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CALCULATING THE ROI ON YOUR SECOND PASSPORT
When it comes to obtaining a second passport, it is important for you to be able to calculate your individual return on investment (ROI) in order to be able to discern whether or not it is worth applying for citizenship in view of your particular needs. In order to guide you in this unique journey, we have listed the different reasons why one would apply for a second passport in order to help you determine whether or not this option is the right answer for you.
Insurance
Although it is not the first thing to come to mind when one thinks about obtaining a second passport, a number of people get a second passport as an insurance policy. If you are considering getting a second passport for this reason, it is important to keep in mind what are the risks you are trying to insure against and what its real worth is. Thus, in order to calculate the approximate ROI if you were to use a second passport as an insurance policy, you must try to appraise the value a second passport could bring if circumstances arise were you are not able to travel or access your own bank accounts with your first passport.
Opportunity
Many people opt for a second passport simply because it opens doors to new and exciting prospects. A clear example of this is the fact that a second passport in many countries in Asia will give you the possibility of making investments which you wouldn’t ordinarily be eligible to partake in as a non-citizen. Furthermore, a second passport will offer opportunities and options to one’s children beyond the borders of their original birthplace, meaning that they can attend educational institutions that are often better and even cheaper than what they’d have at their disposal without a second passport.
Tax savings
It couldn’t be easier to calculate ROI when it comes to tax savings as in this case you easily assess the financial return through simple comparative analysis. The truth is that while some countries burden their citizens with heavy taxes, with a second passport, those same taxes could either be greatly reduced or eliminated altogether. Apart from saving money which would have otherwise been paid to the tax man, people with a second passport may also circumvent strict rules and regulations imposed by certain jurisdictions on locally registered businesses.
Know how much you can afford to spend and be on the lookout for any loopholes
Obtaining a second passport is no trivial matter: it is important that you understand exactly what the various costs tied to it are. In the same way that you wouldn’t just buy house without carefully weighing the pros and cons, you need to know much you can afford to spend on a second passport. Indeed, many states offering citizenship programs will not only ask you a number of questions and perform background checks, but they may also require you to buy property in the country or oblige you to reside there for a number of days a year. The bottom line is that you need to be aware of what the potential costs are and if you’re actually willing to meet the set demands.
Hidden fees that aren’t taken into consideration
It is important to keep in mind that citizenship programme processing does not only include the cost of the passport itself, but is accompanied by other fees which are integral to the application process. Below is a list of additional fees that you will also have to keep in mind should you want to attain a second passport:
Consulting fees: There are specially trained professionals who can help you with everything second passport-related and one shouldn’t opt to attempt to cut corners by trying to get by without their help. Not only can these consultants help and guide you, but in the long run, they will probably end up saving you a lot of money thanks to their experience and expertise.
Legal and government fees: Before you startshelling out money for a second passport, you need to take into consideration what kind of legal and governmental fees your second passport domain charges. It is generally accepted that the more affluent the country, the higher you can expect the legal and government fees to be.
“Investment” fees: Many economic citizenship programmes will ask you for donations or “investment” fees, while other states will oblige you to buy real estate.. It is important that you factor everything in before you decide to purchase your second passport.
Become familiar with the rules
While many people think that a second passport will sort out all their tax woes, for some unlucky few a second passport is just the beginning of more unwanted trouble. Applicants need to ensure that their home country does indeed allow second passport holders to be classified as non-residents for taxation purposes. It is an unfortunate fact that not all countries apply the same rules to second passport holders and you certainly don’t want to end up having to sell your new house and pay more than a quarter of your wages to the government because you thought that the money you were earning wasn’t taxable.
Know what it is you want from your second passport
At the end of the day, where you go and what residency or passport you opt for all depends on your goals and aspirations for you and your family’s future. The truth is that while getting a second passport might seem like a great idea, you do need to do your homework and work out whether the long-term returns can justify the overall cost in terms of both time and money. The best way to do this is by organising yourself and thinking ahead about whether you will break even after all the costs and fees are settled. That said, if you can afford it and willing to hire professionals to help you out, having a second passport will be able to open a plethora of opportunities which were previously inaccessible to you and you may find out that the ROI is in effect priceless!