Typical Misunderstanding 1: Hong Kong EP does not equal visa-free access to 168 countries.

Whether it is the Singapore EP (Employment Pass), Hong Kong EP, European Golden Residence Permit, or the Canadian Maple Leaf Card, none of these entitle you to the visa-free treatment automatically enjoyed by citizens of the country that issued the residence permit.

The reason is simple: all of the above are resident statuses, not citizenship.

A visa is a form of permission granted by a sovereign state for foreign citizens or its own citizens to enter, exit, or transit through its borders. It is typically an endorsement stamped on the traveler’s passport or other valid travel document, indicating that the holder is permitted to enter or transit through the country.

Taking Hong Kong as an example, simply obtaining a 2-year, 3-year, or 6-year EP through the Quality Migrant Admission Scheme or the Admission Scheme for Mainland Talents and Professionals does not grant you visa-free access to 168 countries. Only after you have resided in Hong Kong for the usual period of seven years and successfully obtained a Hong Kong passport can you enjoy such visa-free treatment.

Typical Misunderstanding 2: Holding a Golden Residence Permit from a Schengen country in Europe allows you to live and work freely in the 26 Schengen countries.

The Schengen Agreement is essentially a border control agreement. There are 26 member states in the Schengen Area, and border controls between these countries have been abolished. Holding a valid visa from any Schengen country allows you to move freely within the territory of all member states (with a limit of staying no more than 90 days within any 180-day period, or no more than six months within a year).

However, freedom of movement does not mean freedom to work and live.

The highly popular European Golden Visa programs, such as those in Portugal, Malta, etc., grant you the right to legally reside in the respective country, and your children can enjoy local educational benefits there. However, if you wish to work or study in Spain while holding Portuguese resident status, you would still need to apply for legal residency in Spain to do so.

If you want to freely work and live in other Schengen countries, you must obtain a passport from any Schengen country to achieve this.

Typical Misunderstanding 3: Having already obtained U.S. citizenship and wishing to avoid global taxation, the only way to escape U.S. global taxation is to renounce U.S. status.

In fact, the tax concerns related to U.S. citizenship for entrepreneurs or their family members can be addressed through pre-immigration planning and the establishment of a Foreign Grantor Trust (FGT) before acquiring status.

In terms of income tax, during the grantor's lifetime, the assets held in the trust are deemed to be owned by the grantor, and any income generated is attributed to the grantor. Income derived from assets outside the United States that is not sourced from the U.S. is not subject to U.S. income tax.

In terms of gift tax and estate tax, distributions from the trust to U.S. citizen beneficiaries are treated as gifts made by the grantor to the beneficiaries and are not subject to U.S. tax. Only reporting to the U.S. tax authorities is required. Additionally, if the grantor passes away, the assets held in the trust are considered part of the grantor's estate.

Conclusion:

Successful identity planning is not simply about buying a status with money. Only by comprehensively analyzing the current and future development needs of individuals, families, and careers, and by holistically understanding and considering the protections and restrictions imposed by the legal jurisdictions of different countries and regions, can one maximize the benefits of immigration status for individuals, families, and businesses, truly serving as a proactive measure for the future.