and remain there, sometimes for several weeks, before being sent back. This also includes the risk of one’s passport being lost in the process and therefore having an alternative is critical if you wish to remain flexible with regard to international travel.
Citizens of countries with an uncertain future acquire alternative citizenship and passports to ensure that they will continue to be able to travel or have the option to relocate after possible political changes. Unfortunately, many countries fall into this category; citizens of these countries cannot be sure about the political future of their home. Alternative options need to be secured in good time.
Persons who value privacy when travelling, doing business or for banking and investment are interested in protecting their interests and their personal data by using a different citizenship depending on where they operate and what they do. In times of widespread data abuse, identity theft and cyber crime, it is increasingly important to be able to protect one’s personal profile. Having more than one citizenship and passport can help achieve this.
Citizens who wish to have the option to renounce their current citizenship must first acquire another citizenship; otherwise they would become stateless, which is a status to avoid at all costs.25 There are many reasons why one may wish to give up citizenship, for example to legally avoid otherwise compulsory military service requirements or taxation.
Persons who were rendered stateless by birth or through accidents of history need to acquire citizen status of at least one country, in order to have the freedom of travel and other rights that citizens can enjoy. They may not be able to acquire citizenship by naturalization in their country of residence26 and thus may need to immigrate elsewhere or acquire citizenship by investment. If you have no citizenship, the situation can be extremely difficult.
Citizens of countries with high direct taxes may acquire alternative residence and citizenship as part of a strategy to reduce their tax liability. Citizenship may play a role in the determination of one’s tax domicile.
Finally, anyone who wishes to have the possibility to retire in a safe country at any time in the future can secure this by acquiring citizenship of that country.
2.3 How to obtain a second citizenship
The principal grounds for acquiring citizenship are birth within a certain territory, by descent, marriage to a citizen, and grant of citizenship or naturalization.
The conditions under which the privilege of citizenship by naturalization is granted vary from country to country, but essential factors are usually family relationships or certain periods of residence, besides character, language and other requirements.27
Birth within a territory
Nowadays relatively few countries grant citizenship to anyone who is born within their territory. The US is the most important of those countries. The principle that citizenship is passed on by birth within a certain territory is called ius soli (“law of the soil”).
If you know where you were born you can relatively easily find out whether you may have the right to another passport – or, in case of the US, whether you may actually be a US citizen (and possibly never filed tax returns and therefore need to consult urgently with a US tax lawyer).
You can plan your children’s citizenship portfolio to a certain extent. If your children are born in a country that grants them citizenship either right away, or will make the acquisition easier later on, the right steps need to be taken prior to their birth.28 Some countries faced significant birth tourism29 and adjusted their laws to make it more difficult to just fly in and give birth. Countries which did not adjust their laws, like the US and some Caribbean nations, are trying to be restrictive in granting visas to pregnant women.
Ancestry
Many people may not be aware that they are entitled to an alternative citizenship by virtue of their ancestry. The principle that citizenship is passed on by descent is called ius sanguinis (“law of the blood”). Americans (and Canadians, Australians, Argentineans etc.) in most cases have traceable ancestry in Europe. If the ancestry is not too far back, it may be possible for them to re-acquire the citizenship of their ancestors. For example many US citizens are entitled to Irish, Polish or Italian citizenship due to the mass immigration from these countries to the US in the early twentieth century. For example an Irish-born grandparent, or also a grandparent from Poland or Lithuania, may be the basis for a successful claim to Irish, Polish or Lithuanian citizenship and – as a result - to an EU passport. In Croatia, to reclaim citizenship it is sufficient to have proof of Croatian ancestry, no matter how far removed.
Even though many countries have tightened their nationality laws, it is constructive to investigate the option, especially if one of your closer ancestors was born in another country. Dual or multiple citizenships offer numerous benefits beyond the possibility of taking up residence in the country of citizenship (and in case of citizenship of an EU country, to have the right of establishment throughout the EU).
Naturalization
For a person who cannot rely on the ancestral option there are residence and immigration options available to skilled people, investors and wealthy individuals in numerous countries:30 Australia, the Bahamas, Canada, Hong Kong, Monaco, Singapore, Switzerland, and the United Kingdom are just a few examples of countries which offer residence to wealthy individuals and investors.
This book deals with the most attractive countries where residence permits are available to investors and wealthy individuals. Thus the emphasis is not just on general quality of life, business and employment opportunities (in which case for example Australia or New Zealand would be among the immigration countries of choice), but specifically on factors concerning wealthy individuals, such as personal tax, privacy and personal security. The countries have also been selected with a view of citizenship planning and the possibility of acquiring an attractive alternative citizenship with relative ease. All these countries are welcoming foreign persons who are willing to invest.
Citizenship-by-Investment
There are, however, only three countries at the moment that legally offer citizenship-by-investment programs that do not require a specific period of residence in the country. These are Austria, the Commonwealth of Dominica, and St. Kitts and Nevis. Citizenship-by-Investment offers the opportunity to legally acquire a new citizenship quickly and easily, without any disruptions to one’s life.31
Apart from these three countries, there are several others which have similar provisions in their laws to allow the granting of citizenship to substantial investors.32 However, there is no established and clear practice in these countries; the processes involved are not transparent, the conditions not clear and the decisions mostly arbitrary.33 Also, in many countries there are suspicions that an element of corruption may be involved in the citizenship acquisitions. Therefore if the intention is to acquire citizenship based on investment extreme care has to be exercised. In fact, in most cases it is not advisable unless a real, substantial investment is contemplated in the particular target country.
Some countries also have provisions to grant non-citizens passports34 or honorary citizenships35 which are legal but largely useless as no full citizenship
