Jakarta, CNBC Indonesia – Many world billionaires are seeking second citizenship. This was revealed by a law firm specializing in citizenship, Henley & Partners, Thursday (11/4/2024).
Henley said billionaires were applying for second citizenship and national residency permits as a way to hedge their financial risks.
“If I were rich, I would want to hedge against a level of volatility and uncertainty. The idea of ​​diversification is well understood by rich people around what they invest in,” said Dominic Volek, head of the private clients group at Henley & Partners.
“It doesn't make sense to have one country of citizenship and residence when I have the ability to truly diversify aspects of my life.”
Notable recent examples of second citizenship include billionaire technology investor Peter Thiel, who added citizenship in New Zealand. Then, Google CEO Eric Schmidt, who applied for citizenship in Cyprus.
According to Henley, the main destinations for additional passports are Portugal, Malta, Greece and Italy.
Portugal's “Golden Visa” program is popular because it provides a pathway to residency and citizenship, with visa-free travel in Europe in exchange for an investment of 500,000 euros (Rp. 8 billion) in funds or private equity.
There are three main reasons for the increase in passport portfolios, especially among United States (US) citizens, or “diversification of domicile.” Alternative passports make travel easier for those who want to venture to countries that are less friendly to their own.
“For Americans, British and Israelis who suddenly felt uncertain about being accepted abroad, additional passports provided important flexibility,” according to Henley's report.
“With increasing global instability, having citizenship in another country, especially one that is considered more neutral or politically friendly, now provides a valuable backup or alternative option.”
Another reason is business travel, which can be safer and less conspicuous. A second passport can also help with financial transfers or cross-border transactions in a new country.
Finally, some residents want a spare residence for retirement, to be closer to their families living abroad, or for lifestyle reasons in the new era of remote work.
“We are all living in uncertain times, not just in the US, but in all countries globally,” Volek added.
“Who knows what will happen next. It's really about not only having a Plan B but also a Plan C and D.”
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