El Salvador vs Portugal vs Argentina: Best Investment?

1 MIN READ

24 Oct 2024

El Salvador vs Portugal vs Argentina: Best Investment?

James Nuveen

Topic:

Citizenship

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El Salvador vs. Portugal vs. Argentina: 50 Years from Now, Who Has the Best Passport in the World?
CitizenshipEl Salvador vs. Portugal vs. Argentina: 50 Years from Now, Who Has the Best Passport in the World? Travel back in time. It’s the early 1970s, and you’re considering where to plant your family's roots. You think to yourself: Where can I invest that will give me the best return? London? Milan? New York City? If you would have invested in those cities, sure, your investment would've grown. But you also would've missed out on the investment opportunities of a lifetime in Singapore, Hong Kong, and Dubai, which were hardly the household names they are today. Each was a speculative investment for the bold, the forward-thinking, the contrarian, and those willing to take risks on what others dismissed as “fads.” 50 years later, the investors who did make those bets are reaping unimaginable returns – financially, socially, and with the world's most powerful passports. But now I pose to you the same question about today: Where will the next wave of growth occur?In the next 50 years, which countries will be the new Singapore, Hong Kong, or Dubai? I think the answers may lie in El Salvador, Portugal, and Argentina. Before you click off the page in a rage, let me make my case. These three nations offer unique opportunities in time to secure your freedom through tax optimization, lifestyle, and visa-free mobility. Here's the case for why each country may make a great second or third citizenship in your portfolio. https://youtu.be/aixkuQ_MCbM El Salvador – The New Leader of Latin America's Rising Tide Unless you've been living under a rock the last few years, President Nayib Bukele's El Salvador is making waves. For all the right reasons – and a few negative ones too. Announced at the Bitcoin Conference in Miami, El Salvador was the first country to adopt Bitcoin as legal tender in 2021. As such, it has positioned itself as one of many de facto nomad hotspots and expat destinations, especially for Bitcoiners and crypto enthusiasts. But, that’s not the only reason El Salvador has made the news: According to official data, Bukele's administration has also flipped El Salvador's reputation 180º from the world's most dangerous country to the Western Hemisphere's safest – in a matter of years, not decades. But beyond these groundbreaking moves, the Central American country has also found its way into the limelight for some negative news. President Bukele is consistently labeled an "authoritarian", "fascist," and/or "dictator" by leading global media outlets, a title he also proudly proclaims on his social media profiles. In a rare left-leaning policy, Bukele has also floated price controls and other protectionist economic strategies to curb corporate greed despite capitalist tendencies otherwise. Regardless of what you think of Bukele, his antics, and his politics, El Salvador offers an opportunity for those looking to diversify their citizenship portfolio, live a more off-the-grid lifestyle, and expatriate from their country. If El Salvador was able to make this shift in the past decade, what will they do in the next 10 years? Lifestyle Benefits Life in El Salvador might look exactly what you expect of it. The small Central American jurisdiction of only 21,040 km² offers a tropical paradise – beautiful beaches known for some of the world's best surfing, lush rainforests capped with active volcanoes, and a warm climate year-round. While El Salvador is certainly still developing (listed as the 127th most developed economy in the world), it has the potential to become a safe haven for crypto enthusiasts and travelers seeking a second place. While it doesn't offer the most world's powerful passport (check the Henley Passport Index) or traditional first-world living like in France, South Korea, Italy, or Australia, El Salvador offers a great setup for a second residence or vacation home, particularly for those who prioritize financial freedom. And, who knows? El Salvador could become the center of Latin American growth just as Singapore, United Arab Emirates, and Hong Kong have become for MENA and Asian countries. The government’s Bitcoin-friendly stance makes it a haven for investors in decentralized assets away from the watchful eye of traditional globalist banking systems. More on this in the tax section below. Global Mobility and Passport Strength When it comes to global mobility, El Salvador's passport is not yet in the top tier. Ranked 73rd on the Henley Passport Index, it still provides access to over 135 travel destinations visa-free, including the Schengen Zone, Ireland, Hong Kong, Russia, and top-ranked Singapore. This access makes it a relatively strong option for visa-free travel (or visa on arrival), especially if you're coming from a country with an even weaker passport. However, it doesn’t quite compete with Portugal's or Argentina's travel documents in this regard. But, as is the way of the world – As El Salvador becomes even safer and more respected on a global level, other countries will rethink their prior visa requirements and open their country visa-free to Salvadorans. However, for the Bitcoin HODLer who’s looking for financial freedom and a low-tax jurisdiction, the strength of El Salvador’s passport may not be the primary appeal. Instead, its forward-thinking approach to crypto taxation and business opportunities makes it a really attractive destination. Tax Advantages El Salvador offers one of the most attractive tax regimes in the world – for Bitcoiners and “normies” alike. Bukele's administration has made strides to reduce the number and severity of their personal and corporate income tax in order to incentivize migration to the country. El Salvador operates a territorial tax system, meaning they only tax income sourced locally in the country. And from a corporate standpoint, Bukele's government introduced a law to reduce corporate tax to zero for companies dedicated to artificial intelligence, computer programming, engineering, manufacturing, and other similar areas. While there’s no concrete regulation yet, Bukele has referenced elimination of personal income taxes and capital gains taxes for huge swaths of the population. Keep your eye out for more news on this. Why Choose El Salvador? For those looking to maintain their crypto wealth while enjoying a tropical paradise, El Salvador might just be the next big thing. It's the longest of long shots on this list, much like top-ranked Singapore was in the '70s, but with enough potential to justify the risk. Their progress in the last decade has been nothing short of astounding. Let's hope they can continue the general trend and progress toward becoming a top destination and passport of years to come. Portugal – Home to Europe's Hottest Golden Visa If El Salvador is the wild bet, then Portugal is the safe, calculated investment.  Consistently ranked among the best places to live in Europe (Expat Insider ranks it #7 in the world), Portugal offers a near-perfect blend of modern infrastructure and amenities, a mouthwatering food and wine scene, high quality of life, a visa-free destination score of almost 180 (that's really good), and potentially favourable tax benefits for foreigners. For anyone looking to plant roots in European countries, this is the ultimate destination. Lifestyle Benefits Portugal is the jewel of Southern Europe with incredible infrastructure, world-class healthcare, stunning coastlines, and a warm Mediterranean climate. In fact, Portugal receives more than 300 days of sunshine a year, more than the majority of its Northern neighbours. Whether you’re considering Lisbon, the cosmopolitan capital, the tranquil countryside of the Algarve, or the tropical island of Madeira, Portugal offers something for everyone. But, regardless of where you'd live in Portugal, you're within proximity to – well, wherever you want to go. With 35 million visitors every year, the Lisbon airport is among Europe's busiest and most connected international hubs with easy access to major European destinations travelers desire like the UK, Spain, France, Germany, Sweden, and Italy. Global Mobility and Passport Strength Portugal’s passport is consistently ranked among the most powerful passports in the world. According to the Henley Passport Index, Portuguese passport holders enjoy visa-free access to over 180 countries, including the United States, Canada, and most of Europe. This level of global mobility makes Portugal one of the best investment options for those who value mobility (i.e visa-free access to much of the world) and travel freedom. Especially if an investor has a current nationality with access to fewer destinations visa-free, the Portuguese passport is quite attractive. With a minimum investment of just €250,000, the golden visa's route to citizenship in just five years with minimal physical presence requirements makes it one of the most accessible passports in the European Union. And if you're not already familiar with how useful citizenship in the 27-member European Union settlement bloc is, here are a few benefits: Travel visa-free to any member state Reside in any member state Work in any member state Study in any member state Access healthcare in any member state With just one European Union passport, you essentially get access to all of them. Very few people in the world, including US passport holders, can say that about their travel documents. (If you're interested in investing in Portugal, getting exposure to Bitcoin, and acquiring citizenship in the European Union after just five years of minimal physical presence in Portugal, the Unbound Fund can help.) Tax Benefits The Portuguese government’s Non-Habitual Resident (NHR) tax regime, which may be reintroduced after it was eliminated in 2023, offered one of the most attractive tax environments in Europe. Under this regime, foreign residents in Portugal enjoyed zero tax on foreign-sourced income, including capital gains from Bitcoin, for up to 10 years.  The current government is discussing the possible return of NHR, a development we're closely following as enthusiasts of Portuguese economic growth and of the golden visa program. Not only is Portugal home to several tech-forward crypto brands and annual industry conferences. The government does not tax crypto capital gains if it's held for more than 365 days. These two factors make life in Portugal quite attractive for crypto investors, builders, and businesses. Why Choose Portugal? For investors seeking residency rights in Europe with the added benefit of one of the world's most powerful passports, Portugal may be a winner. And, with Unbound Fund’s indirect Bitcoin investment option, the golden visa is a safe bet on your financial future and quality of life. Argentina – South America's High-Risk, High-Reward Play Argentina might seem like an odd inclusion in this lineup, given its history (nearly a century) of economic instability and political turmoil. However, it's an interesting case study. Javier Milei, a rambunctious libertarian and economist, won the presidency in 2023 and has proclaimed the end of economic misery and hopeful return to Argentina's once-dominant past are near. If you're seeking a high return on investment or a quick path to a second passport, Argentina may be a solid future home. Lifestyle Benefits Tucked in one of the world's farthest travel destinations in the Southern Cone, Argentina is a country of extremes – incredible natural beauty, a vibrant culture that differs wildly from many of its South American neighbors, but a turbulent economy. Called the Paris of South America, Buenos Aires offers a “European” lifestyle at a fraction of the cost. Just look at its architecture for clues. The country’s diverse landscapes include everything from the snow-capped Andes to the sprawling vineyards of Mendoza. Argentina's food and wine scene, dominated by meat and malbec, is unique. Global Mobility and Passport Strength For most investors and entrepreneurs, Argentina won’t be a full-time living option unless they choose the bustling capital of Buenos Aires as a base. Instead, it’s a country where you can establish temporary residency just long enough to secure citizenship and then enjoy the benefits of a South American passport – a strong one at that – while continuing to live elsewhere. Interestingly enough, temporary residents can qualify for citizenship after just two years of residency while a permanent residency permit must wait three years. The Argentinian passport is surprisingly strong, offering access visa-free (or visa on arrival) to about 170 countries, including all of South and Central America, the Schengen Area, the UK, and Russia. According to the Henley Passport Index, Argentina's passport ranks 14th in the world. Latin America's strongest, this powerful passport rivals many European giants like the UK in terms of visa-free access. Argentine passport holders have far more access visa-free around the world than most would expect. The travel document comes just a few destinations short of top passports like Portugal and Singapore. (While Argentine law prohibits renunciation of citizenship, we’ve heard rumblings that this is not a practical concern in reality.) For those looking for greater travel freedom without having to spend a decade naturalizing in a nation, Argentina offers a quick path to citizenship and South America's most powerful passport. Argentine citizens may even witness a significant increase in passport strength if Milei's ambitions come true. Tax Benefits While Austrian economist Milei has proven himself to be pro-Bitcoin in the past two decades, he's yet to announce significant policy to push forward the movement in Argentina since he was elected. He has launched dollarization policies but none that offer any room for Bitcoin as legal tender. Argentina is not known for its tax-friendly policy. However, under President Milei, that may change. Since taking power, he has announced significant tax cuts in the form of reduced personal income taxes, import and export taxes, and corporate taxes. As Milei attempts to show the benefits of a more globalist economic approach in a notoriously protectionist country, hopefully a lot of his policies see the light of day and remain for decades to come. This may bode well for those seeking a life in Argentina. Why Choose Argentina? Argentina is a classic case of high risk, high reward. Despite our best guesses and hopes, no one really knows where the South American nation is heading. As Milei has said, it will get worse before it gets better. But, what did Buffett say? “Be fearful when others are greedy. Be greedy when others are fearful.” So, while the volatile economy presents challenges, for those willing to take the risk, it offers opportunity as well in the form of a quick, easy path to citizenship and one of the world's most undervalued passports. Who Wins: El Salvador, Portugal, or Argentina? So, where should you invest your time and resources? First of all, the passport index concept that I've shared throughout this post is just a proxy for passport strength. Mobility is subjective, and the world's passports differ on far more than just visa-free access. If you're from Denmark, New Zealand, Norway, or Japan, a second passport with less visa-free access doesn't excite you as much as it would someone from Syria, whose passport holders have access to the fewest destinations visa-free in the world. So, the answer to that question, of course, depends on your goals and your current situation: Is visa-free destination score even important to you?Or, do you want to reduce your taxes from more than 50% to single digit percentages?Or, do you prefer access to banking and financial opportunities you don't currently have in your home country? One thing is certain – The following countries are poised for immense growth in the next century if they follow their current growth trajectory and an optimist's best case scenario. Regardless of their current strength, each passport will likely be far stronger in the future. El Salvador is the crypto-forward nation, ideal for those prioritizing financial freedom and low taxes on digital assets. Its passport may not be the most powerful, but its embrace of Bitcoin and future-oriented policies make it a bold choice for Bitcoiners. If you're looking for a tropical vibe where the government is less organized and provides lots of opportunities, El Salvador may be your bet for the future. Portugal offers the best blend of lifestyle benefits, global mobility, and tax advantages. Its passport is among the strongest in the world, and the potential return of its NHR tax regime could save you significant amounts in income tax. For those who value safety, infrastructure, and easy access to top travelers' destinations, Portugal is the clear winner. Argentina is for those looking for a quick and easy second citizenship without long-term residency requirements. While it’s a higher-risk play (but not as high-risk as El Salvador), Argentina’s passport is already surprisingly strong. So it may be a “watch-and-see”-type play if you can get Argentine citizenship then return when things improve. If the last five years are any indication, we'll likely see even more countries join this list of bets for the future. The rise of travel freedom and tourism, cryptocurrency, and decentralization has shifted global citizens' priorities. Just as Bitcoin has freed wealth from centralized control, a second passport in the world frees you from the limitations of a single authority and government. Let's say you can't choose any of the countries listed in this article. Where would you put your money? Who's going to surprise everyone and become the next Singapore, Hong Kong, or United Arab Emirates?

15 MIN READ

24 Oct 2024

Why Unbound Fund? The Future of Golden Visa Investments
BitcoinWhy Unbound Fund? The Future of Golden Visa Investments We are at the dawn of a new era. Borders have blurred.Financial systems – even money itself – have evolved.And citizenship has become a strategic asset. Portugal is one of the most progressive countries embracing each of these transformations, and its golden visa program has become a symbol of the future. With the launch of the Unbound Fund, Portugal’s golden visa program has moved even farther into uncharted territory. Portugal now offers investors the very first golden visa investment tied to Bitcoin. Is this the future of wealth, freedom, and citizenship? We at Unbound think so. This is how the Unbound Fund has broken the barriers of global mobility and investment: Bitcoin's Rise to the Nation-State Level In 2008, when Bitcoin's genesis block was minted, few people understood its potential. Still today, billions are oblivious to the impact Bitcoin will have on our, our offspring's, and our offspring's offspring's generations. But, for those aware of the growing banked population and number of lightning quick (pun intended), inexpensive transactions happening on the blockchain, it’s hard to deny its impact. Bitcoin is a fundamental shift in how we perceive value. Designed in secrecy, its decentralized nature makes it resistant to government control, inflation, and malevolent manipulation. It’s a hedge against the uncertainty and cruelty of traditional financial systems. Until today, nation-states have been hesitant to promote Bitcoin and/or its ideals. But those who have, are being rewarded handsomely. Look at Nayib Bukele's El Salvador, who made Bitcoin legal tender in the Central American country in 2021. Their Bitcoin treasury of more than US$330 million (as of the writing of this article) is already up in dollar-notated value more than 84%. And, in 2024, El Salvador announced the very first one-off citizenship by investment fund to accept Bitcoin as currency. Until and since then, Bitcoin has been disconnected from traditional pathways of citizenship and residency. The Unbound Fund changes that. Bridging the Gap Between Traditional Finance, Freedom, and Bitcoin The industry of investment migration has been dominated by real estate investments, government donations, and investment funds. Investors seek security, right? Since 1984, when the first citizenship by investment program was created in Caribbean island nation St. Kitts & Nevis, golden visa programs and citizenship by investment programs alike offered just that. In exchange for property investment or a bank account deposit in their country, investors would receive residency or a passport. These investment options have their advantages, sure. They provide steady, predictable returns and a relatively risk-free way to secure tangible benefits in desirable countries. But, nation states have shown their tendency to encroach on individuals' rights and freedoms. With the advent of cell phones, cameras, and social media, it's now in the spotlight more than ever. And, 2020 was the perfect example. Rewind to 2008 when Bitcoin emerged as a new form of long-term store of value, investment, and currency. Since then, few countries have staked their ground in the future of finance and investment. Why? Precisely because it's decentralized, borderless, resistant to control, accessible to the masses, and inflation-proof. The Unbound Fund represents a new frontier in investing. For the first time in our lives, the Portugal golden visa offers a way to bridge the gap between traditional finance, residency by investment, and the decentralized future of Bitcoin. Governments are now recognizing and incorporating Bitcoin into their policies. But why would someone even need a second residency or citizenship? Investors have a unique opportunity to diversify in ways that were previously unimaginable. A passport portfolio extends your visa-free travel, gives you more financial and banking privileges across the world, unlocks tax optimization opportunities, reduces your dependence on a single government, allows you to diversify your assets across multiple jurisdictions, and opens up a whole new country for you, your dependent parents, and your dependent children to work, learn, play, earn, save, and live. In summary, multiple citizenships make you ungovernable. Combine all the benefits of the Portugal golden visa program, residence permit, and eventual Portuguese citizenship, with the upside potential of Bitcoin. The Unbound Fund offers an unprecedented opportunity to marry both.  This isn't a hedge. This is future-proofing your wealth and freedom. Unbound Fund Is the World’s First Bitcoin-Linked Golden Visa Program The Portugal golden visa is one of many golden visas around the world. These residency by investment programs attract international capital and foreign investment in their economy and grant temporary or permanent residency to successful applicants. In most cases, residency holders also join the path toward citizenship. Typically, golden visa applicants invest in real estate, real estate-related funds, investment funds (venture capital or private equity funds), or donate their money to a government project or fund. Up until 2023, the Portugal golden visa offered investors a real estate purchase option for permanent residency. But, due to rising real estate costs and subsequent backlash from locals, the Portuguese government eliminated real estate investment as a qualifying investment for golden visa investors. Instead, the golden visa program now requires a qualifying investment in either of the following three categories: Capital transfer (minimum investment of €500,000): Investment funds in a Portuguese financial institution Private scientific research institutions (or specific research activities) Unbound Fund's Bitcoin exposure fund Business investment (minimum investment of €500,000): Investment in an existing Portuguese business or commercial company (must create at least five permanent jobs) National cultural heritage (minimum investment of €250,000): Investment promoting the arts or preserving national heritage Other golden visa application requirements include a clean criminal record, a valid passport, a tax identification number (received when opening a Portuguese bank account), and of course, proof (with bank account statements) of the capital transfer or completion of the minimum investment requirements. Plus, golden visa applicants can include three or more generations of family members (i.e. dependent children and dependent parents) as part of their application. The Path to Portuguese Citizenship Through the Portuguese Golden Visa Program Is your goal with the EU residence permit to qualify for Portuguese citizenship eventually? Good news. The Portugal golden visa offers non-EU citizens one of the fastest routes to citizenship in the European Union. After their golden visa is approved, foreign investors must spend on average just seven days in Portugal per year (seven days the first year, then 14 days in each of the following subsequent two-year periods) to maintain their visa. The golden visa applicant must also renew their visa in each of the subsequent two-year periods and prove they've maintained their golden visa investment and met the physical presence requirements I just laid out. After meeting these requirements, the golden visa holder must take a Portuguese language exam and can apply for permanent residency. After foreign investors have their permanent residence, they can directly apply for Portuguese citizenship (no permanent residency period required). Note: A successful golden visa journey – from application to full naturalization and citizens' rights – may take more time than expected. Golden visa application backlog is currently high. However, the Portuguese government now predates the residence permit of successful golden visa applicants to the day they submitted their application, not the day it was approved. Portugal's requirements for citizenship eligibility are relatively relaxed when compared to any other golden visa program in the European Union. For example, with a qualifying investment in real estate property of €250,000, Greece's golden visa has strict citizenship eligibility and, therefore, a far lower rate of naturalization. The residence permit program requires golden visa applicants to reside in Greece at least six months a year for six of the last seven years, become a tax resident in the tax-unfriendly country, and speak the Greek language, a notoriously difficult language to speak. Why Choose the Portugal Golden Visa Program Over Direct Citizenship Programs? Since the pandemic, the Portugal golden visa program has been the world's most popular golden visa. Why? Well, the question is really – Why would investors choose Portugal over anywhere else? Proximity and connectivity to North America and Europe Mediterranean climate Highly ranked quality of life Visa-free access scores to 180 countries Lowest cost of living in European Union World-renowned food and wine Low qualifying investment requirements Large English-speaking population (and ease of Portuguese language) First-world infrastructure and amenities Non-Habitual Tax Regime (currently closed) High returns on property investment Residency rights throughout the European Union (27 member states) The appeal is obvious. But, compare it to citizenship by investment options like Antigua & Barbuda, Malta, Turkey, and St. Kitts & Nevis or other residency by investment golden visa programs in Greece and Malta. Portugal still comes out on top. Here's why: Long-Term Stability As a core member of Western European countries, Portugal offers political and economic stability whereas many other countries cannot. The 2024 Global Peace Index ranks Portugal the seventh safest country in the world. With top-tier infrastructure, healthcare, and qualify of life, the Portugal golden visa program can offer applicants a renewed sense of safety, stability, and certainty in a world generally trending toward the opposite. Most other residency and citizenship programs around the world are government-supported efforts to raise the reputation of their country. But, Portugal already has a stellar reputation. The Portuguese golden visa program is an effort to attract foreign investment and qualifying funds to boost the local economy. This is why it's the hottest residence permit in the world; why UK citizens, Americans, Indians, Nigerians, and Chinese are making a significant investment in Portugal; and why foreigners choose to live in the national territory and qualify for Portuguese citizenship. Lifestyle and Mobility Portugal's valid passport ranks among the world's top travel documents. With visa-free travel to almost 180 nations, Portuguese citizenship would likely expand the mobility of a golden visa holder, especially if their current country of nationality has a weak passport. For example, imagine you're a golden visa applicant from Afghanistan, whose passport gives you visa-free access or visa on-arrival in just 37 countries. If you're approved for a Portugal golden visa and you meet the country's citizenship eligibility requirements after five years, Portuguese citizenship and the Portuguese passport will reward you with visa on arrival and visa-free travel to almost 140 more nations that you previously could not enter, invest in, open a bank account in, etc. As a member state of the European Union, Portugal can also offer non-EU citizens residency, labor, travel, education, and healthcare access they don't currently have. Citizens of the Iberian country can reside, work, and get access to educational and healthcare institutions in any of the 27 member countries on the continent. Compare these benefits to those offered by citizenship by investment programs like Turkey or St. Kitts & Nevis. In terms of lifestyle and travel freedom, Portuguese citizenship is one of the most desirable in the world – and why, together with its relatively affordable investment options, their golden visa program has been so successful. Taxes Taxes are only relevant for the golden visa investors who become tax residents in Portugal. That's to say – Unless you spend more than six months a year or create strong economic ties within Portugal, you are not liable to file or pay taxes in the country. (Consult a tax professional before making any decisions though.) And, remember – Golden visa holders do not need to spend any more than just seven days per year in Portugal in order to maintain their visa and residency status and qualify for permanent residency and/or citizenship after the five-year mark. So, for most people, tax residency is unnecessary. While it's currently closed, the Non-Habitual Resident (NHR) tax regime was one of the most appealing benefits of the Portugal golden visa program. The regime allowed investors to pay 0% tax on foreign income for up to ten years. The Portuguese parliament has recently discussed bringing back the program. But, its potential new rules may not apply to as many investors' situations as the original NHR system. Capital gains tax on cryptocurrency in Portugal is zero. So, for investors with significant wealth in decentralized assets like Bitcoin, this offers an opportunity to grow your wealth without the burden of excessive taxation. However, while it offers indirect exposure to Bitcoin, the Unbound Fund (nor your investment in venture capital funds) does not technically qualify under Portuguese tax law as a cryptocurrency investment. Therefore, this tax incentive would not apply to your Unbound golden visa investment. Compare this to the tax regimes of other citizenship by investment programs, where taxes on foreign income and cryptocurrency can be much higher. Portugal offers a unique combination of financial flexibility, allowing you to invest in both traditional assets like real estate and venture capital funds while benefiting from one of the most favorable tax regimes in Europe. Borders have all-but disappeared. Decentralized finance is transforming how we think about and invest money. And as evidenced a few years ago, global mobility is increasingly important. If you don't seize the opportunity to de-risk yourself, your family, and your assets, your government may take the option away. The Unbound Fund is at the intersection of these trends. And it's unique from other golden visas and investment fund options. If you're interested in the Portuguese golden visa, want potential high returns on your Bitcoin investment, desire a passport with the world's most extensive visa-free travel, and want to taste the Mediterranean lifestyle that Portugal would afford you, the Unbound Fund is your best investment opportunity for another residence permit or eventual second citizenship. Learn more at UnboundFund.com.

12 MIN READ

02 Oct 2024

Citizenship Will Be Unrecognizable in 50 Years (And The Sovereign Individual Predicted It)
CitizenshipCitizenship Will Be Unrecognizable in 50 Years (And The Sovereign Individual Predicted It) Published in 1997, The Sovereign Individual outlined a future in which individuals would transcend traditional nation-states. Now, fast forward to today. Your so-called "belonging" in a nation-state has already transformed beyond recognition. For those with foresight, now is the time to prepare for what's to come. So what will citizenship look like in 50 years? How will humans migrate and invest across the world? In this article, I take a stab at both questions and unveil my preparation strategy. https://youtu.be/3oHy6m1U5tk What The Sovereign Individual Got Right (and Wrong) More than 25 years ago in 1997, the authors of The Sovereign Individual William Rees-Mogg and James Dale Davidson predicted a future where technological advancements would dismantle international borders and the traditional relationship between individuals and nation-states. Astonishingly, they were correct about many facets of modern life. The book foresaw the rise of the internet, the creator economy, remote work, cryptocurrency and the blockchain, digital nomadism, and the citizenship by investment industry (CBI), where individuals bypass borders, invest in other countries, and are rewarded with citizenship. In the past, that international lifestyle was accessible only to the wealthiest of high-net-worth individuals. But today, capitalism and technology have afforded those same benefits to the common man, the crypto pioneers, and the digital nomads across the world. A Rwandan tribesman with just an internet connection can compete with the best of the best in New York City. However, Rees-Mogg and Davidson didn't predict the future 100% correctly. In 1997, who would have?! While technology has, of course, empowered millions (if not billions) to live more globally, the power of the state has persisted far longer than they anticipated. The writers foresaw greater autonomy and independence of the individual in the future, but welfare states and federal governments have not ceded as much power as they assumed. Now in 2024, corporations and the wealthy have learned to avoid excessive taxation by relocating across international borders, accessing private crypto technologies to secure their wealth, creating offshore financial strategies, and other means. Governments have responded to this mobility and financial decentralization by strengthening financial regulations, naturalization requirements, banking frameworks, and CBI due diligence. Despite these governments' attempts to coerce the rich, we expect to see shrinking federal tax bases and more aggressive government financial incentives to recruit them. So Rees-Mogg and Davidson’s predictions will come true; it may just take longer than expected. And, in that tension lies opportunity. The Growth of the Citizenship by Investment (CBI) Industry In 1984 St. Kitts & Nevis, a Caribbean island with a population of about 47,000, was the first independent country to offer investors naturalized citizenship for a donation or real estate purchase in their territory. And thus, began the CBI industry. The Sovereign Individual predicted the rise of this CBI industry. As countries recognized the demand for flexible citizenship and migration options, their forward-thinking leaders created programs that allowed motivated individuals to acquire citizenship in exchange for investment in their country and economy. For families facing negative political influence or economic uncertainty in their home country, these programs offered a new kind of security. Another citizenship in one's backpocket is an effective insurance policy to reduce risk, as illustrated by the flag theory. If you were to hold your assets, residence properties, citizenship, bank accounts, businesses, and income streams in different countries, you'd reduce your risk of theft, market downturns, and rogue governments. Think about it. You’d be unstoppable if you had … Citizenship in the United Kingdom and the United Arab Emirates Businesses incorporated in the Cayman Islands and the United States Residency permits in Malaysia and Panama Homes in Argentina and Italy Bank accounts in Hong Kong and Cyprus Blockchain, cryptocurrency, and digital assets – The wealthy now have new ways to guarantee their personal sovereignty. And if their wealth lives in a decentralized system, why should their citizenship be tied to a single state?  Dependence on a single authority for all elements of your life is a death march. The CBI industry has grown rapidly, especially since 2020 when many realized their desire for a Plan B (or Plan A for that matter). However, its limitations are becoming clear. Governments are tightening their rules, and the overbearing influence of organizations like the EU has resulted in higher investment thresholds, overly scrutinized due diligence, and more challenges. Is the shift from citizenship by investment to residence by investment (RBI) underway? The Shift from CBI to RBI If the last decade saw an explosion in the CBI industry, I think the next 50 years will be defined by the residence by investment (RBI) model. Why? Because families and individuals don’t just want the freedom to move – they want the security of belonging without the scrutiny of a CBI case. RBI provides a middle ground – Access to residency with the option to naturalize without all the undue scrutiny of CBI. Plenty of countries around the world offer permanent residence by investment programs. For good reason, Portugal's golden visa is the most popular while the following countries offer their own versions of RBI: Canada Cyprus Greece Malaysia Malta Mexico Panama Spain Thailand United Arab Emirates United States Why Portugal? Portugal has become a hotspot for digital nomads, high-net-worth individuals, and crypto holders looking to secure European residency because of its ... climate; Mediterranean lifestyle; potentially low taxes (especially compared to the rest of Europe); low physical presence requirements (7 days in the first year, then 14 days each subsequent two-year period); right to reside, work, conduct business, and access education and healthcare services across 27 European Union member states; five-year pathway to naturalization; among many other benefits. Through the Portugal golden visa, applicants can choose to invest €500,000 in venture capital or private equity funds or indirectly in bitcoin via the Unbound Fund, the world’s first Golden Visa Fund focused on Web3 technology. The trend towards RBI reflects a deeper evolution in how families plan for the future. Unlike CBI’s one-time commitment, potential due diligence issues, and upfront costs, RBI provides flexibility and a possible return on your investment without immediate naturalization. CBI was the solution for the last 20 years, but the future lies in flexible residence options that allow families to continue living their lives uninterrupted without attachment to one single place. There’s something Rees-Mogg and Davidson missed. What Will Citizenship Look Like in 50 Years? As the sovereign individual weens off the government, they realize they didn't need it as much as they may have thought they did. I've noticed this. Have you? In a few decades, citizenship of a state will look and feel fundamentally different than it does today. Individuals won't depend on just one citizenship. Instead, individuals will be global citizens. Decentralized citizenship will be mainstream, and they'll carry several passports and wield their influence as such across the world. Citizenship will be more fluid.Citizenship will be less political.Citizenship will help us navigate financial and geopolitical uncertainty. You and I will be an amalgamation of values from the cultures we choose to propagate, rather than only those passed down from our ancestors. This doesn’t mean a loss of values, but rather the emergence of new values. In the future, we’ll see the idea of citizenship undergo a dramatic transformation. I hope this is the case. Emerging technologies, political shifts, and digital assets will change the very fabric of what it means to "belong" to a country. Individuals will carry digital passports, securely and privately stored on the blockchain, allowing them to manage their assets across multiple jurisdictions. Nations will compete for productive citizens, offering incentives like lower taxes, digital services, political influence, and a quality of life that matches their needs. All the while, creating a unique investor profile for the investors they want to recruit. We will adopt a portfolio approach to citizenship, holding multiple residencies and multiple citizenships across multiple regions to reduce risk. A home in Portugal for its EU benefits.A residence in the Caribbean for tax optimization.An Asian base to tap into new business opportunities. Citizenship will be less about allegiance to one state. Citizenship will be more about eliminating dependence on authorities and jurisdictions altogether and choosing to spend time in the places that serve our interests. How to Prepare for the Future of Citizenship So, how can you prepare for a future where citizenship is fluid, mobile, and decentralized? Invest in CBI/RBI Programs — Secure multiple long-term residence permits in stable jurisdictions. For example, invest indirectly in Bitcoin through Portugal's golden visa Unbound Fund and get residency rights across the European Union. Use Decentralized Technologies — Your citizenship and finances should reflect your independence from the state. So, manage your assets and influence through decentralized financial systems like Bitcoin, cryptocurrency, and other blockchain technologies. Stay Mobile — Flexibility and openness are key. With growing geopolitical and market uncertainty, march into new opportunities with the ability to adapt at any moment. With this approach, you position yourself, your family, and your finances to thrive. The future is bright for those willing to invest in their sovereignty and extend their influence across jurisdictions. In the next 50 years, citizenship will evolve from a static legal identity tied to a single state to a fluid, flexible system. But not for everyone. That depends on you. The state will not make this transition for you. They want your tax revenue. In fact, they'll make flexibility more difficult for you to obtain if you don't act now. Plan wisely.Invest in the right jurisdictions and decentralized assets.Become ungovernable.Become sovereign.

8 MIN READ

09 Oct 2024

FAQ

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No it is not. This fund doesn’t invest in crypto. It invests in web3 companies which can have exposure to crypto but it doesn’t invest in crypto assets.

The Portuguese Golden Visa program is a residency by investment program that allows non-EU/EEA nationals to obtain a Portuguese residence permit by making a qualifying investment in Portugal. The program was launched in 2012 and has become one of the most popular investment migration programs in Europe.

To qualify for the Portuguese Golden Visa Program through investment in a Golden Visa Fund, you must invest a minimum of €500,000 in the fund.

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