country with a milder tax regime is an attractive option for many who feel they have to pay
more than their fair share, and who do not like
the constant erosion of their privacy.
Generally, as a citizen of two or more different
states, more planning options are available
and you also enjoy more privacy in banking
and investment as many reporting and
exchange of information agreements are
based on (tax) residence.
In Germany, for example, the Government
has direct access to all bank accounts of
all taxpayers. Whenever there is access to
information, such information is prone to
leaks. The only way to avoid this is to move
your residence to another country with a
less invasive environment, providing more
personal privacy.
In the US the erosion of privacy has reached
even further, and particularly for investors
with international exposure, tax planning can
become very complicated and expensive. In
many other countries, rules and regulations
are mushrooming and the legal environment
is becoming increasingly vague, leaving lots of
room for interpretation by the authorities and
thereby leaving you vulnerable.
Taxation is not the only reason why Americans
give up US citizenship or terminate long-term
US residence, but it is frequently considered
by wealthy individuals who are already living
abroad or plan to do so permanently. Unlike
citizens of France, Germany, Switzerland, the UK
and other countries, US citizens remain almost
fully subject to US income and death taxes even
if they never intend to return to live in America.
Despite tax treaties, they are often subject to
at least some double taxation. The advent of
FATCA makes this even more relevant. Having
or acquiring another citizenship is a practical
necessity for anyone seeking to reduce or eliminate the US federal, state and local taxes that
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are becoming more confiscatory each year.
Equally, citizenship and a passport from a
small, peaceful country can save your life
when travelling in times of political unrest,
civil war, terrorism, and other difficult situations. Many international and high net worth
individuals consider an alternative passport as
the best life insurance money can buy.
In recent years, an increasing number of
internationally forward-thinking entrepreneurs
and investors have specifically acquired one
or more additional citizenships to diversify
their personal exposure. They realize that not
only their investment portfolio, but also their
residence and citizenship portfolio, needs to
be diversified to reduce risk and to preserve
independence.
Which countries are available to
choose from?
Currently there are five citizenship-byinvestment programs of real interest, two
in the Caribbean and three in Europe. There
are also residence-by-investment programs
around the world that offer different benefits,
some including a potential path to citizenship.
Here, Henley & Partners, the global leaders in
Residence and Citizenship Planning, present a
brief overview of each program.
Citizenship-By-Investment
Malta Citizenship-by-Investment
The Malta Individual Investor Programme
(IIP), which was designed and implemented
by Henley & Partners on behalf of the
Government of Malta last year, is the most
modern citizenship-by-investment program.
The Malta Individual Investor Program is the
newest addition to the global citizenship-byinvestment portfolio and offers investors the
opportunity to gain Maltese, and therefore
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