The Knight Frank World Wealth Report 2017 reports the world’s super-wealthy spend over USD 2.4bn on second citizenship each year, with most demand coming from China, the Middle East, and Russia.
According to a report by the Knight Frank World Wealth in 2017, the richest people all around the world spend more than USD 2.4 billion on second citizenship each year. Most of these demands stem from China, Middle East and Russia.
The report states that immigration among the wealthy individuals is “strong and growing”. And it is quite evident that many of the world’s most influential and richest people are opting for a second citizenship and migrating to other countries.
The question arises; why is immigration becoming more and more popular for the ultra-wealthy? And is it really worth it?
Read on to find out more on why this is happening so
- Stability and safety:
In the recent years, immigration and forced displacement has seen a tremendous growth. The political and economic turbulence has left everyone worried about their future and consequently, a second citizenship is regarded as a cushion to fall against, in times of trouble, in order to secure a good future for yourself and your family. If you are hailing from a country which is suffering from various crises, a second citizenship may in fact prove to be a valuable investment.
- Global mobility:
Different passports have different standings and allow for different levels of mobility. Too often than not, some passports present obstacles for those who enjoy, and rely on, international travel. As of now, the top passport holders can travel to more than 160+ countries visa-free.
Global mobility is considered as an aspect of both personal and professional freedom. It allows you to hold and take business meetings wherever you want or go on a holiday without any visa delays and restrictions. Because of globalization, it has become almost a necessity to be able to travel anywhere. Not having the freedom to travel can prove to be a huge setback for you.
For the wealthy who are showing increasing attention in obtaining a second citizenship, this offers several benefits both for personal and professional matters.
- Trade and investment:
Freedom of global mobility has a direct impact on freedom for trade and investments as they are both connected to your global standing.
Countries which have a positive position are part of various treaties and agreements, enabling the citizens increased benefits and rights. On the other hand, countries that are somewhat isolated from the international community enjoy fewer privileges and the citizens have to shoulder the burden.
Take the example of Democratic Republic of Congo, a country not unlike others in Africa that is not a part of any of the global goods and services regional trade agreements. Their citizens would have no preferential rights on regional trading.
On the other hand, UK, Canada, US, and China are part of almost 40 regional trade agreements that allows for increased trade thereby ultimately benefiting their citizens.
- Tax relief:
Another reason for increase immigration among the wealthy is the Tax benefits of the host country. The second citizenship can actually pay for itself in tax relief. There is a huge potential of saving because of 0% corporate income tax rate in many countries like the Caribbean.
The reasons are clear. Immigration or getting a second citizenship can very likely ensure that not only your money is safe but your quality of life can be dramatically improved. A citizenship-by-investment is a perhaps the first step to build a life of your own personal choice.