For the ultra-high net worth set, the world is a smaller and more interconnected place.
These people regularly do business and send money around the globe. And with all of this money moving around, governments everywhere are trying to establish regulations to get a piece of the action for themselves. According to Knight Frank’s recent 2018 World Wealth Report, these regulations principally concern taxation and transparency. Consequently, the passport a person holds can have a big impact on their financial position.
A number of countries impose taxes that target foreign HNW investors in attempts to keep assets on-shore. Moreover, transparency is a big issue as governments try to monitor the movement of money, particularly in these times of terrorist activity. One common reporting standard requires signatories to share information on foreign accounts. More than 100 countries have signed this agreement, although not the US.
As a consequence, passports have become hot commodities. Knight Frank reports that 34% of UHNW individuals have a second passport, 29% are planning to obtain one, and 21% are thinking about emigration. A number of countries have been seeking revenue by offering citizenship in return for foreign direct investment.
Singapore, Malta, Malaysia and Cyprus are some of the most desirable when considering government regulatory “friendliness,” visa-free travel to other countries, and the level of investment required.
Please click on the link below to learn more about obtaining a second passport:
Passports Are Now Valuable Commodities | Wealth Management