Lifestyle

How Canadians Can Benefit From Golden Passports

How Canadians Can Benefit From Golden Passports

It can be said that Canadians are proud to own the country’s passport. After all, it allows fairly easy entry into most countries in the world. While growing up in Canada, most Canadians probably don’t even think of having or even needing a second passport. What we saw during the pandemic was that while individuals with Canadian passports are automatically guaranteed entry into Canada, many were not allowed to leave the country. One way to get around that issue might have been with a “golden passport.”

What is a golden passport?

A golden passports is when you get citizenship by investment in the country of interest. That might seem distant to some people but having a passport from another country in addition to the Canadian passport offers significant advantages for those seeking global mobility, business opportunities, and greater freedom. Unlike Canada’s strong passport that allows visa-free access to many countries, a golden passport can provide access to countries that might otherwise require extensive visa processes, including key business hubs. Golden passports are a concept. There is no actual passport called a “golden passport” nor is the passport made of gold! It’s just owning about second (or third or fourth…) passport which is from another country. Some countries only require a financial investment while others want you to actually live there or spend time there.

Golden Passports Versus Golden Visa Programs

While both golden passport programs and golden visa programs are designed to attract foreigners and their moneyl by providing substantial privileges to investors, the key difference lies in the immediate benefits: residency versus citizenship.

Golden visas are typically residency-by-investment programs. Canadians with a golden visa are granted residency rights in the issuing country. This often has some conditions such as spending a minimum amount of time in the country each year. These visas are popular in many countries, including Portugal, Spain, and Greece, and often require investments in real estate, government bonds, or local businesses. Residency rights can include working, studying, and gaining access to quality local healthcare. Golden visas can potentially lead to citizenship, usually after a longer period of residency and fulfilling specific requirements.

On the other hand, golden passports generally refer to citizenship-by-investment programs. To be sure, it’s a term that is used less formally but makes the point clear, especially with an unconscious emphasis on the high value of gold. With that said, golden passport programs offer a more direct route to citizenship than golden visas. By making a substantial investment, which can be significantly higher than those required for golden visas, investors can receive a passport of the issuing country, often without the need to reside in the country for extended periods.

Why Canadians Might Seek a Golden Passport

While the concept of a golden passport isn’t new, it has become much more popular as an option these days. There has been a series of rapid economic transitions and uncertainties in Canada, especially since the early days of the pandemic. This has taken place in other countries as well, prompting many Canadians to consider alternative residencies that offer greater stability and economic opportunities. Not to mention better living conditions in many cases, as Canada’s social services, once the beacon that showed the world how to do it, has been collapsing.

The rise of digital nomads among Canadians also has more individuals looking into their options. Digital nomads are those individuals who operate online businesses or have remote work arrangements. Golden passports are very appealing to them as they enable longer stays abroad, typically longer than one to six months which is commonplace. This facilitates  their lifestyle and helps them blend work and travel seamlessly.

Golden passports also open doors to longer stays in countries with favourable climates, lifestyle perks, and potentially lower costs of living, which are appealing for both personal and professional reasons. Moreover, they provide an alternative for entrepreneurs and investors seeking more positive business environments or lower tax possibilities. Both of these can be critical for growth and profitability in competitive global markets.

For families, the educational opportunities available through residency in a diverse range of countries can be another compelling reason. Canada used to be a country where citizens and residents could graduate from university and get well paying jobs opportunities. Over the last few years, these degrees have become increasingly less valued and finding jobs that pay well enough to cover rent, food, entertainment, and savings, has become very difficult. But for those who do obtain a golden passport, families can access international schools and experience diverse cultural experiences which may lead to job opportunities. This can be a significant draw for those looking to enrich their family’s educational background. Moreover, golden passports can be ideal for Canadians who want to live part of the year in another country for retirement or health reasons.

Finally, political stability and safety are paramount considerations. Canadians have witnessed a growing backlash from those in charge who are supposed to be making them the top priorities. In times of political uncertainty or when citizens look for safer environments, having the option to relocate swiftly and legally is invaluable. A golden passport ensures that one has a secure and welcoming place to call home away from their original home.\

Who can get a golden passport?

While in theory, any Canadian can get a golden passport, it is often seen as an option that is particularly valuable for high-net-worth individuals looking to maximize their freedom to travel and diversify their investments across international borders. Holding a golden passport can facilitate easier access to global financial services and potential tax advantages, depending on the country of the second passport. This could be especially beneficial for Canadians involved in international businesses.
While the idea of investing in a second citizenship might seem extravagant, the benefits of having a golden passport are considerable. However, it’s essential to approach this with an understanding of the legal and fiscal responsibilities involved, ensuring compliance with all relevant laws and regulations.

Checklist for Considering a Golden Passport

Here are some of the points you should cover if you plan to investigate whether it’s worth it to obtain a golden passport.
  1. Eligibility and investment requirements: Understand the legal requirements and investment thresholds.
  2. Visa-free Travel: Check how many and which countries you can visit without a visa.
  3. Tax implications: Consider the tax regulations in the second country and how they might affect you.
  4. Dual citizenship laws: Ensure that both Canada and the potential second country allow dual citizenship. Some countries would prefer only one citizenship while others don’t care how many you have.
  5. Long-term benefits: Evaluate how a second citizenship can benefit your lifestyle, business, and family security in the long run.

Consider visiting the country in question and speaking to officials there. Alternately, visit the embassy in Canada and discuss the opportunities with them before going to the issuing country itself.

Examples of Countries Offering Canadians a Golden Passport

Here is a list of countries that offer relatively affordable options for obtaining a golden passports. Note that there are many others around the world. The dollar amounts are approximate and quoted in Canadian dollars, and may change at any time. Also, the rules may change at any time. Do your research to get the most up-to-date details and to see where you might want to end up.

  • Dominica: Offers citizenship with a minimum donation of $135,000 to the government’s investor visa program or real estate investments.
  • St. Lucia: Requires a minimum investment of $135,000 in the National Economic Fund, $270,000 in real estate, or $5.3 million in an enterprise creating at least three jobs.
  • Grenada: Citizenship can be obtained with a $200,000 donation to the National Transformation Fund or a $300,000 real estate investment.
  • Vanuatu: Offers citizenship for a financial contribution of $175,000 to the country’s government fund.
  • Antigua and Barbuda: A $135,000 donation to the National Development Fund or a $550,000 real estate investment (which can be reduced to $270,000 for connected investors) grants citizenship.
  • St. Kitts and Nevis: Offers a passport through a $200,000 donation to the Sustainable Growth Fund or a $270,000 real estate investment.
  • Malta: The Malta Permanent Residency Program requires a $150,000 donation for residency, which can lead to citizenship under different terms.
  • North Macedonia: Provides a golden passport for a $300,000 investment in private funds or a $600,000 investment to start a new venture.
  • Turkey: Citizenship can be obtained with a $540,000 real estate investment or by depositing $675,000 in a Turkish bank account.
    These options provide various benefits including travel freedom, potential tax advantages, and the possibility to live in desirable locations. Each program has specific requirements and benefits, so it’s important to consider what aligns best with your personal and financial circumstances.
For Canadians pondering the golden passport route, it’s about weighing the cost against the broader spectrum of personal and economic freedoms it offers.
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Lifestyle

Adrian is a writer and more!