Citizenship and residency by investment
Citizenship by investment is a relatively new concept – the first program of its kind was launched in 1984 by the Caribbean island of St. Kitts. Since then, this idea has taken off and, in the last 40 years, over 20 countries have created their own national programs.
From my experience, four key factors motivate investment migration:
- “Just in case” planning and country risk mitigation
- Travel freedom and choice of residency
- Leveraging opportunities for personal tax planning
- Access to European job markets for the investor’s children
When I work with clients, the first step is to identify what limitation or opportunity can be addressed by foreign citizenship or residency. Indeed, in some cases, a second passport or residence permit may not be the best solution, which is why it’s important to outline the functions and applications of such documentation. By understanding the goals and unique circumstances of each client, I can offer customized solutions that are tailored to your needs.
Once we have agreed upon the best strategy for your case, my team and I handle every step of the process until you have the residence permit or passport in hand.
Tax residency planning
According to Art. 4 of the Model Tax Convention on Income and on Capital, tax residency determines the taxation liabilities and administrative duties on filing reports and declarations. Depending on your current tax domicile, there is a specific set of requirements that determines your status as a “tax resident”.
Nowadays, international tax competition is an important consideration in investment migration, making it possible for savvy investors to combine quality of life with optimal personal tax status.
Take Spain, which is traditionally regarded as a high tax country. In 2003, it introduced a new regime exempting global profits from taxes. Similar regimes have been implemented in many states, including the United Kingdom, Portugal, Gibraltar, Italy, Switzerland, Cyprus, and Malta, and the list of privileged regimes continues to grow. Moreover, every country of interest to our clients also comes with unique clauses that may be leveraged for personal tax planning.
Tax residency planning services include analysis of the client’s estate, evaluation of tax implications associated with residency in chosen destinations, and assessment of opportunities for reducing the personal tax burden. I have established reliable partnerships with leading law firms in each target country to ensure the most advantageous tax relocation for clients.