A second residency is a legal permit that allows the holder to retain residency in a country permanently. In times of economic uncertainty such as these, there are several benefits to be drawn from such an asset. This article will discuss said benefits and explore how a second residency can be an attribute toward economic stability and deflect from economic uncertainty.
Define Economic Uncertainty
Economic uncertainty is loosely defined as an economy that is failing or could potentially transcend into unfavourable conditions. It covers banking, investments, living costs and standards, unemployment rates and potential, unstable government policy, and even times of war. The scope is wide but the components within are quite niche and precise. A second residency in the right country can allow an escape from types of economic uncertainty where circumstances vary across the board. For example, should war be declared, and you have a second residency elsewhere, you can take advantage of this immediately by moving to your second country of permanency.
One big benefit of having a second residency is that your assets can be distributed across the countries. This means that your assets have a better level of economical protection. A lot of these structures allow different levels of financial protection that you wouldn’t find elsewhere. Most permits require an asset purchase in the shape of homeownership. If you have a property in multiple countries, you are more protected should one housing market fall into crisis.
The permanent residence programme in Malta is a good example of how asset protection can be implemented through the second residency. The requirements here are fairly standard across the board in that you must be able to prove financial stability, for example, you must have an esteemed employment position and relevant experience with the longevity of wage proof.
It is an undeniable truth that different countries have different levels of progress and methodology with regard to their healthcare and education systems. Healthcare looks wildly different across the globe, with some countries allowing free access to a range of services and other countries charging through the roof for basic procedures. You can gain economic stability simply by putting your healthcare needs in the right place. Should the need ever arise for a healthcare engagement, with a second residency you can opt for the better option for your specific scenario.
Education is another important consideration. Education is directly impacted by poverty, economic policy, and government initiatives. It again looks wildly different across the countries of the world and certain systems are more attractive than others. Getting the best education for your kin is a top priority and it may just be a major motivating factor that has led to your second residency considerations. Not only can it affect teaching standards, but it also dictates educative equipment availability, classroom standards, and educational engagement with students.
Aside from these direct impacts derived from economic instability, there are also future impacts to take into consideration. This includes further education potentials, career opportunities, and wage potential for students who complete their educative careers. The trajectory from child to teen to adult is a turbulent time, so having the option of a second residency and therefore better learning potential in a different education system in an alternative country is an attractive ideal.
Taxes and Investments
For you to be protected by a country’s tax policies, you need to be a tax resident. This takes time and investment in the programme. However, once achieved, you will gain all the protection and rights that a resident would have when it comes to taxes and investments. That means you can avoid unfortunate economic instability around taxing property, or business or general investments by moving yourself elsewhere and operating legally from another location. When you are able to control how and where your money is spent, what taxes you pay, and how much of your income remains your income, you have more of a sense of life, freedom, and achievement. You also get the option of banking in your second country of residence, which may provide more economic stability if the financial infrastructure is more mature than that of your ‘home’ country.
When you choose to look into a secondary residence, you are doing it because you want to know exactly what it can offer you. The finer details are the things that will sway your decision-making process either way, and this is not a process that can be strewn with generalisations; it has to have authentic integrity. Economic instability is unavoidable across the board, but there are ways that you can protect yourself and your family, and your future. When you look for a second residency, you get more options and more prospects for financial and economical protection.