Local connections, global influence

Wealth Management and Global Mobility

Wealth Management Tax Planning

Tax Planning and the Doctrine of Caveat Emptor

Whether you are acquiring a second citizenship, starting a business or applying for a short-term visa, harnessing new opportunities in a foreign country can, without careful planning, heighten the risk to your business and personal affairs. Echoing the doctrine of “caveat emptor – buyer beware”, investors, entrepreneurs and those looking for citizenship should always conduct sufficient due diligence on a proposed migration location. As well as gaining a full understanding of the visa options available, the application process, supply chains and political stability in a particular country, investors should be aware of how they will be taxed, not just on the assets which they propose to acquire within the target country, but also on their current wealth and assets registered across the globe. 

Comparing return on investment across two competing immigration destinations allows one to determine a strategy for global mobility however it is vital to look holistically at the total taxation across the investors home country and the target investment country and to determine whether any tax treaties exist. Those looking to maximise their return on investment can mitigate tax liability on total assets, wealth and investments by taking advice on tax planning. 

For example, in Grenada, you are only taxed on the income you earn within Grenada so if you have many businesses within your home country, this is not liable to taxation in Grenada unlike some jurisdictions. Turkey takes a very similar standpoint as the tax rules do not automatically attribute Turkish Tax Residence to an immigrant, therefore obtaining Turkish citizenship doesn’t make an individual a tax resident in Turkey. As a non-tax resident, you are only liable to pay taxes on the income you generate within Turkey. There are two criteria for the individual to become a tax resident. Firstly, the individual must stay in Turkey for more than a 6-month period in any tax year or secondly the individual must be looking to settle down in Turkey. If you meet one of these criteria, you will be able to apply for a Turkish tax residence. 

Turkey and Russia have a bilateral tax treaty whereby you can claim a foreign tax credit for taxes paid in Russia, thereby allowing you to offset part of your tax liability against taxes paid elsewhere. This highlights the potential tax savings and consequential maximisation of return on investment when individuals consider how they will be taxed. 

Finally, every sound investment should offer a clear exit strategy and this is no less crucial in citizenship by investment or other global investor visa schemes. The liquidity and marketability of an asset purchased for citizenship by investment purposes should be at the forefront of an individual’s mind when weighing up the costs and benefits of investment routes. 

You should consider which aspect is more important to you: 

  • Will you permanently migrate to the country in the future? 
  • Do you want a strong passport with the ability to visit many countries visa free? 

Always plan your strategy prior to conducting due diligence as there is never a one size fits all approach and individual circumstances will play a key role in ensuring you are making the right decision. 

If you are interested in finding out more about immigration due diligence or wish to speak to one of our advisors regarding an investment or migration opportunity, please contact Global Capital Hub or visit our website to find out more. 

Tel: +44 (0) 330 057 8888

Mob: +44 (0) 770 888 0502 

[email protected]


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