Why Second Residencies and Citizenships are Essential

The current coronavirus pandemic and the mayhem it’s causing for travel highlights why it’s essential to have multiple legal residencies and second citizenships.

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A legal residency gives you the right to live in a country. Even countries that have completely closed their borders are allowing legal residents to enter, in most cases.

 

If you own real estate overseas without having a legal right to live in the country you can find yourself with no way to get into the country to visit your bolthole in a time of crisis when you might need it most.

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Many Brits own houses in the USA. A legal residency in the USA is generally a bad idea for anyone who doesn’t want to pay tax on their worldwide income, however without a legal residency you can’t enter the US to visit your home.

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Many people will be re-thinking their second home plans. If you can’t visit it in times of crisis there’s no point in owning it.

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A second home, or multiple homes in diverse locations can be a good asset protection strategy. I have always highlighted the necessity to get a permanent residency in any country where you have a home.

 

You must guarantee the right to be able to visit it. Second residencies almost always lead to a passport after a period of time too. The length of time to qualify for a second passport varies, from instantly in Turkey to more than 20 years in Andorra.

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For my clients who are generally looking to protect their assets and lower their tax liabilities, second residencies are a crucial part of the plan.

 

In a world where taxes are going to substantially increase in most major countries to pay for the latest bailouts getting your ass and your assets out of your home country might become essential.

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Second residencies normally take months to obtain. It’s not something that you can decide to do after a crisis has started.

 

Strategies for tax avoidance and asset protection must be carefully planned with every detail executed efficiently.

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Anyone experiencing lockdown in a major city like New York or London might be yearning for a safe bolthole in a foreign country with wide open spaces and open beaches.

 

If you plan on seeking your property in paradise when the current crisis ends make sure that you submit the paperwork for a permanent residency at the same time.

 

It’s the only way to guarantee you can enter the country you want to get to in times of global crisis.

 

If you’d like help establishing second residencies and citizenships, reducing your tax rate legally to zero and building a fortress around your assets get in touch here.