The rise in demand for second passports, fueled in large part by the epidemic has created a surge of individuals looking to secure their freedom of movement.
Obtaining second citizenship can be difficult, expensive and a time-consuming process, however, thanks to ease of regulations, a fast-track application process and the ability to pay with crypto has made it a quick process that can be finished from start to finish in just over a month.
In this article, we will dive into crypto passports and how you can buy a second passport that will give you not only autonomy and freedom of movement but will also allow you to better secure your assets, access to greater investment opportunities and citizenship all in a country that will not tax your crypto capital.
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The growth of the crypto market has created a new class of wealth and with it, a desire to both protect that newfound wealth and minimize the taxation that is levied against it. Since 2020, there has been a doubling of applications for citizenship in countries offering golden passports and citizenship through investment in both the Caribbean and Europe.
Many crypto investors have not only sought out second passports, but have moved abroad to start crypto companies, ICOs, and crypto exchanges in places around the world that have favorable tax and regulatory environments. Countries such as Malta, Portugal, and Vanuatu offer crypto benefits where you can not only get yourself a coveted golden passport but also a place where you can set up an offshore crypto company and live in a country where crypto is held tax-free.
There are many advantages that come with second citizenship, such as economic and political stability, visa-free travel opportunities, as well as investment and tax advantages.
These programs called citizenship by investment programs are offered by dozens of countries around the world, coincidentally with many of them also being crypto tax-havens. These programs have become especially relevant for crypto investors primarily because they provide:
Many countries including Portugal, Malta, and Vanuatu all offer citizenship programs that give individuals the ability to not only buy a passport or residency but are also among some of the countries in the world that do not tax capital gains on crypto. So if you have citizenship in Vanuatu for instance, you would pay 0% capital gains on crypto trades whereas in the UK you would be taxed upwards of 20%.
With many countries restricting or banning the movement of citizens, having a second passport from a neutral country gives you the luxury of being able to take advantage of a range of other travel opportunities that comes by having a second passport from a politically neutral country that has visa-free travel agreements from more than 140 countries.
Freedom comes in many forms, and one of the most powerful is freedom of movement. Being able to move as you please is intrinsic to individual autonomy. Many people around the world have experienced this reality firsthand over the last year. Being able to move and travel is something we take for granted; until it is taken away.
Everyone wants a second option. A Plan B is that second option that gives you the freedom of being able to travel, work, live, and be a first-class citizen of a second country.
Having a Plan B gives you the ability to better plan for the future ensuring that you will have more options to travel and live as per your choosing rather than being controlled by a restrictive government.
This new form of arrangement provides you with the ability to get a crypto-citizenship in the country of Vanuatu, an island country located in the South Pacific. The government made the decision to start accepting cryptocurrency as payment for their citizenship by investment program.
Payment is accepted by registered agents, whereby the coins are exchanged into fiat before the government actually accepts the payment. There are, however, KYC requirements to prove ownership, you must further prove assets of 250,000 USD, pass police clearance, background check as well come up with the governmental fee.
The Government of Vanuatu has been seeking ways to boost its economy as well as encourage foreign direct investment. Since the inception of the CBI program, it has provided the economy with some much-needed revenue which now accounts for 42% of its GDP.
Selling citizenship via cryptocurrency began in 2017, but has only recently come back into the limelight as bitcoin price has surged together with restrictions caused by Covid-19 leading to renewed interest in the program. The volatility of bitcoin proved too much for the island to begin accepting crypto as payment back then. Fast forward to 2021 and the government now allows bitcoin to be accepted by agents as payment for its CBI program.
The move signals on part of the government its desire to start considering how best they can implement blockchain technology and cryptocurrencies into the economy something that many other countries are also moving toward. The country also provides tax advantages for crypto traders, with zero capital gains, making it the number one choice in the world to get second citizenship for bitcoin traders.
Vanuatu’s citizenship-by-investment program offers a fast track, a 1-month process in which investors can secure a coveted second passport for 130,000USD. It currently has the world's fastest processing times making it the quickest way possible that you can get a passport and become full-fledged citizenship of another country. The passport is good for visa-free travel up to 145 countries worldwide and gives you the rights and responsibilities of a natural Vanuatu person.
As of now Vanuatu is the first and only country that officially accepts bitcoin payments in exchange for citizenship.
While Vanuatu is officially the only country currently where you can purchase a passport using bitcoin, Antigua and Barbuda are also currently looking to accept bitcoin as payment for their CBI program which should be rolled out shortly.
There are also several other programs that offer permanent residency in crypto-friendly countries that give the possibility of applying for citizenship after 5 years.
Residents and citizens of Malta, Portugal as well as the Islands of Antigua and Barbuda have citizenship programs together with crypto-friendly tax environments that do not tax capital gains, as well as no income tax nor any tax on worldwide assets.
Malta has created a conducive environment for cryptocurrency trading. Policies in the country have helped it to become one of the world's most bitcoin-friendly societies, as well as positioning it as a leader in the fintech field.
Crypto investors in Malta have the opportunity to acquire citizenship through Malta citizenship by investment programs and offer a very attractive tax environment for crypto traders with no taxes on the trade or exchange of crypto.
Portugal also has one of the world's most successful golden visa programs that have been snapped up by crypto investors as Portugal leads the way in the adoption of crypto within the economy. There currently are several ATMs, together with many shops and businesses that take bitcoin as payment.
The residency by investment program offers individuals the ability to get residency with the ability to apply for naturalisaiton after 5 years.
The rise of cryptocurrency as an alternative payment method together with the restriction of movement during the pandemic has created a unique set of conditions that have led to a tremendous interest in second citizenship options. Crypto passports are just one of the many new changes that have come about and we are likely to see many more as we continue to move toward a brave new world.
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*Note for U.S. citizens: US citizens are limited in their tax reduction possibilities due to FATCA and CFC laws. Opening an offshore company can increase privacy and asset protection, but you can not eliminate your taxes without giving up your citizenship. If you are a US citizen you are obligated to pay taxes on all worldwide income. Read more here about FATCA and CFC laws.
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