Learn the Benefits of Citizenship-based Taxation

There are many benefits to obtaining a second citizenship through a citizenship-by-investment programme. The programmes offer greater personal and family safety and security, easier international travel, and, depending on which country you choose, they can also provide citizenship-based taxation benefits that free you from oppressive tax liabilities in your country of origin. 

The taxation rates for citizenship-by-investment programmes may vary significantly between countries, depending on several factors, including:

• Country of origin tax liabilities
• New citizenship tax rates
• Professional accounting advice

Whether your country of origin maintains taxation on non-resident citizens, can play a large part in your total annual tax burden. However, understanding the tax implications of your chosen country is crucial before investing. 

Understanding CBI Tax Fundamentals

Knowing the tax rates of your chosen country is crucial before entering a CBI programme. Currently, only the USA and Eritrea tax citizens based on citizenship. This means that citizens of these two countries must file tax returns annually on their global earnings, no matter where they reside. 

Most of the world’s countries distinguish between tax residency and citizenship. This distinction can be used to an applicant’s financial advantage when choosing between CBI programmes. Choosing a country that doesn’t tax any earnings made outside its borders and has a double taxation agreement (DTA) in place is advantageous. Double taxation is where Eritrean and US citizens may be forced to pay taxes twice on their income and assets, once to their birth country and once to their country of residence. A DTA eliminates this problem.   

Choose CBI Citizenship Favourable to Your Finances

Another way to reduce your tax liability as much as possible is to tailor your CBI citizenship to the least damaging type of taxation for your financial situation. There are several forms of taxation in many countries offering CBI programmes, including:

• Income tax
• Wealth tax
• Inheritance tax
• Real estate tax 
• Value-added tax (VAT)

If your wealth comes mainly from your annual income, you should choose a country for citizenship that offers low income tax rates based on citizenship. However, if you have many investments that support you and your family more than your income, a country with a low capital gains taxation rate would be more beneficial. If you’re supported by family money held in a trust, you’d most likely be more interested in living in a country with limited inheritance and wealth taxation.

Tax Advantages of CBI Programmes

Many of the countries offering CBI programmes offer different citizenship-based taxation rates, and it pays to know the details. Income tax rates vary from a flat 10% on taxable income in Antigua and Barbuda to 35% in St. Kitts and Nevis. However, citizens of St Kitts and Nevis are not required to pay additional taxes like property, inheritance, or wealth tax.  

Knowing which countries have zero personal income tax in select jurisdictions, offer capital gains tax exemptions and have no inheritance or wealth taxes can be crucial to your family’s future wealth and prosperity. You want to choose a country that offers a transparent, business-friendly tax environment. 

Potential Tax Complications

There are also tax complications in some of the countries offering CBI programmes. These complications may include: 

• Additional reporting requirements
• Wealth taxes on high-net-worth individuals
• Complex rules of compliance across multiple jurisdictions
• Exit taxes from home countries. 

Regional Tax Patterns

Some regions of the world are more favourable to citizenship-based taxation than others. The Caribbean nations are generally favourable, with no worldwide taxation and low-income tax rates. They may be preferable to European countries, offering mixed benefits with some compliance requirements. 

Compliance and Professional Guidance

Before seriously considering a citizenship-by-investment country, contact the immigration professionals at Premier Consultancy Thailand. We offer due diligence research that should always precede a commitment. Our tax advisors provide a professional consulting service that specialises in international law and perform a regular review that keeps you up-to-date on changing worldwide tax laws. 

We also offer an ongoing compliance service that handles your annual reporting and filing obligations in your country of citizenship.   

It’s vital to partner with a professional international immigration tax consulting firm that can help you take advantage of all the benefits a CBI investment offers you and your family. Contact Premier Consultancy Thailand before investing in a CBI programme. 

References:

Navigating Tax in Citizenship By Investment – Retrieved August 13, 2025, from: https://csglobalpartners.com/resources/what-is-citizenship-by-investment/#:~:text=Citizenship%20by%20Investment%20(CBI)%20is

How CBI Supports Global Entrepreneurs: Tax Efficiency, Mobility, and Market Access – Retrieved August 13, 2025, from: https://holbornpass.com/industry-news/how-cbi-supports-global-entrepreneurs-tax-efficiency-mobility-and-market-access/#:~:text=Tax%20Efficiency%20Without%20Complication&text=Several%20CBI%20jurisdictions%20do%20not,preserve%20a