Citizenship is a legal term that defines the political status of a person. Depending on the country, citizenship can be viewed as more or less restrictive and subject to regulations and laws affecting it.
While most countries require their citizens to never engage in certain activities, such as becoming a citizen of another country, others do not restrict dual citizenship. There are several reasons why people get a second citizenship and this article will provide an overview of the most popular ones.
Real Estate Benefits
A primary reason why people apply for second citizenship is to be able to purchase real estate in other countries. The process of buying land or property can often take several months and buyers will find that the foreign market offers more generous policies than their own local ones.
For instance, some countries do not charge taxes on home purchases at all while others have a minimum purchase price.
To illustrate, say a person opts for a Portugal Golden Visa as second citizenship and is looking to buy real estate. This type of visa allows applicants to remain in Portugal for an extended period of time. In addition, anyone who buys Portugal Real Estate that costs more than €500,000 will not be charged any taxes at all on their purchase. As a result, a person could buy a property that is worth more than €500,000 and would not have to pay a penny in taxes for it.
Another reason why people apply for second citizenship is to be able to travel without the hassle of dealing with visas. While some countries will allow their citizens to travel freely, others have strict regulations on whom they will accept and where they can go. As a result, many people apply for second citizenship in order to be able to travel without the hassle of dealing with visas.
For example, while an American citizen might not qualify for Greece’s visa-free policy, he could get a permanent residency instead and use that as a basis for acquiring Greek citizenship. This would allow him to travel to Greece without having to deal with visas.
Another illustration is Portugal, which is famous for its beautiful beaches and destinations. Its Golden Visa program allows applicants to come and go with ease. If a person that possesses second citizenship can use it to travel to Portugal without having to worry about visas, he has the ability to explore more destinations around Europe and conquer his fear of flying by using sea routes.
This is important to many people who cannot fly and would otherwise be isolated from the rest of the world.
Also, people don’t just travel for pleasure. Business is a major reason why people travel and having second citizenship can give a person access to countries that he might not have access to otherwise. For instance, if an American citizen is looking for a job in Japan and wants to live there, he would have to go through the process of applying for the appropriate visa.
On the other hand, being a Japanese citizen would allow him to bypass this process and make his move.
Economic factors are another reason why people apply for second citizenship. The primary economic benefits of getting a second passport stem from tax savings and protection against possible financial instability in their home country. For instance, if a person is concerned about the future of the United States economy, he might want to have a backup plan in place by applying for dual citizenship with another country such as Panama.
Money that is deposited in a bank account in Panama is not taxed and there are no penalties for withdrawing funds from it at any time. Since the 2008 financial crisis, many individuals have lost faith in the U.S dollar and would prefer to keep their assets somewhere that they can be safe.
Panama has proven to be a safe haven for many who have lost confidence in the economy, so why not take the opportunity to get a second passport?
In addition, a person could choose a country that does not have a formal banking system, yet has low tax rates and minimal interference from the government when it comes to foreign bank accounts. For instance, many people are drawn to Uruguay because it has friendly policies regarding foreign investments.
It does not require any proof of origin for account holders, deposits are widely available across the country, and there is no need for paying taxes on interest or dividends. These factors make Uruguay an attractive destination that might be a good choice for people who want to get a second passport.
Another reason why people get additional passports is because of the social benefits that come along with it. Some of these include better opportunities for their children and access to quality education in foreign countries. For example, some parents prefer sending their children to international schools abroad rather than having them attend school in their home country.
This helps give them more choices when they are older because they have had the training of a particular education system.
Another illustration is that Greek citizens are able to attend institutions of higher learning in the European Union without paying tuition fees. This offers them an opportunity to gain an education at a fraction of the cost if they were attending schools in their home country.
So, many people obtain Greek citizenship for themselves and their children to enable them to reap this kind of social benefit.
Having second citizenship can also provide an individual with increased access to healthcare and better options for medical treatment. For instance, some people choose to become citizens of Monaco because they have tax-supported health care that provides coverage regardless of whether the person is employed or not. In addition, Monaco has some of the world’s top medical facilities.
Another country that offers good health care is Panama, which boasts one of the best doctor-to-patient ratios in Latin America with well-trained doctors and state-of-the-art medical facilities.
Legal benefits are also something taken into consideration when applying for dual citizenship by some people. This includes the ability to avoid legal action in their home country.
For instance, if a person is in trouble with the law back home and he has his secondary residence down in Uruguay, he can be protected against legal action. He would not need to worry about being extradited back home if there is no extradition treaty between the two countries.
Second citizenship provides individuals with many benefits. Real estate is one benefit, and the ability to provide better education opportunities for their children and more health care options is another. People can also protect themselves against legal action if they have a second passport.
The key point of having second citizenship is that it provides an individual with power and freedom to live where he wants and work where he wants and enjoy the many benefits that come with it.