Latest news with #EuropeanGoldenVisa
Yahoo
30-06-2025
- Business
- Yahoo
Plan B for the Ultra-Rich: Why Global Citizenship Is Now a Strategic Asset
The ultra-wealthy are seeking more than just financial diversification, they want freedom, security, and control over their futures. Increasingly, that means investing in a second passport which is now considered a necessity among the ultra-wealthy. According to Armand Arton, CEO of global advisory firm Arton Capital, second residencies or passports are no longer simply lifestyle upgrades, they're strategic investments. 'A second residency or citizenship has become one of the most coveted assets among the ultra-wealthy,' Arton explains. 'It's driven by ambitions for improved mobility, security, and futureproofing. For many, it's a hedge against uncertainty.' Once the domain of jetsetters seeking easier travel, second citizenship has evolved into a powerful tool of geopolitical insurance. But mobility is only one piece of the puzzle. 'Acquiring a European Golden Visa, for example, grants access to the Schengen Zone and Europe's most dynamic markets. This empowers high-net-worth individuals to expand their businesses, explore new opportunities, and enjoy unrestricted travel,' says Arton. But the motivations go deeper. Security, both personal and financial has become paramount. 'Elections, pandemics, and the climate crisis serve as a stark reminder of how quickly freedoms can be revoked and situations can change,' he adds. 'Second residencies and citizenships now act as a crucial hedge against geopolitical uncertainty and economic instability.' Over the past ten years, demand for second citizenships has surged, particularly in response to crises. 'Each year, interest in Golden Visa and Citizenship by Investment Programmes grows by around 15–20%,' Arton notes. 'The conflict in Ukraine and the outbreak of Covid-19 were major catalysts. And we're likely to see a similar uptick in response to tensions currently gripping the Middle East.' What's more, the industry itself has evolved. 'It has matured. Programmes are becoming more tailored to each country's needs. There are a large number available investors are spoilt for choice.' Arton predicts similar trends will follow in response to rising tensions in the Middle East and elsewhere. 'Savvy investors are always looking ahead. When uncertainty spikes, demand for second citizenship rises with it.' While financial advantages are often cited, Arton stresses that wealth migration isn't solely about reducing tax burdens. 'There's a common misconception that taxation is the main driver. In reality, clients are usually motivated by freedom, security, or a lifestyle upgrade.' Still, taxation can play a role, especially in countries where citizenship programmes offer favourable treatment. 'Latvia, for example, has a 20% capital gains tax and no wealth tax for non-residents. Italy offers a flat-tax option on foreign income,' says Arton. 'But benefits vary based on an investor's home country. American citizens, for instance, are still taxed on their worldwide income, no matter where they live.' As the investment migration industry matures, it's also integrating more deeply into wealth management strategies. No longer seen as a fringe add-on, global citizenship is now a pillar of high-net-worth planning. 'It complements traditional financial planning by offering geographical diversification, market access, and personal security,' Arton explains. Clients often invest in real estate or government funds to qualify. 'These investments not only diversify portfolios but also shield assets from economic volatility. Perhaps most importantly, they provide long-term benefits for family members from access to healthcare and education, to global mobility.' This isn't just about protecting money, it's about preserving legacy. Arton Capital positions itself not just as a facilitator, but as a thought leader. 'We've advised over 13 governments on citizenship and visa policy. We want investment migration to benefit both our clients and the host countries,' says Arton. That level of influence means Arton Capital has a hand in shaping how programmes are designed and how they function ensuring they benefit both investors and host countries. He notes, 'We want to be at the forefront of this evolution.' The real power of second citizenship becomes most visible in moments of crisis. Arton recalls one case from recent years: 'During the political unrest in Hong Kong, where protestors clashed with police and uncertainty loomed, we helped a client gain citizenship in Antigua. With his new passport, he relocated almost immediately, avoided the fallout, and continued operating his business from a stable environment.' That kind of agility, the ability to move, adapt, and safeguard your family or business is the ultimate utility of investment migration. One of Arton Capital's most recent initiatives saw the firm collaborate with Techcombank Private, one of Vietnam's largest banks, on a series of 'Wealth Management and Global Investment Opportunity' seminars. 'We were selected as their exclusive strategic adviser,' says Arton. 'Vietnam's HNWIs are increasingly looking for global diversification, and we helped educate their teams on how second citizenship fits into that strategy.' With most of Vietnam's wealthy banking through Techcombank, the partnership made sense. 'They're seeing major growth in their foreign exchange business VND 100bn last year, aiming for 500bn in 2025, and 1,00bn by 2026. These citizenship services are key drivers in that FX growth.' Looking ahead, Arton Capital is turning its focus toward other fast-growing Asian markets. 'We're especially interested in Thailand, Cambodia, and Malaysia,' Arton says. 'These countries have a growing upper-middle class and high-net-worth population. Many are now seeking outbound mobility.' At the same time, these countries are developing their own inbound residency programmes like Thailand's Elite Visa and Malaysia's 'My Second Home' scheme, suggesting strong potential both for incoming and outgoing investment. More broadly, the forces driving demand for second citizenship show no signs of slowing. 'With a geopolitical crisis unfolding in the Middle East, economic uncertainty across global markets, and ongoing political turmoil, the demand for a 'Plan B' has never been greater,' Arton concludes. "Plan B for the Ultra-Rich: Why Global Citizenship Is Now a Strategic Asset" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Forbes
07-04-2025
- Business
- Forbes
Is Portugal The Best Golden Visa For Americans?
Alex Recouso is the Cofounder and CEO of CitizenX. In recent years, the Portuguese Golden Visa has emerged as one of the most talked-about residency by investment programs. For high-net-worth individuals seeking mobility and a potential Plan B, this European Golden Visa often appears at the top of recommendation lists. Portugal residency opens opportunities beyond European mobility. Residents gain access to Portugal's healthcare system, educational institutions and social services. However, for Americans specifically, this popular program may not deliver despite its reputation. The Portuguese Golden Visa requirements have changed significantly, eliminating real estate investments as a qualifying investment route. Now, applicants must choose from alternatives including €500,000 capital transfers to investment funds, AIMA-regulated fund investments supporting Portuguese businesses and permanent job creation, €500,000 private equity investments in Portuguese companies or venture capital funds, scientific research activities (€500,000), national cultural heritage or artistic production support (€250,000), among others. Investment requirements vary by pathway, with program criteria continuously changing as the Portuguese government adjusts regulations. Beyond the minimum investment requirement, potential Golden Visa investors should also be aware of: • Initial application fees. • Biometrics and residence card issuance fees. • Due diligence costs. • Renewal fees (every 2 years). Golden Visa holders' residency requirement is just 14 days every two years to maintain legal residency status (and 21 days for the subsequent three years). This flexibility attracts HNWIs and families who don't want to relocate full-time or change their country of residence from a taxation standpoint. This creates tax benefits for Americans by avoiding double taxation. Since U.S. citizens are subject to global taxation, becoming a tax resident in Portugal (by staying 183-plus days annually) would create additional obligations without necessarily eliminating U.S. tax liability. The Portuguese Golden Visa is a residency by investment program, not a direct path to citizenship. This distinction is crucial, as you're investing in a residence permit for investment activity (ARI)—not a Portuguese passport. This creates challenges for the main applicant and family members: While the permanent residency processing time does count toward the five-year residency requirement for naturalization eligibility, the total Golden Visa application process extends much further than the initial 5-year period until naturalization is possible. I've found this often results in a 6-7 year wait for a Portuguese passport—hardly an efficient Plan B for Americans seeking immediate optionality. The Portugal Golden Visa program is experiencing significant backlogs at the Portuguese Immigration and Borders Service (formerly known as SEF). The average processing time reached 38.3 months in Q4 2024. Obtaining Portuguese citizenship requires passing a language proficiency test at the A2 level. While not insurmountable, this represents an additional hurdle that other citizenship programs don't impose. The golden visa application process also requires a tax identification number (NIF), a Portuguese bank account, health insurance, a clean criminal record and a final biometrics appointment. Given these limitations, Americans should carefully evaluate whether the Portuguese Golden Visa aligns with their specific objectives: If your goal is to live in Portugal and enjoy its high quality of life in cities like Lisbon or Porto, other options such as the D7 visa can offer a more cost-effective solution. This visa requires no minimum investment but does have higher presence requirements. There are other options based on ancestral connections to European countries, such as the Sephardic Jews laws or citizenship by descent programs that provide access to European Union benefits and visa-free travel throughout the Schengen area without the investment requirements. Americans already enjoy visa-free travel to the Schengen Area for 90 days within any 180-day period. A Portuguese residency card offers incremental benefits in terms of longer stays but doesn't substantially enhance mobility. Residency without citizenship provides limited protection against political instability. You cannot renounce U.S. citizenship based on Portuguese residency alone, and the residence permit itself could potentially be revoked under extreme circumstances. Americans looking for genuine diversification might consider more geopolitically neutral options: Countries like St. Kitts and Nevis or St. Lucia offer citizenship through investment programs with processing times measured in months (not years), lower minimum investment amounts and no visit or minimum stay requirements. These are some of the world's strongest passports, with visa-free access to 140-plus countries, including the European Schengen Area. Vanuatu's citizenship program offers one of the fastest routes to a second passport. While offering fewer visa-free destinations than EU passports, Vanuatu provides geopolitical diversification away from Western alliances. Newer programs like El Salvador's Freedom Visa require a significant contribution of $1 million in Bitcoin or U.S. dollars but offer efficient processing and significant upside in a rapidly growing economy. Despite these limitations, the Portuguese Golden Visa may still be appropriate for some Americans, such as those seeking a long-term nomadic lifestyle throughout Europe, where the minimal physical presence requirement is advantageous. This may also be a good choice for investors planning on a multi-decade horizon, where the timeline to become EU citizens is less critical. For example, a client for whom the Portuguese Golden Visa was a great fit was a U.S. citizen who had previously invested in Caribbean citizenship as a plan B and wanted to further diversify with a third passport. The ideal citizenship strategy should consider both short-term needs and long-term risks. A truly robust passport portfolio involves diversifying investment opportunities across different geopolitical spheres. Before committing capital to any residency by investment program, Americans should carefully evaluate their objectives and time horizons. For Americans seeking citizenship elsewhere, the Portuguese Golden Visa's reputation might exceed its utility. While it does offer a path to European citizenship, the timeline, costs and practical limitations may outweigh the benefits for many U.S. citizens. The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
