Plan B for Canadian Expats: Protect Your Assets with Multiple Citizenships

The world is a volatile place where change is the only constant. 

From armed conflict to trade wars, political upheaval and economic uncertainty, global instability is reshaping the way we live and work.

The march of time is irresistible, and those who fail to anticipate and adapt risk being left behind.

This kind of thinking is not uncommon among US citizens, but now, even in Canada – a nation once revered for its stability, economic opportunity and quality of life – many people are starting to realise the importance of backup plans. 

The security of single citizenship is no longer what it once was and forward-thinking Canadians are taking steps to protect their futures.

That’s why they’re investigating the potential of multiple citizenships. Whether it’s for greater financial flexibility, a reduced tax burden, access to new markets and opportunities or simply a back-pocket safety net in this unpredictable world, a second passport can be a game-changer.

But this is a complex area, so the Nomad Capitalist team has put together an in-depth look at how this powerful strategy can safeguard your assets and unlock new possibilities.

Pros and Cons of a Global Plan B for Canadians

Putting in place a global Plan B is a big decision, not one to be taken lightly or as a reaction to a particularly harrowing news cycle. 

Like any life-changing move, it comes with compelling advantages and potential challenges.

Advantages of a Global Plan B

A well-crafted Plan B means you can live, work and do business in almost any country you choose, without all the usual hassles. 

Another big plus is that it can protect your assets against economic or political bumps in the road. It’s basic diversification, just like you’d do with your investment portfolio, but on a global scale.

Lastly, a second citizenship simply gives you more options. It gives you that reassuring feeling of knowing you have choices and a place to go if you ever need it.

Disadvantages and Challenges

Now, for the not-so-fun part. 

Getting and keeping multiple citizenships can be complex. You have to deal with different laws, tax systems and reporting requirements. In most cases, you’ll certainly need help from professionals like our team at Nomad Capitalist.

The cost is also something to consider. Many citizenship-by-investment programs require a hefty investment, and not all of them generate a return. 

Finally, it’s worth noting that having multiple citizenships can sometimes mean a bit more paperwork and attention from banks and tax authorities.

You’ll have to be organised and follow all the rules of any new country. 

What are the Reasons for Leaving Canada?

This matters because your reasons for leaving go to the heart of the matter – what do you want to do next?

After all, Canada is a country many people dream of moving to, not from.

On the other hand, for some Canadians, having a Plan B is about having the freedom to live where you choose or ‘go where you’re treated best, as we call it.’  

Another driving force is a desire for lower taxes.

A new tax residence can optimise your financial position so that you can keep a bigger share of your income.

Then there’s the matter of long-term financial well-being. While Canada’s economy is relatively stable, no country is entirely immune to global uncertainty. 

Diversifying your assets and even residency can be a wise way to safeguard against potential economic headwinds, wherever they may arise.

Beyond the purely financial, there are often deeply personal reasons. 

Perhaps it’s the pull of a warmer climate, the itch to lose oneself in a different culture or the opportunity to bless your children with unique experiences: second citizenship can help you realise these ambitions.

Strategies for Building Your Plan B 

The main element of a strong Plan B is acquiring additional citizenships or residencies that can unlock the benefits we just mentioned. 

Obtaining Additional Citizenships

In terms of acquiring a second citizenship, the two main options we will focus on are citizenship by investment (CBI) and citizenship by descent (CBD). 

Each has its pros, cons and bureaucratic demands.

Citizenship-by-Investment Programs

Citizenship by investment programs offers citizenship in exchange for a financial contribution that takes the following forms:

• Real estate investments
• Government bond purchases
• Direct donation
• Business investments or entrepreneurship.

There are many popular CBI programs, including those in the Caribbean (St Kitts and Nevis, Dominica, Grenada, Antigua and Barbuda, and St Lucia) and a few more in South America and Europe. 

Citizenship by Descent

​​Citizenship by descent, or jus sanguinis (the right of blood), is based on your ancestry. 

If you have parents, grandparents or even great-grandparents who were citizens of another country, you may be eligible for that citizenship. 

This route is cheaper than CBI but more complex and time-consuming. 

For starters, requirements vary widely. Some countries (like Ireland and Italy) have generous rules, while others are more strict. 

You need to do your research and produce lots of documentation like birth certificates, marriage certificates and other records that prove your lineage. 

Securing Residency in Other Countries

While full citizenship offers the most comprehensive rights, securing residency in another country can be a valuable stepping stone or even a sufficient Plan B in itself. 

Residency often gives you the right to live, work and enjoy certain rights in a country without having to be a citizen. 

However, some residency programs can also lead to citizenship through naturalisation, often requiring residency for five to ten years. 

Residency-by-Investment Programs

Residency by investment typically takes the form of a real estate purchase, government bond investment or business investment

The best-known residency programs, often called Golden Visas, offer benefits like: 

• Relatively fast processing times
• The ability to live and travel within the Schengen Area
• A potential path to citizenship 
• Tax advantages
• Investment opportunities.

Portugal is one such example, while Cyprus and Latvia have also established popular programs.

However, there are many other programs out there. 

Some people might not need access to the EU market. Some might want an idyllic escape and a new lifestyle, for which there’s Asia or Latin America. 

Finding the right fit for your long-term goals is key. 

Retirement Visas

For those seeking a place to retire that offers them age security among their Plan B benefits, retirement visas are worth considering. 

These visas typically require proof of sufficient income or pension to support yourself without working and often have age restrictions. They generally don’t provide a direct path to citizenship, but they are a relatively straightforward way to stay long-term.

Countries like Panama, Costa Rica, Mexico and Thailand have long been popular destinations for retirees. However, you need to explore ‌factors like healthcare access, language barriers and cultural conditions before making a move. 

It’s also worth exploring countries that offer retiree tax benefits. For instance, retirees living in Panama have low property taxes and cheaper healthcare. 

You can also get a one-time exemption on import tax for household goods and personal items, no double taxation on foreign-earned income and many more perks.

Offshore Asset Protection Strategies

Protecting your assets is another important part of any Canadian Plan B. 

Offshore asset protection, done right, complements a second residency or citizenship by giving you a secure foundation, regardless of where you choose to live. 

Most importantly, your choice of second residency or citizenship can influence your asset protection strategy. 

Some countries have stronger asset protection laws or more favourable tax treaties than others. A smart choice on your part could open up enough doors to secure your assets in many countries. 

Many with citizenship in Malta, for instance, will exploit their access to the EU and hold their wealth in a well-established EU jurisdiction.

This is why a Plan B should be a holistic strategy, combining your residency and citizenship choices with your asset protection planning. 

For example, an offshore trust or foundation, structured correctly in the right jurisdiction, can offer significant protection. 

Another option is using international business companies (IBCs) in jurisdictions known for their strong asset protection laws. These companies can hold assets, conduct business and open bank accounts while requiring minimal or no staffing. 

Tax Considerations for Canadian Expats

Leaving Canada, even for a little while, can trigger a cascade of tax issues.

The Canada Revenue Agency (CRA) is known for being thorough. It’s important to know your responsibilities and plan before you go.

The good news is that with careful planning, you can often minimise your overall tax burden and stay fully compliant. 

Great Canadian Plan B: FAQs

Ready for Your Plan B?

Having a Plan B is empowering. It’s the first step in taking control of your future and expanding your options. 

But this is also an undeniably complex area. Trying to understand international laws, tax regulations and investment options sometimes seems like a full-time job.

The truth is that the most successful Plan B is built with expert guidance and let’s face it, there’s simply too much at stake to go at it alone.

At Nomad Capitalist, we specialise in helping individuals like you create and implement personalised Plan B strategies. We’ve helped many Canadians achieve their goals of global mobility, asset protection and financial optimisation.

If you’re ready to explore your options and build a Plan B that’s right for you, we’re here to help. Reach out to us for a consultation.