Insights
The burgeoning field of cryptocurrency offers countless opportunities for those who invest in it. One such opportunity is obtaining a second passport, which is an invaluable tool for so-called ‘nomad capitalists’.
One of the best reasons for holding a second passport as a crypto investor is to avoid the kind of high taxes that ‘legacy brand countries’ (older, more established countries with sophisticated tax regimes) can levy on you. By diversifying your citizenship options and holding a second passport, you can ensure that you’re able to sidestep such complications.
Let’s take a look at some of the biggest benefits of holding a second passport.
With some jurisdictions offering particularly unfavorable capital gains tax rates, a second passport is an increasingly attractive option for crypto investors. Some governments will actually consider their citizens liable for tax on earnings anywhere in the world!
While not all countries are quite so draconian, it’s nevertheless still a good option to hold a second citizenship in order to avoid such taxes.
Crypto investors are, already, quite financially liquid and able to redistribute their assets quickly and easily. However, that is not always the case and there is no telling what future legislation will hold for crypto investment. The wheels of government turn slowly, but they do catch up with technological advancements in the end – and the consequences of that can be quite unpleasant.
A second passport for a crypto-friendly jurisdiction affords some protection against that, and should be seriously considered by anybody in the industry.
As just touched upon, one of the biggest drawbacks of being a crypto investor in a ‘legacy brand’ country is the uncertainty inherent in possessing significant assets in something that legislation hasn’t caught up with yet. Time will tell how world governments will react to the proliferation of crypto; that doesn’t mean that you have to wait around for it, however.
By obtaining citizenship for crypto, you can future-proof your investments and ensure your long-term security and stability.
A great many countries that offer citizenship-by-investment (CBI) programs have extremely attractive passports that afford visa-free (or visa-on-arrival) travel to highly desirable countries. These typically include the Schengen Zone, the UK, Hong Kong, Singapore, and many other high-value destinations.
When it comes to acquiring a second passport, there are a few factors to consider. The first, of course, is to ensure that the country to which you’re applying offers a crypto-friendly jurisdiction. Secondly, it’s a good idea to examine how competitive the country’s passport is (e.g. the visa agreements it has in place with other countries). Finally: how much do you have to invest into the country in order to obtain citizenship? Some CBI countries (particularly Caribbean ones) offer very competitive investment thresholds; others may require a little more money down before they will offer you citizenship.
With those factors in mind, let’s take a look at the best options when it comes to citizenship for crypto investors.
This Caribbean island has the oldest CBI program in the world; they began offering citizenship by investment in 1984, far earlier than any other country.
What’s more, St. Kitts and Nevis is home to Bitcoin investor Roger Ver, who in 2014 relinquished his US nationality in order to become Kittitian. Ver is a vocal proponent for the wider use of cryptocurrency as legal tender, and as a (now) native Kittitian, he is sure to be using his influence to sway the Kittitian government towards crypto use.
In fact, there’s a good chance that Bitcoin will, indeed, become legal tender in the Caribbean island nation. The Kittitian Prime Minister, Terrance Drew, announced at the Bitcoin Cash Conference that his government was looking into making the cryptocurrency legal tender. It could be in circulation on the islands by March 2023.
On top of this extremely crypto-friendly outlook, the nation offers the best passport in the Caribbean, with visa-friendly access to 156 countries (including the Schengen Zone, Hong Kong, Singapore, the UK, and Ireland), a very generous tax regime, and the right to register your business in St. Kitts and Nevis.
Caribbean island nation Antigua and Barbuda have gone one further than neighbors St. Kitts and Nevis when it comes to crypto acceptance. In 2018, they began accepting Bitcoin as a valid form of currency for their CBI program, which opened up citizenship to a great many crypto investors that would have previously been locked out of the program.
Antigua and Barbuda’s passport isn’t quite as attractive as that of St. Kitts and Nevis, but it’s certainly no slouch either – holders have access to 150 countries, and as a Commonwealth country you’ll be afforded certain privileges in other Commonwealth countries and the UK. You can also include a great many dependents on your CBI application, and its tax regime is every bit as appealing as that of St. Kitts and Nevis.
This Pacific Island nation is extremely friendly toward crypto investors and offers one of the best programs for those who want to reside in a crypto-friendly jurisdiction.
Vanuatu offers a relatively strong passport, with visa-free access to 96 countries and the ability to stay in the UK visa-free for 180 days out of the year. Vanuatu is a zero-tax nation, and there is 0% tax on capital gains, personal income, or corporate income. Inheritance is also not taxed.
Though Vanuatu has not yet adopted Bitcoin or any other cryptocurrency as an official currency, they have introduced their own digital currency – Volcano – that has aided the nation considerably in developing their own blockchain infrastructure. It’s therefore hoped that the country will soon embrace cryptocurrency use to an even greater extent, making it a fantastic option for crypto investors looking to acquire a second passport.
The future is looking bright for the intrepid crypto investor – and it’s looking even brighter if acquiring a second passport in a country that represents a crypto-friendly jurisdiction.
As legacy brand countries continue to react to the proliferation of cryptocurrency – and introduce potentially inimical legislation – it becomes more and more important to safeguard your crypto holdings against such legislative changes.
Ensure that you’re ready for the coming storms in the crypto world, and acquire your second passport sooner rather than later.
The future is looking bright for the intrepid crypto investor – and it’s looking even brighter if acquiring a second passport in a country that represents a crypto-friendly jurisdiction.
As legacy brand countries continue to react to the proliferation of cryptocurrency – and introduce potentially inimical legislation – it becomes more and more important to safeguard your crypto holdings against such legislative changes.
Ensure that you’re ready for the coming storms in the crypto world, and acquire your second passport sooner rather than later.
The future is looking bright for the intrepid crypto investor – and it’s looking even brighter if acquiring a second passport in a country that represents a crypto-friendly jurisdiction.
As legacy brand countries continue to react to the proliferation of cryptocurrency – and introduce potentially inimical legislation – it becomes more and more important to safeguard your crypto holdings against such legislative changes.
Ensure that you’re ready for the coming storms in the crypto world, and acquire your second passport sooner rather than later.
The future is looking bright for the intrepid crypto investor – and it’s looking even brighter if acquiring a second passport in a country that represents a crypto-friendly jurisdiction.
As legacy brand countries continue to react to the proliferation of cryptocurrency – and introduce potentially inimical legislation – it becomes more and more important to safeguard your crypto holdings against such legislative changes.
Ensure that you’re ready for the coming storms in the crypto world, and acquire your second passport sooner rather than later.
Get in touch to discuss how we can help you with your citizenship or residency by investment goals. One of our investment migration experts will contact you to discuss your case. With over 16 years of combined experience our team has helped hundreds of families achieve freedom.