Contact
Menu
Get in contact
obtaining second residency

Obtaining Second Residency

November 5, 2018
Read: 4 minutes

Residency or Citizenship?

The terms “residency” and “citizenship” refer to a legal status in relation to a particular jurisdiction. Although the terms are often thought to be similar, the legal statuses are obtained differently and grant individuals particular rights and duties, in relation to the state for which they are residents or citizens.

Residency

Being a resident means that the person has the legal right to live, work, travel or study in a country. This is normally obtained through residence permits, usually valid for a fixed duration of time and needs to be renewed before expiration.

To obtain a residence permit, the applicant would need to fulfill several requirements, together with completing the relevant application. In general, requirements to apply for residency must be maintained throughout the residency, otherwise the applicant will be at risk of it being revoked. Overall, the effects of residency are of a lesser extent than those of citizenship, although dual or multiple residencies may gather various benefits.

Advantages may include the improvement of one’s international tax situation, the promotion of one’s protection of financial privacy, as well as additional alternatives to structure one’s matrimonial and inheritance interests. Moreover, individuals may equally seek an alternative and/or additional residence due to political instability, or other negative factors requiring a safer residence.

Citizenship

Citizenship grants individuals the full set of rights, privileges, duties and responsibilities that apply to the citizens of the same country. Standard routes in acquiring citizenship are through birth, descent, marriage or naturalisation. Unlike residency, citizenship is granted for a lifetime and can only be revoked by the state in limited and specific situations.

Further to the benefits one may obtain through residency such as financial privacy and security; matrimonial and inheritance interests; as well as tax planning, obtaining an alternative citizenship offers other benefits. Mainly, one may avoid lengthy procedures to apply for travel visas depending on the visa-free travel arrangements that the country offers its citizenship. Thus, obtaining a second passport represents an advantage in itself. Besides, acquisition of citizenship normally allows for the spouse, children, and sometimes even parents, to be included in the process.

To conclude, both statuses offer distinct benefits and one’s decision to opt for one over another depends personal needs.

 

Why Obtain a Second Residence?

Similar to second citizenships – as a result of increasing global demand, more and more countries are offering residence by investment programmes.

Ease of Travel

Citizens of many countries experience difficulties with international travel. Movement restriction, bureaucratic, costly and long visa application processes, visa refusals and endless queuing make life frustrating, especially for successful business people or young families. Obtaining a second residence permit that allows visa free travel to other countries, can ease the burden and resolve many of these visa free problems in the blink of an eye!

Protection of Assets and Financial Issues

As for security and stability, conflicts and tensions do not only affect individuals and families, but also to physical goods and assets. A second residence can also provide protection for assets, allowing the beneficiary to place some of their assets in another country thus spreading and diversifying the risk. Tax is also a major consideration for some.  In some jurisdictions personal and corporate rates of tax are very high as are other taxes imposed on assets and capital gains.

Naturally some people look to migrate to countries where taxes are lower or non-existent. A second residence can be an excellent solution in these situations. Malta has recently introduced the Residence and Visa Program which offers beneficiaries an indefinite residence permit. Malta being part of the EU, the residence permit also allows visa-free travel to other EU countries within the Schengen area.

There are many reasons for this increasing demand, but the main reasons can be summarised into three main categories:

Security and Stability

With an increase in international terrorism, internal and cross-border tensions, religious and ethnic intolerance, an increasing number of people are looking for opportunities to remove themselves and their families from danger zones. Obtaining a second residency is almost like a type of insurance policy to protect individuals from danger, including the consequences of conflict or political persecution.

Why Wahaat?

Wahaat can assist you in evaluating both options and offer the necessary tax and legal planning advice, to prepare a tailor-made solution that would best suit your needs. As accredited agents, we can assist you and walk you through the whole process from consultation through to submitting the application and obtaining the required status.

Interested? Get in contact

We provide a personalised service that is tailor-made to the needs of our clients. With relevant experience and competencies across various areas, we provide a holistic service that is tailor-made to the needs of our clients.

Get in contact

What you may also like

List of 183 Visa-Free countries with Malta Passport

List of 182 Visa-Free countries with Malta Passport

Read about the updated and ever-growing list of the Malta passport visa-free countries for 2019.

Learn More →

Malta Residency and Visa Program (MRVP)

Malta Residency and Visa Program (MRVP)

The MRVP can grant you and your family the right to reside, settle and stay indefinitely in Malta. It is done by issuing you with a lifetime Permanent Residency Certificate together with a Malta residence card.

Learn More →
Top 13 Differences between Malta Citizenship and Malta Residency

Top 13 Differences between Malta Citizenship and Malta Residency

Discover the top 13 differences between Malta Citizenship and Malta Residency. We explain the programs available to invest in Malta with your family.

Learn More →