Wealthy Americans Seeking Second Citizenship Amid Covid-19 Crisis
It is unusual to see a drastic hike in demand for second citizenship in a country known for being an immigrant magnet, yet 2020 has seen wealthy Americans seeking second citizenship or residency elsewhere in record numbers in a bid to reclaim some of the freedom the Coronavirus pandemic stripped from them.
Citizenship by investment (CBI) has historically been the near-exclusive purview of investors from less-developed, less-mobile regions; the Chinese, Russian, and Middle Eastern investors have long dominated the market. In 2020, however, industry stakeholders have been highlighting a surprising and precipitous rise in demand for alternative citizenships and residencies from American investors, with inquiries reportedly swelling anywhere from 40% to 100% compared to last year.
CBI programs, in particular those in the Caribbean, have observed the greatest increases in interest from the US; St. Lucia reports that US passport holders are one of the top nationalities among approved applicants to St. Lucia’s CIP this year.
Why are citizens of the most powerful nation in the world suddenly looking for an alternative, or additional, citizenship? One reason is that US nationals are now realizing that, in times of crisis, they must be equipped with a robust Plan B. And any Plan B worth its salt includes alternative citizenships and residencies, as it provides something seldom found by a uni-passport holder; optionality.
Reasons Wealthy Americans Are Showing Increased Demand for Citizenship by Investment:
Historically, the US passport has always been one of the most powerful travel documents in the world, allowing its carrier to travel visa-free around the globe. The Coronavirus had other ideas so, as the number of cases exponentially surged in the US, so did the number of countries closing up their borders to travelers from the USA.
Now US citizens find themselves in unfamiliar territory, they are unable to travel the globe to conduct business, be with family, create investment, or otherwise. Another passport can provide them with increased mobility and an alternative base of operations.
Knowing which passport can elevate your travel options is crucial, that is why seeking advice from a CBI consultant within the USA can prove extremely beneficial; as a CBI firm in Moscow for example won’t be as up to date, or as informed, to the current restraints US citizens are faced with. A CBI agent possessing a deep understanding of the situation in the US alongside intricate knowledge of the world of CBI can provide you with the most suitable option to open as many doors as possible for you and your family.
Dynamic Tax Options
Many governments respond to an economic crisis by hiking tax rates in a bid to restore balance; having a second passport and second home can provide you with the ability to shift around assets, business operations, finances, and more to be able to combat this uncertainty.
Many nations that provide investors with CBI, especially those in the Caribbean, are considered tax havens. Relocating businesses to these countries can help with mitigating tax and maintaining your profit margin in the most chaotic of times.
The USA may have one of the most labyrinthine tax systems in the world; hence, being able to find a suitable option to compliment your tax structure is not a simple matter. That is why we at American Investment Migration have mastered the art of creating a CBI portfolio that can maximize your taxation options, leaving little to assumption.
As your options of CBI increase, so does the risk of you making an incorrect decision. Hence, choosing a local CBI firm gives you the chance to work with a firm familiar with the situation you are in and who are uniquely positioned to find you the best solutions.
The USA has seen its relationship with China spiral in the past couple of years; and although trade routes remain open the real burden fell upon those who based their business on trading with China.
Those traders had to carry the burden of strained international relations and increased tariffs. These people who spent decades building their wealth and livelihood on a certain system saw it flipped upside down in a couple of years.
Those who invest in CBI can mitigate that risk by having multiple bases of operations. If one of their countries of citizenship devalorizes its relationship with another country, they can shift operations to their other home country.
We at American Investment Migration understand how volatile international relationships with the USA can be, it’s not easy being top dog. We also understand how our trade systems are set up, and how change can affect them. That is precisely why we look to provide US citizens with options that can safeguard their business. By providing CBI to countries with strong economies such as Portugal, Ireland and Malta we are perfectly situated to safeguard your businesses through enhanced optionality.
Safe Havens in Times of Crisis
As the USA nears the 10 million mark of Coronavirus cases, it is no wonder some people look to settle in less infected areas. Immigration to neighboring countries increased in 2020, and for some at-risk segments like those with chronic illness or the elderly, it becomes more a matter of life or death.
Finding a safe haven in times of crisis is much like having a bunker in times of war; and CBI offers people an opportunity to find another country that will welcome them with open arms.
St. Kitts & Nevis for example, has had a total of 19 Covid cases, while the number in Grenada stands at 30, uncomparable to the US by any standard. Both these countries offer CBI programs, and what’s more interesting is that one of the routes to obtaining their citizenship is through purchasing real estate in the country; providing a literal home in times of need.
Wealthy Americans Seeking Second Citizenship are Safeguarding Future Generations
One crucial factor to keep in mind is that most citizenship acquired through CBI can be passed down to future generations; meaning your children and their children will be afforded the same benefits in addition to ones they can brandish in their youth, such as better (or cheaper) options for education, enhanced work opportunities, and elevated global mobility to discover the world.
There remain many more reasons why wealthy Americans are pursuing CBI, as each one has an obstacle that CBI can help them overcome. Choosing the right CBI firm to aid you in this journey is imperative, as that firm must be able to understand your desires, your situation, the challenges you face, and the rewards you as a US citizen can reap from this venture.
American Investment Migration is perfectly situated to do just that, as our knowledge of CBI supplemented by our in-depth comprehension of the situation in the USA makes us the best possible choice to aid you in the most difficult of times.
If you would like to know more about how to begin a journey that can transform your life contact us today.