In today's world of global citizenship, one of the key factors is to have a second passport. As the saying goes, although you have no choice where you were born, you certainly can choose where you will live. This is especially the case for high net worth individuals.
For such individuals, the premier destination of choice has always been Cyprus, for many reasons including: great climate, strong economy, stable government, access to all the EU and proximity to global markets.
In regards to benefits, the Cypriot second passport has many: it is the only fast track citizenship by investment program in Europe whereby the investor and family members can travel, work, live and do business anywhere in Europe without ever needing to reside in Cyprus in order to maintain citizenship. The passport which is obtained in roughly 6 months, provides visa free travel to over 170 countries, including Canada, United Kingdom, Australia, Singapore and Hong Kong.
If the current pandemic has taught us anything, it is the importance of having an exit strategy. A second passport provides families with security in case of government changes and potential chaos such as economic and political instability, adverse new laws and/or oppressive regimes. The Cyprus passport means you also obtain the right to live and work in any of the 28 EU countries plus Switzerland, Liechtenstein, Norway and Iceland. It is your golden ticket to settle in any of these 32 countries, known for their stability, peace, and high standards of living. Moreover, your children and all future generations will benefit from high quality education and healthcare as offered by all EU member states. In short, obtaining alternative citizenship via Cyprus creates a safety net for your children and future generations as they will reap the full benefits of having dual citizenship and a second passport.
Beyond the safety and security provided by a second passport, there is also the benefit of diversification of capital. Cyprus passport holders are provided with the right to freely move capital within the EU and invest it in any EU country. This leads to ease of doing business within countries known for economic stability and lack of corruption, thereby providing the ability to conduct business in a transparent and secure manner.
A second citizenship via Cyprus also opens doors to international business opportunities and the visa free travel provides you with the mobility to freely travel between the EU member states to conduct your business.
It is important to also highlight that taxation concerns are needless in regards to obtaining Cypriot citizenship. Many investors will likely be concerned about the post-pandemic effects to the economy, and whether or not the country they are choosing to invest in has accumulated considerable debt due to the fiscal policies implemented during the crisis. This dilemma was recently posed to Mr. Haris Georgiades, the former Minister of Finance of Cyprus, and he responded by saying that Cyprus was fortunate in terms of its pre-pandemic economic status which meant the country went into the pandemic on stable footing. This means that Cyprus did not engage in excessive deficit spending that would later result in likely tax increases or prohibitive tax measures.
Despite the pandemic, most international tax advisers still agree that Cyprus is the most favourable onshore personal tax regime in the world and the best choice for investment-based immigration.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.