Amid COVID restrictions and the unstable political situation around the world, including in Europe and Russia, many people are starting to think about obtaining a second citizenship. Second citizenship is in fact a diversification of civil rights and obligations, which allows you to minimize risks of unforeseen circumstances and emergencies (whether it is an epidemic, war or economic crisis). There are several ways to obtain a second citizenship, but the fastest and relatively simple is to obtain citizenship through investment. Investment programs are becoming an increasingly popular way to obtain a second citizenship. Below we will look through the main aspects that you need to know before you start applying for a second citizenship by investment.

Second and dual citizenship

To begin with, it is important to distinguish two concepts: dual citizenship and second citizenship are not the same thing. Dual citizenship can only be obtained by citizens of countries between which an agreement on dual citizenship has been signed (for example, there are such agreements between Russia and Tajikistan, between Spain and Portugal). In the case of dual citizenship, a person pays taxes, receives social benefits and performs military service in only one country (in the country of residence), since each country takes into account the “dual nature” of the status of a citizen and its belonging to another state. It is worth noting that such agreements on dual citizenship are relatively rare. Therefore, most often you have to deal with a second citizenship.

If a person acquires the citizenship of another country that does not have an agreement with the country of the first citizenship, then we are dealing with a second citizenship. Unlike dual citizenship, in case of second citizenship, each country considers a person only as its own citizen and does not recognize his rights and obligations in relation to another state. However, this does not negate the wide range of benefits that second citizenship provides.

Benefits of a second citizenship

Second citizenship is obtained for different purposes: travel without visas, business abroad, moving to another state. Everything here is quite individual. But in any case, having a second citizenship is a kind of safety cushion that can be very useful in the future. Let's talk about its main advantages:

Visa-free travel. Second citizenship often allows for visa-free travel. For example, citizens of most CIS countries cannot freely visit the UK, the USA, and EU countries - they need a visa. But if you get citizenship, for example, of Malta or Vanuatu, then visa-free entry to the Schengen countries and the UK is available. Moreover, a second citizenship can make it much easier to obtain a US visa. For instance, citizens of the Caribbean countries receive a tourist visa for ten years, and citizens of Grenada can obtain a special business visa, which is generally not available to citizens of the CIS.

Business development abroad. A second citizenship can significantly simplify passing through compliance procedures, and, consequently, the registration of a company and opening bank accounts abroad. Moreover, many Caribbean countries do not disclose information about the owners of local companies, which can be an important advantage for business privacy purposes.

Medical treatment. Usually, a medical visa is required for medical treatment abroad. If you need urgent medical care, second citizenship allows you to immediately go for treatment, which can be vital. For example, citizenship of Malta provides visa-free entry to Germany and the United States, where the best clinics in the world are located.

Tax optimization. Second citizenship allows you to choose a country with optimal taxation. Thus, you can significantly save on income and other taxes, but, of course, subject to obtaining tax residency in this country.

Moving for permanent residence. No matter how trite it may sound, a second passport can significantly help with moving for a permanent residence in another country. For example, if you have the citizenship of Malta, you can move to live not only in Malta, but also in any other EU state.

Restrictions related to second citizenship

Before starting the process of obtaining a second citizenship, you need to make sure that there are no restrictions and ensure that the necessary requirements are met.

First of all, it is important to consider that some countries do not allow their citizens to have a second citizenship. In such a case there are two options: either renounce the first citizenship, or not to obtain the second one. Such restrictions apply in Spain, Slovakia, Azerbaijan, China, Singapore and some other countries. Even in the absence of a ban on second citizenship, some states require notification about a second passport. For concealing such information, a person may be held liable, including criminal liability. Moreover, second citizenship in many countries is an obstacle to work in public institutions. However, these features do not negate all the advantages of a second citizenship, but only draw attention to the need for a thorough and professional approach to the process of obtaining it.

Ways to obtain a second citizenship

Second citizenship can be obtained by naturalization, that is, if you live in the country for a certain amount of time and / or get married. But a faster way would be to obtain citizenship by investment. The passport is issued in a short time in exchange for investments in the economy of the country of second citizenship under certain conditions. The amount of investment depends on the country and usually starts from about 100,000 Euros. Popular investment programs include:

There are a number of other countries that have launched citizenship by investment programs. The conditions of investment programs may change, new programs also appear, and some are no longer relevant. Therefore, when obtaining a second citizenship, it is important to take into account many nuances and choose an up-to-date program, considering the specifics of a particular situation of the applicant.

We will be happy to help you with the selection of a program and support on the way to obtaining a second citizenship.

Marsel Shadmanov

Head of Corporate Services at Garant Business Consultancy DMCC

Phone +971 4 421 4335

Email info@garant.ae