Industry Voice: Passport to prosperity: why high-net-worth individuals need dual citizenship
Christopher Willis, Managing Partner at Latitude Caribbean, talks to ITIJ about visa programmes, dual citizenship, and the advantages they offer
While the phrase ‘It’s a small world’ has been used in various parts of the world for centuries, the world has never seemed as small as it is now. Today, most people in most countries can travel beyond their own borders – if they have the means to do so.
In fact, global demand for so-called ‘golden visas’, or residency-by-investment programmes, is now higher than it has ever been before. For example, in 2022, 216 Americans were approved for Portugal’s Golden Visa programme. However, just in the first seven months of 2023, nearly 200 were approved, bringing the total number of Americans who have taken advantage of the Portugal Golden Visa programme to 729.
Grenada has also seen an explosion in applications for citizenship by investment, with the number of applications received rising from 1,251 in 2022 to 1,698 in 2023. Meanwhile, the amount invested there in connection with the nation’s citizenship-by-investment programme more than doubled, jumping from about EC$359 million (US$133 million) in 2022 to around EC$834 million (US$309 million) in 2023.
Looking forward, we estimate that over 100,000 individuals with at least $500,000 of investable wealth will begin the journey towards securing an additional residency abroad in 2024.
Becoming a truly global citizen
There are good reasons to expect demand for golden visas to continue rising. After all, everyone has heard of financial, estate, tax, and education planning and real estate and insurance coverage. However, what is becoming just as prudent for high-net-worth families is citizenship and residency planning.
In fact, we would say that having multiple residencies or citizenships is essentially a necessity for high-net-worth individuals (HNWIs) due to the growing global mindset and the unique and unparalleled advantages it offers.
This need for dual citizenship especially became apparent during the Covid-19 pandemic, when much of the world was locked down and international borders closed. As a result, Americans were banned from travelling to many countries, but those with a second citizenship did not face such a ban.
Despite the global lockdowns, most countries still granted entry to their own citizens or, in some cases, people who had already established permanent residency there. Thus, anyone who had multiple passports was at an immediate advantage over those who didn’t.
While those widespread lockdowns highlighted a critical benefit of dual citizenship, they were just the tip of the iceberg when it comes to the reasons high-net-worth individuals can’t afford to miss out on the opportunities offered by dual citizenship.
Perhaps the most important benefit offered by dual citizenship is the possibility of visa-free travel
Additionally, the citizenship-by-investment programmes available in many parts of the world provide a gateway for HNWIs to become a truly global citizen by establishing dual citizenship in only a fraction of the time it might take otherwise.
Why HNWIs need dual citizenship
Perhaps the most important benefit offered by dual citizenship is the possibility of visa-free travel. For example, Malta’s citizenship-by-investment option is one of the more attractive ones in the world because Maltese citizens can work, study and live throughout the European Union without the need for a visa.
In the event of another global pandemic, which seems inevitable, having a wider area of visa-free travel available will be invaluable. Not only does a second citizenship provide another open door in the event of global lockdowns or a plan B to relocate immediately in the event of possible unrest, but it also enables us to choose the best options from two different healthcare systems.
Having multiple residencies or citizenships is essentially a necessity for HNWIs due to the growing global mindset and the unique and unparalleled advantages it offers
Additionally, students with citizenships in multiple countries have greater access to education. For example, it may be possible for US-born students who also have citizenship in other countries to avoid having to pay international tuition fees at universities in those other countries.
More importantly, students with multiple citizenships tend to be well travelled and have a higher level of cultural sophistication – both characteristics that Ivy Leagues or other hard-toget-into universities appreciate.
Finally, securing dual citizenship by investment can provide an excellent legacy for a family’s future.
Types of investment that qualify one for citizenship
Unfortunately, establishing citizenships in other countries can be an extremely time-consuming and complex process, but for HNWIs, there are much easier ways. Citizenship by investment provides a much faster route to having a second home country and the many advantages it provides.
Many countries offer citizenship-by-investment programmes. These programmes enable HNWIs to secure a new passport by investing in the country they want to be their second nationality.
The concept behind citizenship by investment originated from the ancient Roman Empire. It revolves around the idea that contributing meaningfully to the economy in which you live is a key duty of being a citizen. In that same vein, HNWIs can become citizens in some countries by investing a significant amount of money in their economies.
Each country that has a citizenship-byinvestment programme has different rules and requirements. However, the most common types of investment include making a minimum donation to a nation’s economy or purchasing real estate. Other common requirements include establishing a business, creating a large number of jobs, or some combination of these investments.
Generally, the minimum investment required to obtain citizenship starts from $100,000, although this amount varies widely according to country. Of course, for HNWIs, this is money well spent for the bright future it creates.
An insurance policy for the future
With such a high and growing level of uncertainty in the world today, the desire and need for options have never been higher. As a result, securing residency or citizenship through investment is essentially like buying a modern insurance policy for the future.
If problems that can’t be solved in our native country arise, having citizenship elsewhere provides a much-needed gateway to another home. In short, there is no other insurance policy that offers as much support or as many advantages as citizenships in other countries, and ultimately, there is no easier way to secure those citizenships than through investment.