Why are the rich and famous collecting passports?

Real estate, yachts, private jets, stocks, or works of art are just some of the investments which come to mind when we talk about how the rich and famous choose to spend their money. However, in recent years a new trend has emerged: one for collecting passports.

Today the world is globalized on a level never seen before, with an ease of mobility that could only be dreamt of a century ago. Now having multiple passports has become a stable form of investment, which can allow holders freedom of movement to hundreds of different countries. But how is it possible to obtain two, three, or four passports?

Citizenship for investment

Having a second passport is nothing new for those with mixed heritage. After the EU referendum in the UK, there has been a huge influx in applications for passports for other European countries, particularly in Ireland. Being able to apply for a second passport through descent is always an asset, but is not an option for many.

At least a dozen different countries, including Cyprus, Portugal, and Malta already have programs that offer citizenship in exchange for investment. Through these schemes, which are known as “Golden Visas,” any foreign citizen who invests the appropriate amount can obtain a second passport for themselves and their family, whether it be through buying a property, opening a business, or making a capital funds investment.

Depending on the country, acquiring a second passport through a citizenship program can cost between €250,000 and €2 million. The bureaucracy is not particularly complicated, so long as the candidates fulfill the requirements.

The advantages of being a global citizen

The main reason the wealthy are investing in passports isn’t too difficult to understand, and it gives those who procure them the freedom to cross borders around the world without the need for visas. For some, visas can be difficult to obtain and are in many cases restricted in accordance with their country of origin.

This is because there are some passports which are more or less “powerful” than others, meaning that they allow more or less freedom when it comes to global travel. At Global Citizen Solutions, we’ve ranked the Portuguese passport as the 5th most powerful in the world. With a Portuguese passport, it is possible to fly to up to 184 countries without a visa.

Additionally, with a “powerful” passport from a developed country, you can also gain access to more security and better education prospects, as well as a superior health system.

Passports: an investment which also gives financial returns

In some cases, a second citizenship can also be an excellent financial investment. Many countries that have citizenship by investment programs also offer generous fiscal incentives to applicants. For those who are subject to high taxes in their countries of origin, this can be an enormous financial advantage. Those who have a lot of money usually already have the mentality of diversifying their investments for the sake of security. Diversifying options when it comes to paying taxes or thinking about citizenship can be a good idea as well.

Sticking to your origins

Obtaining multiple passports doesn’t mean you have to abandon your roots, and usually, those who invest in second citizenship don’t have immediate plans to move country and continue living in their place of origin. The majority of programs make allowances for this and do not oblige those who invest to move countries.

So why is it that there are not more people trying to “collect” passports? The truth is that today there is a real rush to obtain a second citizenship, precisely because of efforts in the European Union to restrict such programs in the near future. Besides this, there is also the prospect of political instability, such as with Brexit, or changes in immigration policy, as have followed the election of Donald Trump. Which is why it’s understandable that people are investing now, and are taking into consideration the futures of the children and grandchildren.

If the conditions are right for you to pursue a second passport for you and your family, the time is now. The freedom, security, and financial advantages it can bring are innumerable.

If you are interested in finding out more about citizenship by investment, visit our site.