Due to the pandemic in 2020, more people have invested more to secure their future. One particular investment is second or dual citizenship.

A second or dual citizenship is when a person is legally a citizen of another country. In certain instances, this can happen naturally. An example of this occurs when a child is born in a country where their parents are foreigners and holds dual citizenship.

You need to apply or meet the requirements for second citizenship. This will occur in cases of marriage where both partners are of different nationalities. You must invest in real estate or government bonds in exchange for second citizenship. Multiple countries allow citizens to have dual citizenship.

Holding second citizenship has many benefits. For example, a St Lucian citizenship by investment will allow:

• You to travel to St. Lucia and your home country without needing a visa
• You to buy and own property in both countries
• You to open or expand your business in St. Lucia

More and more people are looking at having second citizenship. But what are the benefits of investing in a second citizenship?

Here are some of how acquiring dual citizenship will be financially beneficial to you:

1. Visa-Free Travel Opportunities

Having second citizenship means that you can have two passports. This will remove the need for a visa to travel abroad. It is well-known that applying for a visa is a long and expensive process. Depending on the country, a visa can take up to 6 weeks to process. This excludes the time and energy it will take to fill in application forms and sort out your documents. Having second citizenship will remove the need to apply, saving you time and money.

Sometimes, your second passport will allow you to travel to different countries visa-free. For example, with aSouth African passport, you can travel visa-free to 72 countries, including the British Virgin Islands.

2. Tax Benefits

Irrespective of your country, you will be exposed to tax and tax-related costs. With second citizenship, your tax rate will likely be much lower than usual. However, depending on the country, you might be tax-free with dual citizenship. Countries such as the Bahamas, Brunei, and Monaco allow dual-passport holders to live tax-free.

Dual citizens may also open opportunities to avail of tax incentives not usually available to foreigners. For example, investors with a UK citizenship can qualify for the government’s EIS and SEIS schemes, allowing them to file claims towards investments made on high-risk opportunities like startups.

There are certain countries where you will be required to pay double tax as a dual-passport holder, and there are also certain countries where you will need to pay tax on your income in your home country. Before applying for second citizenship, look at the laws relating to taxation.

3. Investment Opportunities

People relocate to different countries for various reasons, such as employment, expanding their business, or being closer to family. Regardless of the reason behind your move, you will need a place to stay when you relocate.

Becoming a citizen will allow you to buy property in the country. Some countries, such as Europe, have programs where you can invest in real estate in exchange for citizenship. This can be done without living in the country for an extended period. Another benefit of acquiring a second citizenship is that you can benefit from lower interest rates from banks.

Aside from owning property, you can also establish your business in the country where you are a dual citizen. A second passport can allow you to work and earn an income, enabling you to grow your business and create a solid client base. In addition, your company’s reputation will improve tremendously; your business will gain international recognition and unlimited revenue potential. Expanding your business abroad will allow you to form new and innovative partnerships that will extend your reach.

Conclusion

Becoming a dual citizen can be one of the best investments you will ever make. As a dual citizen, you can buy and invest in real estate, benefit from incentives such as lower tax rates and interest rates, and travel visa-free.