Let’s start this discussion by defining what a passport portfolio is and why you may want to consider developing one. A passport portfolio is precisely what the name says: any individual with multiple passports in a portfolio. So why would one consider developing a passport portfolio? What are the benefits of holding multiple passports? There are several reasons which are detailed below.
For some people from countries that have low visa free travel, having a second passport can increase travel opportunities by having the ability to access more countries. For example, someone who has citizenship of South Africa is required to apply for a visa to travel to the United Kingdom. By acquiring another passport that has visa free access to the United Kingdom can help fill in travel gaps. Many people from countries such as Syria, Pakistan, Nepal amongst others are ranked very low with visa free to less than 40 countries around the world.
For those with U.S. citizenship, you are used to having one passport giving you the ability to travel without visas to much of the world, however the government’s response to covid-19 has shown how the power of the US passport has declined. The US passport dropped in passport rankings around the world with many countries not allowing US citizens to enter. The citizenship by investment industry has seen a large increase in the number of applicants from the United States of America for a variety of reasons. For citizens of the United States of America who are considering renouncing, developing a passport portfolio will help resolve some of the travel issues you might have to deal with when trying to access certain countries.
Some people wish to acquire different passports to have different visa free travel opportunities. For example, someone looking for visa free access to China might want to consider the Grenada or Dominica passport. Whereas someone who wants visa free access to Canada and the United States might want to consider Malta citizenship. Combining different passports from around the world to create your passport portfolio could be ideal to have ultimate travel accessibility.
Governments are becoming increasingly tyrannical and interfering with citizens’ lives. Understanding the government of the country that you are acquiring citizenship from can be something that you may want to consider when creating a passport portfolio. Many countries in the Caribbean such as St.Kitts & Nevis and Antigua & Barbuda apply a hands off approach to interfering in citizens lives where they don’t have personal income tax. Some people may want to have multiple passports to avoid the risks of belonging to only one government authority and wish to have the ability to change countries whenever they want.
The privacy laws in the country you choose to become a citizen are a critical factor to consider when developing a passport portfolio. If the country you select does not participate in information sharing, it can grant you greater privacy. It is essential to understand that this generally does not apply to U.S. citizens as they are still bound by the reporting laws such as FATCA, FBAR, and others.
4. Safety & Security
Seeking citizenship of a country that is safe and is rich in natural resources can be advantageous. As a citizen you can come home to your country and live in a safe environment. Some countries are subject to natural disasters, wars, political tensions, and decline in standard of living. Whatever the issue is as a citizen of a particular country at the end of the day you can always have a home that offers safety and security for you and your family.
5. Potentially Reduce your tax burden
We have discussed the tax advantages of citizenship and residency in other articles, so we will not delve too deeply into this topic. Still, it can be a critical factor in selecting a country’s passport to add to your portfolio if you want to add citizenship of a no or low tax country to your portfolio. Being a citizen of a low or no tax country can give you a place to go and reside when you want.
Identifying your goals for having multiple passports is essential when developing a diverse portfolio. This clarity of intent will allow you to ensure that each passport contains a necessary component towards reaching your passport portfolio goals. JH Marlin Law can help you sort through the advantages and disadvantages of individual countries including, St.Kitts & Nevis, Antigua, Grenada, St.Lucia, Dominica, and many more, to determine which you passports you should include in your portfolio to avoid overlapping benefits or to leave critical gaps unfilled.