Citizenship by investment is rapidly becoming a major trend among the globe’s elite, and for good reason – it offers endless benefits to investors who pursue the venture.
But one issue remains regarding those benefits; the media usually narrows it down to one; global mobility. Getting a second passport will definitely improve anyone’s global mobility standing; allowing them to travel the world easier and quicker without constantly applying for visas.
Countries that offer citizenship by investment programs such as Dominica, St. Kitts & Nevis, and many others tick the global mobility box, boasting strong passports that grant visa free entry to various destinations around the world, but they have much more to offer, and that is where wealth management comes in.
Citizenship by investment has been known as the ultimate Plan B for high net worth individuals and their families; providing them with a second home and an escape route if anything bad ever happens in their country of origin, but by utilizing some basic wealth management tools, it can protect their assets as well.
The intersection
Citizenship by investment plays a major role in preserving your and your family’s welfare, while wealth management safeguards your wealth against any economic downfalls. Combine them together, and you have a resolute plan to deal with any type of turbulence that comes your way.
For instance, political instability in a country can lead its inhabitants to physical harm, while that same instability can also affect the economic situation in the country, affecting the wealth of its residents.
Take Lebanon or Venezuela as excellent examples; as the nations’ stability was put under pressure, their currencies plummeted. This has led to extreme poverty, low rations of necessities, and overall unease for its residents.
Those who have a second passport can flee to safer shores, while those who have wealth management solutions in place can maintain their assets and resources. Having both protects everything you have and ensures you and your family can survive the crisis.
Wealth management also protects against global catastrophes like the COVID pandemic. By putting your eggs in multiple, heavily locked baskets, you ensure that you have a contingency fund to fall back on even if things go awry.
A one-stop shop
But here is where it gets really interesting, the five Caribbean nations of St Kitts and Nevis, Dominica, Grenada, St. Lucia, and Antigua and Barbuda, along with the Pacific archipelago nation of Vanuatu, all offer citizenship by investment programs, but are also considered safe tax havens with extraordinary financial sector frameworks.
This junction means a person can set up a wealth management framework as a citizen rather than a foreigner, killing two birds with one stone.
Say a person wants to leave their home nation till it becomes stable again, would they not prefer to live in the same place their money is? Citizenship by investment allows you to do that.
You can set up trusts, LLCs, and open bank accounts in some of the world’s most tax-friendly nations, one’s which operate on their own version of common law, and ensure you have an extensive setup of resources to fall back on if the need arises.
Keep in mind that these nations have little to no taxes, allowing you to maintain your wealth and even grow it within them without worrying about taxes draining your assets.
Diversification of assets
Citizenship by investment, by definition, requires an investment on the applicant’s part. This is actually a good thing, as it allows investors to diversify their asset base even more, which is a fundamental practice in wealth management.
Those who invest in real estate, resort shares, or bonds in order to obtain citizenship not only get a second passport, but get a tangible, secure asset that can withstand global catastrophes.
Most citizenship by investment countries requires an investment holding period, during which the investor cannot sell their asset. We view this as a great way to diversify and safeguard a portion of your wealth against economic turbulence. But the beauty of it is that not only will those who invest in real estate get at least the same amount of money back, but they can make a profit off of it during that holding period, making it an investment that actually pays off in more than one way.
The connection is wired in
The relationship between citizenship by investment and wealth management is natural and spontaneous, they build upon each other, but the former opens doors for even greater wealth management tools that investors can take advantage of as citizens of different nations.
Planning for the wellbeing of you and your family is a crucial step, but you also need to think about preserving your wealth, and citizenship by investment allows you to do both.
If you would like to know more about citizenship by investment and wealth management and how you can set up your own Plan B, contact us today to book a free, comprehensive consultation with one of our veteran consultants.
