bg-breadcrum-default

Benefits for Investors who have become a Global Citizen

    Many countries want to attract foreign investment and foreign talent. Many individuals give serious consideration to attaining either permanent residency in, or citizenship of, another country to become a global citizen. Both residency and citizenship have many benefits. Obvious ones include enjoying an alternative lifestyle, obtaining additional visa-free or visa-on-arrival foreign travel entitlements, and receiving financial incentives such as tax holidays, soft loans, and training grants.

    These incentives are, typically, aimed at those individuals who will contribute to the country’s economy in some way. Each country has one or more points of focus. They might include strengthening national or regional job growth, improving particular types of business ventures such as manufacturing, construction, and tourism. Some countries, like Antigua and Grenada, want to introduce new industries, such as sustainable aquaculture, to serve the worldwide demand for sushi-quality fish.

    Incentives for Investors Who Have Become a Global Citizen

    The business incentives offered by the various countries are varied and many. In this article, we can only introduce a few examples. All are associated with encouraging talented individuals to invest substantially in business ventures. In return, the nation’s government delivers reduced or zero levels of corporate and personal taxation.

    Tax Holidays

     

     

    These are one of the most common forms of investment incentive. Malta, for example, offers a ten-year tax holiday, meaning no income taxes are due during that ten years for those who provide services to an approved investment services company providing administration, management, advice, etc. to collective investment schemes. Malta offers the same benefit to those providing services to companies licensed under the Insurance Business Act.

    The Commonwealth of Dominica offers up to a fifteen year tax holiday on profits of various businesses, which will increase the country’s manufacturing base, add to the level of exports, and provide local job growth.

    Dominica, through the Fiscal Incentives Act, also offers duty-free importation of raw materials, machinery, spare parts, and construction materials, including those which will be used in hotel construction and hospitality products. In addition, such companies receive a ten to fifteen-year tax exemption on goods they export.

    Bulgaria provides another example of tax holidays. Newly established companies, anywhere in the country, will pay no tax on profits for five years. This period can be extended for specific reasons, when a reduced rate will be paid.

    Training Grants

    Many countries that attract foreign direct investment know that their citizens must be retrained to fill the new employment opportunities. Government grants are usually made available to cover the cost of providing the facilities and the skilled employees to deliver the training.

    Soft Loans

     

    Low interest, or soft, loans are commonplace. Malta, again, like other countries, offers low-interest loans to approved manufacturing enterprises. The loans are offered by Malta Enterprise and cover at least 33% of an approved project and can cover as much as 75% of the necessary investment in plant and machinery.

    A number of Caribbean nations have recognized they must make it easier for business enterprises to finance growth so, in addition to the kinds of corporate and personal tax incentives they offer, they have involved the Eastern Caribbean Central Bank in the management of business loans.

    Summary

    Many countries make it beneficial, both from a business and a personal perspective, for foreign nationals to become residents and citizens. Those countries’ domestic and export markets already exist, but foreign investment and talent will help them grow even more. Those nations know they must offer financial benefits in return. There are many opportunities available to investors, and we have only introduced a few examples here.

    Please contact us so we can help you explore these possibilities!

     

    Free Consultation Blog CTA

    Vicky Katsarova

    A citizen of the world in every sense of the phrase, Vicky has done her fair share of traveling. Born and raised in Bulgaria, she spent 10 years living and working in Abu Dhabi before settling down with her family in Nova Scotia, Canada. And it’s only fitting for the CEO and founder of High Net Worth Immigration to be an avid globetrotter—her extensive travels have given her deeper insight and understanding into her clients’ needs.