Latitude is a leading provider of global residence and citizenship solutions, having assisted over 7,000 clients in obtaining a second citizenship or residence permit. With 12 offices worldwide, Latitude specializes in securing citizenship or residence in desirable locations, offering tailored solutions for real estate investors and business professionals seeking a “Plan B.” For those looking to safeguard their future, a second citizenship serves as an essential backup insurance policy, providing the flexibility to choose where they live, work, and invest in response to changing global circumstances.
Chris Willis, Managing Partner at Latitude, recently shared insights on the audiences seeking second citizenship and residency through investment, and the key information people need to know. When asked about the emotions behind such decisions, he stated, “Having this is an option, it doesn’t mean you need to leave the US. Everyone has their own tipping point as to why they would want to have an alternative solution.”
Real Estate Investment and Wealth Diversification
High-net-worth individuals in real estate are increasingly exploring citizenship by investment programs as a way to diversify their portfolios and safeguard their assets. Traditionally, real estate investments have been the primary vehicle for securing a second citizenship or residence, but recently, alternative types of investments, such as donations, government bonds and private sector projects, have gained popularity. For those in real estate looking to expand their global reach, these programs offer not only new avenues for investment but also the ability to divest assets outside the U.S. This is particularly advantageous for business owners planning to sell their companies and relocate abroad, as securing second citizenship before a business sale can lead to significant tax savings. Real estate investors from major markets like New York, Miami, Los Angeles, and the Midwest are increasingly turning to these solutions to enhance both their financial security and global mobility.
Navigating the Changing Landscape of Citizenship and Residency by Investment
The landscape of citizenship and residency by investment programs is constantly evolving, with changes to country policies happening unexpectedly. This presents both opportunities and risks for investors. For example, St. Kitts and Nevis recently raised its investment threshold overnight, while the UK and Ireland abruptly stopped their programs without warning. However, for those who have applied and paid the required fees, their status is typically locked in, even if the rules change afterward. This underscores the importance of acting swiftly and being well-advised when considering these programs.
Advisory boards and government town halls play a key role in shaping these programs, as countries seek expert guidance to balance their economic interests with policy goals. Take Malta, for instance—its citizenship-by-investment program is under legal scrutiny from the European Commission, with a court case currently in progress at the European Court of Justice. The Commission argues that Malta’s program impacts other EU member states by granting wealthy investors settlement rights across the EU through its citizenship. Malta, on the other hand, asserts its sovereignty, defending its right to offer such a program. The outcome of this case, expected in 6 to 8 weeks, could have far-reaching implications. If Malta wins, it could pave the way for other EU countries to adopt similar programs, despite the European Commission’s concerns.
In the meantime, Malta’s program, now in its second iteration, has become more costly and complex, requiring an 18-month process, and a non-recoverable commitment of around Euro 1 million, depending on the family size. This includes the contribution, property lease or purchase and a charitable donation, amongst other things. The future of the program remains uncertain, as the ongoing court case may result in either a third iteration with even higher thresholds or the complete shutdown of the initiative. Investors are closely monitoring these developments, as the outcome will decide the future of one of the most sought-after pathways to European Union access, providing entry to all EUmember states. Most experts believe Malta will prevail, which could open doors for similar programs across the EU.
What You Should Know About Second Citizenship That’s Often Overlooked
Willis shared some hidden insights that are not often discussed. For example, many people are unaware of the deeper benefits and considerations of second citizenship and residency by investment, particularly when it comes to long-term financial and personal planning. For business owners or co-owners looking to retire or settle abroad, exiting U.S. citizenship and selling their business can offer significant financial gains. However, it’s crucial to consider the high tax costs associated with relinquishing U.S. citizenship. Securing a second citizenship before selling your business can help reduce the taxes owed on the sale, making this a valuable strategy for those planning ahead. Additionally, second citizenship provides significant advantages for future generations—your offspring can inherit citizenship rights, opening doors for them to start businesses, secure employment, or even access free or reduced-cost education in countries like those in the European Union.
For high-profile clients, a second citizenship can also provide a layer of anonymity when traveling to riskier or more sensitive destinations, allowing them to use an alternative nationality to avoid attention or security risks. However, it’s important to be prepared for rigorous due diligence during the application process, as governments are increasingly scrutinizing applicants to ensure the legitimacy of their financial and personal histories. Understanding these nuances can make all the difference in maximizing the value of your investment in a second citizenship.
Online Tools for Informed Decision-Making Helps with Research Before Investing
For those looking to conduct some initial research before consulting a professional, there are several valuable online resources available. The Latitude Passport Index is an excellent tool for exploring the relative strength of passports worldwide. By comparing the visa-free access granted by different countries, users can better understand the benefits of acquiring a second citizenship. This resource is particularly helpful for investors who prioritize global mobility and access to key markets across various continents.
Another useful tool is the Latitude Country Access Tool, which allows users to explore the countries they can access based on their current or prospective citizenship. It provides insights into visa requirements, residency options, and other travel-related regulations for a broad range of nations. This is an invaluable resource for high-net-worth individuals and business owners who are looking to make informed decisions about where to invest or relocate. Both tools offer a clear starting point for anyone considering citizenship or residency by investment, providing critical information before engaging with an expert for personalized advice.