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GLOBAL RESIDENCE AND CITIZENSHIP
Contents
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Residence and Citizenship
Residence Programs
Citizenship Programs
Oneworld Group
2GLOBAL RESIDENCE AND CITIZENSHIP
Residence and Citizenship
3GLOBAL RESIDENCE AND CITIZENSHIP
Reasons Why Wealthy People Relocate (1)
Security
Quality
of life
• Safe alternative in times of political instability
• More privacy in investment and banking
• A defined legal environment is progressively sought after as more laws become increasingly vague
• Better quality of life, climate, personal security
• Cleaner environment and lower air pollution
• Better offering of healthcare and transport systems
4GLOBAL RESIDENCE AND CITIZENSHIP
Why Wealthy People Relocate (2)
Taxes• Often the only way to reduce the tax burden and regulatory restrictions legally and in a significant manner
is to relocate
Education
5
• Graduation at a high ranking school and language skills are increasingly important as the basis for a
successful career
GLOBAL RESIDENCE AND CITIZENSHIP
Citizenship by Investment
Several countries have programs in place to attract foreign investors in return for citizenship
The term ‘Citizenship by Investment’ describes
6GLOBAL RESIDENCE AND CITIZENSHIP
the policies of countries in which foreign persons can obtain citizenship
through capital investments or capital contributions in the country
Reasons for Alternative Citizenship (1)
Visa waiverOpens travel to countries previously restricted by time consuming visa application processes
Retirement The option to retire in a safe country
IndependenceBe able to travel or have the option to relocate after possible
political changes
MobilityFreedom of movement when some nationals are overly exposed to terrorists threats and other
hostility
7GLOBAL RESIDENCE AND CITIZENSHIP
Reasons for Alternative Citizenship (2)
Protection Protection against data abuse, identity theft and cyber crime
Tax Planning Citizenship can be relevant in tax planning and is one of the tie breaker rules in most double tax treaties
SecurityGuarantees a secure and truly permanent alternative place to go if needed
8GLOBAL RESIDENCE AND CITIZENSHIP
Dual Citizenship Restrictions
The acquisition of another citizenship can lead to the automatic loss of the current
citizenship
Half of the world´s countries
allow dual citizenship
Carefully check the legal situation prior to
taking any steps to acquire another citizenship
9GLOBAL RESIDENCE AND CITIZENSHIP
Residence Programs
10GLOBAL RESIDENCE AND CITIZENSHIP
Premier Residence Countries
Belgium UKHong Kong Portugal
MaltaCanada Singapore
SwitzerlandMonaco
US
Australia
We set out the most attractive countries with regard to
mobility, security, privacy, personal tax and lifestyle
11
Cyprus
GLOBAL RESIDENCE AND CITIZENSHIP
12GLOBAL RESIDENCE AND CITIZENSHIP
Australia
Australia – Introduction
Population 23 mn
Multi cultural society
Liberal approach to immigration - it welcomes people to work and invest
A good lifestyle is affordable
13GLOBAL RESIDENCE AND CITIZENSHIP
Australia - Significant Investor Visa
14
• The applicant has to invest AU$ 5 mn for a period of 4 years in a complying investment
• Investment can be government bonds, managed funds or private companies
• Applicants will need to meet standard health and character requirements
• They will need to lodge an expression of interest and be sponsored by a state or
territory
No minimum age limits
No point test (so no minimum English requirement)
Relaxed residence requirement (the investor has to spend only 160 days in Australia
over 4 years)
GLOBAL RESIDENCE AND CITIZENSHIP
Australia – Permanent Residence Status
Investors can extend their visa term by an additional 4
years bringing the maximum period on a Provisional
Significant Investor Visa to 8 years !After a minimum period of 4 years, the investor
can apply for a Permanent Significant Investor
visa
15GLOBAL RESIDENCE AND CITIZENSHIP
Australia – Citizenship
The applicant must:
• have been in Australia for 12
months as a permanent resident
• have had absences from
Australia of no more than ¼ of
the time in the previous 4 years
• be able to speak and understand
basic English
!
Applicants must pass the Australian
Citizenship Test, which focuses on
Australia’s values, history, and traditional
and national symbols
16GLOBAL RESIDENCE AND CITIZENSHIP
Australia – Taxation
• Progressive tax rates on income and
capital gains of up to 54% (50% discount
when capital assets have been held for
at least 12 months)
• no wealth tax
• no inheritance tax
Australian tax residents are taxed on their worldwide income and
capital gains
17GLOBAL RESIDENCE AND CITIZENSHIP
Australia – Summary
Advantages
• Multi cultural society and a good
place to live
• Excellent education system
• Low population density
• Acquisition of citizenship possible
after 5 years
Disadvantages
• High taxes
18GLOBAL RESIDENCE AND CITIZENSHIP
19GLOBAL RESIDENCE AND CITIZENSHIP
Belgium
Belgium – Introduction
Population 11 mn
Hosts the headquarters of the EU and NATO
Has a highly developed economy
One of the world’s largest trading nations
20GLOBAL RESIDENCE AND CITIZENSHIP
Belgium – Resident Permit
As a mana- ger or
highly skilled
employee
As a self-
employed
individual
• Minimum salary of €64.000 (manager) or €38.000 (highly skilled employee) - this entails a higher
tax liability of 55%
• Processing time 2-3 months
• The applicant incorporates his/her own company
• No minimum salary level - tax liability will be less
• Processing time 2-3 months
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There are two main economic routes under which a person could qualify for
residence:
The applicant is not restricted to remain only in Belgium but has the freedom to operate abroad
GLOBAL RESIDENCE AND CITIZENSHIP
Belgium – Citizenship
After 5 years, it is possible to apply for citizenship
The applicant must prove his/her social and
economic integration
After 10 years, the resident acquires the automatic right
to become a Belgian citizen
This is a unique feature that
provides significant security
22
The applicant must secure appropriate accommodation. It must be at his/her disposal at all times during the residence period in the
country.
GLOBAL RESIDENCE AND CITIZENSHIP
Belgium – Taxation
• Progressive income tax of up to 50%
(to be increased with local
surcharges)
• No wealth tax
• In principle no capital
gains tax on assets
Commonly known as a high-tax jurisdiction, Belgium is in fact a
discreet tax haven for affluent individuals and families who do not
live off employment income
Special tax rules for foreign employees temporarily residing in
Belgium: The employee is treated as a non-resident and therefore is
only taxed on Belgian source income
23GLOBAL RESIDENCE AND CITIZENSHIP
Belgium – Summary
Disadvantages
• Establishment of a company in
Belgium is required in most cases
• Pre immigration tax planning
required to take advantages of tax
system
Advantages
• Residence permit gives visa free access to all Schengen States
• Excellent infrastructure in the heart of Europe
• Attractive corporate and private taxation system
• Citizenship possible after 5 years of legal residence
+ 24GLOBAL RESIDENCE AND CITIZENSHIP
25GLOBAL RESIDENCE AND CITIZENSHIP
Canada
Canada – Introduction
Population 35 mn
Regularly voted as one of the best countries to live in
A good lifestyle is affordable
Globally admired for its multi cultural society
and tolerant foreign policies
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Canada - Federal Immigrant Investor Program
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• Created in 1986
• Specific intention of attracting wealthy individuals with business experience
• Structured as a 5 year, zero interest loan to the Government
• Amount was increased to CAD 800.000 and net wealth amount
to CAD 1.6 mn. The new regulations did not see a decrease in the number of applicants
Due to the exceptionally high volume of applications the program was closed in July 2011
The re-opening has not yet been confirmed as the Government is still considering various options for a major Federal IIP overhaul
GLOBAL RESIDENCE AND CITIZENSHIP
Canada - Québec Immigrant Investor Program
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• The program is very similar to the Federal Program
• The yearly maximum number of applications accepted is 1,750
The submission period for 2014 has ended
An application can still be submitted if one has advanced intermediate knowledge of French
GLOBAL RESIDENCE AND CITIZENSHIP
29GLOBAL RESIDENCE AND CITIZENSHIP
Cyprus
Cyprus – Introduction
Population 800.000
Major hub for international trade and member of the EU
Excellent quality of life with a year round climate of sunshine
No tax in Cyprus for any income earned abroad
30GLOBAL RESIDENCE AND CITIZENSHIP
Cyprus - Global Residence Program
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Purchase real estate property with total cost min €300.000 plus VAT
Pay at least two thirds of the purchase cost prior to Application
Stable means of annual income from abroad of at least €30.000 per year
Funds from abroad deposited in a bank in Cyprus in a 3-year fixed deposit account. The minimum deposit is €30.000
GLOBAL RESIDENCE AND CITIZENSHIP
Cyprus - Advantages
No minimum residence stay required
Considered Non-Dom and any income received from abroad is exempt
Residency can be granted in 2 months
Applies to whole family
Can lead to Cyprus citizenship
Easier travel within the EU
Lower tuition costs within Europe
32GLOBAL RESIDENCE AND CITIZENSHIP
33GLOBAL RESIDENCE AND CITIZENSHIP
Hong Kong
Hong Kong – Introduction
Population 7.2 mn
Open economy with a free market and low taxation
Liberal approach to immigration policy
34GLOBAL RESIDENCE AND CITIZENSHIP
Hong Kong - Capital Investment Program
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• There are various categories for individuals to obtain residence in order to
work, live or study
• Individuals who make a substantial investment to the economy are welcomed with open arms
The Capital Investment Entrant Program requires
• an investment of no less than HK$10 mn (US$1.3 mn) into permissible
investments of financial assets (including equities, debt securities,
certificates of deposit or eligible collective investment schemes) for a
period of 7 years
GLOBAL RESIDENCE AND CITIZENSHIP
Hong Kong – Timeframe
Upon completion of 7 years ordinary residence, one
may apply for Permanent Residence
!As a PR, one only needs to return to Hong
Kong once every 3 years to maintain status
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• Program has been in place since 2003
• 25.000 people have received the visa (2.500 per year)
• 8 months processing time
• No residence requirement
GLOBAL RESIDENCE AND CITIZENSHIP
Hong Kong – Taxation
An attractive Tax System:
• No capital gains tax
• No sales/value added tax
• No wealth/net worth tax
• No tax on inheritance or
gifts
• No tax on interest income
• No withholding tax on
dividends paid by Hong
Kong companies
Taxation is based on the territorial source principle, only levied on
income sourced in Hong Kong
There are three separate income rates:
• profit tax - flat rate of 15% on
professional trade and business income
• property tax - flat rate of 15% (less
standard deduction of 20%)
• salaries tax - levied on net chargeable
income (either on progressive rate or
flat rate)
37GLOBAL RESIDENCE AND CITIZENSHIP
Hong Kong – Summary
Advantages
• Straightforward
• Well established legal system
• Freest economy in the world
• World-class medical facilities and
education institutions
Disadvantages
• High property prices
• Poor air quality
• High population density
• Citizenship of limited interest
38GLOBAL RESIDENCE AND CITIZENSHIP
39GLOBAL RESIDENCE AND CITIZENSHIP
Portugal
Portugal – Introduction
Population 11 mn
Lisbon, Oporto and Guimarães have been European Capitals of Culture
The Algarve is a scenic treasure with a long coastline of golden beaches, dramatic cliffs
40GLOBAL RESIDENCE AND CITIZENSHIP
Acquisition of real estate of
at least €500.000
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Transfer of capital
of at least
€1 mn
• Programme came into force in October 2012
• Allows non-EU nationals to be granted residence permits for certain investments. The options are:
Residence requirements for the 5 year programme:
• 7 days in the first year of residence, and
• 14 days for the two following two year renewals (1+2+2)
Portugal - Golden Residence Programme
GLOBAL RESIDENCE AND CITIZENSHIP
Creation of
of at least
10 new jobs
Portugal – Permanent Residence Status
After the 5 year programme, Permanent Residence
(PR) status can be acquired
The qualifying investment can be sold
No residence requirement
anymore, but …
!
PR status can be revoked if
•
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holder is absent from Portugal for a period
of 24 months, or
• is absent in aggregate of 30 months for a
period of 3 years
GLOBAL RESIDENCE AND CITIZENSHIP
Portugal – Citizenship
An application for citizenship can be made following
a
6 year residence period !
The application is subject to prevailing legal
criteria, which currently includes a language
test (European level A2)
43GLOBAL RESIDENCE AND CITIZENSHIP
Portugal – Taxation
• Progressive income tax of up to 48%
• Standard rate of VAT is 23%
A new, favorable tax treatment program for Non- Habitual Residents (NHRs) has
been designed to attract talented individuals and HNWI's
• Income derived from a Portuguese source: flat rate of 20% (surcharges were
announced recently)
• Income derived from a foreign source (relating to employment income,
pension income and business and professional income) can be subject to
exemption
Granted for a period of 10 years. To be a tax resident, the individual has to remain
in Portugal for 183 days and have a principal home which they intend to use as a
habitual residence
44GLOBAL RESIDENCE AND CITIZENSHIP
Portugal – Summary
Advantages
• Straightforward and quick process
• Free travel within the Schengen
Area
• Minimal physical presence
requirements to secure renewal
of residence permit
• A country with lifestyle advantages
Disadvantages
• Access to Permanent Residence
requires basic understanding of
the Portuguese language
• Requirements for citizenship
applications (including language
understanding)
-45
GLOBAL RESIDENCE AND CITIZENSHIP
Singapore
46GLOBAL RESIDENCE AND CITIZENSHIP
Singapore – Introduction
Population 5.3 mn
One of the world’s best places to live
It is frequently voted best Asian city to live in
One of the wealthiest and safest countries in the world
47GLOBAL RESIDENCE AND CITIZENSHIP
Singapore - Global Investor Programme
To be eligible one:
• must possess at least 3 years
of entrepreneurial track record,
and
• have a company turnover at
least SGD 50 mn per annum on
average for the last 3 years (if in
real estate or construction-
related industry at least SGD
200 mn)
!
The Investor can choose one of the
following options:
48
• Invest at least SGD 2.5 mn in a new business entity
(one must submit a 3 year business plan; within 5 years, one
must set up a business with 5 or more Singaporean
employees and must incur at least SGD 1 mn in total business
spending a year)
• Invest at least SGD 2.5 mn in a GIP fund that invests in
Singapore- based companies
The programme has been designed for investors who want to invest in Singapore and
receive Permanent Residence
GLOBAL RESIDENCE AND CITIZENSHIP
Singapore – Citizenship
Following the first 5 years, the PR will be renewed for
another 5 years if the investor and his/her dependents
have resided in Singapore for more than half of the
time !
An investor who is granted PR for 2 years is
eligible to apply for Singapore citizenship
Maximum of 1 year absence from Singapore out
of the 2 years prior to the date of application
Singapore does not allow dual citizenship
49GLOBAL RESIDENCE AND CITIZENSHIP
Singapore – Taxation
Singapore has a mild tax regime:
• Progressive personal income tax rate of up to 20%
• Standard corporate tax
rate of 17%
• No capital gains tax (very limited exceptions)
• No gift taxes
• No income tax on dividends
Taxation is based on the territorial source principle - only levied on income
sourced in Singapore
50GLOBAL RESIDENCE AND CITIZENSHIP
Singapore – Summary
Advantages
• Safe and orderly with an
excellent education system
• Favourable tax laws
• International financial center
• Acquisition of citizenship possible
after 2 years of PR
Disadvantages
• Property prices are relatively high
• Population density is very high
• Dual citizenship is not allowed
• It becomes difficult for foreign
persons to get a work permit and
renew the resident and PR status
51GLOBAL RESIDENCE AND CITIZENSHIP
52GLOBAL RESIDENCE AND CITIZENSHIP
United Kingdom
UK – Introduction
Population 63 mn
One of the most attractive places in the world to live and do business
International business environment - London is the financial capital of the world
World renowned schools and universities
Well connected with direct flight connections to almost all major cities in the world
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GLOBAL RESIDENCE AND CITIZENSHIP
UK - Immigrant Investor Program
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• Part of the points based system, the Tier 1 Investor category is for high net worth individuals who want to make a financial
investment in the UK
• Quick processing time of 4 to 8 weeks
• No requirement on English language for the first 5 years
• No health check required
Investor Programs:
• GBP 10 mn or more may apply for PR after 2 years
• GBP 5 mn or more may apply for PR after 3 years
• GBP 1 mn or more may apply for PR after 5 years
GLOBAL RESIDENCE AND CITIZENSHIP
UK – Permanent Residence Status
Conditions to apply for PR - also known as Indefinite
Leave to Remain (ILR)
!
No more than 180 days spent outside the UK in any
12 month period (this only applies to the principal
applicant)
English language requirement
All applicants must pass a simple 'Life in the UK'
test (easy multiple choice)
• PR, once granted, has no expiry date
• PR will remain in force as long as the holder does not spend more than 2 years consecutively outside the UK
55GLOBAL RESIDENCE AND CITIZENSHIP
UK – Citizenship
Each applicant must maintain an average of 9 months
or more per year in the UK for 5 years
!Unlike PR, each individual is
on their own time clock
56GLOBAL RESIDENCE AND CITIZENSHIP
UK – Taxation
• Progressive income tax up to 45%
• Capital gains tax up to 28%
• No wealth tax
• Inheritance tax at 40%
The obligation of personal UK taxes is based around the
concepts of residence and domicile
It is possible to be resident in the UK for tax purposes but non
domiciled. This can provide many tax benefits
57GLOBAL RESIDENCE AND CITIZENSHIP
UK – Summary
Disadvantages
• Requirement for minimum
physical presence
• Citizenship only after minimum
5 years of residence
Advantages
• London is among the financial
capitals of the world
• World renowned schools
• Attractive tax system for
wealthy individuals (resident,
non-domiciled rules)
• Straightforward investor
immigration program with fast
processing time
58GLOBAL RESIDENCE AND CITIZENSHIP
59GLOBAL RESIDENCE AND CITIZENSHIP
Citizenship Programs
St. Kitts & Nevis Antigua & Barbuda
There are currently only six countries which offer citizenship programs that provide a direct, legal route to citizenship based on
investment and sound due diligence
Other countries have similar provisions. However, in those countries there
is no established or clear practice and/or the programs are not transparent
Program Focus
Malta
Antigua & Barbuda Cyprus
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Malta
St. Kitts & NevisAustria Dominica
GLOBAL RESIDENCE AND CITIZENSHIP
61GLOBAL RESIDENCE AND CITIZENSHIP
Antigua & Barbuda
Antigua and Barbuda – Introduction
Population 80,000
Some of the most beautiful beaches in the world
Visa free travel to 129 countries
Tourism generates around 60% of the island’s income
62GLOBAL RESIDENCE AND CITIZENSHIP
Antigua and Barbuda – Citizenship Investment Program
Announced in November 2012
To qualify for citizenship, the Government
requires either:
A contribution to the National Development Fund of
US$200.000 (usually US$250.000) for a single applicant
An investment in an approved real estate project with a value of
at least US$400.000
An investment into a business, known
as the ‘Direct Investment’ route
Additional Due Diligence fees of US$ 7.500 and Government fees of
US$ 50.000 apply (for up to 4 people)
63GLOBAL RESIDENCE AND CITIZENSHIP
64
GLOBAL RESIDENCE AND CITIZENSHIP
Cyprus
Cyprus – Introduction
Population 800.000
Major hub for international trade and member of the EU
Excellent quality of life with a year round climate of sunshine
Tax burden is low
65GLOBAL RESIDENCE AND CITIZENSHIP
Cyprus – Citizenship Investment Program (1)
An express procedure, it takes only 3 months to be approved
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The investment is as low as €2.5 mn
Citizenship granted to spouse and minor children
No requirement to reside in Cyprus
Visa free travel to over 150 countries
GLOBAL RESIDENCE AND CITIZENSHIP
Cyprus – Citizenship Investment Program (2)There are two schemes available to qualify for Citizenship by Investment:
•Individual scheme with threshold of €5 mn
•Collective Scheme with threshold of €2.5 mn
Individual Scheme with threshold
of
€5 mn
• Investment min €5 mn in Cyprus government bonds, or
• Investment min €5 mn in financial instruments of companies and shares,or
• Investment min €5 mn in real estate, or
• Investment min €5 mn in Cyprus businesses/companies, or
• Deposit in Cyprus banks amount to €5 mn
Collective Scheme with threshold
of
€2,5 mn
Reduced amount of €2.5 mn on the basis that they participate in a collective investment scheme with a
total value min €12.5 mn:
• Investment in government bonds, or
• Investment in financial instruments, or
• Investment in real estate and land developing, or
• Investment in Cyprus businesses and companies
67GLOBAL RESIDENCE AND CITIZENSHIP
68GLOBAL RESIDENCE AND CITIZENSHIP
Malta
Malta – Introduction
Citizenship gives right of work and establishment in all 28 EU countries
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Population 418.000
Among the earliest settlements in the world, 7.500 years of history
EU member since 2004, member of the Schengen area since 2007
Visa free travel to more than 160 countries
GLOBAL RESIDENCE AND CITIZENSHIP
Malta - Citizenship Investment Program
Contribution to the National Economic and
Social Development Fund
• For main applicant €650.000
• For spouse €25.000
• For dependents under / over 18 years
€25.000 / €50.000 each
Annual publication of all naturalised citizens
Due Diligence fees for main applicant €7.500 for spouse €5.000 for dependents under / over 18 years: €3.000 / €5.000
each
A residence in Malta for
at least 5 years
• Purchase of a property: value over €350.000, OR
• Leasing of a property: annual rent over €16.000
Investments into approved
financial instruments
• €150.000
•
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70GLOBAL RESIDENCE AND CITIZENSHIP
71GLOBAL RESIDENCE AND CITIZENSHIP
St. Kitts & Nevis
Population 54,000
Unrivalled natural beauty
Visa free travel to 131 countries
Direct daily flights from Miami and by weekly
direct flights from New York and London
72GLOBAL RESIDENCE AND CITIZENSHIP
St Kitts and Nevis – Citizenship Investment Program
It remains the world’s most
successful program
To qualify for citizenship, applicants have
two investment options:
A contribution to the Sugar Industry Diversification Foundation
of
US$250.000 (for a single applicant)
An investment in designated real estate with a value of at
least US$400.000
Additional Due Diligence fees of US$7.500 and Government fees of US$50.000 apply for the real estate option
73GLOBAL RESIDENCE AND CITIZENSHIP
St. Kitts & Nevis Vs. Antigua & Barbuda
Processing time
Residence
requirement
Applicant to swear an
oath of allegiance
Access to countries
visa free
Established program which usually takes 6-8
months for approvals to be granted
No
No
131 countries - visa free travel to Tonga, Israel,
Bangladesh and Argentina (Antigua & Barbuda does
not)
74
New program so will potentially be processed more
quickly
Requires the applicant to spend an average of a week
per year (35 days over 5 years) over the length of the
program
Yes, either on the island or at an embassy or consulate
around the world
129 countries - visa free travel to Ukraine and South
Africa (St.
Kitts and Nevis does not)
GLOBAL RESIDENCE AND CITIZENSHIP
Similar citizenship and residence privileges, although important differences:
St. Kitts & Nevis
Antigua & Barbuda
75GLOBAL RESIDENCE AND CITIZENSHIP
Oneworld Group
Citizenship and Residency
Residence planning and related tax planning for private clients involves finding solutions for individuals and families who move
internationally, own property in different countries and who often have complex international situations and requirements
For many individuals the option of a second or even third citizenship is very attractive. The freedom which is granted to them is
unparalleled
Our citizenship and residence advisory for private clients involves fiduciary solutions for individuals and families who move
internationally, possibly own property in different countries and who often have international situations and requirements
76GLOBAL RESIDENCE AND CITIZENSHIP
EnquiriesYou can direct your enquires concerning Private Client Services to:
Oneworld ltd
75 Prodromou Avenue Savvas Shiatis
Oneworld House sshiatis@oneworldweb.net
Nicosia, Cyprus
reception@oneworldweb.net Theodoros Theodorou
www.oneworldweb.net ttheodorou@oneworldweb.net
Oneworld MidEast ltd
Bayswater Tower, floor 18 Costas Ioannou
Al Abraj South Street cioannou@oneworldmideast.net
Business Bay
Dubai, UAE Alexandros Philippides
aphilippides@oneworldmideast.net
info@oneworldmideast.net
www.oneworldmideast.net
or contact our chairman George Philippides
gphilippides@oneworldmideast.net 77
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