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00:00Why Wealthy Americans Are Buying Second Passports
00:05The USA is perhaps the most powerful country in the world.
00:08The country has always been in demand for citizenship applications.
00:12People from all over the world have wanted to come to this country to live the American
00:17dream.
00:18Things have been drastically changing, however, as the wealthiest of American citizens are
00:22getting a backup plan out of this country.
00:24The land of the free is taking their freedom one step ahead.
00:28The uber-rich Americans are contemplating buying second passports as a plan B for the
00:33security of their families.
00:35The U.S. passport is ranked the most powerful in the world by the Immigration Investment
00:39Consultancy from Global Citizen Solutions at the end of 2021.
00:43However, in a 2022 ranking released by Henley & Partners, the American passport tied for
00:48sixth place based on its ability to grant holders visa-free access to 186 countries.
00:55In the earlier years, U.S. citizens didn't think about buying these golden passports.
01:00It was mainly countries with few travel freedoms that opted for a second passport, like China
01:04or Nigeria.
01:06But the scenario has changed vastly.
01:08The people in the citizenship and residency consultancy industry are getting inquiries
01:13majorly from citizens of this country.
01:16According to reports, Patti Bluer, a director at Henley & Partners, compared the American
01:20surge in second passports to a dam burst.
01:23We haven't seen the likes of this before.
01:26The dam actually burst, and we didn't even realize it at the end of last year, and it's
01:30just continued getting stronger.
01:33Investment migration firms report that many of America's wealthiest citizens, like U.S.
01:38billionaires, celebrities, and tech entrepreneurs, feel the need to create a plan B for themselves
01:43and their families as far as living in the U.S. is concerned.
01:47Why are Americans opting for a second passport?
01:51Dominic Volek, group head of private clients at Henley & Partners, talked about the reasons
01:56leading to the surge of investor citizenship.
01:58We see clients coming to us and actually doing multiple, multiple programs with us.
02:03They're looking to get citizenship in the Caribbean alongside potentially citizenship
02:08in Europe.
02:10And with that, also looking at potentially getting permanent residence down in Australia
02:14or New Zealand or some type of residence visa in Thailand.
02:20He also revealed that it was during the Trump administration that the spike in applications
02:26began.
02:27It further saw a rise during the pandemic and its lockdowns.
02:30The American passport had been in decline even before the pandemic, but has slid even
02:34further down recently.
02:36Many of America's wealthy are opting for a second passport, and they are doing so using
02:41means only available to the extremely rich population.
02:45The reasons, besides the COVID-19 scenario, include the many unknowns that the country
02:49could face associated with the progression of climate change and the political climate
02:53in the U.S.
02:55COVID-19
02:57During the very strict lockdowns, there was a point where you could not enter Europe if
03:01you only had an American passport.
03:03This, according to Volek, made a lot of extremely wealthy individuals realize that they were
03:08maybe more fragile than they thought.
03:11What happened could very easily happen again, and they would want to be better equipped
03:15when the time comes.
03:16The reality of COVID-19 hit everybody hard.
03:20This mismanagement of the pandemic in the USA, the travel restrictions, the risk of
03:24mobility, expensive healthcare, and the standstill of the economy were factors that especially
03:30shook the uber-rich.
03:31The American passport was a pass to traveling without a visa in nearly 200 countries, but
03:37the COVID restrictions found the USA barred from traveling to most of Europe, Asia, and
03:42even in Canada.
03:43The pandemic may have looked like a temporary crisis for average people, but the uber-rich
03:48saw it as a crack in their financial security.
03:50That's why this second passport is kind of like an investment for a potentially secure
03:54future.
03:57Climate Change
03:58Climate change and its impact can be felt all over the world, and the American citizens
04:03want to secure their escape in case it impacts the USA first.
04:07Higher temperatures, melting ice caps, shorter winters, disruption in the seasons, we're
04:12all feeling it.
04:13As climate change progresses, there is no saying which place will be affected first.
04:18Having a second passport will enable citizens to move to the other country that they have
04:22chosen without any hassle.
04:24There will also be greater mobility while traveling to other countries without a visa
04:28if need be.
04:30Political Conflict
04:32The political conflict in the USA that started majorly during Trump's administration is
04:36also a reason for Americans feeling unsafe in their country.
04:40The political landscape of the USA has become very chaotic in recent years.
04:45An opinion poll showed that just 40% of US voters have faith in President Joe Biden's
04:50handling of economic affairs, the lowest number a president has received since George W. Bush
04:55in 2008.
04:57With inflation rates having doubled in just one year, the public is not very trusting
05:02when it comes to Biden and other democratic leaders.
05:05The rate of hate crimes and civil wars has also increased.
05:08The political division only seems to be escalating.
05:12Expenses
05:13America is crazy expensive, and the high cost of living is not worth the lifestyle that
05:19it can afford.
05:20There are a lot of places in the world that let Americans live a rewarding lifestyle that
05:24they could never afford in the USA.
05:27Care is better and cheaper, taxes are lower, and the standard of living is much better
05:32at the cost in other countries.
05:35Status Symbol
05:36Believe it or not, one of the major reasons for getting a second passport is that it is
05:42a status symbol.
05:43For individuals with a very high net worth across the world, a second passport is a prestige
05:48symbol as it gives you a lot more freedom and opens many more doors.
05:52With greater mobility and opportunities for international business ventures, a second
05:57passport has become an asset for the wealthy.
06:00When we're looking at the future, we are looking at a lot of unknowns.
06:04None of us are ready for it, but the wealthiest people have the means to have another plan
06:08in place should the need arise to save themselves for any reason.
06:12How do you get a second passport?
06:15Usually, an individual can get a second passport by residing in a country long enough to be
06:20able to apply for citizenship through naturalization.
06:23More than 60 nations allow legal residents the right to apply for citizenship after meeting
06:28certain criteria.
06:29This is the most common way, but of course, it takes quite a long time.
06:34There is another way, but it is something opted for only by the extremely wealthy.
06:39Some countries allow non-residents to purchase citizenship directly.
06:43They usually offer this citizenship and passport to people who invest in the economy of that
06:47country in some way.
06:49This is known as the Citizenship by Investment Program.
06:54Around 15 countries across Europe and the Caribbean offer CIP or Citizenship by Investment
07:00Programs famously known as Golden Passports or Golden Visas.
07:05Through these programs, the ultra-rich foreigners can buy a citizenship or residency permit
07:10of a country for themselves and their families by investing a certain sum of money in the
07:14infrastructure of the country.
07:16The minimum amount for investment currently ranges from $100,000 to $9.5 million depending
07:23on the country.
07:24These programs are seen as insurance policies.
07:27People want a safer place to move to should something become wrong in their own country
07:31like a climate catastrophe or another pandemic.
07:35Real Estate Investment
07:37Real estate investment projects involve investing in commercial or residential property in the
07:42country of your choice.
07:43You can invest in either total ownership of a property, shared ownership in a prominent
07:48development or a lease for a specific duration depending on the requirements.
07:53Shared ownership is a major investment that would mean being a passive investor without
07:57managing any part of the project.
07:59Any real estate investment option will require the initially invested amounts to be maintained
08:04for a minimum period which ranges from 3 to 5 years.
08:08After that, you can sell your share at the current market value.
08:12Business Enterprise
08:14This option of investment is for entrepreneurs and business owners who want to expand their
08:18businesses.
08:19Securing second citizenship will help you to easily trade within particular economic
08:24and geographical areas.
08:26This option requires investors to create new investment opportunities or take forward existing
08:31ones.
08:32Some categories allow joint applications for investors who want to share the ownership
08:36of a business.
08:38Government Bonds
08:40Purchasing government bonds is also a way to acquire permanent residency or citizenship
08:44in a country.
08:45This is a good choice if you don't want to risk any capital or don't want to personally
08:49be involved in any business enterprise.
08:52The country's government guarantees the bonds and will return your full investment without
08:56accruing interest.
08:57The minimum holding period is usually 5 years.
09:01If you want to finance the investment instead of returning your initial deposit, it is used
09:05to finance the initial loan and cover the other financial charges.
09:09Some countries offer you citizenship quicker if you buy an additional bond value.
09:15Donations
09:16This type of investment requires the investor to donate a sizable amount to an approved
09:20fund or charity in a particular country.
09:23The donation depends on the number of applicants.
09:26It provides all the citizenship benefits while being a philanthropic act towards your new
09:31country's development.
09:33How do these countries benefit from this?
09:36It is not just the investors that benefit by applying for citizenship by investment.
09:40The countries also have much to gain.
09:43As more and more people apply for a second passport, these countries attract foreign
09:47direct investment.
09:48The countries can then invest these funds in their projects such as real estate development,
09:53business development, and job creation.
09:56The CBI programs also attract talent and skills that are useful for boosting the economy.
10:01Countries want investors with clean criminal records who contribute to the economy to become
10:05citizens.
10:08Which Countries Offer CIPs
10:11Many good options provide an easy process for investors to get a second passport along
10:15with their families.
10:17Some countries offer Commonwealth passports while some offer EU passports.
10:21Some of the countries which offer citizenship by investment programs are St. Kitts, Nevis,
10:27Dominica, Grenada, Antigua, Barbuda, St. Lucia, Montenegro, and Vanuatu.
10:36Montenegro is the cheapest citizenship program in Europe which costs roughly about $532,000.
10:42Getting a second passport naturally will take about 5 years in Portugal and Uruguay.
10:47Argentina and Peru take about 2 years.
10:51Benefits of Dual Citizenship
10:54There are a lot of reasons why one would invest in a second citizenship.
10:58The most common reasons to get a second passport are to increase stability and security.
11:03As a future investment for themselves and their family, easier worldwide mobility, high
11:08standards of living, education and healthcare, and overall a better life.
11:14Let's talk about each of these in more detail.
11:18Stability and Security
11:20Many billionaires and entrepreneurs consider the option of getting a second passport because
11:24of all the benefits it provides.
11:27Dual citizenship grants security and safety on many levels.
11:30If you have a business, you can tap into international markets easily.
11:35International business growth and expansion become much easier when you have two passports.
11:39A second passport also guarantees personal security, a low crime rate, and economic and
11:45political stability.
11:48Future Investment
11:50As the world constantly changes around us, acquiring a second passport is not a bad idea.
11:55Think of it as an investment for the future.
11:58The citizenship you choose is for life, your spouse and children can be included.
12:03Often you wouldn't need to give up your present nationality.
12:05So you get the best of both worlds as you enjoy the benefits of a legal second passport.
12:11Freedom of Mobility
12:13A second passport offers visa-free access to many countries around the world, which
12:18makes travel a lot easier for you and your family, be it for business or for leisure.
12:23The passport of St. Kitts and Nevis gives you access to over 130 countries without a
12:28visa, while Malta offers its Citizens by Investment visa-free entry to more than 160 countries.
12:35The second passport saves you time, money, and stress.
12:39The entire hassle of going abroad is eliminated if you have dual citizenship.
12:44A second passport makes you a citizen of the world.
12:48Quality of Life
12:50All the countries that offer Citizenship by Investment programs are well known for
12:53the quality of life they provide.
12:56High living standards, good quality of education, and healthcare benefits are some very attractive
13:01perks of these countries.
13:04Tax Optimization
13:06Dual citizenship has some advantages for tax management purposes as well.
13:11Some countries only tax the income earned from that country.
13:14They do not have inheritance, gifts, capital gains, or wealth taxes.
13:20In countries like Antigua and Barbuda, the citizens are not taxed on their personal income.
13:26Investing in second citizenship provides tax benefits to wealthy businessmen and billionaires
13:30who seek efficient ways to manage their wealth effectively.
13:35Education
13:36Education is always an important factor to think about if you plan on being a global
13:40citizen.
13:41Your education will be the foundation of your success.
13:44When you invest in a second passport, it opens up new avenues and grants you access to some
13:49of the best schools in the world for you as well as for your children.
13:53Dual citizenship will also qualify your kids for domestic tuition fees rather than international
13:58fees.
14:00Business
14:01A second passport is appealing to investors and businessmen for business reasons.
14:06CIPs open up a lot of new business opportunities to the applicants.
14:11They can do business in their own country, their host country, and international business
14:15also becomes more feasible as travel becomes easier with a second passport.
14:20There are many benefits to getting a second passport.
14:23A new, better lifestyle, lower cost of living, a different cultural experience, less stress,
14:29and a happier life.
14:31How many Americans are opting for a second passport?
14:35It is concerning that America, the most powerful country with the highest demand for citizenship,
14:40futuristic developments, and attractions for immigrants to settle here, is seeing its citizens
14:45lose faith in it.
14:47Americans are fleeing, or at least trying to secure a plan B for themselves in case
14:51things go wrong there.
14:53In recent years, there has been a more than 300% spike in Americans opting for a second
14:58passport to travel to other countries, with most of them preferring Portugal.
15:03According to Reyes Jafri, CEO of Citizenship and Residency Consultancy Dayson Advisors,
15:08the past three years have seen more inquiries about second citizenships from high-net-worth
15:12Americans than the preceding 20 years combined.
15:16These individuals are usually people who earn their money through tech, real estate, or
15:21cryptocurrency.
15:22These individuals are also worth more than $50 million.
15:26These people are worried about the future of American society.
15:31Portugal is the next California
15:34At this moment, Portugal is the country most in demand among American investors.
15:39This is because of Portugal's extremely appealing 5-year residence permit, which allows
15:43visa-free travel to 26 countries in the European Union.
15:47The golden visa of Portugal may only be a dream for commoners, though.
15:52That's because the visa requires a minimum investment of over $200,000, and you also
15:57need an average stay of 7 days a year in the country.
16:01When the permit expires, residents can apply for full-time citizenship, which can take
16:05an additional 3 years to process.
16:08Portugal has been described as the next California, as a lot of talent and wealth is going there.
16:14Americans in general are becoming largely disappointed with what's happening in the
16:18US.
16:19The American dream has stopped looking so dreamy.
16:22The reality is way too different.
16:24The opportunities that once enticed people to the country are just not available anymore.
16:29This is why the ultra-rich Americans want to plant roots somewhere else, preferably
16:33in Europe, as a legacy plan for their family.
16:37However, most golden passport residents do not end up moving at all, opting instead for
16:42visiting the country from time to time.
16:44Some rarely even visit.
16:46Most dual-passport citizens don't want to move, they just want the option available.
16:52There are a lot of things to consider before you think of a second passport.
16:56Some countries don't allow dual citizenship, so if you're considering getting a second
17:00passport, make sure that your original country and the new country both allow it.
17:06Many countries have a minimum number of days that you need to reside in the country as
17:09immigration requirements, so think about whether you're getting a passport to move or just
17:14as a backup plan.
17:16What about the tax system in the country?
17:18One of the main reasons why people seek a second passport is tax benefits.
17:23How does the tax system in the country benefit you?
17:26Is the country safe?
17:27What is the education and healthcare system of the country?
17:30And how powerful is your passport?
17:33If you are spending money on a second passport, you need to make sure that it's worth your
17:37bucks.
17:38Do your research carefully and make informed decisions.
17:42Countries do their background checks and due diligence very, very carefully.
17:46It takes several months to obtain citizenship.
17:49The European CIPs have gained considerable popularity and a lot of Americans are flocking
17:54to get European passports, so the European CIPs have higher barriers to entry and their
17:59process takes even longer to finish.
18:02There will without a doubt be a lot more citizenship by investment programs coming soon.
18:07Many countries have started to think about these programs and it won't be long before
18:11they are implemented in many more countries.
18:14So what do you think of the future of America and the development of golden visas?
18:19Let us know your opinions in the comments below.
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18:26See you in the next one!