DEATH of Borders? How Your Citizenship Is Changing

1 MIN READ

15 Oct 2024

DEATH of Borders? How Your Citizenship Is Changing

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Topic:

Citizenship

Ever read the prophetic 1997 book The Sovereign Individual? It made some bold predictions regarding the future of citizenship, cryptocurrency, blockchain technology, taxes, and more. We’re witnessing the same revolution in personal sovereignty the authors predicted almost 30 years ago.

But they also got some things wrong. Residency by investment (RBI) is reshaping global mobility, offering flexible options for high-net-worth individuals to secure multiple residencies and minimize their risk.

In this video, you’ll learn how to prepare for a future that allows you to choose your government instead of being restricted by it. Watch until the end to learn how to become truly sovereign and ungovernable in a rapidly changing world. Don’t forget to subscribe for more insights on global citizenship.

Citizenship El 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

12 MIN READ

02 Oct 2024

Citizenship Citizenship 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

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(3)

What is the Portuguese Golden Visa Program?

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.

What are the Golden Visa funds?

The Golden Visa funds are a specific investment option under the Portuguese Golden Visa program. This involves investing a minimum of €500,000 in a qualifying investment fund that is approved by the Portuguese government.

Are there any restrictions on the types of investment funds eligible for the Golden Visa?

Yes, there are some restrictions on the types of investment funds that are eligible for the Golden Visa program. The funds must be registered and authorized by the Portuguese Securities Market Commission (CMVM) and must invest a minimum of 60% of their assets in Portugal.

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