You can reduce or eliminate your overall tax burden with a second passport. However, the details are always the most important. Understanding the intricacies of tax structures is key to making informed decisions and maximizing your tax advantages. Let's check the structures.

Most countries with a citizenship-by-investment program are either low—or no-tax havens. Malta, Vanuatu, and the Caribbean countries have passport schemes.

What is a tax advantage with second passport?

There are two types of taxation: company and personal. Your objective is to lower or eliminate both burdens for you. Your citizenship and the jurisdiction of your residence, the so-called tax residency, will determine where and how much you pay taxes. Tax residency refers to the country where you spend the most time or have the most substantial ties, and it's a crucial factor in determining your tax obligations.

If you are a citizen and resident of a low—or no-tax country, the best scenario is not to pay personal income tax at all. There are no personal income taxes in Vanuatu, St Kitts and Nevis, Grenada, St Lucia, Antigua, Barbuda and Dominica. All of these countries have affordable citizenship through investment programs.

New citizenship and a simple residency permit may save you much money. Several countries have residency by investment programs without personal taxation or at least foreign-sourced income is tax exempt. For example, the Principality of Monaco does not have personal taxation at all. Malta and Cyprus have tax advantages for foreign-sourced income. Paraguay and Panama are also excellent choices for getting tax-exempt resident status.

Regarding company taxes, if you register your company in a low or no-tax jurisdiction, both types of burdens will be low or nothing. Remember that you can legally pay less or nothing through transparent and internationally compliant structures. The result will depend on the field of activity, the jurisdiction of your company or companies and your personal circumstances.

How do you start obtaining citizenship or residency for tax advantages?

First, you must always consult with lawyers and accountants who are experts in international tax compliance legislation. Luckily, our experts at Discus Holdings Ltd are among the best professionals worldwide. If you have wealth, funds, companies, or anything in various countries, creating the best structure for you is more complicated, but this is our job. Our expertise is particularly valuable in navigating the complexities of international tax laws and ensuring you maximize your tax advantages. It is worth checking the citizenship and residency by investment programs on our site.

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