The Luxury of Choice: How to Pick the Right Second Home

The modern investment migration landscape is more expansive than ever. This provides investors with more destinations to choose from, be it either through citizenship or residency by investment, to call a second home. However, the expanded list of choices, while advantageous in that it allows each individual to find the destination and program that suits them best, poses a challenge to investors: How do you pick your second home? In this piece, we will cover the most important criteria to consider when choosing an investment migration destination.

Legal Status

One of the most important factors to consider is more related to the investment migration program rather than the destination, and that is the legal status. Investment migration consists of citizenship and residency by investment, and the legal statuses of citizenship and residency have distinct advantages. Citizenship grants the holder all the rights and responsibilities of other citizens of the country. It gives a person perpetual privileges of residence and civil rights. Citizenship is not bound to specific conditions such as physical residence or economic activity. Citizenship also provides heightened global mobility through a passport. Antigua & Barbuda's passport, for example, allows its holder to access more than 150 destinations worldwide, greatly enhancing their global mobility. Residency is either temporary or permanent, and it is usually tied to a specific condition, normally physical residence within the country. Residency can be an excellent choice for those who want to gain the rights of residents but do not want to bear the weight of a citizen's responsibilities (namely taxation, as with the US citizenship-based taxation). Residency can also provide targeted visa-free access. EU Golden Visas, for example, can provide visa-free access to the EU. Additionally, residency in Paraguay and Uruguay offers enhanced mobility into the MERCOSUR countries. Choosing which status is better depends on each person's situation and objectives. By setting out a robust immigration plan, a person can decide on which legal status suits them the best.

Economic Development and Financial Regulations

Another important aspect to consider is the financial one. Some countries have dynamic markets that provide entrepreneurs and active investors with a solid foundation to grow their businesses on the global stage. In Serbia's case, for instance, the country has a ripe economic landscape and business-friendly environment that align with an active investment-based residency program. Taxation and banking regulations are also important issues to consider. St Kitts & Nevis, for example, does not levy global income, capital gains, wealth, or inheritance tax, and it has favorable financial and banking regulations that make it an excellent destination for those looking to set up a top-tier wealth management framework.

Geographical Location

When considering a second home, it is essential to consider its geographical location. Choosing a central location, such as Turkey, makes it easier to get to and it can be an excellent springboard for global travel and business expansion. The location of a country will also affect its climate, which is very important when choosing a second home. Take St Lucia as a prime example, the Caribbean nation has an outstanding, warm climate flush with lush natural scenery, making it an excellent second home.

Human Development

Another essential aspect is the development of a certain nation. Consider the infrastructure, healthcare systems, and education, as they will affect every aspect of day-to-day life. Higher quality human development will translate directly into a better living standard. Countries with robust education will give future generations more opportunities to fulfill their potential, and better healthcare leads to greater peace of mind.

(Geo)political Status

Different countries have different political and governmental frameworks. Some investors may want to choose a second home that aligns with their country of origin's governing system, while others may want to look for an entirely different structure. Understanding the governance of a certain country is essential when considering it as a second home, as the civil and economic rights of its residents and citizens will be directly affected by the governing laws and regulations. Geopolitics also play a significant role, as some countries may have more trade and political alliances than others, and that may extend to an investor's country of origin, streamlining or hindering the investor's ability to move between them or transfer funds between their bank accounts in each country. Choosing a country on different ends of the geopolitical spectrum is also a solid strategy, as it gives investors a foothold on both ends of the world's political poles, allowing them to shift sides when things swing in either's favor.

Planning Is Key

The best way to choose a second home is by setting up a robust mobility asset plan through consulting experts in the field. NTL Trust will analyze your case and provide you with the best solutions that meet your needs, objectives, and budget. All you need to do is contact us today to learn more.