Via a Second Passport
Many high net worth individuals are aware of second passports and it may seem like an obvious choice to gain citizenship in a country with friendly tax, however, you must ask yourself how gaining a second passport fits with your lifestyle and goals. Assessing how quickly you need a second passport and which countries offer quick time scales. Another factor is your lifestyle, some citizenships require you to reside in the country for a certain amount of time, it is important to plan how this will impact and fit in with your lifestyle, especially when considering family. When it comes to second passports there are many options concerning tax-friendly locations, so research your location thoroughly to pick a location that best suits you.
Selecting a Country with No-Income Tax Policy
Within all the options of the citizenship by investment world, two countries stand out where you can get a second passport and live tax-free. These countries are St. Kitts and Nevis and Vanuatu, the option of Monaco is available however the program is usually unattainable even for the most successful people. St. Kitts and Vanuatu have reasonably priced programs and if you are able to live in the country fulltime you are not required to pay tax on any of your worldwide income, which is the ultimate goal.
Where Should you be a Tax-Free Citizen?
We have mentioned locations who no income tax however, these locations may not be ideal for some. The best location depends on your specific requirements and circumstances, for some European passports are expensive and unnecessary, but for those who can prove descent from countries like Ireland and Italy for free, then a European Citizenship is ideal, or for those who wish to trade in the European Union and enjoy the benefits. For some it’s more beneficial to obtain a passport from the Caribbean however regulations could change in the future deciding that entrepreneurs do not qualify as skilled workers. Essentially future regulations could change anywhere so it is wise to be realistic about what country you want to be tied down to as a citizen, whether that’s Europe, Asia or the Caribbean you will need to ensure your tax strategy runs parallel to your life plan.