How to emigrate safely: the dos and don'ts for choosing your second citizenship

Offering investment migration opportunities is more than providing services for a fee: it's about teaching best practices when getting a second citizenship. Whether we like it or not, the question of how to emigrate safely touches us all including high-net-worth individuals. Choosing among the available programs can be difficult especially because some of them are quite similar. For such an important decision one needs to be 100% sure. This is why we present these tips to getting a second citizenship. 

Investment migration tips: dos and don’ts of choosing your second passport

Naturally, many programs out there allow you to maintain citizenship while living elsewhere, however, you'll still have strong ties to the jurisdiction and you'll have to visit often. This is why we’ve prepared this guide that might help you make the decision that best suits you.

Do

Know the jurisdiction

The first thing that any good businessperson will research is the country's legislation. One of the best practices when getting a second citizenship is to understand the local business and corporate laws. Also, you should be well aware of the country's approach to foreign investment, i.e., what the law says about owning real estate, financial vehicles, or corporations. 

But there's a different aspect of what to do when getting second citizenship which might be even more important than the previous one. We're talking about the lifestyle that you will experience in your new home.

Ideally, you should spend a few months in the country before making your decision but, if you can't do this, at least make sure to read as much as possible about the country's lifestyle, expats’ experiences, etcetera. Look for social media groups, YouTubers, or bloggers that talk about the lifestyle in the said country or that at least have visited it and shared their experiences. 

Analyze the tax impact on your native country

One of the main reasons why any person chooses to get a second passport is because it will bring them financial advantages including, in many cases, lower taxation. Some countries even offer territorial tax residency which means that, if you live there, you pay zero tax on your foreign income. However, analyze the impact this move will have in other countries where you have citizenship, residency, or businesses. Tax legislations are complex and vary in each country. Moreover, in a globalized world like ours and with laws such as FATCA, CRS, and BEPS, information exchange is quite easy between financial institutions located in different countries. All in all, here comes one of the most important investment migration tips: make sure to analyze your global tax structure before making your decision.

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Don’t

Choose a country only for the financial benefits

At the end of the day, we all want to have a fulfilling life. Sometimes, the country with the best financial incentives is not where we feel most comfortable. Consider the financial benefits but don’t underestimate the quality of living that you’ll get. Prioritize your personal fulfillment and consider what your family likes. For example, think about what activities your family enjoys like hiking, diving, snorkeling, visiting museums, going to art galleries, or attending recitals. Also, language is an important factor. Your children will probably feel more comfortable if they go to a school or have friends speaking the same language. 

Panama, for example, even though it doesn’t offer citizenship by investment, does bring interesting residency solutions. Here you can cover all fronts: hiking in Boquete, diving in the Pacific, snorkeling in the Atlantic, and going to cultural activities in Panama City. Also, you’ll find lots of international bilingual schools with languages such as German, English, and Chinese.

Fall for extreme no-tax advertising

Nowadays, paying no taxes is only possible through a curated, carefully designed structure. Actually, this is a key aspect when wondering how to emigrate safely. When you find a provider that offers you a zero-tax citizenship, it’s better to do your research before jumping in blindly. As we mentioned above, the lowest tax jurisdiction may not be the right fit for you. Also, territorial tax countries do tax domestic income, which means that you will have to pay taxes on the income that you use for your daily expenses and the lifestyle that you build in your new country. 

Conclusion on the best tips to getting a second citizenship

To sum up, there are plenty of jurisdictions that await you with their arms open. Starting from Vanuatu and the Caribbean, you have plenty of options. If you're not in a hurry, remember that you can also get citizenship after living as a permanent resident, for example, in Panama, one of Mundo's favorite jurisdictions. If you don't know what to do when getting second citizenship, do the following: research and hire the right expert. At Mundo, our professional team specializes in second residency and citizenship in the best, most innovative jurisdictions. Get in touch now for more info!

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