The Passport Trap: Five Mistakes Investors Make When Buying Citizenship

A second passport is often sold as a straightforward proposition: make an investment, complete the process and gain access to a world of new opportunities. But for entrepreneurs and high-net-worth individuals with business interests, assets and family connections across several countries, the decision is rarely that simple.

“One of the biggest misconceptions in investment migration is that the passport itself is the objective. It isn’t. The real question is what you want that passport to make possible,” says Milos Stojanovic, founder of Dubai-based Soland. “Are you looking to expand your business, diversify your assets, give your family more options or create greater flexibility? Unless you understand that first, you risk making a very expensive decision without a clear strategy.” 

It is a distinction that sits at the heart of Stojanovic’s approach to investment migration. As the founder of Soland, headquartered in Dubai, Milos Stojanovic leads a company licensed by the Capital Market Authority (CMA), a distinction that sets Soland apart as the only company in the citizenship-by-investment industry to hold this licence. Beyond the traditional business of securing citizenship or residency, Soland offers a more comprehensive form of private advisory.

Soland works with entrepreneurs, investors and internationally mobile families, combining investment migration with international real estate and cross-border business advisory. Its broader ambition is to connect these services with financial and wealth structuring solutions, recognising that a client’s requirements rarely begin and end with immigration status.

For investors considering a second citizenship, Milos Stojanovic identifies five common mistakes that can undermine an otherwise sound decision.

1. Choosing a passport before knowing what you want to achieve

The first mistake is beginning with the program rather than the objective. An entrepreneur seeking to establish a presence in a new market has different requirements from a family looking for greater geographical flexibility or an investor concerned about protecting assets across jurisdictions. For some, residency may be more appropriate than citizenship.

Soland’s approach begins with understanding these individual circumstances before evaluating possible jurisdictions and programs. Its advisory team brings together professionals with experience across investment migration, international business, finance, taxation and real estate, allowing the company to look at a client’s requirements from several perspectives. 

With multilingual capabilities, the team also brings an understanding of different cultural expectations and the considerations that shape decisions for internationally mobile clients. The aim is to identify solutions that address not just the immediate citizenship or residency requirement, but the client’s wider business, financial and family interests.

2. Assuming a passport opens every door

Visa-free travel is an attractive benefit, but it is not a complete measure of global mobility. The ability to enter a country without a visa does not automatically confer the right to live, work or establish a business there. Nor does a second passport guarantee access to banking services or remove the due diligence requirements imposed by financial institutions. “In our experience, for business owners, the more important consideration is whether their citizenship supports the way they intend to operate internationally. For families, it is whether it creates meaningful choices around residence, education and their future,” Stojanovic adds. 

3. Expecting a second citizenship to solve tax problems

Another common misconception is that acquiring a second citizenship automatically changes an individual’s tax position.

It does not. Tax residency is determined by the relevant jurisdictions and the individual’s circumstances. Time spent in a country, residential ties and business interests can all be relevant, while some countries also impose tax obligations based on citizenship.

Stojanovic believes this is precisely where fragmented advice can become problematic. Immigration decisions should be considered alongside qualified tax and legal advice, rather than made independently of them.

4. Looking beyond the headline price

The advertised investment requirement is rarely the full financial picture. Government charges, due diligence, professional fees and application expenses all need to be considered. Where property or another qualifying investment is involved, investors should also examine the asset’s underlying value, liquidity, holding period and potential exit options.

An investment does not become attractive simply because it qualifies for a citizenship programme.

Soland’s wider real estate and business advisory capabilities reflect the importance of looking at the financial decision as a whole, rather than focusing exclusively on the immigration outcome. Investors need to understand where their capital is going, what obligations they are taking on and whether the investment makes sense independently.

5. Thinking the relationship ends when the passport arrives

Perhaps the most overlooked mistake is treating citizenship as a one-off transaction. Business interests evolve, families grow, children pursue education in different countries and regulations change. A decision that makes sense today may need to be revisited as personal and financial circumstances develop.

This is also why Soland places considerable emphasis on the people behind its advisory model. Ksenia Grishchenko, Soland’s Chief Operating Officer, plays an important role in bringing together the company’s different areas of expertise and coordinating the client experience. “Understanding the client’s requirements is only the beginning. The real challenge is coordinating different specialists, jurisdictions and regulatory requirements while ensuring that the client has a clear picture of the process. We want clients to have continuity and a trusted point of contact as their needs evolve, rather than having to start again every time a new requirement emerges,” she emphasizes.

Building beyond traditional investment migration

The evolution of Soland reflects a wider shift in the international advisory market. Geopolitical uncertainty, changing regulations and the increasing internationalization of private wealth are encouraging investors to think more carefully about where they live, how they structure their assets and where they establish their businesses.

Soland combines its investment migration, international real estate and cross-border business expertise with an expanding financial and wealth structuring proposition. Within the scope of its applicable regulatory permissions, its services extend to areas such as corporate and holding structures, trusts and foundations, insurance solutions and international banking relationships.

The intention is to give clients access to a more connected advisory relationship, bringing different aspects of their international affairs into the same conversation.

For Milos Stojanovic, this is also about changing the nature of the relationship between adviser and client. “We are moving away from a purely transactional approach. A client may initially come to us for European residency, but their requirements could later evolve. There are many connected decisions, and they deserve to be looked at together. We want to build relationships that remain relevant as our clients’ lives and businesses change.”

For Soland, the passport is simply the starting point. The bigger business is helping clients navigate everything that comes after it.