Getting a second residency is not only for the “James Bonds” and for the super rich people of this world. It is possible for anyone to obtain it. The decision in obtaining it is hugely driven by travel issues, lifestyle and taxation reason.
The benefits associated with attaining a second residency are plentiful. Having a second residency will not only provide you an infinite lifelong benefits but also to your children, grandchildren and great-grandchildren.
1. Tax optimization
Protecting your wealth by strategic tax planning is one of the most frequent reasons for acquiring second residency. Taking advantage of your second residency by moving overseas has the potential to importantly decrease your tax burden. The tax burden in some countries is proportionately high in comparison to the care you receive in your country. Having a second residency is helpful in easing this burden.
2. Global opportunities and investments
Second residency will allow you to use bank services, invest and trade in places where you formerly been unable to work. Having more options would mean more opportunities and more freedom.
3. Instability
The government nowadays is a huge threat to financial security and personal freedom. The risks are very quickly growing for us in the speed of a sovereign debt. At some point, politicians inevitably try to limit the movement of citizens in a desperate attempt to get every penny out of them. Time is unsure, the global mood is unclear and the government is not stable. If you have the awareness of this kind of situation and doesn’t want to be a puppet of such, then you might want to grab the opportunity of pulling out your second passport and travel anywhere you want.
4. Property protection and privacy
It’s everyone’s right to protect their assets and privacy but there are some countries that are not respecting this right and create asset rights and registers that are accessible publicly to everyone which makes this a good reason to having a second residency.
5. Protection from attitudes and attacks
Gaining a protection for your family is another good reason to having a second residency. If you’re a successful entrepreneur, high-ranking individual or a famous person, you might experience the negative attitudes from a certain group of individuals in your home country who has an interest of harming you.
6. Generational benefits
Your family up to the next generations will benefit from all the benefits you have once you have a second residency.
7. Quality healthcare
Quality healthcare is much more than a well-known as it provides the care the patient’s needs when it’s needed, in a safe, affordable and effective manner. So, having access to such is another reason of wanting to have a second residency.
8. Improved quality of life
Negativity is life’s great energy sucker whether it is when you are spending your time around with negative people or just your own negative attitude, the quality of life is highly decreased by such. This is why people want to have a second residency as it makes sense of wanting to have unlimited possibilities for both your family and for yourself.
9. Military service
A huge number of countries require a military service but if you are one of the people who were forced to do it in your home country and you think your life values are not favoring this kind of service then getting a second residency can ensure you won’t be required in carrying out this service.
10. Abductions
This reason might shake you as we live in a world where certain groups of individuals do not pardon success and would think they have all the rights to parasite your merits. Getting a second residency allows you in eliminating this threat for you and your family.
11. More Visa-Free Travel
Having a second residency can allow you easier access to greater opportunities for visa-free travel between countries that have agreements with your new home country.
Second Residency in Tax-Free Countries
The following countries have zero income tax which means you won’t bother to filing a tax return. Also, tax planning turns out to be easier when it has zero-rate; no buts, ifs, ands.
Bahamas
Bahamas doesn’t have an income tax where they earn its money from tourism. They can afford to be a tax-free country since they have so many cruise ships. Therefore, Bahamians are paying zero tax on their income around the world.
British Virgin Islands
Getting a residency as a self-sufficient person in British Virgin Islands can be pretty easy. The process would only take less than a month in most of the cases as long as you are qualified. The only needed document is your bank statements as a proof that you can afford to support yourself and also to pay a surety bond worth $1,000.
An important note to consider is that the British Virgin Islands is only allowing several dozens of new temporary residents each year. It’s not a big place despite being a tax-free country.
Brunei
Brunei is a small island of Borneo, surrounded by Malaysia. The country is very wealthy in oil which makes it not only affluent but also closed to foreigners who wish to stay for a longer period of time. The fact that tourists can enter easily in Brunei, employees of big international corporations have the opportunity in obtaining a permanent residence visa in Brunei.
Monaco
If you prefer a European glamour to island living, Monaco is the perfect place with zero-tax residency. Ensure to like living in Monaco since you actually need to spend time there to maintain the residence permit.
Turks and Caicos Islands
Turks and Caicos disclosed an economic residency program that offers an instant residence permits to foreigners who either build a new home for at least $300,000 or remodeling a distressed property, or having a $750,000 investment in a company that is owned by the majority of the locals.
Vanuatu
Vanuatu is one of the few tax-free countries to obtain a second residency. It offers a straightforward residency program that rewards to those who are investing more. Foreigners can actually invest for about $89,000 for a one-year residence visa that is annually renewable. Investing more means you will get three to fifteen years.
Second Residency in Low-Tax Countries
The following countries only issued tax on the local source income of citizens and foreigners alike. In other words, the income earned is only taxed in the country you earned it while income earned overseas are not taxed.
Ensure that any income you earn overseas isn’t taxable as a local source income if you plan to be a resident in the following low-tax countries.
Costa Rica
Investor expats and American retirees have long chosen Costa Rica as their second residency of choice. In the recent years, the requirements are becoming tight but anyone who has a monthly income of $2,500 can become a resident in Costa Rica.
Georgia
Georgia offers almost all foreigners a 360-day tourist visa, and anyone can open a Georgia company or buy real estate in order to qualify for residence. If you do invest in Georgia, you can utilize the country’s new Estonia-based tax model which is basically one of the tax-free countries where taxes are only paid on distributions.
Guatemala
Obtaining residency in Guatemala is pretty easy if you can provide a proof that you earn a monthly income of $1,000 although you should be willing in living there a part-time or they will cancel your visa. On the other hand, living in Guatemala full-time will give you a high chance of getting a citizenship after five years.
Nicaragua
Nicaragua is a great place to have a second residency only if you really want to live there. Obtaining a residency in Nicaragua is very as it only needs a proof that you generally have a $750 monthly income. However, you are required to live there for six months each year because your territorial tax benefits, residence permit will expire if otherwise.
Panama
Panama is an open country for immigration most especially for the citizens in the Western countries where it has some of the Latin America’s strongest offshore banks. For these citizens, the visa program of Panama’s Friendly Nations offers an instant permanent residence with one “economic tie” which is a Panamanian company or the title deed to real estate and a little bank deposit of $5,000.
Paraguay
Paraguay is famous for its second passport program that allows foreigners in obtaining an instant permanent residence with a mere bank deposit of $5,200 and citizenship in three years. Also, it its an attractive for second residency with the potential of getting a passport later. It has 10% taxes on local source income and the overseas income source is not taxed.
No matter what your situation, having a second residency in a low or zero-tax country gives you a lot of freedom. It’s very important to consider all the facts and factors of each country prior to choosing the best place for your second residency. There are some cases that some people will benefit from multiple residencies and citizenship but starting with one residency is ideal in getting traction.