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Why a Second Passport Is Important for an International Business Owner

By: SmallBizClub

 

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Dual citizenship can happen automatically in some cases, like when the child is born in a foreign country or by naturalization. It can also be obtained if a foreign citizen marries in another country and acquires citizenship by living in a foreign country.

As an international business owner, you are constantly contending with volatile markets, fluctuating exchange rates, political and economic changes, and different time zones. The last thing you want on your plate is an obstacle when running your business. 

Not that everything will run smoothly, but it’s easier when things go as planned and you can travel across the world to handle any issue your branch or office is facing. Many entrepreneurs decide to apply for second citizenship to increase their investment opportunities, gain tax efficiency and form new business partnerships.

What’s even better, holding a second passport opens the doors to lower fares, market expansions, and business opportunities. Thus, we’ve decided to help you navigate through the process of acquiring a second passport by highlighting the key points.

Visa-Free Traveling

You’ve probably heard from many business owners that traveling without a visa to key locations is the primary benefit of owning a second passport. Many wealthy entrepreneurs opt for dual citizenship, which enables them to travel internationally without the hustle of obtaining a visa and filling huge piles of paperwork.

The number of countries you can travel to without a visa depends on the citizenship you have. For example, holders of the Grenada passport can travel to 116 countries without a visa. Holders of the Portuguese passport can travel visa-free to 172 countries. 

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Investment Opportunities

Another main advantage of dual passport holders is the investment and business opportunities. Many countries do not allow foreign citizens to invest in their countries. However, if you’ve utilized the services of the Citizenship by Investment programs, you can easily get a second passport and invest in real estate in the country.

This way, you will own property and take advantage of exchange or interest rates in lucrative property markets. A second passport grants you financial access to many countries besides your native one.

The business world is smaller as the days go by – which means a few high-net companies do business within their borders. Most entrepreneurs work offshore and expand their business via business partnerships or new branches.

You Can Hold Two Passports

Some countries do not allow their citizens to hold more than one passport. As a dual citizen, you can carry both passports and easily travel between countries. You can enter legally to both countries, and this is extremely beneficial if you have family and relatives in both.

Potential Tax Benefits

The potential tax benefits will depend on the country where you’ve obtained your citizenship. Some countries allow lower tax rates and greater tax efficiency. You can either classify the expenses of your application process as a business expense or pay lower taxes on money earned outside the country of origin.

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You must check the rules and regulations in each country before applying for citizenship in a particular country. It’s not always smooth sailing when it comes to tax benefits because some countries might consider you liable for paying taxes in two countries.

Lifestyle Benefits

As an entrepreneur, you’ve probably come across many different locations, living standards, and a variety of lifestyles. And since we all need to relax and spend a couple of weeks on a hot, steamy beach, with the sunset blinking across the sea, you can benefit greatly from a second passport.

If you choose to become a citizen in an exotic location, like Grenada or Dominica, you’ve chosen the ultimate paradise. For those who look to put their business affairs behind and unravel new tropical destinations, it’s time to get the paperwork ready and apply for dual citizenship.

Safe During Political Unrest

Your home country might become the nest of political and economic unrest within a short period of time. With the current economic and geopolitical events, the water is still boiling and we are not prone to safety and financial stability anytime soon. The key advantage of holding a second passport is you can relocate your assets to another more stable country.

Additionally, you can escape any political conflict, civil unrest, or travel restrictions in your home country. And in the worst-case scenario where war happens, you can leave your country and live in a more secure environment.

Want to Learn More?

As we’ve gone through the key benefits and importance of obtaining a second passport, you’ve probably learned a thing or two as to why you should apply for one. 

A person with two passports has better chances of working and living freely in another country, owning property, and traveling without a visa. To learn more, visit our blog.

Published: July 13, 2022
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SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

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