In today's turbulent geopolitical environment, it can be hard to find a refuge from economic instability—and when you've been trusted with multigenerational wealth or have worked hard to leave a legacy for your loved ones, the last thing you want to do is put your wealth at risk.
For many, multiple passports and foreign real estate investment can be a hedge against uncertainty in your home country.
This article is the third in a series that focuses on some of the unique and varied ways High Net Worth Investors (HNWIs) can preserve their wealth. Read on to learn more about why high net worth investors (HNWIs) are applying to Citizenship by Investment programs around the world.
Citizenship by investment programs allow you to essentially invest in another country in order to obtain their citizenship.
This can mean investing in foreign real estate or even starting a business—by making an economic contribution to the country's economy, your application for citizenship will be fast-tracked.
Once you've become a bona fide citizen of a new country, you'll have even more opportunities to immerse yourself in the local economy or to travel, visa-free, to nearby countries.
Hedging Against Global Uncertainties
Having dual citizenship can mean more than just a luxurious vacation home or an easy launching pad for visa-free vacations.
It can give you the opportunity to escape your homeland during geopolitical uncertainties (or real wars) or economic meltdowns, or to place your hard-earned assets into safe investments that won't be wiped out in a national banking crisis.
Citizenship by Investment programs through real-estate options can even provide you with rental revenue in a foreign currency that many of the products and investments available in your home country don’t.
Every country has different tax rates and laws, so in many cases, owning real estate in another country or owning a foreign business can mean paying far less in income and wealth-based taxes.
The more of your income and investment returns you're able to shield from taxes and re-invest, the more quickly your wealth will build—and the more protected you'll be from the roller coaster ride of economic uncertainty.
And at a certain point in your wealth building career, your focus will turn from growing your assets to preserving what you already have.
Citizenship by investment is a wealth preservation strategy that provides particular benefit to high net worth investors who have become more interested in security than growth.
Unmatched Peace of Mind
The peace of mind you'll feel by participating in a citizenship investment program is often unmatched.
You and your family are not longer at the mercy of your home country’s economic factors that are outside your control.
By geographically diversifying your family's assets and citizenship across the globe, you'll be well-positioned to withstand global uncertainty, to secure your wealth, and to lock in your children's future.