Acquiring a second passport has become a way to achieve a higher level of freedom. It offers people a choice that they were not given at birth – to pick the nation to reside in.
With the numerous benefits this privilege can provide, it isn’t surprising that many high-net-worth individuals choose to apply for economic citizenship in another country. But this is a decision that leaves many vulnerable to grave mistakes that not only cost a fortune but can also be detrimental to one’s quest for freedom.
Although no one is above error, avoiding mistakes is possible if you have more knowledge of what you are trying to accomplish. In terms of obtaining economic citizenship, here are three mistakes you must try to refrain from doing to ensure the success of your application:
Mistake #1: Choosing the Wrong Country to Invest In
Around 50 percent of all nations in the world offer a way for foreigners to become legal residents through a financial contribution. These citizenship by investment programs are continuously growing into what is now a $25 billion industry.
And with this growth comes a competitive global market which may lead to more reasonable “prices” for a second passport. In fact, small island nations in the Caribbean alone require a $150,000 investment on average before anyone can become a legal citizen there.
Unfortunately, people tend to choose the country they will invest in based on their own limited knowledge of the matter. This leaves them vulnerable to a lengthy application process and the possibility of denial for reasons that cannot be made known to them.
To avoid this, it is a good idea to steer clear of the “Where do I want to get a passport from?” way of thinking. Instead, seek countries that have the simplest methods for citizenship application processing while offering almost similar – if not better — benefits than most nations.
Mistake #2: Attempting to Save Money
Having the desire to save money is only natural, so why should high-net-worth individuals be considered as the exception?
Although the concept is typical to almost everyone, it doesn’t necessarily mean saving always bears positive results.
Remember that in finding ways to save money when obtaining second citizenship, you are in danger of falling into traps that scammers and so-called “specialists” have set up. Plus, you might also end up with a disappointing ROI as not all citizenships are created equal.
Take, for example, a passport program in Honduras. They do have one of the lowest investment requirements that could offer you permanent residency at around $30,000 to $50,000. After three years of living there you can apply for citizenship. But what if they don’t offer much in terms of travel and tax perks benefits and security? Will saving several thousand dollars still be worth it?
There’s nothing wrong about choosing the country, by the way. The mistake is not shopping around for a better investment option that can help you get a significant return on your investment.
For instance, citizenship by investment offered in Antigua and Barbuda, Grenada, Dominica and St. Kitts and Nevis are all great choices for economic citizenship. Aside from offering visa-free travel to an average of 130 countries, these nations also give tax incentives to economic citizenship holders. The best part is that you can enjoy all these by investing a decent amount for an investment set at about $150,000.
That said, you must always review citizenship programs, specifically those that are initiated and approved by the government, before making a decision. Indeed, there are policies, requirements, and limitations that can be harsh, but the peace of mind you’ll get from the transparent and straight-to-the-point process is priceless. The key to smooth processing is your licensed government representative so do your homework and choose someone with a lot of experience and who is on the ground in the jurisdiction.
Mistake #3: Not Considering Your Future Needs
Living for today is a good way to spend your days. After all, the “present” is a gift not everyone is given a chance to enjoy.
However, investing in a second passport – or investing in anything, really – holds the future in higher regard. Remember that the core principle of investing is that you’ll get something equivalent to – if not more significant than – what you spent. This means you have to consider what you’ll need in the future to determine whether the return on your investment can become valuable to you.
This doesn’t always have to be monetary, though. With second passports, the ROI can be the benefit of being able to bring your family to live in the country with you at a more affordable price. It can also be the advantage of being able to travel to other places without needing to spend the extra effort, time, and money in acquiring a visa.
So, whether it’s for bringing your family to a better home or traveling the world, or having a secure backup location in the case of war or global health crisis, make sure that you consider your future plans when choosing a second citizenship to invest in.
Don’t Forget to Get Help
When investing to become a legal citizen of a country, you must make smart choices. Whether you’re applying for residency in Antigua, Grenada, or any of the five Caribbean nations with citizenship by investment programs, consider seeking expert help from authorized agents.
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