Investing in second citizenship for greater mobility is hardly a new concept, with many foreign investors and global entrepreneurs already taking advantage of having multiple passports.
Various countries offer citizenship in exchange for a sizeable investment into the local real estate or a donation to the local government.
Citizenship by investment programmes(CBI) can provide you with a variety of benefits, such as visa-free travel, a second home, or even a way to secure a better way of life for your family and future generations, by getting access to an excellent education system, depending on your new citizenship. But the benefits of CBI extend further than personal gain, which we’ll explain here.
Entrepreneurs who invest in a second citizenship may well take advantage of the visa-free travel, which can massively assist in doing business on a global scale. You can even unearth new business opportunities by accessing a potentially untapped market, allowing you to build a solid foundation with a loyal customer base.
However, by setting up a business or branch of your company in your chosen country of citizenship, you will also be creating a number of jobs ready for the local community to take advantage of, which will greatly improve any unemployment rates. If you have a small business or startup, it may be worth introducing graduate schemes or internships, and offer continuous professional development (CPD), ensuring that employees are learning valuable skills. This also gives you the chance to build a solid team of employees, who can help you grow and expand your business by progressing into managerial roles and train new staff.
A strong business sector is crucial for any local economy, thanks to taxes and the aforementioned employment rates it can bring in. By employing citizens of the country—rather than hiring employees from around the world—you provide a salary, which is taxed. If your business manages to tap into the zeitgeist of your area’s marketplace, you can develop a loyal customer base, who will continue to spend money with your business.
As your business grows and develops, and starts turning a higher profit, the amount of tax you pay will increase. All companies and employees pay a significant amount in taxes to the local government, which is injected back into developing the community, and therefore the country. Having more businesses within a community boosts tax income for the government, bringing in more money to spend on things like education, infrastructure, and public services.
Many countries that offer citizenship by investment have also unfortunately experienced natural disasters, such as hurricanes. Dominica, for example, was one of the Caribbean islands hit hardest by Hurricane Maria in late 2017, and living and working conditions became tough for everyone in the country. The island’s flourishing tourism industry was destroyed, with 40% of the 909 hotel rooms ruined, as entire communities struggled elsewhere on the island. But the rate of recovery was surprinsingly fast.
Regeneration in Dominica was, in no small part, made much more efficient thanks to the investment opportunities available to private investors and entrepreneurs. Business contributions allowed the government to quickly rebuild the country, in exchange for Dominican citizenship. Indeed, less than 6 months after the hurricane struck, the Fort Young Hotel partially reopened in order to start encouraging tourists back to the island, and help kickstart the economy.
Entrepreneurs taking the opportunity to invest in Dominica can benefit by setting up a business while the country gets back on its feet. This means a low cost of living, including rent, but may potentially mean reduced salaries while the government continues to rebuild the country.
By establishing a business during hard times, you can secure a position as an industry leader by getting ahead of global competitors. It will also boost your brand’s reputation as being charitable and sustainable, which resonates well amongst consumers.
By investing in a country’s economy, and building businesses within the local community, you can ensure the country is sustainable and self-sufficient for the future. Take the previous example in Dominica:following the impact of Hurricane Maria, the island became committed to protecting itself against future disasters. The government focused on developing alternative energy sources, such as a geothermal power plantto provide affordable energy to around 23,000 Dominican homes.
The Dominican government is also committed to developing sustainable real estate. Jungle Bay Villas, for example, is a private real estate development which is set to develop 120 eco-friendly villas. These will include features like solar panels and gravity water feeds for water collections. Investors in the CBI scheme will be able to invest directly into this development, ensuring that there are more sustainable buildings around the island, while funding the project itself, which will be available to hire by tourists to the country.
Through initiatives like the CBI programs available around the world, private investors and entrepreneurs are able to help develop and safeguard communities around the world, while taking advantage of the personal benefits.