With the tremendous influx of investors making it big in such a young and unregulated asset class, there has been mass confusion over proper advice surrounding crypto-asset taxation and optimal legal solutions. As each government has a varying range of regulations, high net-worth crypto investors needed expert guidance on moving forward in such an uncertain landscape.
Citizenship Bay, a leading Residency & Citizenship by Investment (RCBI) advisory firm, explains why acquiring second citizenship or residency through investment should be on top of every crypto investor’s priorities list.
“Not only can a second citizenship or residency through investment unlock opportunities for crypto investors, but will also act as a hedge against regulatory uncertainty,” comments Zaid Aldayriyeh, Managing Director of Citizenship Bay.
The team at Citizenship Bay has compiled the main benefits that RCBI programs give crypto investors and why now, amidst mass confusion and shifting regulatory landscapes, is a more important time than ever to ensure the privacy, security, and ownership of your crypto-assets.
1 – Benefit from Crypto-Friendly Taxation
Many countries with RCBI programs have progressive tax laws towards investing and trading in crypto-assets. For example, the Portuguese government has zero capital gains taxation on cryptocurrency gains, in addition to exempting cryptocurrency transactions from any VAT. The quickest route to establishing residency in Portugal is through the Golden Visa program which allows investors to obtain residency in a few months in return for an investment.
Other countries such as St. Kitts & Nevis, Antigua & Barbuda, Grenada, Dominica, and Saint Lucia in the Caribbean, along with Vanuatu in the South Pacific are deemed as nations with investor-friendly tax systems where there is zero tax on capital gains including crypto gains. All of these countries have highly regarded Citizenship by Investment programs where an applicant can acquire citizenship in less than 6 months. Becoming a citizen of one of these countries would be the first step towards establishing tax residency in that country.
2 – Legitimizing your Cryptoassets
In addition to the aforementioned tax management benefits, gaining citizenship or residency status in another country with more progressive regulations surrounding cryptocurrency will help legally recognize your cryptocurrency as assets with value, allowing them to be sold, traded, or gifted at your will.
Several countries have an outright ban on anything crypto-related. If you are a crypto investor residing in such jurisdiction, not only will your crypto assets not be recognized, but you could also face heavy penalties and legal prosecution. Second citizenship or residence will allow the investor to establish a domicile in a more crypto-friendly country. Malta, for instance, has established itself as the main crypto hub in recent years due to the Maltese government’s positive stance on crypto-assets, including the introduction of a regulatory framework for blockchain and digital assets.
3 – ICO Investment Opportunities
Initial Coin Offerings (ICOs) are cryptocurrencies versions of IPOs, offering early investors massive potential advantages and rewards but only if your current country has not banned them, as is the case in China, for example. There are many stories of American and Chinese citizens missing out on ICOs due to the restrictions these two governments impose. An RBI or CBI program can help seasoned crypto investors from restricted counties participate in hot ICOs to ensure a unicorn is never missed.
4 – Visa-Free Travel
Although this is not exclusive to crypto investors, it is a great advantage for many of them. Second citizenship could mean a new passport with visa-free travel benefits to 150 countries or more including the UK, Schengen, Singapore, Hong Kong, and many more. This will benefit you if your current passport does not provide a great deal of travel freedom because pre-arranged visas are needed to access many countries. Additionally, this will also be particularly important to those who plan to renounce their citizenship – such as US citizens – and are concerned about losing the visa-free travel privileges that their current passport holds.
5 – A Perfect Plan-B
All countries with RCBI programs allow dual residence or citizenship, which will provide investors with a perfect Plan B to protect their assets. Regulation around the crypto-sphere is constantly changing, putting those with singular residencies or citizenships at risk of having their crypto-assets come under scrutiny from their government, as we have seen recently unfold in Canada.
Knowing you have an alternative country to fall back on with progressive crypto-regulations will grant you peace of mind and assurance about the security and validity of your crypto-assets. The importance of such freedom is now at the forefront of the minds of crypto investors currently suffering from rapid regulatory changes, as we have seen across Canada, China, and Russia during uncertain times.
6 – Diversification of Assets
Cryptocurrency markets are notoriously volatile, so diversifying your portfolio into more stable assets can help secure your wealth. But this may be challenging in countries with harsh regulations and tax laws. A crypto investor may diversify a portfolio by investing in RCBI-qualifying real estate. This allows investors to own property and, at the same time, qualify for citizenship or residency of that country.
How Can Citizenship Bay Help?
Citizenship Bay is a Dubai-based advisory firm established in 2016 specializing in citizenship and residency by investment planning. Citizenship Bay is a Government-Licensed Marketing Agent for several RCBI programs and its team has helped hundreds of clients and their families from all over the world successfully acquire second citizenship or EU residency through legal and government-approved investment frameworks.
Cryptocurrency markets have seen massive value increases recently, granting many investors large unrealized gains in countries that may not recognize, or have unfriendly regulations towards, crypto-assets. Citizenship Bay is here to solve an issue many investors are currently struggling with by providing mobility, security, and asset protection through globally accredited citizenship or residency programs.
Invitation to Meet Citizenship Bay at Crypto Expo Dubai 2022
Citizenship Bay is proud to announce that it will be exhibiting at the Crypto Expo Dubai (CED 2022) taking place on the 16th & 17th of March 2022 at the Dubai Festival Arena. We would like to invite anyone interested in Crypto or Citizenship/Residency by Investment to come to visit us in Booth #78. Alternatively, you can learn more about our services and schedule a free consultation by visiting our website at www.citizenshipbay.com