How can a high-net worth person protect his wealth by acquiring a second citizenship? The Caribbean is home to some of the most sought-after ‘fast track citizenship’ programs. These countries are tax havens and do not have any wealth, inheritance, or gift. Cyprus is the only European country with the lowest taxation. It has the fastest citizenship program to get an EU passport. Because of the many benefits that a Cypriot citizenship offers, wealthy individuals from India and Pakistan, Afghanistan, South Koreas, South Koreas, Indonesia, Malaysia and other countries in the Middle East are attracted to it. Double Taxation Agreements are available to tax payers in order to be placed under Cyprus’ generous tax system. We highlight the wealth protection strategies you can achieve by obtaining a second citizen.
Planning for personal tax
Double Taxation Agreements (DTAs), if used effectively, can help reduce personal taxes. Individuals who are citizens of a country that has better tax policies might be able to obtain a second citizenship to help them shift their tax liability to the country they second citizenship.
The benefits of choosing to be liable for Cyprus’ tax policy include a personal tax plan that doesn’t include income, wealth, inheritance or capital gains tax, if you are not a resident. A Cyprus tax resident is exempt from paying any taxes on the profits of the sale of securities. Anyone with a non-Cyprus residence who chooses to become a tax resident in Cyprus also pays zero tax on dividend income.
Improved banking and financial services
Everyone needs to be able to move quickly and with freedom of money. Many countries around the globe are subject to capital controls. It is crucial to be able transfer money or use it internationally in an emergency situation.
Businessmen who are savvy understand the effects of interest rates. The second citizenship allows the individual to choose international banks that are more suitable for their financial needs. Banks in stable economies with low debt and more conservative with customer deposits are safer than those in politically unstable regions.
Planning for trust and fiduciary improvements
Trusts are used in succession planning and estate planning for many years. It is crucial to ensure that assets are transferred between generations smoothly and effectively. With Cypriot citizenship, a passport holder can use sophisticated wealth structures to protect and transfer their generational and current wealth. They can also separate personal and business assets to avoid contamination. Some countries, such as the U.S. and Canada, do not allow citizens to open trust funds. A trust can be opened in India by an Indian citizen, but the beneficiary must state his nationality to avoid being taxed in the future. If the beneficiary is a citizen of a country that has a better tax system, the beneficiary can claim domicile in that country and have their wealth structured to benefit from the more favorable tax laws.
Access to the entire world
It is vital that businessmen can move around freely in this modern age. A second passport allows you to expand your business internationally. This allows for easier expansion in the form of opening offshore banks accounts and opening companies in key locations. This allows you to take advantage of a wide range of opportunities and preserve your tax liabilities, including inheritance, wealth, and transfer taxes.
Inherited generational citizenship
A second citizenship today is a concept that preserves wealth, ensures continuity and allows for freedom in decision-making. Second citizenship programs offer many benefits, including the ability to pass your citizenship on your descendants. You will be able to enjoy these benefits for many decades. This is the true benefit to having a European citizen. Your children and grandchildren will also become European citizens through naturalisation and will be able follow your example and continue to build wealth and business.
Increased business opportunities and tax planning for businesses
Business owners and corporate executives who are looking to start businesses in Europe could find out how being a national of a country can help them. Cyprus has one of Europe’s lowest corporate tax rates. A Cypriot resident can be taxed under the personal tax regime in Cyprus, which is considered one of Europe’s most generous tax systems. Relocating to the country is possible with special incentives. For example, 50% of the income from a salary is exempted for the first ten year if the annual emoluments exceed 100,000 Euros.
This means that you don’t necessarily need to open a business in Cyprus. It is possible to be a non-resident of Cyprus and still invest in Cyprus’ attractive property market. You are not subject to the immovable tax, which was abolished in this year. This allows you to benefit from rising property prices in Cyprus.
A second citizenship allows you to see the world differently and live with less restriction, less uncertainty. Citizenship by investment programs offer the opportunity to pass these valuable benefits on to future generations, and leave a lasting legacy.