The Luxury Network International Magazine Issue 07

ment, because they both stem from the same thing:
global standing.
Countries that enjoy positive standing on the world stage
also enjoy an abundance of global treaties and agreements,
which grant citizens increased rights. Countries
that are more internationally isolated enjoy fewer of
these privileges, and citizens bear the burden.
These privileges include freedom to travel easily, and
also extend to trade. There can be huge disparity in the
number of such agreements countries hold, and from
which citizens benefit.
For example, the Democratic Republic of Congo is not
the only country in Africa that holds no global goods
and services regional trade agreements. Citizens from
these countries would have no preferential rights on regional
trading which would significantly impact business
development.
On the other hand, countries such as Canada, the US,
China, and the UK enjoy around 40 regional trade
agreements that empower easier trade for their citizens.
Investing in second citizenship can give access to preferential
trade agreements and conditions that would be
otherwise inaccessible. For wealthy businesspeople,
this can deliver significant returns in terms of trade within
new territories.
Tax relief: Another major reason high-net-worth individuals
choose second citizenship is what the Knight
Frank report calls the ‘ever-growing demand from the
wealthy to move their money into safe havens’.
Many wealthy individuals are realising second citizen-
ship can pay for itself in tax relief. With a 0% corpo-
rate income tax rate (along with many other favourable
rates) offered by several countries around the world,
particularly those in the Caribbean, the potential sav-
ings are clear.
Quality of life: Many second citizenship programmes
are designed so you don’t have to live in (or in some
cases ever travel to) the country to gain and maintain
your new citizenship. While many investors see this as
a real plus, many embrace the opportunity to relocate.
47