zoe@unboundcap.com

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30 Sep 2024

zoe@unboundcap.com

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El Salvador vs. Portugal vs. Argentina: 50 Years from Now, Who Has the Best Passport in the World?
CitizenshipEl Salvador vs. Portugal vs. Argentina: 50 Years from Now, Who Has the Best Passport in the World? Travel back in time. It’s the early 1970s, and you’re considering where to plant your family's roots. You think to yourself: Where can I invest that will give me the best return? London? Milan? New York City? If you would have invested in those cities, sure, your investment would've grown. But you also would've missed out on the investment opportunities of a lifetime in Singapore, Hong Kong, and Dubai, which were hardly the household names they are today. Each was a speculative investment for the bold, the forward-thinking, the contrarian, and those willing to take risks on what others dismissed as “fads.” 50 years later, the investors who did make those bets are reaping unimaginable returns – financially, socially, and with the world's most powerful passports. But now I pose to you the same question about today: Where will the next wave of growth occur?In the next 50 years, which countries will be the new Singapore, Hong Kong, or Dubai? I think the answers may lie in El Salvador, Portugal, and Argentina. Before you click off the page in a rage, let me make my case. These three nations offer unique opportunities in time to secure your freedom through tax optimization, lifestyle, and visa-free mobility. Here's the case for why each country may make a great second or third citizenship in your portfolio. https://youtu.be/aixkuQ_MCbM El Salvador – The New Leader of Latin America's Rising Tide Unless you've been living under a rock the last few years, President Nayib Bukele's El Salvador is making waves. For all the right reasons – and a few negative ones too. Announced at the Bitcoin Conference in Miami, El Salvador was the first country to adopt Bitcoin as legal tender in 2021. As such, it has positioned itself as one of many de facto nomad hotspots and expat destinations, especially for Bitcoiners and crypto enthusiasts. But, that’s not the only reason El Salvador has made the news: According to official data, Bukele's administration has also flipped El Salvador's reputation 180º from the world's most dangerous country to the Western Hemisphere's safest – in a matter of years, not decades. But beyond these groundbreaking moves, the Central American country has also found its way into the limelight for some negative news. President Bukele is consistently labeled an "authoritarian", "fascist," and/or "dictator" by leading global media outlets, a title he also proudly proclaims on his social media profiles. In a rare left-leaning policy, Bukele has also floated price controls and other protectionist economic strategies to curb corporate greed despite capitalist tendencies otherwise. Regardless of what you think of Bukele, his antics, and his politics, El Salvador offers an opportunity for those looking to diversify their citizenship portfolio, live a more off-the-grid lifestyle, and expatriate from their country. If El Salvador was able to make this shift in the past decade, what will they do in the next 10 years? Lifestyle Benefits Life in El Salvador might look exactly what you expect of it. The small Central American jurisdiction of only 21,040 km² offers a tropical paradise – beautiful beaches known for some of the world's best surfing, lush rainforests capped with active volcanoes, and a warm climate year-round. While El Salvador is certainly still developing (listed as the 127th most developed economy in the world), it has the potential to become a safe haven for crypto enthusiasts and travelers seeking a second place. While it doesn't offer the most world's powerful passport (check the Henley Passport Index) or traditional first-world living like in France, South Korea, Italy, or Australia, El Salvador offers a great setup for a second residence or vacation home, particularly for those who prioritize financial freedom. And, who knows? El Salvador could become the center of Latin American growth just as Singapore, United Arab Emirates, and Hong Kong have become for MENA and Asian countries. The government’s Bitcoin-friendly stance makes it a haven for investors in decentralized assets away from the watchful eye of traditional globalist banking systems. More on this in the tax section below. Global Mobility and Passport Strength When it comes to global mobility, El Salvador's passport is not yet in the top tier. Ranked 73rd on the Henley Passport Index, it still provides access to over 135 travel destinations visa-free, including the Schengen Zone, Ireland, Hong Kong, Russia, and top-ranked Singapore. This access makes it a relatively strong option for visa-free travel (or visa on arrival), especially if you're coming from a country with an even weaker passport. However, it doesn’t quite compete with Portugal's or Argentina's travel documents in this regard. But, as is the way of the world – As El Salvador becomes even safer and more respected on a global level, other countries will rethink their prior visa requirements and open their country visa-free to Salvadorans. However, for the Bitcoin HODLer who’s looking for financial freedom and a low-tax jurisdiction, the strength of El Salvador’s passport may not be the primary appeal. Instead, its forward-thinking approach to crypto taxation and business opportunities makes it a really attractive destination. Tax Advantages El Salvador offers one of the most attractive tax regimes in the world – for Bitcoiners and “normies” alike. Bukele's administration has made strides to reduce the number and severity of their personal and corporate income tax in order to incentivize migration to the country. El Salvador operates a territorial tax system, meaning they only tax income sourced locally in the country. And from a corporate standpoint, Bukele's government introduced a law to reduce corporate tax to zero for companies dedicated to artificial intelligence, computer programming, engineering, manufacturing, and other similar areas. While there’s no concrete regulation yet, Bukele has referenced elimination of personal income taxes and capital gains taxes for huge swaths of the population. Keep your eye out for more news on this. Why Choose El Salvador? For those looking to maintain their crypto wealth while enjoying a tropical paradise, El Salvador might just be the next big thing. It's the longest of long shots on this list, much like top-ranked Singapore was in the '70s, but with enough potential to justify the risk. Their progress in the last decade has been nothing short of astounding. Let's hope they can continue the general trend and progress toward becoming a top destination and passport of years to come. Portugal – Home to Europe's Hottest Golden Visa If El Salvador is the wild bet, then Portugal is the safe, calculated investment.  Consistently ranked among the best places to live in Europe (Expat Insider ranks it #7 in the world), Portugal offers a near-perfect blend of modern infrastructure and amenities, a mouthwatering food and wine scene, high quality of life, a visa-free destination score of almost 180 (that's really good), and potentially favourable tax benefits for foreigners. For anyone looking to plant roots in European countries, this is the ultimate destination. Lifestyle Benefits Portugal is the jewel of Southern Europe with incredible infrastructure, world-class healthcare, stunning coastlines, and a warm Mediterranean climate. In fact, Portugal receives more than 300 days of sunshine a year, more than the majority of its Northern neighbours. Whether you’re considering Lisbon, the cosmopolitan capital, the tranquil countryside of the Algarve, or the tropical island of Madeira, Portugal offers something for everyone. But, regardless of where you'd live in Portugal, you're within proximity to – well, wherever you want to go. With 35 million visitors every year, the Lisbon airport is among Europe's busiest and most connected international hubs with easy access to major European destinations travelers desire like the UK, Spain, France, Germany, Sweden, and Italy. Global Mobility and Passport Strength Portugal’s passport is consistently ranked among the most powerful passports in the world. According to the Henley Passport Index, Portuguese passport holders enjoy visa-free access to over 180 countries, including the United States, Canada, and most of Europe. This level of global mobility makes Portugal one of the best investment options for those who value mobility (i.e visa-free access to much of the world) and travel freedom. Especially if an investor has a current nationality with access to fewer destinations visa-free, the Portuguese passport is quite attractive. With a minimum investment of just €250,000, the golden visa's route to citizenship in just five years with minimal physical presence requirements makes it one of the most accessible passports in the European Union. And if you're not already familiar with how useful citizenship in the 27-member European Union settlement bloc is, here are a few benefits: Travel visa-free to any member state Reside in any member state Work in any member state Study in any member state Access healthcare in any member state With just one European Union passport, you essentially get access to all of them. Very few people in the world, including US passport holders, can say that about their travel documents. (If you're interested in investing in Portugal, getting exposure to Bitcoin, and acquiring citizenship in the European Union after just five years of minimal physical presence in Portugal, the Bitizenship fund can help.) Tax Benefits The Portuguese government’s Non-Habitual Resident (NHR) tax regime, which may be reintroduced after it was eliminated in 2023, offered one of the most attractive tax environments in Europe. Under this regime, foreign residents in Portugal enjoyed zero tax on foreign-sourced income, including capital gains from Bitcoin, for up to 10 years.  The current government is discussing the possible return of NHR, a development we're closely following as enthusiasts of Portuguese economic growth and of the golden visa program. Not only is Portugal home to several tech-forward crypto brands and annual industry conferences. The government does not tax crypto capital gains if it's held for more than 365 days. These two factors make life in Portugal quite attractive for crypto investors, builders, and businesses. Why Choose Portugal? For investors seeking residency rights in Europe with the added benefit of one of the world's most powerful passports, Portugal may be a winner. And, with Bitizenship’s indirect Bitcoin investment option, the golden visa is a safe bet on your financial future and quality of life. Argentina – South America's High-Risk, High-Reward Play Argentina might seem like an odd inclusion in this lineup, given its history (nearly a century) of economic instability and political turmoil. However, it's an interesting case study. Javier Milei, a rambunctious libertarian and economist, won the presidency in 2023 and has proclaimed the end of economic misery and hopeful return to Argentina's once-dominant past are near. If you're seeking a high return on investment or a quick path to a second passport, Argentina may be a solid future home. Lifestyle Benefits Tucked in one of the world's farthest travel destinations in the Southern Cone, Argentina is a country of extremes – incredible natural beauty, a vibrant culture that differs wildly from many of its South American neighbors, but a turbulent economy. Called the Paris of South America, Buenos Aires offers a “European” lifestyle at a fraction of the cost. Just look at its architecture for clues. The country’s diverse landscapes include everything from the snow-capped Andes to the sprawling vineyards of Mendoza. Argentina's food and wine scene, dominated by meat and malbec, is unique. Global Mobility and Passport Strength For most investors and entrepreneurs, Argentina won’t be a full-time living option unless they choose the bustling capital of Buenos Aires as a base. Instead, it’s a country where you can establish temporary residency just long enough to secure citizenship and then enjoy the benefits of a South American passport – a strong one at that – while continuing to live elsewhere. Interestingly enough, temporary residents can qualify for citizenship after just two years of residency while a permanent residency permit must wait three years. The Argentinian passport is surprisingly strong, offering access visa-free (or visa on arrival) to about 170 countries, including all of South and Central America, the Schengen Area, the UK, and Russia. According to the Henley Passport Index, Argentina's passport ranks 14th in the world. Latin America's strongest, this powerful passport rivals many European giants like the UK in terms of visa-free access. Argentine passport holders have far more access visa-free around the world than most would expect. The travel document comes just a few destinations short of top passports like Portugal and Singapore. (While Argentine law prohibits renunciation of citizenship, we’ve heard rumblings that this is not a practical concern in reality.) For those looking for greater travel freedom without having to spend a decade naturalizing in a nation, Argentina offers a quick path to citizenship and South America's most powerful passport. Argentine citizens may even witness a significant increase in passport strength if Milei's ambitions come true. Tax Benefits While Austrian economist Milei has proven himself to be pro-Bitcoin in the past two decades, he's yet to announce significant policy to push forward the movement in Argentina since he was elected. He has launched dollarization policies but none that offer any room for Bitcoin as legal tender. Argentina is not known for its tax-friendly policy. However, under President Milei, that may change. Since taking power, he has announced significant tax cuts in the form of reduced personal income taxes, import and export taxes, and corporate taxes. As Milei attempts to show the benefits of a more globalist economic approach in a notoriously protectionist country, hopefully a lot of his policies see the light of day and remain for decades to come. This may bode well for those seeking a life in Argentina. Why Choose Argentina? Argentina is a classic case of high risk, high reward. Despite our best guesses and hopes, no one really knows where the South American nation is heading. As Milei has said, it will get worse before it gets better. But, what did Buffett say? “Be fearful when others are greedy. Be greedy when others are fearful.” So, while the volatile economy presents challenges, for those willing to take the risk, it offers opportunity as well in the form of a quick, easy path to citizenship and one of the world's most undervalued passports. Who Wins: El Salvador, Portugal, or Argentina? So, where should you invest your time and resources? First of all, the passport index concept that I've shared throughout this post is just a proxy for passport strength. Mobility is subjective, and the world's passports differ on far more than just visa-free access. If you're from Denmark, New Zealand, Norway, or Japan, a second passport with less visa-free access doesn't excite you as much as it would someone from Syria, whose passport holders have access to the fewest destinations visa-free in the world. So, the answer to that question, of course, depends on your goals and your current situation: Is visa-free destination score even important to you?Or, do you want to reduce your taxes from more than 50% to single digit percentages?Or, do you prefer access to banking and financial opportunities you don't currently have in your home country? One thing is certain – The following countries are poised for immense growth in the next century if they follow their current growth trajectory and an optimist's best case scenario. Regardless of their current strength, each passport will likely be far stronger in the future. El Salvador is the crypto-forward nation, ideal for those prioritizing financial freedom and low taxes on digital assets. Its passport may not be the most powerful, but its embrace of Bitcoin and future-oriented policies make it a bold choice for Bitcoiners. If you're looking for a tropical vibe where the government is less organized and provides lots of opportunities, El Salvador may be your bet for the future. Portugal offers the best blend of lifestyle benefits, global mobility, and tax advantages. Its passport is among the strongest in the world, and the potential return of its NHR tax regime could save you significant amounts in income tax. For those who value safety, infrastructure, and easy access to top travelers' destinations, Portugal is the clear winner. Argentina is for those looking for a quick and easy second citizenship without long-term residency requirements. While it’s a higher-risk play (but not as high-risk as El Salvador), Argentina’s passport is already surprisingly strong. So it may be a “watch-and-see”-type play if you can get Argentine citizenship then return when things improve. If the last five years are any indication, we'll likely see even more countries join this list of bets for the future. The rise of travel freedom and tourism, cryptocurrency, and decentralization has shifted global citizens' priorities. Just as Bitcoin has freed wealth from centralized control, a second passport in the world frees you from the limitations of a single authority and government. Let's say you can't choose any of the countries listed in this article. Where would you put your money? Who's going to surprise everyone and become the next Singapore, Hong Kong, or United Arab Emirates?

15 MIN READ

24 Oct 2024

Citizenship Will Be Unrecognizable in 50 Years (And The Sovereign Individual Predicted It)
CitizenshipCitizenship Will Be Unrecognizable in 50 Years (And The Sovereign Individual Predicted It) Published in 1997, The Sovereign Individual outlined a future in which individuals would transcend traditional nation-states. Now, fast forward to today. Your so-called "belonging" in a nation-state has already transformed beyond recognition. For those with foresight, now is the time to prepare for what's to come. So what will citizenship look like in 50 years? How will humans migrate and invest across the world? In this article, I take a stab at both questions and unveil my preparation strategy. https://youtu.be/3oHy6m1U5tk What The Sovereign Individual Got Right (and Wrong) More than 25 years ago in 1997, the authors of The Sovereign Individual William Rees-Mogg and James Dale Davidson predicted a future where technological advancements would dismantle international borders and the traditional relationship between individuals and nation-states. Astonishingly, they were correct about many facets of modern life. The book foresaw the rise of the internet, the creator economy, remote work, cryptocurrency and the blockchain, digital nomadism, and the citizenship by investment industry (CBI), where individuals bypass borders, invest in other countries, and are rewarded with citizenship. In the past, that international lifestyle was accessible only to the wealthiest of high-net-worth individuals. But today, capitalism and technology have afforded those same benefits to the common man, the crypto pioneers, and the digital nomads across the world. A Rwandan tribesman with just an internet connection can compete with the best of the best in New York City. However, Rees-Mogg and Davidson didn't predict the future 100% correctly. In 1997, who would have?! While technology has, of course, empowered millions (if not billions) to live more globally, the power of the state has persisted far longer than they anticipated. The writers foresaw greater autonomy and independence of the individual in the future, but welfare states and federal governments have not ceded as much power as they assumed. Now in 2024, corporations and the wealthy have learned to avoid excessive taxation by relocating across international borders, accessing private crypto technologies to secure their wealth, creating offshore financial strategies, and other means. Governments have responded to this mobility and financial decentralization by strengthening financial regulations, naturalization requirements, banking frameworks, and CBI due diligence. Despite these governments' attempts to coerce the rich, we expect to see shrinking federal tax bases and more aggressive government financial incentives to recruit them. So Rees-Mogg and Davidson’s predictions will come true; it may just take longer than expected. And, in that tension lies opportunity. The Growth of the Citizenship by Investment (CBI) Industry In 1984 St. Kitts & Nevis, a Caribbean island with a population of about 47,000, was the first independent country to offer investors naturalized citizenship for a donation or real estate purchase in their territory. And thus, began the CBI industry. The Sovereign Individual predicted the rise of this CBI industry. As countries recognized the demand for flexible citizenship and migration options, their forward-thinking leaders created programs that allowed motivated individuals to acquire citizenship in exchange for investment in their country and economy. For families facing negative political influence or economic uncertainty in their home country, these programs offered a new kind of security. Another citizenship in one's backpocket is an effective insurance policy to reduce risk, as illustrated by the flag theory. If you were to hold your assets, residence properties, citizenship, bank accounts, businesses, and income streams in different countries, you'd reduce your risk of theft, market downturns, and rogue governments. Think about it. You’d be unstoppable if you had … Citizenship in the United Kingdom and the United Arab Emirates Businesses incorporated in the Cayman Islands and the United States Residency permits in Malaysia and Panama Homes in Argentina and Italy Bank accounts in Hong Kong and Cyprus Blockchain, cryptocurrency, and digital assets – The wealthy now have new ways to guarantee their personal sovereignty. And if their wealth lives in a decentralized system, why should their citizenship be tied to a single state?  Dependence on a single authority for all elements of your life is a death march. The CBI industry has grown rapidly, especially since 2020 when many realized their desire for a Plan B (or Plan A for that matter). However, its limitations are becoming clear. Governments are tightening their rules, and the overbearing influence of organizations like the EU has resulted in higher investment thresholds, overly scrutinized due diligence, and more challenges. Is the shift from citizenship by investment to residence by investment (RBI) underway? The Shift from CBI to RBI If the last decade saw an explosion in the CBI industry, I think the next 50 years will be defined by the residence by investment (RBI) model. Why? Because families and individuals don’t just want the freedom to move – they want the security of belonging without the scrutiny of a CBI case. RBI provides a middle ground – Access to residency with the option to naturalize without all the undue scrutiny of CBI. Plenty of countries around the world offer permanent residence by investment programs. For good reason, Portugal's golden visa is the most popular while the following countries offer their own versions of RBI: Canada Cyprus Greece Malaysia Malta Mexico Panama Spain Thailand United Arab Emirates United States Why Portugal? Portugal has become a hotspot for digital nomads, high-net-worth individuals, and crypto holders looking to secure European residency because of its ... climate; Mediterranean lifestyle; potentially low taxes (especially compared to the rest of Europe); low physical presence requirements (7 days in the first year, then 14 days each subsequent two-year period); right to reside, work, conduct business, and access education and healthcare services across 27 European Union member states; five-year pathway to naturalization; among many other benefits. Through the Portugal golden visa, applicants can choose to invest €500,000 in venture capital or private equity funds or indirectly in bitcoin via the Bitizenship fund, the world’s first Golden Visa Fund focused on Web3 technology. The trend towards RBI reflects a deeper evolution in how families plan for the future. Unlike CBI’s one-time commitment, potential due diligence issues, and upfront costs, RBI provides flexibility and a possible return on your investment without immediate naturalization. CBI was the solution for the last 20 years, but the future lies in flexible residence options that allow families to continue living their lives uninterrupted without attachment to one single place. There’s something Rees-Mogg and Davidson missed. What Will Citizenship Look Like in 50 Years? As the sovereign individual weens off the government, they realize they didn't need it as much as they may have thought they did. I've noticed this. Have you? In a few decades, citizenship of a state will look and feel fundamentally different than it does today. Individuals won't depend on just one citizenship. Instead, individuals will be global citizens. Decentralized citizenship will be mainstream, and they'll carry several passports and wield their influence as such across the world. Citizenship will be more fluid.Citizenship will be less political.Citizenship will help us navigate financial and geopolitical uncertainty. You and I will be an amalgamation of values from the cultures we choose to propagate, rather than only those passed down from our ancestors. This doesn’t mean a loss of values, but rather the emergence of new values. In the future, we’ll see the idea of citizenship undergo a dramatic transformation. I hope this is the case. Emerging technologies, political shifts, and digital assets will change the very fabric of what it means to "belong" to a country. Individuals will carry digital passports, securely and privately stored on the blockchain, allowing them to manage their assets across multiple jurisdictions. Nations will compete for productive citizens, offering incentives like lower taxes, digital services, political influence, and a quality of life that matches their needs. All the while, creating a unique investor profile for the investors they want to recruit. We will adopt a portfolio approach to citizenship, holding multiple residencies and multiple citizenships across multiple regions to reduce risk. A home in Portugal for its EU benefits.A residence in the Caribbean for tax optimization.An Asian base to tap into new business opportunities. Citizenship will be less about allegiance to one state. Citizenship will be more about eliminating dependence on authorities and jurisdictions altogether and choosing to spend time in the places that serve our interests. How to Prepare for the Future of Citizenship So, how can you prepare for a future where citizenship is fluid, mobile, and decentralized? Invest in CBI/RBI Programs — Secure multiple long-term residence permits in stable jurisdictions. For example, invest indirectly in Bitcoin through Portugal's golden visa Bitizenship fund and get residency rights across the European Union. Use Decentralized Technologies — Your citizenship and finances should reflect your independence from the state. So, manage your assets and influence through decentralized financial systems like Bitcoin, cryptocurrency, and other blockchain technologies. Stay Mobile — Flexibility and openness are key. With growing geopolitical and market uncertainty, march into new opportunities with the ability to adapt at any moment. With this approach, you position yourself, your family, and your finances to thrive. The future is bright for those willing to invest in their sovereignty and extend their influence across jurisdictions. In the next 50 years, citizenship will evolve from a static legal identity tied to a single state to a fluid, flexible system. But not for everyone. That depends on you. The state will not make this transition for you. They want your tax revenue. In fact, they'll make flexibility more difficult for you to obtain if you don't act now. Plan wisely.Invest in the right jurisdictions and decentralized assets.Become ungovernable.Become sovereign.

8 MIN READ

09 Oct 2024

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

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