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04 Dec 2024

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Why Every Bitcoiner Should Invest in Alternative Citizenship
BitcoinWhy Every Bitcoiner Should Invest in Alternative Citizenship If you're holding Bitcoin, you’ve already embraced a radical idea. If you invested in Bitcoin 15 years ago, you were looked at strangely – if you even talked about your investment publicly at all. You’ve stepped outside the traditional financial system, opting for an instrument decentralized, independent of the powers that be, uncompromisable, and digital. But here’s a question – What if you could extend that mindset beyond the financial world? What if your citizenship could be as flexible, strategic, and future-proof as your investment strategy? This is the case for second (and even third) citizenship in a Bitcoiners' investment portfolio. A Second Citizenship is an Investment in Your Freedom and Future For many in the Bitcoin space, Bitcoin is more than just a backup plan. It's Plan A.  Bitcoin is about buying optionality in a future that we cannot predict. The concept of alternative citizenship is similar. It's about investing in your optionality – your ability to choose ... Where you live Where you invest How you pass on freedom to future generations Like your decentralized investment portfolio, a second citizenship provides a hedge against geopolitical and market risk, the flexibility to adapt at a moment's notice, and go where you're treated best, as Nomad Capitalist's Andrew Henderson famously says. No more obvious was this need for flexibility than during the global pandemic of 2020. All of the sudden, international flights were cancelled, millions were laid off from their jobs, and bank accounts were flooded with trillions in government stimulus. Panic ensued. But not everywhere. Different countries took different approaches to the pandemic. Life in Sweden went unchanged. While the Canadian government in power mandated medical procedures on its population, censored any form of dissent online, and froze the bank accounts and financial assets of those who disagreed with them. Night and day. Imagine at that moment being Canadian (many of you don’t have to). Imagine not being trapped. Imagine acquiring citizenship in a foreign country or several countries, having the freedom to escape "yours" when the proverbial excrement hits the fan, and choosing where to live, where to work, and where to provide your children the education they need to thrive in the future. Really, you don't have to imagine it. Foreign investors with multiple passports lived this reality in 2020. They bounced from country to country, from economy to economy, living in the jurisdictions that served them best in the moment – while those with one passport did not. How does Bitcoin differ? At its core, Bitcoin is a hard money designed for freedom from inflation, governmental overreach, and the constraints of centralized systems. A second citizenship offers a similar kind of freedom. It gives you optionality, a way to decentralize your life away from one single government, to diversify not just your financial assets but your identity. How Multiple Citizenships Are a Hedge Against Market Volatility and Geopolitical Risk Bitcoin is a hedge against inflation and the collapse of the traditional financial and political systems. With access to several economies, bank accounts, and investment opportunities across the world (versus just those in your own backyard), a passport portfolio is also a hedge against unnecessary risk in your country's economy, geopolitics, stock market, and response to global events like the pandemic. In times of crisis, wealthy individuals don’t want to find themselves heavily reliant on one single government and have to scramble for visas or residency permits in safe haven countries. They want to have a second passport in hand to access benefits like: More extensive visa-free access and travel More tax optimization opportunities More personal security and privacy More business opportunities More education and healthcare access More ways to protect your wealth and assets More political stability More residency and living options More generational inheritances Second citizenships are like value stocks (vs. growth stocks): You may not see their ROI immediately. But with time, they can far out-earn other investments by significant amounts. But what happens when the country where you've invested your whole life suddenly goes to war and needs all the resources it can possibly get? What happens when they're attacked by a foreign power? This is where second citizenship comes in. It’s a hedge against market volatility and political instability. The goal is diversification. Just as you wouldn’t put all your Bitcoin in one exchange, buy all your coins at once (you may even be dollar cost averaging), or put all your wealth in one bank account, you shouldn’t rely on just one passport.  Spread your money wisely and give your family a secure future – no need for perfect market timing. Bitcoiner Personas and Their Ideal Citizenship Investment Strategies Bitcoiners aren’t a monolith. If you've spent years in this space, you already know this. We come with different risk tolerances, ideologies, timelines, and goals. Your path to citizenship shouldn't be any different. What one individual may be interested in for their portfolio and lifestyle goals may not interest you at all. Your citizenship portfolio should reflect your investment philosophy. In fact, they're one and the same. So why should a Bitcoiner consider a new citizenship? I'll answer that question and propose how it fits into various investing strategies based on your approach to Bitcoin. 1. The Bitcoin HODLer & Philosopher You believe in the long game. You’re a long-term investor who doesn’t flinch at market fluctuations because you know that over time, Bitcoin is the future and its value will reflect that fact. Apart from your financial approach, you also believe in the Bitcoiner philosophy, a piece of the Bitcoin puzzle most don't bother to study: You relish healthy living, individual liberties and sovereignty, and the return of traditional values to society. The Bitcoin Standard is on your nightstand. And, you just want to be left alone. For you, acquiring a second citizenship is about future-proofing your life just as you’ve done with your Bitcoin holdings. Ideal Citizenship Investment Strategy — Good news. Many countries fit the bill – with low taxes, a low geopolitical profile, a predictable economy, and long-term investing opportunities. Portugal’s Golden Visa and residence permit or El Salvador's Freedom Passport program are solid choices.  Via Portugal's Bitizenship fund, investors can get an immediate residence permit and citizenship in five years with indirect exposure to Bitcoin. What makes this program special is 1) the low physical presence requirements for residency and 2) maintaining exposure to €500,000 worth of bitcoin. So not only do you get residency and/or citizenship out of your investment, you also can get a huge return on your original Bitcoin investment. Over in Latin America, with a government donation of US$1 million in BTC or USDT, El Salvador's citizenship by investment program offers investors immediate citizenship. For the HODLer looking for stability and not necessarily a return on their investment, plenty of other jurisdictions grant citizenship or residency in exchange for investments in real estate, mutual funds, exchange traded funds, and index funds. Some countries also offer independent means visas for those with pensions, recurring income, and passive investing. We'll talk more about these options below. 2. The Bitcoin Day Trader You live and die by a stock price and thrive on volatility, moving in and out of positions based on technical analysis and momentum investing. You approach your investments with confidence, no matter the market sentiment or market prices. You're not as interested in Bitcoin for its long-term viability in society. You just want to take advantage of its Number Go Up (NGU) technology and make as much income as possible during the run-up. This is your livelihood after all. For you, a second citizenship isn’t really about security. It’s about the ability to react quickly to higher risk, to reduce your capital gains taxes, and to navigate international law – legally. Therefore, you're tuned into your investment options and what countries offer. Ideal Citizenship Strategy — Your best bet is a direct citizenship by investment program that offers fast access to a full citizen’s privileges, new markets, and reduced taxes. Consider countries like Malta or St. Kitts & Nevis, which offer some of the world's most tax-friendly policies and quickest paths to naturalization through their citizenship by investment programs. Your investment choices are high-risk, high-reward. Your citizenship strategy can reflect that investment approach as well. With more money in high-growth markets, the more potential for a boom in your investments. 3. The Value Investor Remember Singapore, Hong Kong, and Dubai in the 1950s? No? Neither do we. And that's the point. Imagine having invested in a jurisdiction like those examples 50 years before they became what they are now. Imagine getting citizenship in Singapore, which now has the world's most valuable and hard-to-obtain passport, before it was even on the map. You'd be considered the Warren Buffett of citizenship investing. Dual citizenship is inherently a value investing tool. For decades, a passport portfolio has been severely undervalued. But now, millions have now accessed the benefits of a second citizenship. So the question is – Which countries are today's growth stocks? Which jurisdictions are the targets of value investing? To where are the growth investors (and their investments) migrating? The answers to these questions will reveal the Hong Kong of tomorrow, the Dubai of tomorrow. Is it Buenos Aires? Have you seen what's happening in El Salvador? Is it Saudi Arabia? What about Kuala Lumpur? Where can you invest to get a 1,000,000x return? If you spotted Bitcoin early, you should have no trouble finding the next investors’ paradise. Market fluctuations? That's just part of the game. For you, value investing is the cornerstone of your investment strategy. Buy low, sell high. Ideal Citizenship Strategy — The best strategy for you is to travel the world, explore new markets, find those with the highest probability of succeeding based on various factors, and begin investing in those that fit your financial goals. Countries all around the world offer investment programs for foreign nationals like you. And, of course, when you send money to a country, invest in a business headquartered there, or procure actively managed funds, you receive tangible benefits like residency or citizenship. Incentives – This is how countries in the 21st century attract wealth investments. How to Choose the Right Citizenship Program Based on Your Risk Tolerance What surprises most people I talk to is that acquiring citizenship in most countries is not a backchannel strategy. You can obtain another passport by any of the following paths and more: Investing in real estate Excelling in your field or craft Opening a company or creating jobs Donating money to a government fund Proving your ancestry in that jurisdiction Simply spending the required time to naturalize Being historically or culturally important to a country Holding money or investments in a financial institution Providing exceptional services to a country's population All this to say – There is a diverse range of ways to obtain another citizenship. Successful investors know their needs and build a citizenship portfolio that meets them. Just like in investing, there’s no one-size-fits-all approach to citizenship. Beginner investors must do their due diligence to find the right investments for them. Your choice should reflect your risk tolerance, goals, and personal circumstances. First, evaluate your risk and reward. Then, determine your goal (financial goals, family goals, investing goals, lifestyle goals, etc.). If you’re willing to take on more risk, consider fast-track citizenship options like Antigua & Barbuda or Vanuatu. These programs offer quick returns but come with political uncertainties. For example, those who were investing in Vanuatu citizenship a few years ago didn't know that the European Union would strip the country of visa-free access to the Schengen Zone in 2024. If the investors knew of that future policy change, might they have changed their opinion before sending their US$100,000 donation to the Pacific island? Who knows... If you prefer a more stable, less risky approach, investors have numerous residency by investment options and naturalization paths. These programs may require more physical presence and a longer timeline, but for many, they want to spend time in a jurisdiction before investing significant time and/or money in a country. Here are a few investment routes Bitcoiners could take: Independent Means Visas Independent means visas simply require applicants to show economic solvency and proof of recurring income (in the form of pensions, retirement income, or other passive investing sources). That's it. Most independent means visas also lead to citizenship but may require more physical presence than golden visas, which I'll cover in a second. Typically, these visas are designed for retirees and pensioners but can sometimes be ideal for others. Portugal's D7 Visa Thanks to its golden visa and tax policies although the Non-Habitual Tax Regime (NHR) has been closed, Portugal has become a popular destination for digital nomads and Bitcoiners over the last decade. The D7 Visa allows individuals with sufficient passive income to apply for residency in Portugal and eventually citizenship in five years. Uruguay If you're looking for a more tranquil, off-the-grid option, here is your opportunity. For Bitcoiners seeking stability and safety, Uruguay offers the Rentista Visa. Tucked away in the Southern Cone of South America, Uruguay and their independent means visa allows individuals who can demonstrate a monthly passive income to establish residency in Uruguay. Known for its high quality of life and political stability (it's called the "Switzerland of South America"), Uruguay is an excellent option for those looking to invest in a South American residency. Plus, investors can choose whether to pay a 7% tax for life or 0% tax for 10 years once they become a tax resident.  Golden Visas Panama's Friendly Nations Visa Panama has long been considered a LatAm hub for expats and investors. The Friendly Nations Visa allows citizens from certain countries ("friendly nations" like the US, UK, Canada, and Australia) to obtain residency through either the establishment of a local business or by demonstrating financial self-sufficiency (e.g. retirement income, pension). Andorra's Passive Residency Program Between Spain and France, mountainous Andorra offers one of the most attractive independent means visa options in Europe through its Passive Residency Program. The program requires a minimum investment of €400,000 in local real estate or local financial institutions. However, physical presence is strictly required in order to renew the visa and/or convert it to citizenship. Portugal's Golden Visa Portugal's golden visa is the most popular in the world for good reason. With minimal presence requirements and just a five-year path to citizenship, it's the best of both worlds. Plus, through the Bitizenship fund, you can invest indirectly in Bitcoin and recoup your investment after you've obtained permanent residence or citizenship. Citizenship by Investment Malta's Citizenship by Investment Together with El Salvador’s Freedom Passport, Malta’s Exceptional Investor Naturalization (MEIN) Policy is the most expensive of all residency or citizenship investments listed here. But, many claim it's for good reason. With an investment of almost €1 million in real estate and donation to the government, investors can obtain citizenship in the European Union – albeit in a matter of years as the application backlog is growing. St. Kitts & Nevis's Citizenship by Investment Back in 1984, Caribbean island nation St. Kitts & Nevis offered the very first Citizenship by Investment program. With visa-free access to over 145 countries, its passport is still strong. Moreover, if you're looking to reduce your taxes (potentially to zero), invest in citizenship here and become a tax resident: St. Kitts & Nevis doesn't levy any personal income tax. Just as you approach your Bitcoin holdings with a long-term mindset, think of a second citizenship as part of your broader investment strategy. Diversify and reduce risk. A citizenship portfolio is like digital real estate. Secure your freedom, invest in your legacy, protect your family, and open up new investment choices across the globe. But you have to identify your long-term goals first to determine the ideal location or group of places that best fit your lifestyle. Buy Bitcoin. Invest in a second citizenship. The future belongs to those who see it coming. And as a Bitcoiner, you’re already ahead of the curve. Now, it’s time to extend that approach to your citizenship.

14 MIN READ

17 Oct 2024

7 Reasons Singapore Is the Greatest Civilization in Southeast Asia
Residency7 Reasons Singapore Is the Greatest Civilization in Southeast Asia Thanks to technology and globalization, the world is rapidly shrinking. And for the same reasons, you now have access to new markets, new business opportunities, and new investment options that just 50 years ago, didn't exist. This is where the story of Singapore, the Lion City, begins. Singapore exemplifies how visionary leadership and pro-business policies can create explosive and consistent economic growth. So, how did this sleepy port at the southern tip of Asia transform itself into an ultra-safe city-state worthy of global recognition and economic prowess (and the incorporation of Bitizenship)? The Rise of Singapore When you think about Singapore today, images of towering skyscrapers, busy city streets, high-stakes Asia business meetings, and the iconic Marina Bay Sands probably come to mind. But Singapore didn't always look like this. Just 50 years ago, Singapore was an industrious fishing village. Separated from Malaysia and left with few natural resources, Singapore's future looked uncertain in 1965. Enter Lee Kuan Yew, the country's first prime minister and the mastermind behind its transformation. Serving at the country's helm from 1959 to 1990, Yew is credited with the tremendous development in Singapore GDP – from US$974 million in 1965 to US$501 billion in 2023, a generous 51,337% increase. In a shocking turn of events, Singapore's nominal per capita GDP now more than doubles that of the European Union. The state of the Singapore economy is strong. Lee Kuan Yew had a vision to turn a main island city at the southern tip of Asia into a thriving metropolis with a strong currency – the Singapore dollar. Facing land constraints, the republic started with an ambitious land reclamation project, expanding the city by establishing more land in the sea. Today, land reclamation alone has increased Singapore's physical area by more than 20%, a testament to Yew's approach to natural limitations. As the city has rapidly developed and housed a growing population, this expansion has been a critical investment. Singapore's Economic Development Under Lee Kuan Yew's leadership, the People's Action Party (PAP) focused on economic development like a laser beam. They knew that without many natural resources, Singapore had to become a hub for trade, finance, and professional services. Yew's ruling party implemented policies that attracted foreign investment and encouraged multinational corporations to set up shop. For example, Jurong Island was created through the combination of several small islands. Attracting foreign investment from fossil fuels giants like Shell and ExxonMobil and fueling (literally) the local economy, it's now become a regional petrochemical hub. Yew knew, however, that Singapore could not grow without an injection of particular skills and expertise that the local population could not provide alone. So, the government increased immigration to the island city and welcomed hundreds of thousands of Chinese foreign workers to supplement the local workforce. Today, more than half of Singapore's workforce comprises foreign workers and expatriates, who contribute significantly to its local economy and GDP. This influx allowed Singapore quick ascension and transformation into one of the world's most prosperous nations within a few decades. Even today, the Singapore government maintains a delicate balance between economic growth and social development, ensuring that the public and private industries' benefits trickle down to the population. But what's made Singapore so successful in my eyes is its aggressively pro-business public policy. Reason #1 – A Pro-Business Government Mentality One of the secrets to Singapore's success is its alignment of public policy with the needs of its private industry and local population. Lee Kuan Yew and subsequent leaders understood that for the country to thrive, they needed to create an environment where businesses could flourish. First, Singapore revolutionized their now-top-ranked education system. At its core, the meritocratic system teaches that if you work hard, you will succeed. And, the local economy will boom as a result. In fact, the current Singapore prime minister Lee Hsien Loong is a Cambridge-educated mathematician. Second, Singapore offers a competitive tax environment, with low corporate tax rates and countless incentives for both startups and multinational companies. Singapore has no capital gains tax and no tax on foreign-sourced income. Ensuring that high-quality amenities match the high cost of living in Singapore, the government also heavily invests tax revenues in infrastructure and social services. Third, the prime minister and his cabinet work closely with local and international businesses to make sure their policies remain relevant, effective, and helpful. They cooperate to build trust between the government and private sector, which, having done business in several continents, I can say is lacking in most other countries. This carefully-crafted business environment has ranked Singapore second in the world for ease of business. Reason #2 – Singapore's Crypto-Friendly Stance In recent years, Singapore has positioned itself as a crypto-friendly nation, embracing blockchain technology and digital currencies. Because of favourable tax incentives, a friendly business environment, and a government supportive of the industry, multiple crypto and Bitcoin companies now call Singapore home. The Monetary Authority of Singapore (MAS) has established a clear, straightforward framework for crypto businesses to operate, attracting tech entrepreneurs from around the world. In fact, all crypto or Bitcoin capital gains are exempt from personal and corporate income tax. Evidently, Singapore's approach contrasts with the skepticism seen in other parts of the world – namely, Europe. By providing clarity and support, the republic government is tapping into a growing industry that many (including me!) believe is the future of finance. This forward-thinking approach aligns with everything else Singapore is doing to embrace the trend of innovation and technology. Reason #3 – Strict Laws But High Rewards Ask a street passerby their opinion of Singapore, and they'll likely respond with a variation of "What is Singapore?" and "Isn't Singapore that country in Southeast Asia with the strict rule of law?" Singapore is known for its strict laws. While that fact might raise some eyebrows of the freedom-seeking entrepreneurs and investors who read this piece, it's part of what makes the city-state so attractive. Let me explain. The clear, structured legal framework in Singapore ensures stability, safety, and predictability – crucial success factors for businesses and individuals making long-term plans. Lee Kuan Yew believed that order was essential for Singapore's success. With low crime rates, a highly efficient government apparatus, top-ranked passport, and the safest city in the world, Singapore's approach clearly paid off. The judiciary, including the Supreme Court and the Chief Justice, maintains the rule of law, which makes Singapore a predictable environment for foreign investors. Yes, the cost of living is high, but so is the quality of life. Exceptional services, from world-class healthcare to top-ranked education, make it worth every Singapore dollar – Singapore's national currency. Reason #4 – Education and Innovation as Pillars Lee Kuan Yew believes strongly in the ancient proverb, "The wealth of a nation lies in its people." So, from 1965 until today, Singapore has made education a cornerstone of their development strategy and national ethos. In 2024, the education system in Singapore ranks among the best in the world, instilling in its population a culture of excellence from a young age. Why? Well, Singapore aims to transform into the world's first "Smart Nation." From AI to climate change to cryptocurrency to biotech, Singapore is investing in industries of the future, ensuring that it stays ahead of each global trend. Singapore's commitment to education and innovation is not just about economic gains. Supported by the Singapore parliamentary majority and opposition parties, their values are about preparing Singaporeans for the monumental culture shifts and challenges of the future. And, with a population median age of about 42 years, Singapore has a dynamic and energetic society ready to face them. Right when you arrive at Singapore's international airport, you're greeted with some of the most awesome sights you'll ever witness in a country: Singapore is the fourth largest financial center in the world (200+ banks and 64 of Asia's top 100 companies are headquartered here) Tuas Mega Port will be the world's largest fully-automated terminal in 2040 40% of land is green space These developments are testaments to the Smart Nation government initiatives coexisting with pre-existing cultural sites. Reason #5 – The Melting Pot of Ethnic Groups 74.3% Chinese, 13.5% Malay, 9% Indian, 3.2% other. This is how the Singapore population breaks down demographically. With four official languages (English, Mandarin, Malay, and Tamil), Singapore is a melting pot of several cultures, a community where many ethnic groups coexist harmoniously. These differences aren't just tolerated but celebrated. Even through public policy, the Singapore government promotes social harmony and multiculturalism, ensuring that every group has a voice. The national anthem "Majulah Singapura" (Onward Singapore) furthers this unity. This melting pot of cultures also makes Singapore a culinary paradise. Just walk down Orchard Road and smell all the different cuisines emanating from the skyscrapers and street markets. Reason #6 – Highly Efficient Health System Singapore welcomes 500,000 visitors a year for medical tourism. Even foreign leaders like Zimbabwe's former president Robert Mugabe choose to visit the main island city of Singapore for their medical treatments versus closer destinations in the EU like Germany or France or in Asia like China or neighboring Malaysia. Life expectancy on the island city-state of Singapore is 83.9 years, whereas in the United States, it's just 78.5 years. This data is testament to Singapore's ranking as the world's top destination for medical efficiency. Not just is the quality of care excellent. But the cost of healthcare in Singapore is substantially lower than in other, less efficient states like Australia, New Zealand, or the United States. Reason #7 – Military Strength and Regional Influence The parliamentary republic of Singapore also boasts a highly capable military, despite its size and position in South Asia. The Singapore Armed Forces (SAF) play a role in protecting national security, regional stability, and Singaporeans abroad. Mandatory national service ensures that military personnel and the armed forces are invested in the country's defense and success. In terms of foreign affairs, Singapore maintains strong relationships with neighboring countries like Malaysia and Indonesia, as well as global powers like the United States and China. You'll notice that the latter are not particularly friendly with one another. So, Singapore attempts to maintain diplomacy amid an increasingly hostile environment in the South China Sea. This strategic diplomacy furthers Singapore's influence beyond its borders, allowing it to punch above its weight on the international stage. Other Nations Poised for Similar Growth Singaporeans believe their country is an example for many more to come. I agree. From just an island off the coast of Malaysia to a global economy and Asia powerhouse, Singapore offers lots of valuable lessons for other nations, not just in Southeast Asia but other parts of the world as well. By duplicating many of their policies, special economic zones and countries like the United Arab Emirates and Indonesia are showing promising signs. Singapore showed that you can attract foreign investment and focus on economic development while also prioritizing your people and keeping taxes low. Singapore joined global giants in Asia, such as the Japanese, in the EU, and in North America by breaking boundaries and offering services and incentives no other government dared to offer. Despite their land constraints and their small population, more than half of Singaporeans earn $50,000 or more per year. In Europe, nations like Estonia are embracing digital transformation and pro-business policies. In Africa, countries like Rwanda are making strides in economic growth and technological adoption. All with Lee Kuan Yew's successful policies in tow, leadership at the forefront, and consistent economic growth as the goal. Singapore's model for education, public services, employment, industry, and resources despite land constraints will serve civilizations – and the world – for centuries to come. The Strategic Advantage of Second Citizenship So, what does all this have to do with second citizenship? Well, in a world where geopolitical and financial risk are becoming second nature, a second passport up your sleeve is an increasingly important asset to have. Dual citizenship grants you access to new markets; more investment, education, and employment opportunities; immigration options; increased financial security; and even a backup plan in case things go downhill in your native country. Countries like Singapore offer attractive options for second citizenship and major return on investment. And, we've evaluated a few of those opportunities in El Salvador, Portugal, and Argentina. However, to maintain the value of their citizenship and community, Singapore has chosen to make naturalization very rare. Plus, Singapore does not allow dual citizenship. So, if you were to naturalize as a citizen of Singapore, you'd have to renounce your original citizenship(s). https://twitter.com/0x_ale/status/1845752993854914898 But, one can invest in residency in the city of Singapore via a few different channels. The Global Investor Program (GIP) offers immediate permanent residency and a two-year path to citizenship for those who invest at least US$7.5 million in a Singapore-based company or investment fund. More relevant to the average reader of this piece, the Singapore Entrepass Program allows investors to either invest an unidentified amount of money in a local business (typically more than a few hundred thousand dollars) or receive US$100,000 in new business investment from a government-recognized venture capital firm or angel investor. Or, every year, some 180,000 highly-qualified investors hire themselves in a local business through the Singapore Employment Pass visa and are granted residency in the country. So, while Singapore does make investment migration rather rare in the country, the Lion City still allows tourism and business to be done in its small island city through temporary tourism visas. Singapore's journey from a small island city with land constraints and limited natural resources to a global powerhouse is nothing short of extraordinary. Politicians and leaders around the world have taken note of Lee Kuan Yew's leadership style, government policy, and approach to the economy so as to duplicate its positive examples in their locales. With the right policies and mindset, even the smallest nations can achieve great heights and account for much of a region's growth.

12 MIN READ

06 Nov 2024

8 Reasons to Invest in the Portugal Golden Visa and Residence Permit
Golden visa8 Reasons to Invest in the Portugal Golden Visa and Residence Permit The global investment migration industry saw some turbulent changes in 2024. But one jurisdiction stands resilient: Portugal. As nations worldwide tighten their foreign investment and immigration policies, the Portugal Golden Visa program continues to offer a path to Portuguese nationality through diverse investment options. Evolving beyond traditional real estate to embrace new asset classes, the residence permit and investment program now includes Bitizenship's pioneering venture capital funds with exposure to the Bitcoin ecosystem. For Golden Visa investors who desire investment return, minimal requirements, and an effective Plan B, Portugal's appeal extends far beyond its residency program. In this guide, you'll learn eight compelling reasons why foreign investors increasingly apply for the Portuguese Golden Visa over other EU Golden Visa programs. The Current State of Portuguese Immigration Portuguese nationality and immigration law has undergone a seismic shift. Few expected upwards of 100,000 investors and families to participate in the Portugal Golden Visa when it was first introduced in 2012. Since then, immigration officials have modified the program. Here's where it stands as of 2025: In 2023 the popular real estate investment pathway was eliminated from the residency by investment program. Both the private and public sectors have worked together since then to introduce innovative new qualified investment structures that align with Portugal's vision for the future, benefit the local people, and allow investors to gain residency in the country on the path to Portugal citizenship. Diverse Investment Options Under current Portuguese law, the Golden Visa program offers three major capital investment options: The first involves regulated private equity and venture capital funds, where Bitizenship has established the world's first Golden Visa-eligible fund of Web3 companies. Minimum investment starts at €500,000. Second, investors can choose to dedicate that €500,000 to an existing local business and create ten or more jobs (eight or more jobs in a low-population density area). Last, investors may donate €250,000 to arts and national cultural heritage productions or €500,000 to national scientific research activities. Furthermore, the current Golden Visa structure allows for investors to include family members – like dependent parents and dependent children (more on this below) – in their application as well. For prospective Golden Visa investors exploring their options, it's crucial to understand that immigration officers now desire technological advancement and economic diversification in Portugal. This is the reason for the elimination of the property investment option and introduction of the lower threshold cultural heritage and science donation options. In the most recent update from AIMA, the department in charge of Portugal immigration policy, the application process has been significantly streamlined for both old applicants and new investors. A digital platform will allow applicants to track their process from investment all the way through to permanent residency/citizenship eligibility. Additionally, AIMA has indicated that the countdown to Portuguese nationality eligibility starts upon application submission, not application approval or providing biometric data. This institutional framework ensures that applicants of the Golden Visa program are processed with transparency, clarity, and speed. Eight Compelling Reasons to Choose Portugal 1. Streamlined Path to Portuguese Citizenship and EU Nationality While Caribbean nations have direct citizenship by investment programs, non-EU nationals recognize that Portuguese citizenship offers something far more valuable – even if it's not as direct or rapid: Citizenship in the European Union has many advantages. The path to obtain Portuguese citizenship through the Golden Visa program is efficient. After maintaining your qualifying investment for at least five years and meeting other physical presence and Portuguese language requirements, you can apply for Portuguese nationality or permanent residency under the Portuguese nationality law. This five-year timeline positions Portugal as the fastest EU Golden Visa program to citizenship, especially considering the minimal physical presence requirements. You must visit Portugal for at least seven days in year one, followed by fourteen days in each subsequent two-year period. That equates to just seven days a year on average. Then, investors can acquire citizenship under Portuguese citizenship law. What sets Portuguese citizenship apart from Caribbean citizenship is the unparalleled access it provides. As a Portuguese citizen, you gain visa free travel to over 185 countries, including long-term access to all EU countries. The Portuguese passport is one of the strongest travel documents in the world. This effectively transforms your global mobility and investment portfolio, particularly for non-EU nationals with restricted travel privileges. Portuguese citizens also enjoy the right to live, work, study, access healthcare, and travel visa-free in each of the 27 EU member states. Moreover, Portuguese nationality law allows for dual citizenship, meaning you can retain your current citizenship while you acquire Portuguese citizenship. Upon becoming a resident through the Golden Visa program, you also immediately gain access to Portugal's world-class healthcare system and educational institutions. The strategic value of European citizenship cannot be overstated in today's world. With more access and options come more opportunities for you and your family. If you obtain citizenship in Portugal, your family members will have generational access to the European continent and be able to pass down citizenship to their children as well. Even persons born abroad to Portuguese citizens are entitled to Portuguese nationality. 2. Economic and Political Stability Over the last few years, seemingly traditional and stable geopolitical powers have faced bouts of volatility. Among European Union countries, Portugal stands as a beacon of economic stability. While other European nations grapple with political upheaval and economic uncertainty, Portugal maintains one of the continent's most stable investment environments. As a fully integrated member of the EU's banking system, Portugal Golden Visa applicants gain access to the country's financial infrastructure and a growing cryptocurrency hub. Opening a bank account in Portugal provides entry to the European financial network, with protections under EU banking regulations. And with Portuguese nationality, citizens gain even more banking and investment privileges across the region. While other countries frequently suspend or dramatically alter their citizenship programs, the Portuguese Golden Visa investment program has evolved strategically since its introduction in 2012, maintaining its benefits while adapting to its population's and economy's needs. For investors interested in more innovative funds designed for these dual objectives, Bitizenship's venture capital fund of local and international Web3 companies provides an additional layer of security. The investment framework has remained relatively consistent, providing the certainty required for investors' long-term plans. Critical to this stability is Portugal's due diligence process. The clean criminal record requirement serves a dual purpose: It maintains the program's reputation while ensuring only law-abiding residents join the national community. This vetting process also includes background checks, source of funds verification, and ongoing compliance monitoring. 3. Strategic Geographic Location While many countries in the European Union can boast their strategic position in the settlement bloc and economy, Portugal offers a unique geographic advantage that investors have capitalized on. As the westernmost point of continental Europe, Portugal serves as a bridge between North America and Europe and its capital Lisbon an important business hub in several industries, including the traditional financial and cryptocurrency sectors. Six-hour direct flights connect major Portuguese territory to travel hubs across the United States and Canada, making Portugal an ideal base for entrepreneurs maintaining trans-Atlantic business operations. For those wanting to establish a European Union presence while maintaining strong ties with North America, Portugal's strategic position has attracted many Golden Visa investors. And for residence permit holders who must visit the country for at least seven days per year (on average) to maintain the visa and qualify for citizenship, this ease of travel makes Portugal's Golden Visa attractive. Portugal's accessibility and growing reputation as a business hub in Europe creates opportunities for Golden Visa investors looking to bridge multiple markets from a single, stable base. 4. Mediterranean Lifestyle & High Quality of Life Several European Union countries offer Golden Visas and other residency programs. But Portugal's Golden Visa delivers on a key factor that continues to appeal to investors: InterNations' Expat Insider 2023 report ranked Portugal as having the world's tenth highest quality of life. The Portuguese territory combines Mediterranean charm with modern European lifestyle, creating an environment that rivals California's celebrated lifestyle – at a fraction of the cost. Portugal's climate speaks volumes: 300 days of sunshine annually Average temperatures from 15°C (59°F) in winter to 30°C (86°F), nearly identical to San Francisco's climate profile This environmental advantage has attracted a thriving Portuguese community of international entrepreneurs and remote workers, particularly in Madeira, Porto, and Lisbon. Additionally, the country's national cultural heritage is another advantage. Portugal ranks as Europe's fourth-largest wine producer, with 31 protected wine regions across the Portuguese territory. Portugal's gastronomy scene has earned international acclaim, with 28 Michelin-starred restaurants as of 2025 – a remarkable density for a nation of only 10 million. For Golden Visa residence permit holders seeking more than a foothold in Europe, Portuguese citizenship, and expanded visa-free travel, the country's rich culture offers incredible value – even if they don't relocate. The government has actively preserved this heritage through Golden Visa-qualifying investments initiatives in artistic production and cultural heritage projects. 5. Cost-Effective Living While Golden Visa programs require significant investment in the country, Portugal offers a unique proposition – access to European quality of life up to 50% more affordable than other EU countries. Numbeo's 2024 Cost of Living Index reveals that Portugal ranks 58th of 140 countries in cost of living. In fact, daily expenses in Portugal are 47.7% more affordable than France's, making the former a cost-effective choice for life abroad. For Americans analyzing their investment options, the numbers are compelling: Portugal's minimum investment requirements (€250,000 - €500,000) for the Golden Visa program remain among the most accessible in the EU. The Portuguese territory still offers exceptional value for personal property acquisition even if real estate investment no longer qualifies for the Portugal Golden Visa program. According to Knight Frank's 2024 Global Residential Cities Index, prime property in Lisbon averages €5,700 per square meter but has surged 5.6% in the last twelve months. The Non-Habitual Resident special tax regime was eliminated in 2024. However, the Portuguese parliament is currently discussing a revised program to introduce significant tax benefits to new legal residents in the country, including a 20% flat tax on local employment for ten years and zero tax on foreign income such as dividends and royalties. Here's a rough overview of other worthwhile tax advantages in Portugal: No wealth tax No inheritance tax for direct family members No capital gains tax on cryptocurrency held for more than one year Portugal's tax optimization opportunities and lower cost of living have compelled thousands of investors. For those interested in completing a Golden Visa application and potentially acquiring citizenship, Portugal offers significant chances for investors to preserve their capital over a long time period. 6. Family-Friendly Immigration Policies While many investment migration programs limit family inclusion, the Portugal Golden Visa program stands out for its approach to family reunification. First, with the required documents and associated fees, those applying for the residence permit are able to include several family members in their application. According to recent data, successful Golden Visa applicants can include: Dependent children up to age 24 (if enrolled in educational institutions) Dependent parents over 65 years old Spouses or legal partners through civil union Children with disabilities regardless of age Dependent family members enjoy identical rights as the main applicant, including access to education, healthcare, and eventual Portuguese nationality in at least five years. Once the residence permit is obtained, Portuguese law extends these benefits across generations. Portuguese citizenship law explicitly recognizes that those of Portuguese roots are eligible for Portuguese nationality and a second passport. That means that children born to Portuguese parents automatically qualify for Portuguese nationality, even if born abroad. The Portuguese government's approach ensures that your qualifying investment secures not just your future, but your family's legacy within the EU for generations to come. 7. Safety and Welcoming Culture Portugal ranks as the 7th safest country in the 2024 Global Peace Index, surpassing traditional safe havens like Denmark, Canada, Norway, and Japan. Safety and security are fundamental advantages for Golden Visa holders considering eventual permanent residence and Portuguese nationality. The data supporting Portugal's safety credentials is compelling: Violent crime rates 70% below the EU average One of the lowest homicide rates in Europe at 0.9 per 100,000 inhabitants Beyond safety metrics, the Portuguese community's welcoming nature sets it apart from other European countries. In the same Expat Survey mentioned above, Portugal ranks 17th in the world for its population's welcoming attitudes to tourists and new residents alike. The Portuguese government has actively attracted foreign direct investment and immigration through: Ease of applying for Portuguese residence permits and citizenship Multilingual services in major immigration offices Integration programs for new legal residents Cultural exchange initiatives Portugal also boasts one of Europe's highest English proficiency rates outside the UK, ranking 8th in the continent. Major cities like Lisbon and Porto have thriving international expat communities where English is widely spoken. However, do learn some Portuguese because basic proficiency in the Portuguese language is required for those applying for Portuguese nationality after five years of residency. 8. Minimal Residency Requirements Perhaps most significant of the advantages of the Portugal Golden Visa program is the minimal physical presence requirements. While nations like Greece demand six months of annual physical presence to naturalize in seven years, the Portuguese government has established Europe's most flexible residency requirements: First year: Just seven days in Portuguese territory Subsequent two-years: 14 days in each period Five-year total requirement: Only 35 days Investors, entrepreneurs, and professionals generally appreciate this minimal residency period as it allows them to remain flexible and maintain their current lifestyle while working toward legal residence and Portuguese nationality in just five years. If a Golden Visa holder meets their residency requirements each year, that also means they do not relocate their tax residency and would not require a tax filing in Portugal either. Compared to other European Golden Visa programs, these requirements are significantly less demanding. According to a recent update from AIMA, the Portuguese nationality law has further streamlined the path to citizenship by counting your legal residence from the date of initial Golden Visa application, not approval. This means time spent during application processing counts toward your five-year requirement for obtaining Portuguese citizenship and extensive visa-free travel around the globe. The 2025 Investment Process While many perceive the Golden Visa application as complex, the Portuguese government has established a clear, systematic pathway, especially in recent months. To reduce processing times for qualified investors, reforms have digitized a significant portion of the application process. The Portugal Golden Visa program in 2025 requires the following sequential steps: Initial Capital Transfer Requirements: €500,000 for private equity or venture capital funds (like Bitizenship's fund) €500,000 for local business investments that create 8+ new jobs €500,000 for a contribution to national scientific research activities €250,000 for a contribution to artistic and national cultural heritage projects Other Required Documents for Golden Visa Applicants: Valid passport Clean criminal record from prior countries of residence Portuguese tax identification number Proof of qualifying investment completion Birth certificate Bank account statements showing investment source Proof of local health insurance coverage Biometric Data Collection: In-person appointment at the immigration office Digital fingerprint scanning Current photograph collection Signature verification Eligibility for Portuguese Nationality Assuming an investor has completed the Golden Visa investment process and become a temporary resident of Portugal, they must then accomplish the following in order to qualify of Portuguese citizenship: Complete minimum physical presence requirements (outlined above) Maintain their investment for the minimum period of five years Demonstrate basic proficiency in the Portuguese language Provide evidence of a clean criminal record Complete biometric data collection Hold a valid passport The Portuguese immigration office typically processes complete initial Golden Visa documents within 12-24 months, with successful applicants receiving their residence permit retroactive to their application submission date. This institutional efficiency ensures that time spent during processing counts toward the minimum period required for obtaining Portugal citizenship. Contact Bitizenship to Get Started on Your Portugal Golden Visa and Path to Portuguese Nationality For investors, entrepreneurs, and families seeking an insurance policy and more options as geopolitics reshape the world, the Portugal Golden Visa program stands out as an option for both a residence permit and eventual Portuguese citizenship (in the EU). Through qualifying investment in investment funds like Bitizenship's initiative, investors can secure Portuguese nationality in just five years. Portugal offers an unmatched value proposition. Contact Bitizenship today to explore how our institutional-grade investment solutions can align with your global mobility goals and help you obtain Portuguese citizenship through our pioneering fund structure.

14 MIN READ

11 Feb 2025

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Yes, we coordinate with trusted law firms and advisors to streamline the entire process for you.

Visit the official Unbound Fund website for detailed insights into Unbound Fund.

We focus exclusively on Portugal’s program, offering unmatched flexibility and strategic advantages.

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