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.
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?
