Has Acquiring a Permanent Residency or Second Passport Become a New Commodity?

Has Acquiring a Permanent Residency or Second Passport Become a New Commodity?

More high-net-worth individuals acquire a permanent residency overseas or second passport; investors take note

Globalisation has created a new class of mobile citizen seeking multiple nationalities. Many expats, including Thais, are more interested than ever. Why? Thailand’s economy has grown steadily over the last 10 years but Thai MNCs and also SMEs have taken all benefits from the Asean Economic Community, investing massively in Asia but also in Northern America and Europe. However, Thai passport still bears a lot of restriction in terms of restrictions: while Thai people are worldwide recognized for their friendliness and spending power, as of 1 January 2017, Thai citizens had visa-free or visa on arrival access to 71 countries and territories, ranking the Thai passport 67th in terms of travel freedom; tied with Kazakhstani and Namibian passports.

A permanent residency (PR) or second nationality provides the high net worth individuals (HNWIs) holding a passport that does ranked high with a way to pursue business, financial and personal opportunities in geographies with political and economic stability and better overall quality of life. An additional passport can facilitate residency abroad, ease of travel and access to, and mobility of, personal assets. 

Obtaining a PR or a 2nd passport has never been easier especially with Citizenship by Investment Programs (CIPs). While there are many ways to immigrate to a foreign country, CIPs are typically the fastest and most straightforward means to a second passport for most HNWIs and their family members. The specifications of different programmes vary by country, allowing foreigners to invest in real estate projects and businesses, to purchase properties, or to donate money directly to a country’s governmental fund in exchange for citizenship and its inherent rights.

On the practical front, investing in an alternative residence or citizenship, acquiring a second passport, is seen as an instrument of financial and personal security. A growing number of HNWIs seek additional passports for asset protection, minimization of taxes, better tax planning, as well as an insurance in the event of economic and social upheaval or unstable, confiscatory political regimes. Where instability reigns, assets are at greater risk.

Who would not be tempted by the right fast-track citizenship program, which can provide a second passport that allows visa-free access to major regions and countries in the world, including stable jurisdictions such as the Schengen states, the United Kingdom, Singapore, and even China? For many, such open doors are well worth the price, and even considered a bargain.  

Given the number of welcoming, business-friendly jurisdictions offering the incentive of affordable investment opportunities and fast-track citizenship processing, today’s HNWIs are spoiled for choice as to where they can acquire their new residency or citizenship. And there is a growing competition – especially amongst a number of well-regulated, tax-friendly offshore jurisdictions in close geographical proximity but let’s start with a brief overview of where the wealthy are naturally interested into.

USA offers permanent residency through an investment in a “business at risk” and creating 10 jobs currently set at USD500,000. Thailand is also an E2 country and Thai Citizens can enjoy a 2 years’ renewable visa to the US as long as they keep the business they created on US soil. Australia grants permanent residency with an investment starting at 1.5 mil. AUD and Canada at USD 250,000 (approx.). UK is a much expensive destination: GBP 2 mil.

In Europe, on the high end of the CIPs spectrum, Malta (167 countries), Cyprus (158) and Bulgaria (154), are three countries offering a citizenship by investment option to HNWIs, literally unlocking the concept of acquiring a European passport, and hence the right to reside, live, work and study in an EU member country, with Cyprus being the most popular option among Thai nationals as it consists in a 2 mil. EUR real estate investment.

Eastern Caribbean countries offer more affordable CIP options: St. Kitts and Nevis, Antigua and Barbuda, Dominica, Grenada and St. Lucia. Despite the fixed investment price for each CIP, for HNWIs nowadays, passports are truly “collectibles” with priceless value while some Caribbean options only start at USD100,000 attracting several thousand new applicants every year. 

Harvey Law Group (HLG) is an immigration and business law firm headquartered in Hong Kong and serving businesses, individuals, and governments across Canada, Asia, Middle East, and South America. With offices notably in Montreal, Hong Kong, Xiamen, Ho Chi Minh City, Hanoi, Da Nang, Bangkok, Yangon, Singapore, Manila, Phnom Penh, Antigua & Barbuda, Dominica, St. Kitts & Nevis & Grenada, along with a regional and international network, Harvey Law Group can provide exceptional legal representation to businesses and individuals around the globe. HLG practice in various areas including investment and business immigration, residence and citizenship programmes, business and corporate law, company formation, labour and employment issues, due diligence, mergers and acquisitions, tax planning and structuring, real estate, contracts and agreements, intellectual property, environmental law, and cross-border trade issues.

The firm was founded in Montreal, Canada in 1992 by Attorney Jean Francois Harvey, who completed a Bachelor of Laws Degree from the University of Ottawa. The team of lawyers have decades of combined legal experience, along with substantial education and professional credentials.

With its multinational presence and expertise in business and immigration matters, HLG’s service is built on the cornerstones of strength, reliability, and integrity. Embracing change, a global presence, and a 25-year history, HLG combines world-class acumen with local insight to deliver exceptional legal advice and representation. 

HLG is duly licensed by most CIPs to promote and submit applications on behalf of investors.

For more information, please contact Mr. Bastien Trelcat, Managing Partner, at [email protected].

Call 02-670-1848 or visit us www.harveylawcorporation.com and FB: https://www.facebook.com/HLGthailand