestricted access to the international market.
With the help of a second passport, all these business requirements can be aptly fulfilled as one can unfetteredly approach their desired destination without any restrictions. For a successful business, having access to the right technology, software, labor, and market is crucial.
Sometimes, an entrepreneur might not have a suitable business market around him. In such situations, CBI programs prove exceptionally beneficial as they give the applicants the right to select, live, and flourish in a country that aptly fits their business perspectives.
The latest business market accepts only international presence and discourages localized ideas. Suppose you are expanding your business without having the significant rights of a citizen in another country. In that case, you will encounter many limitations, such as high tax rates and a long visa process. At times, you may even be declined to access that place which will definitely halt your business activities.
But by investing in CBI scheme, you can easily access the country and enjoy low taxation rates like any other citizen. One of the biggest perks of acquiring second citizenship is that you won’t have to pay the tax on your overseas income. Countries like the US require their citizens to pay an additional tax on the income earned overseas. As a result, when you travel to another country for business purposes, you will be paying tourist tax in the host country and “overseas income tax” in your native country simultaneously. With such high tax rates, the profit margin will be narrowed- a situation you may want to avoid.
A second passport is the only viable method to get exempted from such a brutal tax regime. Because with Permanent Residency (PR) in a country where the business operates, your native country won’t demand any ‘Overseas Income Tax.’ Furthermore, certain relaxation on taxes will also be provided in the host country, as residents pay lower taxes than tourists and immigrants.
You can further minimize the taxation on your business by getting second citizenship of destinations like Dominica in the Caribbean region, where there is zero income tax. Moreover, with CBI schemes, you can settle your business at a destination with a growing market like Lisbon, where there is no political and economic instability.
All CBI programs cover the applicant’s citizenship and provide PR to their immediate family. So even if you are getting a second passport for business purposes, you can settle with your family and provide them with a peaceful and healthy country.