Second Passport: A Status Symbol for Business Leaders
Gone are the days when wealthy people used to collect antique items and stamps. These days High Net Worth Individuals (HNWI) collect second passports. With arousing political instability, it has indeed become a necessity for investors and business people to secure their and families’ mobility and global travel.
With the help of CBI (Citizenship-by-Investment) programs, wealthy individuals can attain dual citizenship in a country by making minimal investments in its specified sectors. Previously, people could typically get Permanent Residency (PR) in a country by working there for a prolonged period (usually three to five years). However, with an increase in the popularity of CBI schemes, economic migration has been easier and quicker to those countries whose economy relies on foreign investments through their citizenship programs.
For business people, the most significant benefit of CBI schemes is that they can get citizenship of their desired destination within months, transfer their wealth and start a business. Not only do they get complete access to the country’s basic civil rights, but they also get to profit from the investment they made in the first place.
The COVID-19 pandemic has made investors and the business world realize the importance of having global accessibility and financial flexibility. HNW individuals from developed countries like the US also suffered immensely due to mobility restrictions during the past two years. This implies that no matter which country the businessman belongs to, having a single passport does not guarantee economic pliability.
In such times, only those individuals who had permanent access to their desired destinations could sustain their mobility. Owing to the sheer advantages of a second passport, its demand among third-world HNWIs has accelerated, especially after the pandemic.
The past few years have highlighted the advantages of being a global citizen for entrepreneurs. It was a story of the past when the global economy flew in certain patterns and remained limited to notable regions like the US, Canada, and the UK. Now that economic patterns have delocalized – just like decentralized finance – it has become crucial for businessmen to access their specific markets on a global level.
By getting a second passport, one can successfully shield their business from regional instabilities and economic uncertainties like inflation, recession, and heavy taxes. Your native country might not have stable conditions for your business, but as an alternative, you can apply for second citizenship in a country having your desired economic conditions.
Besides economic benefits, the second passport ensures your family a prosperous and healthy lifestyle. European countries like Portugal and Sweden, where the prosperity ratio is high and stabilized, offer dual citizenship schemes that cover the applicants and their families on a single investment.
Most applicants for second passport programs are from countries with limited visa access, like Russia, Iran, Arab countries with conflicts, Pakistan, India and China. The high net-worth business people from such third-world countries are rapidly transitioning towards a more economically sustainable environment by opting for a second passport.
However, a surge in demand for dual citizenship in tax-free European countries has also been witnessed among rich Americans. The US’s tough and predatory tax system has always been pretty bothersome to American business people. Now, when tax-free destinations like the Caribbean offer second passport schemes, wealthy Americans are cashing in the opportunity to secure their assets and businesses.
