Secondary citizenship has allowed many people to be united on grounds of descent and living in a particular place for a significant period of time. This isn’t to say that one is not taxed but the good thing is that some countries allow one to be a second citizen without making them pay a great amount of tax and one of the ways is through citizenship by investment.
A tax-friendly second passport can solve your tax burden problem and the best part is that it can be obtained legally. A second passport is also great for a business person who wants to increase control over their assets for a future that is diversified. It can be used to reduce one’s taxes but it is quite difficult to obtain it. However, by proper planning and strategizing it is quite possible.
Before getting a second passport one needs to familiarize themselves with their objectives. The first thing you need to think about is how fast you need to acquire the second passport. If you want to acquire citizenship as soon as possible, then it is best to get the citizenship through investment. Malta, Cyprus and St Kitts and Nevus allow people to do so easily.
However, if it’s not urgent, then you could apply for residency first then acquire citizenship later on. The second most important factor to consider is one’s lifestyle that is, if you are looking for a place to visit or stay permanently so as to improve your quality of life. After considering the two factors and how a second passport fits into your goals and objectives you need to think about the tax ramifications of a second passport.
Getting a passport through investment or descent, would normally not attract tax issues, however, acquiring it through naturalization definitely attracts some tax issues.
Citizenship in Malta
Malta is a beautiful country in Europe. If you are of good standing according to the Malta’s Individual Investor program, you are allowed to acquire the second passports of Malta quite easily. The best thing about acquiring a Maltese second passport is that it allows one to freely travel to many countries in the Europe without needing a visa. Additionally, one is able travel border-free across the Northern America continent. Hence you can travel with your family all over without any restrictions.
Malta has a rapidly growing economy which is favorable to a person who has a high net worth. Its great education system and low tax rates draws many people to it. The Maltese citizenship act that was put up in the year 2000 allows one to be a dual citizen hence hold a second passport. Its free health care system has been highly ranked by the WHO. If you have children you need not to worry as they are in great hands thanks to its wonderful education system.
Once you acquire a Maltese second passport you are eligible to work and live in any states signed into the European Union. There are some requirements one has to meet before getting the second passport and it all depends with one’s age and marital status. One of the requirements is: you have to invest in the Maltese government through their bonds. You also need to buy or rent property for a period of 5 years.
Citizenship in Cyprus
Acquiring citizenship in Cyprus has been regarded as the fastest program in Europe. This is because one can get the second passport after 6 months from the time they applied. Regardless of your nationality, the Cyprus government allows anyone from for any nationality to acquire a second passport. Once you get your second passport you are able to travel visa-free in more than 100 countries including Canada and Singapore.
One acquires the second passport through real estate investment. You basically need to make a 2million euros investment on real estate. Additionally, you contribute to the Land development corporation with a minimum of 75000 euros for five years.
This is actually a tax friendly way of getting the passport. One of the benefits gaining a Cypriot second passport is that you get a PR card once you have successfully meet all the requirements. The PR card can be used in place of the second passport while the latter is being made. You also don’t need to live in Cyprus so as to get the passport but it allows you to be a dual citizen. Due to its subscription to the European Union one is allowed to work and reside in any of the states in the E.U.
If you hold a Cypriot passport you would neither be charged any foreign income tax nor withholding tax on any interest earned. By acquiring its second passport, one is able to help their elderly parents, who would be regarded as dependents, and their future generation as it also extends to them through naturalization. Hence if you are looking for a tax friendly second passport then the Cypriot passport is one of them.
Citizenship in St Kitts and Nevis
For one to get a second passport, one needs to either donate or invest in the real estate of St Kitts and Nevis with a minimum of $200,000. You can also donate to the sustainable growth Fund a minimum of $150000. The St Kitts and Nevis government doesn’t charge tax on one’s overseas income. Once you acquire the second passport you are allowed to travel visa-free to more than 150 countries including Switzerland. You can include your elderly parents and children as long as the children are below the age of 30 years and your parents are above 55 years.
It is suitable for anyone who would like to visit different countries in the European Union without any restrictions. The good thing about investing their real state is that you are at liberty to sell the property after five years which can be profitable.
All these countries allow dual citizenship and they are quite tax friendly. This article will be helpful to anyone interested in getting a tax-friendly second passport in the above countries.