The COVID-19 pandemic has led to many changes and adjustments across the globe. Whether being more conscious and strict about your health or adjusting to working remotely, the majority of the population can agree that much has changed. One sector of the industry that has faced many amendments is the corporate world. Due to the pandemic, many small businesses have shut down. While others have moved to an online work system. Many business owners have taken advantage of moving their business online, utilizing this in conjunction with dual citizenship to run their company from one country whilst living in another country for tax purposes or to have a more desirable standard of living. Companies benefitting from this are saving costs on operating offices and are not suffering from as large a tax bill as before, allowing them to extend more freedom to employees.
Over the past year, the stringent pandemic restrictions have eased, leading companies to give their employees the freedom to decide whether they prefer to work online or at the office. In some cases, companies have moved to a completely remote setting. This provides a unique opportunity for local businesses to expand their markets and become global.
However, in some cases, expanding your business to international markets does come with certain rules and regulations. In certain countries, such as Botswana and Venezuela, there are laws and regulations that you need to follow before opening your business. One simple solution is to apply for a second citizenship or what is called citizenship by investment. In fact, in certain Caribbean countries citizenship by investment comes with many financial benefits that allow businesses to thrive.
This article will highlight a few reasons why business owners should think about investing in dual citizenship. But first, what is dual citizenship? Dual or second citizenship will allow you to be a legal citizen of more than one country. Generally, it is possible to get dual citizenship in three ways. Firstly, through birth, where the child’s parents are foreigners. In this instance, the child naturally holds dual citizenship. The second method is through marriage. Lastly, through investment, you contribute to the country’s economy.
Holding second citizenship has many benefits, such as:
More and more business owners are looking at having second citizenship as it allows them to open their businesses in more than one country. But how does second citizenship impact your business? Here are some of the ways in which having dual citizenship can help your business flourish:
Having second citizenship will allow you to have two passports. This will save you time and money when traveling, as you will not need a visa to travel abroad. It is common knowledge that applying for a visa is a long, tedious and expensive process. There are many forms to fill out, interviews to be done, and requirements to fulfill. Depending on the country, a visa can take 6 weeks or more to process. Having dual citizenship will remove the need to apply.
Sometimes, your second passport will allow you to travel to different countries visa-free. For example, suppose your home country is America. With an American passport, you can travel to 138 countries visa-free. If you become a second citizen in China, you can travel to 37 countries without a visa. As a business owner, you will need to travel quite often. Having a second passport can save you time, energy, and money.
Irrespective of your country, almost everyone is subject to tax and tax-related costs. However, with dual citizenship, there is the possibility that your tax rates will be much lower than normal. However, keep in mind that the tax rate will differ according to the country you are in. For example, In some cases, with second citizenship, you might be tax-free on international income. This can grant you more financial freedom. Countries such as St. Kitts, Brunei, and Monaco allow second citizens to live tax-free. Tax rules and regulations are different for each country. Therefore, before applying for second citizenship, it will be best to look at the laws relating to tax first.
Becoming a second citizen will allow you to invest and buy property in the country. This will allow you to have a home base for your business. As a business owner, you will need office space to close business deals and conduct a meeting that is vital to your business. This will allow you to grow your business and create a solid client base. Another benefit of obtaining a second citizenship is that you might benefit from having lower interest rates from banks.
Attaining dual citizenship can be one of the best investments you will make as a business owner. Being a second citizen has many financial benefits. As a second citizen, you can buy property, benefit from incentives such as lower tax rates, and travel visa-free.