Why More and More High-Net-Worth Individuals are Choosing Investment-Based Residency

March 15, 2023 Savannah Zimmerman

More than ever, high-net-worth individuals across the globe pursue residency through investment options as the most effective way to access previously unimagined opportunities. But what are the benefits of dual citizenship by investment? We explore these topics and answer the question of how to get citizenship through investment in this article.

Dual Citizenship by Investment

Dual citizenship by investment is a program allowing an individual to obtain citizenship in a different country. Currently the only real Citizenship by Investment program in Europe is Malta’s citizenship program. But also so called "Golden Visa" residence by investment programs open the door to citizenship, this process typically entails a significant investment in real estate, investment funds, business ventures, or government-sponsored programs. In exchange for this investment, the investor receives citizenship or residency, which grants them the benefits and rights of a resident or citizen respectively.

Residency through investment and citizenship through investment are the two most popular versions of Dual citizenship by investment. Residency through investment allows an individual to live in the country, as long as the conditions of the visa are maintained. On the other hand, citizenship through investment provides full rights and privileges, including the right to vote, work, travel freely, and access public services such as healthcare and education.

Dual citizenship by investment is an appealing option for individuals seeking greater mobility, improved security, better healthcare, educational opportunities, and tax benefits. As with any investment, but especially with dual citizenship by investment, contact a professional before starting this process.

How To Get Citizenship Through Investment

So let's answer "how to get citizenship through investment?" To obtain citizenship through investment, individuals must choose a country that offers the program, meet eligibility criteria, make the required investment, complete the application process, and wait for approval. Once the due diligence and background check department of the citizenship unit approves the application, individuals will receive citizenship and passport in a short time as well as the associated rights to live, work, and travel in the country.

Note that the methods on how to get citizenship through investment may differ from country to country. We highly recommend working with a consulting firm like ours to guide you through this complicated process, and to choose the most suitable option for you.

Benefits of Residency Through Investment

Residency through investment has several benefits, including the following:

Increased Mobility

Increased mobility is a major benefit of obtaining residency or citizenship through investment in another country. Having residency or citizenship in multiple countries provides greater freedom of travel and the ability to move freely between countries without the restrictions and limitations of being a citizen of only one country.

The ability to move around when needed can provide a significant advantage for individuals with a global lifestyle, allowing them to live, work, and travel in multiple countries without being subject to the delaying visa application process as a business traveller or private individual. Also, having residency or citizenship in a different country can provide a backup plan in the event of political or economic instability in their home country, providing peace of mind and increased security.

Improved Security

Individuals concerned about the stability and security of their home country can benefit significantly from having citizenship in a stable and secure nation. Political and economic instability can result in significant challenges, such as limitations on personal freedom, a lack of access to necessities, and even violence.

You can reduce the exposure to these risks and have a safe haven in the event of political or economic turmoil in their home country by obtaining citizenship in a stable and secure nation.

Access to Better Healthcare

One of the benefits of obtaining residency or citizenship in another country through investment is access to world-class healthcare systems. Better healthcare can be especially beneficial for individuals and families with specialized medical needs, as some countries may have more advanced medical facilities and treatments available.

For example, countries like Germany, Switzerland, and Japan are known for their high-quality healthcare systems and have some of the best hospitals and clinics in the world. Residency through investment can provide individuals and families with access to cutting-edge medical treatments and services that may not be available in their home country. There is a lot of peace of mind when you have dual citizenship by investment, as you can rest easy knowing that you have access to top-quality medical care in emergencies.

Educational Opportunities

Citizenship in a foreign country can open up new educational opportunities for individuals and their children. In many European countries, citizenship provides access to high-quality public education systems and prestigious universities, which can provide individuals and their families with a world-class education.

For example, countries like Austria, Switzerland, and the Germany have highly regarded public education systems, which provide individuals with access to quality primary and secondary education and higher education. Obtaining residence or citizenship in these countries can give children access to a world-class education, which can benefit their future careers and personal growth.

Tax Advantages

One of the benefits of obtaining residency or citizenship in another country through investment is access to more favorable tax laws and lower tax rates. Some countries have tax systems that are more favorable for individuals, providing them with lower tax rates, which can significantly increase their wealth.

For example, countries like Cyprus, Malta, and Monaco have more favorable tax laws and lower tax rates, which can provide individuals with greater financial benefits. These countries may also offer tax incentives for individuals who invest in their economies, further increasing the economic benefits of residency or citizenship in these countries.

Another central selling point is that having residency or citizenship in another country can provide you with more significant tax planning and optimization opportunities. As a result, you can take advantage of tax treaties between countries and minimize their overall tax burden. These factors can provide you with greater financial flexibility and allow them to manage your wealth better.

Heritage

Obtaining citizenship in a foreign country can provide individuals with a sense of connection to a new culture, heritage, and identity. You can become part of a new community, connect with new traditions and customs, and experience a new way of life. You can also gain a deeper appreciation for different cultures and heritages and learn about the history and values of their new country.

Diversifications of Assets

Diversification of assets is another reason individuals and families may choose to obtain residency or citizenship through investment in another country. By diversifying their assets, you can spread their wealth across different countries, reducing their overall risk and exposure to political and economic instability in your home country.

A diverse portfolio can provide you with greater peace of mind and security, as you know that your assets are safe in the event of political or economic turmoil in your home country.

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