How and Why This Might Work For You
As a entrepreneur with adventurous tendencies you might want to consider obtaining dual and/or second citizenships as a business and lifestyle option. With that being said this bodes to the question of why? Why would a perfectly successful small or mid size business entity entertain the option of pursuing residency in another country?
I spend plenty of time telling my readers how to go about getting dual citizenship, I don’t generally discuss why you would want to go through all this trouble in the first place.
The majority of citizenship-seekers are looking for a better passport than what they already have.
Countries like China, for example, have plenty of citizens who want to travel, work, and live in different countries, but since their passport is fairly weak, they often need to jump through hoops to get the visas that they need. Therefore, many internationally-minded Chinese citizens have sought second passports in places like the United States or the European Union, which have top-tier passports. Many of my readers, however, are already from these countries and have those Tier A passports.
A SECOND PASSPORT MAY OFFER NEW OPPORTUNITIES
Dual citizenship serves as both an insurance policy and a method of unlocking new opportunities.
While I’m not a conspiracy or doomsday theorist, I think that having a backup plan is important, and a second passport can be a sort of insurance policy against invasive new laws or government instability.
Getting dual citizenship can also open up other doors for you, such as easier access to overseas markets.
If you’ve considered getting dual citizenship but aren’t sure whether you want to take the plunge, take a look at some of the ways that you can benefit from a second passport
A SECOND PASSPORT CAN OFFER TAX ADVANTAGES
Although dual citizenship doesn’t automatically lower your tax bill, it can be an important part of your overall tax strategy – especially if you’re a US citizen. Under US tax law, all citizens are obligated to pay tax on their worldwide income – even if their primary residence is abroad. You can learn more about this system of taxation here, but essentially, citizenship-based taxation forces all US passport holders to pay tax every year by virtue of being a US citizen.
Countries like the UK, Australia, and Canada currently use what is known as a residential tax system. Under this system, you only need to pay tax if you meet certain residency requirements.
Therefore, if you get dual citizenship in a country with low or no taxes, you can easily remove yourself from your home country’s tax system. Getting dual citizenship also gives you an exit strategy if your home country tightens its tax regulations.
A SECOND PASSPORT CAN MAKE TRAVELING EASIER
Even if you have a passport with superior visa-free travel, you can still strategically acquire second citizenships that enhance your access to certain parts of the world.
Getting citizenship by investment in Saint Kitts and Nevis, for example, gives you visa-free access to Russia and Brazil – two countries where US and Australian citizens are required to apply for visas in advance.
Getting dual citizenship can thus improve your ability to travel and do business around the world – even if you already have a Tier A passport.
