Historically, US citizens have been more inclined to pursue second citizenship due to citizenship-based taxation, which taxes US citizens worldwide, regardless of their residency. However, this concern now extends to European citizens as countries like France and Spain consider similar policies. Consequently, a portfolio consisting solely of US and EU passports offers limited diversification. So, what is holding most HNWI and family offices from getting second citizenship? According to Alex Recouso, CEO of CitizenX, the biggest issue right now is that most HNWIs and family offices are uncertain or unaware of the problems they can solve with citizenship investments. When exploring second citizenship options, Alex suggests family offices consider the following factors:
Timeline and budget
The first considerations when obtaining second citizenship are the timeline and the amount of capital a family is willing to deploy. For those pursuing the quickest path, Citizenship by Investment programs present the most expedient solution. The programs provide an efficient avenue to citizenship in exchange for a considerable financial commitment to the host nation. The required investment varies according to the nation and specific initiative selected.
Some initiatives necessitate a minimum investment in real estate, while others permit allocations in government bonds or entrepreneurial ventures. Investment amounts can span from several hundred thousand to several million dollars. Furthermore, beyond the investment requirements, other crucial factors in selecting a Citizenship by Investment program are the host country’s political and economic stability, the benefits and rights associated with citizenship, and the duration needed for processing the application.
Culture and values
The second factor to consider when selecting a jurisdiction for second citizenship is its culture and values. Does the country in question align with the family’s beliefs, and does it hold the same principles? While these factors may be deeply personal and even subjective at times, they do ensure that families find a place where they genuinely feel a sense of belonging and connection.
Some families might prioritise culture and comfort, while others may be driven more by ideologies. For example, if the family’s principal strongly believes in Bitcoin and its ability to reshape the financial landscape, El Salvador could be an ideal match, as it’s adopted Bitcoin as legal tender. And the same goes if the principal is more focused on geopolitical stability and strategic location, then Turkey might appeal to them. Its unique position as a bridge between Europe and Asia can be attractive, especially for those interested in international relations, trade, or simply enjoying the blend of different cultures.
In the end, the ideal jurisdiction will hinge on various factors, both practical and personal. It’s about discovering a place that not only provides practical benefits but also aligns with the family’s core beliefs and aspirations.
Beyond passport strength
Accoring to Alex, many consultancies in the citizenship industry focus heavily on passport strength, measured by visa-free access. However, this metric is less critical for US and EU citizens who already possess strong passports. Unless renouncing their primary citizenship is a short-term goal, visa-free access should not be the primary consideration. Instead, the focus should be on strategic diversification and alignment with personal values and financial goals.
That’s why CitizenX prioritises its clients‘ needs rather than pushing specific countries on them. The company maintains a neutral approach, and its recommendations are tailored to individual circumstances. It offers a transparent comparison of all options available. Clients are never pressured to choose particular jurisdictions or investments, ensuring that the client’s needs remain the central focus of the advisory process.
“We’re the only truly private solution, offering full transparency over the cost and process and an efficient operation that saves a lot of time and headache from dealing with paperwork.” – Alex Recouso, founder and CEO of CitizenX.
To sum it up
For US and EU HNW families, obtaining a second citizenship is not merely about acquiring another travel document. It is about strategic diversification, wealth protection, and securing future options. This involves considering factors beyond traditional metrics like passport strength and focusing on jurisdictions that offer unique advantages and align with individual needs and values.
By carefully considering the timeline, budget, jurisdictional alignment, and strategic goals, families can make informed decisions about diversifying their passport portfolios and building a more resilient and secure future.
CitizenX is the only secure and private platform to invest and get citizenship in countries welcoming families, offices, and entrepreneurs. By combining Swiss engineering with 24/7 Concierge service, we help you diversify your passport portfolio and secure a safe future for you and your loved ones.
