Thought Leadership: From luxury to necessity

Thought Leadership by Abire Mansoor, Licensed Agent, Citizen International, Antigua

Once the domain of the very few, citizenship by investment is becoming increasingly popular within the realms of discerning high-net-worth individuals.

In a period of expanded political, financial and travel precariousness, the possibility of obtaining a second citizenship has piqued the interest of persons from different backgrounds and generations. In addition to nationals of oppressed nations and continuous political turmoil, the interest and need for second citizenship rose essentially as restrictions and lockdowns throughout the pandemic limited travel, migration and life for many.

A better quality of life with better standards of health, safety and education, as well as global mobility, are still the main reasons why people want to obtain a second citizenship. Another compelling reason for a second citizenship comes from businesspeople worldwide seeking to establish and secure a presence in more developed markets to combat the challenges of deglobalisation. Such a move would enable them to bridge their presence in emerging markets while forging closer relationships with clients in more developed markets and mitigating the risk exposure to economic, political or social challenges in their home countries.

We are seeing a shift from luxury to necessity as we cater to a more varied demographic of applicants for the Antigua & Barbuda and other citizenship by investment programmes.

However, a new and significant driving force behind the increasing number of second citizenship applications comes from high-net-worth individuals from western countries that are itching to get back out and resume travel with less limited restrictions.

At one point or another, regardless of our citizenship status, there is no doubt we have all faced challenges as a result of executive orders and immigration rules set out by countries and regions, including the imposition of quarantines, entry bans, and other restrictions for citizens and/or travellers to ‘red-list’ countries.

There is also no doubt that travel bands and restrictions will continue to have a negative impact not only on travel and tourism but on the ease and convenience of business and trade. As Dr Matshidiso Moeti, the WHO’s regional director for Africa, stated, “Travel restrictions may play a role in slightly reducing the spread of COVID-19 but place a heavy burden on lives and livelihoods.”

Historically, citizenship by investment programmes have attracted nationals from countries with a low passport index, such as China, Nigeria, Lebanon and Syria and others, whose citizens are seeking second citizenship as they strive to pursue a better life for their family due to challenges experienced within their country of birth. Others may be attracted to tax-friendly jurisdictions due to the increasing tax burden in their home country. However, more recently, we are seeing a surge in privileged passport holders from countries such as the United Kingdom, the United States of America and a handful of European countries who are increasingly exploring options for second citizenship as they experience family separations due to travel bans whilst the global standing of their passports fall, resulting in a need for alternative residency options and a Plan B in place.

Furthermore, changing working trends towards a more virtual base has added yet another component to the benefits of second citizenship; the ability to work or run a business from anywhere makes the decision of investing in a tropical vacation home an even more agreeable one.

Abire Mansoor

www.citizensinternational.com

We are seeing a shift from luxury to necessity as we cater to a more varied demographic of applicants for the Antigua & Barbuda and other citizenship by investment programmes.

While the programmes offer a myriad of investment options, the freedom to take refuge on a tropical island should there be a need for it is priceless.

Hence, investing in a second citizenship under the real estate option not only provides a possible safe haven but can also be a lucrative investment, as property values are seeing an increase of 1.5-3 percent each year. Furthermore, property rentals in the approved real estate developments can yield three to five percent a year. Whether one chooses to live, vacation or simply invest, as a citizen, you are guaranteed entry, even if another border closure is encountered. And the Antigua & Barbuda passport currently grants visa-free access to more countries than a passport from the United States.

So, as we see acquiring a second citizenship shifting from being a luxury item for high-net-worth individuals to becoming a necessity, and if the past two years have taught us travellers anything, it’s that it pays to be prepared, and that includes having dual citizenship.

Therefore, whether you want a second citizenship and passport for your future and the future of your family or to simply secure visa-free travel, rest assured that this will be the smartest investment decision you have ever made.

ISSUE 12 • DECEMBER 2021