7 October 2021

Why Obtain a Second Residency – Top 5 Reasons to Relocate

Residency by Investment programs offer people from around the globe unprecedented opportunities to relocate to another country as well as a path to citizenship.
Unlike a citizenship-by-investment program, which offers a passport within a matter of months in return for investment, residency-by-investment offers residency for up to 7 years before you can become naturalized.

There may be other disadvantages attached to some jurisdictions, such as not being able to work while waiting for citizenship, so it’s essential to do your due diligence. However, these countries offer many interim residency benefits – as well as eventual benefits associated with full citizenship.

So why wait to relocate? Following are the top 5 reasons to relocate (or – not relocate as the case may be, at least not right away) through obtaining a second residency.

1. Path to Citizenship/Passport

Many countries around the world offer residency-by-investment programs. However, EU Member States are particularly attractive for no-EU citizens, thanks to the freedom of movement through the Schengen area offered by their passports.

Portugal and Panama offer eventual citizenship through their residency-by-investment visa – for the investor, spouse, and their dependents.

Portugal’s Residency-by-Investment Program requires a property investment of EU280 000. You and your family may work while a resident.

Greece’s Golden Visa requires an investment of EU250 000. One notable disadvantage is that you (and your dependents) may not be employed in Greece until you have full citizenship. However, you may set up your own business.

Both of these countries also offer lower living costs than most other EU countries, low property prices, 1st world infrastructure and amenities, tax benefits, and enviable lifestyles. This brings us to the next biggest reason to relocate – living the life you want.

2. Lifestyle

With so many options for the second residency around the world, you can choose the lifestyle you have dreamed of – down to the last detail. Choose a tropical or mild climate, Caribbean, or Mediterranean island life; Choose the familiar or the exotic – from Greece to Dominica to Vietnam.

An essential aspect to enjoying the lifestyle offered by the country you choose is how much it costs to enjoy it.

3. Living Costs & Tax Benefits

Who doesn’t want to make their money go further? Relocation to countries in many areas of the world can double or even triple your spending power thanks to favorable exchange rates and low living costs.

This can be hugely augmented by tax benefits – among other relocation ‘incentive benefits’ that are designed to attract investment through residency programs. Low or no taxes on foreign income as well as on imports of household goods and other tax incentives can make a huge difference to the costs involved in purchasing your property, relocating, and living in your destination country.

One of the biggest benefits of residency-by-investment programs is that you do not have to live in the country of the second residency! So, you may ask, why do it?

4. ‘Plan B’

If you are unsure of your future in your native country, a 2nd residency offers a Plan B. You will on the property you purchase so if you change your mind, you can relocate elsewhere.

Or you can stay where you are, and ‘retire to your second home’ – as long as you have maintained your residency visa. Check on requirements such as annual fees and minimum days in the county per year.

5. Other – such as investment – in the property as well as the future of your host country

Stable but developing economies, such as those of Costa Rica, Panama, and many Caribbean islands – offer high investment returns. Property prices are likely to increase.

The Panama Reforestation Visa offers permanent residency within 3 years and Panamanian citizenship after 5 years of permanent residency – purely based on the purchase of a plot of land offered through a forestry project. These projects are run through Panama’s environmental protection agency (Ministerio de Ambiente), as part of Panama’s Law 24, enacted to restore Panama’s tropical forests

Offshore Circle offers different Residency by Investment programs in jurisdictions such as Greece, Portugal, or Panama. Send us a note to in[email protected] to have one of our associates assist you on your second residency journey.

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