The idea of diversification has evolved beyond finances

Typically, individuals consider diversification solely within the context of their investment portfolio.

Your portfolio mix consists of stocks, bonds, real estate, certificates of deposits, and cash in a money market account.

So now you’re diversified, right?

Well, if all your assets are in one country, then the success of your investments depends on that country’s economy and politics.

And this is why spreading your investments across multiple countries, not only the Dominican Republic, mitigates your risks.

Plus, by investing in other countries, you can benefit from:

• Asset Protection—Holding investments and assets in different jurisdictions provide an added level of protection from lawsuits, creditors, or economic instability in your home country.
• Currency Diversification – Investing in a different currency gives you a built-in hedge against the dollar’s depreciation or devaluation.
• Higher Returns – You have access to emerging or developing markets with huge ROI potential in terms of capital appreciation and cash flow.
• Residency and Citizenship – An investment in certain countries, like the Dominican Republic, can qualify you for residency or citizenship, which means you get a second passport.

Further, the idea of diversification has evolved beyond simply finances and investment.

Many wealthy families are starting to consider residency in other countries and a second citizenship as part of their diversification strategy. This strategy makes sense, given the political instability and uncertainty around the world these days.

Holders of second passports consider it a backup plan or their Plan B. If something were to happen in their home country, they could legally reside in another country. Aside from that, a second passport allows you to do business as a citizen rather than as a foreigner.

There is a pathway to citizenship in the DR, and you do not have to be super wealthy.

You’ve got the “ordinary” track where foreigners who get Dominican residency are eligible for citizenship after seven years (7) years.

Then there’s the “fast” track. Foreigners who get their residency through the investment department can apply for citizenship six months after receipt of their residency card.

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Maria Abreu is the CEO and Managing Attorney of Abreu & Associates, a law firm practicing exclusively in Dominican Republic Immigration and Nationality law. She is also the founder of Retire and Invest DR. This organization hosts conference events for foreigners interested in living, retiring, and investing in the DR. You can contact Maria at: mabreu@abreuimmigration.com.