29 Out of 10 People Don’t Know These Benefits of a Second Citizenship. Are You One Of Them?

high-net-worth individuals, second citizenship, economic opportunities, travel freedom, mobility, personal security, tax reduction, better living conditions, passport portfolio, diversification, citizenship across continents, plan B, European Union citizenship, residency rights, favorable tax regime, settlement bloc, trade blocs, trade agreements, security concerns, European Union, EU

Most high-net-worth individuals already know the principal benefits of obtaining a second citizenship:

  • Access to investment and economic opportunities around the world
  • Travel freedom and mobility
  • Upgraded lifestyle
  • Personal security
  • Tax reduction potential
  • Better living conditions
  • Privacy in banking and investing

Wealthy Americans, Canadians, and Western Europeans are investing in a passport portfolio at a torrid rate for exactly those reasons. And with access to and experience in programs all over the world, JH Marlin has helped hundreds do so.

But most high-net-worth individuals don’t know about these three core benefits of a second citizenship that typically go ignored: Diversification, trade and residency rights, and economic alliances.

Today’s article will shed light on these hidden benefits:

Diversified Citizenship

Diversifying your citizenship across continents is a strategic move that can offer a lot more benefits than one might imagine.

With the decline of the Western world accelerating, most of our clients want a Plan B, an escape scheme to avoid the consequences. However, that fall may precipitate a greater domino effect across the world.

So while one continent or region goes up in flames, another might not be far behind.

All you can do is prepare. How? 

We have helped hundreds of high-net-worth individuals diversify their portfolio to minimize risk properly. Investors very well know the value of diversification in the financial world. But why not extend that same principle to citizenships and residencies across the world?

If you have citizenship and residency in only one region of the world (or just one citizenship, period), you effectively put all your eggs in one basket. You’re betting on the future of that singular region. 

On the contrary, having citizenships spread out across the world both geographically and politically (we’ll talk about economic alliances later in the article) means you are not reliant on just one region’s economic and political stability for your future. Your risk is diversified and, therefore, minimized.

For instance, we spoke with an American client recently who wanted Canadian citizenship. To escape an ideology that threatened his occupation in the United States, he wanted to relocate his family to the Canadian Rockies for some peace and quiet. Yet, they also wanted close proximity to their home country.

Fair enough.

But what they failed to understand was that because of their close political and economic ties, Canada is heading in the same direction as the U.S. And the same reason they are leaving the first country may also force them out of the second one in the future.

So we recommended something that may serve this American family better than Canadian citizenship: Citizenship in the European Union – for example, in Malta.

Maltese citizenship

How does Maltese citizenship accomplish their goals? Well, the family would get access to the European Union’s robust healthcare system, residency rights in 27 countries across the EU, natural beauty in the Alps (perhaps more beautiful than the Canadian Rockies!) and Mediterranean Sea, and a very favourable tax regime – away from the demise that they so badly want to escape.

When we dug deeper with our new client, this citizenship program ticked all their boxes and will save them a lot of money in the process.

This is true diversification.

A new settlement bloc in the EU. A new continent in Europe. An entirely new system and business climate for them to operate in.

The key here is to create a plan to obtain a second citizenship that adds benefits and positive upside to your life – not duplicate the life you already live. Risk minimization in the form of diversification.

Citizenship in Multiple Trade & Settlement Blocs

Citizenship in multiple trade and settlement blocs like the European Union (EU) or the Caribbean Community (CARICOM) can offer significant economic and lifestyle advantages, many of which you may not realize.

Most high-net-worth individuals are familiar with the power of residency or citizenship in the European Union. Access to one member country typically means complete or at least easier access to all other member countries.

These unions are referred to as trade or settlement blocs, depending on the agreement between the countries. They have established treaties that facilitate easier business operations, travel, and residency for citizens in member states.

As I mentioned, a majority of our clients understand the benefits of EU ties. But most of them aren’t aware of the wide variety of trade and settlement blocs across the world. The European Union is just one of many, where citizenship in one member country may grant you special privileges in all other member countries.

  • EU citizenship allows you to live, work, and do business in any of the 27 member countries without additional visas or permits.
  • Similarly, CARICOM offers similar benefits amongst its 15 member states in the Caribbean, home to 5 citizenship-by-investment programs.
  • The Gulf Cooperation Council (GCC) facilitates economic integration and residency among its member states in the Middle East.
  • And finally, MERCOSUR in South America offers citizens of member states residency rights and more seamless economic benefits across the region.

Citizenship in Multiple Trade & Settlement Blocs

The payoff is immense. When you gain citizenship in one country, you also receive access to other markets, economic opportunities, and residency rights in the region.

This is optimal diversification and gives you incredible optionality in the event you want access to more of the globe.

Citizenship Across Economic Alliances

We are living through the reintroduction of a multipolar world to the lexicon. Throughout the mid-to-late 20th century, the dominant theme in global culture was the West vs. the East, capitalism vs. communism, and the individual vs. the state.

The United States, Canada, and Western Europe face new threats today. And a similar sentiment demands our attention yet again. 

Have you heard of BRICS?

Citizenship Across Economic Alliances

Made up of the original five members Brazil, Russia, India, China, South Africa, and later joined by Iran, Egypt, Ethiopia, and the United Arab Emirates, BRICS is a growing bloc of countries and of global population that stands in opposition to NATO.

As more countries and emerging economies join this powerful global pact, it may be wise to diversify your citizenship, business dealings, residences, and financial interest across the spectrum.

In the event the current multipolar conflict reaches a head, you have a diversified portfolio that minimizes risk across all your investments – no matter what happens. So at a moment’s notice, you may need to relocate physically, move your money, and secure the safety of your family across the world.

Being a citizen of countries in various economic alliances can offer hidden advantages beyond what is immediately apparent. Like trade and settlement blocs, these alliances often mean favourable trade agreements, reduced tariffs, and enhanced business opportunities for citizens of member states.

Other Hidden Benefits and Consequences of Second Citizenship

Here are a few more subtle advantages and potential drawbacks to consider. Hidden benefits include:

  1. Education opportunities — Second citizenship can grant you and your family access to better and/or more affordable education systems.
  2. Healthcare access — Some countries offer superior healthcare services to their citizens, which can be an important advantage for seniors or those who need special attention.

Other potential consequences include:

  1. Increased obligations & regulation — Dual citizens have to comply with the regulatory climates of both countries, which can complicate financial planning, tax reporting, and business dealings.
  2. Security concerns — In times of political unrest, dual citizens might face difficulties, such as obligations to serve in the military or discrimination against their nationality.

 

So it’s clear that having a second passport isn’t just about collecting papers. It’s about having the right second citizenship for your unique current situation and goals.

No matter how much conviction our new clients have when coming to us, the first question we ask is about their goals: Why do you want a second citizenship?

Do you want a European Union passport to get better travel access inside the Schengen Area? Or do you need citizenship in Southeast Asia to get access to their notoriously safe banking system? Or do you want a slower, more relaxed lifestyle in the Caribbean where you can potentially pay less personal income tax?

All of these goals are achievable. That’s good news.

But the best, easiest, most affordable, and most efficient way of achieving those goals may not be what our new clients had assumed. That is why we invest time and energy to understand our clients’ current situation, challenges, and goals. So we can then map out a solution that makes sense for them.

If you or someone you know desires a plan for the future to safeguard their family and their assets, we’ve helped hundreds of high-net-worth individuals apply for and obtain second citizenship abroad. And we’d appreciate the opportunity to serve you and your family. Contact us here to get started.

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