Second Passport

Second Passport: The Backup Plans for Rich Americans

With the rising inflation rates and various other economic factors, wealthy Americans are increasingly looking for opportunities to obtain a second passport or citizenship to safeguard themselves from future financial struggles and hardships. In recent years, the concern with the mega-rich Americans has risen rapidly due to the problematic instability of the social, political, and security issues driving several wealthy Americans to get second passports. Due to such unrest in the American economy, citizens are searching for options across the globe for a second passport as a backup plan. The motivation behind seeking second passport citizenship is to protect against the levels of volatility and uncertainty in the nation.

However, Americans choose nations like Portugal, Malta, Greece, Italy, New Zealand, and various other countries to obtain a second passport. This desire for a second passport has been easy, attracting individuals from America to jump ship to another country for a second passport, hoping to achieve a better life and opportunities. With the rise of COVID-19, this concept of a second passport has continued to bring a major game-changing change to the investment migration industry.

Why Americans are Obtaining Second Passport?

It is not important to be a rich investor to obtain a second passport; however, Americans are seeking to obtain one to ensure a good and suitable life abroad. When it comes to investment migration, American regions are booming like never before. According to Henley & Partners, from 2019 to 2021, a spike of 320% was seen in the new enquiries for investment migration in the American region.

This demand for second citizenship has been predominantly increased due to the changing geopolitical situation in the USA and several other American countries, as well as the unprecedented coronavirus and various other local mismanagement of the country’s functioning. It has also been found that American citizens are one of the highest consumers of second passports and citizenship by investment programs.

One primary reason for Americans seeking a second citizenship is to escape the high cost of living in the United States. It is evident that America is one of the most expensive countries in the world, which is one more reason for fleeing America.

What are the benefits for Americans Obtaining a Second Passport?

The country America is famous for its unique feature, i.e. dual citizenship; it has been a right for every American citizen to obtain dual citizenship or a second passport in another country simultaneously. Due to the changing political, economic, and various other factors, citizens of America nowadays are taking advantage of the opportunities to obtain second citizenship in different countries. Given below are some of the expected benefits of receiving a second passport:

1. Investment diversification

Unlike in earlier days, possessing an American passport was no longer a matter of prestige. As such, a citizen looking to invest in overseas real estate benefits from such a second passport. Countries like Europe have a program that welcomes foreigners and their investments, and in return, they offer a second passport or permanent residency along with various other appealing benefits. Additionally, a second passport can give an American citizen access to new markets and other business opportunities.

2. Tax Benefits

In the last couple of years, American law has drastically changed concerning the tax laws; this is one of the reasons why citizens of America are seeking a second passport. However, many countries offer foreigners various tax benefits, such as exemptions on specific taxes and lower tax rates compared to America. One of the significant examples is Portugal’s Non-habitual Resident (NHR) regime; in this country, most of the foreign income is exempt from taxation for ten consecutive years. Meanwhile, a second passport or dual citizenship does not necessarily lower the tax bill of a citizen, but it plays a primary role in overall tax strategy.

3. Easy Access for Travelling

One of the major reasons behind dual citizenship or a second passport is to ease visa-free travel options. For example, if a citizen of one country is banned from travelling to another country, equipping themselves with a second passport opens the option for such individuals to travel with another passport of a different country.

For example, many Israeli citizens are banned from travelling to various countries in the Middle East. Therefore, they obtain second passports to do business in Qatar. Additionally, obtaining a second passport or citizenship by investment in Saint Kitts and Nevis provides an opportunity for visa-free access to a country like Brazil. In contrast, an American passport has to apply for a visa in advance.

4. Residence Advantages

One of the obvious but underrated advantages of having a second passport is that dual citizenship provides guaranteed residence in the second passport country.

List of Countries for American Eyeing on Second Passport

 Due to various instabilities in their management system and geopolitical scenarios, Americans have raised the demand for a second passport in multiple countries abroad. Below are some of the major countries that Americans are eyeing to obtain a second passport:

1. Portugal

Portugal is one of the top-rated destinations for Americans seeking a second passport or dual citizenship for various purposes. However, Americans can obtain a second passport from Portugal after completing a golden visa program. With the increasing demand for Portuguese passports, the Portuguese government has added more restrictions to its Golden Visa Program, such as the concerned authority removing the concept of the allowance for buying property in Portugal that could offer a path to citizenship.

2. Malta

Malta is another option for Americans to obtain a second passport; they can acquire or obtain this residency through a mixed capital investment system, either financial or property investment. However, this Malta residency program offers people the option of living in Malta indefinitely and having months-long access to most European countries without any visa requirement.

3. Greece

Greece is another desirable option for obtaining a second passport by an American; they have also increased the price tag on its golden visa. Meanwhile, the Greek government has increased the investment price to 800,000 euros for its most popular islands.

4. Italy

To obtain an Italian passport, American citizens must significantly contribute to the country’s economy. However, to get the right to live and work in Italy, investors must pay Rs.2 million euros.

5. New Zealand

New Zealand is another top-rated country for Americans to obtain a second passport or dual citizenship, although this passport comes with a steep price tag.

What are the Five Ways to Obtain a Second Passport?

With the changing landscape of the economy and political dynamics across the globe, Americans are choosing to obtain a second passport to align with their interests and advantages for leading a good and comfortable life with a feeling of security in the future. Given below are the five ways in which an American citizen can obtain a second passport:

1. Citizenship by Descent

Citizenship by descent means that a citizen of one country can obtain a second passport from another country if they prove that they have family ties in that country. However, only some countries allow this eligibility criteria for citizenship by descent.

2. Citizenship by Marriage

This is another criteria for obtaining a second passport such as in countries like France and the United States does fast track the naturalization timeline of a spouse for a dual citizenship right, whereas in Cape Verde a citizen is issued once the person is married to the existing citizen of its country.

3. Citizenship by investment

This is the fastest and easiest way to obtain a second passport; it is also commonly known as economic citizenship. The procedure for citizenship by investment is straightforward: a country will confer citizenship in return for investment in the country and the purchase of real estate.

4. Fast-track Naturalization

This type of second passport is a curve ball since there are no hard-core rules, and it is solely at the discretion of the governing country to offer citizenship to individuals.

5. Citizenship by Naturalization

This is a type of obtaining a second passport by physically residing in another country and eventually applying for a citizenship right.

Conclusion

To conclude, an American citizen seeking a second passport or dual citizenship must consider the advantages and disadvantages of obtaining a second passport. However, the number of Americans seeking a second passport has rapidly increased in the last couple of years. The benefits of holding a second passport are more than its disadvantages; it is also not limited to access to global travel, better social and economic benefits, investment opportunities, etc.

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