Tag

Second Passport

Dominican Republic Tax Haven and Second Passports

By John Savage, Banker Trust

Although the Dominican Republic is not typically regarded as a tax haven, that is actually one of its attractions. Unlike traditional offshore centers, it has not been under pressure from the likes of the OECD, the G20 and the Obama administration. The Dominican Republic has a territorial tax system much like Panama’s, meaning that you can live there and enjoy the beaches tax free, provided your income comes from outside the country. It’s also known as one of the more liberal places for those seeking a second passport or citizenship.

Three Good Reasons to Consider the Dominican Republic for Second Passports and Offshore Investing

Cash on beach

1. Tax Haven
Dominican Republic has a territorial tax system, meaning that if you live there, you would only be subject to pay taxes if you had local income. You can earn what you like outside the country and you don’t even have to declare it, yet alone pay any taxes. This applies to both individuals and companies.

2. Second Passports
Dominican Republic is one of the most liberal countries when it comes to granting citizenship through naturalization. You obtain one in as little as a year. As long as you haven’t done anything to upset the President, he will sign a decree making you a citizen. Absences don’t affect your citizenship status. This liberal naturalization law dates back to 1948. Dual citizenship is allowed.

Note: Please do not confuse the Dominican Republic with the Commonwealth of Dominica. The Commonwealth of Dominica is a small, English-speaking island state with an established economic citizenship (second passport) program catering mainly to the super wealthy. The Dominican citizenship program requires an investment of hundreds of thousands of dollars. With Dominican Republic, however, you could obtain your second passport for as little as $26,500 plus the one year wait.

Lounge with drinks on the coast

3. Liveability
Dominican Republic is a good place to live. First of all, it’s affordable. The tax exemption you get in the Bahamas by buying a half-million-dollar property you get almost for free here. The capital, Santo Domingo, is a modern cosmopolitan city with a beautiful colonial heart. The Spanish colonized it, then the Americans were mainly responsible for the development of the city. The country’s second city Santiago, and the beautiful north coast, were only joined by decent roads built by the Americans in the 1920s. Before that, the north was almost a separate country – trading more with the British and Germans. Today there is a substantial Jewish population up there, and parts where French and Italian are frequently spoken. So there’s really something for everybody.

Dominican Republic has not been high on the traditional lists of places to retire to, that are hyped on the internet. This might be a good thing. Real estate is good value, it’s relatively easy to immigrate and obtain citizenship, and the business environment is nearly as favorable as the climate!

Owning a second passport through dual citizenship in another country is an integral part of international diversification. The idea is that no government should have the sole power over your life or your assets. If you are the citizen of only one country, as most people are, you are essentially at the mercy of your government. If they decide to jail you or confiscate your assets, most of the time you’re on your own.

Putting your money into foreign real estate is very appealing strategy right now. Real estate has always made sense as an asset allocation, but we are more persuaded today than ever that foreign property should be part of every investment portfolio. You can’t watch everything going on in the United States right now and not be persuaded that holding real assets in the form of real estate outside that country isn’t a very good idea.

As you know, thanks to the new U.S. HIRE Act, currency controls in the United States have been seriously tightened. When this legislation takes full effect, foreign financial institutions will be required to report on the investment activities of U.S. citizens.

It’s been increasingly difficult for some time for an American to open a bank account overseas. Some banks have taken the position that they don’t want to do business with Americans, period. Not worth the hassle. Some banks are even kicking current American clients, even longtime American clients, to the curb, unceremoniously closing their accounts.

Options for Americans to protect their assets abroad are going to continue to diminish. If you aren’t already holding a sizable portion of your assets outside your home country, we strongly recommend that you make this a priority agenda, and a portfolio of international real estate holdings should be an important part of your strategy.

First, if you’re an American, it is one of two assets you can hold offshore without triggering a reporting requirement to Uncle Sam (the other is gold and other precious metals). The real estate you hold in another country is your own business.

Plus, it’s unseizable. The IRS might be able to take your foreign bank accounts (the new legislation makes this easier than ever). But how are they going to take your condo in the Dominican Republic?

Why Obtain the Dominican Republic Passport

Dual Citizenship – Dual citizenship is permitted and there is no residency requirement. However, once citizenship is granted you have the option of living and working in the Dominican Republic for the rest of your life.

Granting of Citizenship- If you submitted all documents, passed all necessary procedures, as a rule we can expedite your case where you will receive your Certificate of Naturalization and Passport. The Minister of Immigration will personally sign the Certificate of Naturalization authenticating you as a citizen of the Dominican Republic.

Visa-Free Travel – Travel visa-free to more than forty (40) countries. Visas to the US, Canada, and European Countries are available for an additional cost.

Tax Free Status – Second passport and Dominican citizenship is the key to preserve your wealth. If you have income coming in from outside of the Dominican Republic you do not pay income tax on this income.

Security – Protection of bank accounts, real estate and businesses, both abroad and within your own country.

Confidentiality – The Government of Dominican Republic does not inform the country of your current citizenship or residency about your second or third citizenship.

For more information about tax haven and second citizenship opportunities in the Dominican Republic, please complete and submit the form below.

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July 7, 2014

Asset Protection

How quickly the U.S. could unravel …

written by Escape From America

On December 1, 2001, Argentina’s economy was in trouble. Unemployment was high, debt was high, and recession had taken hold. But life was somewhat ‘normal’.

Basic services still functioned. And no one had to really worry about… food. Or water. Then it all changed. Literally within a day.

On December 2nd, the bankrupt government imposed measures that essentially froze everyone’s bank accounts. You can just imagine– one day having access to your funds, and the next day being completely cut off.

Within a matter of days, people were out in the streets doing battle with the police. The government soon defaulted on its debt, and the currency went into free fall.

Overnight, people went from being able to pay their rent and living expenses to being completely cut off from my funds.

Everything became scarce. The electricity went out all the time. Even food on the grocery store shelves ran low. You would eat what you had available at home.

And in a way, food became a medium of exchange. Within just a few days, people went from having confidence in their currency to not trusting it at all. No one wanted to accept paper money anymore, especially for something as valuable as food.

And if they did, it would be at 2-3 times the normal price.

The best way to describe it is despair. And this is really the worst emotion you can have. Because when you’re in a state of despair, you’re hopeless. It’s a terrible position to be in.

Life becomes hell because you do not know whether you are going to be able to put food on the table the next day.

And in such a state of despair, you’re not in a position to make good decisions. It’s all about survival.

Of course, people thought, “why didn’t we see this coming? Why didn’t we do something sooner?”

If I only had established citizenship elsewhere, if only we had moved some money out of the country before, or taken steps to safeguard his pension, life would have turned out much differently.

It’s like that old saying– better to be a year (or decade) too early than a day too late. Because one should never underestimate the speed with which things can unravel.

When you’ve got a guy like Senator John McCain who says “The battlefield is the United States of America,” it tells you that almost nothing is safe in the US anymore.

Whatever remains of civil liberties is going to feel the full brunt of the state’s boot heel.

They’re already regulating some of the most fundamental aspects of life, from how we are allowed to educate our children to what we can / cannot put in our bodies to the very nature of money.

People are forced to hold their savings in insolvent banks backed by insolvent insurance funds backed by insolvent governments. And those insolvent governments have demonstrated that they are perfectly willing to directly confiscate accounts.

Retirement funds have proven to be an easy, tempting target. A number of countries including our Argentina example, and others such as Ireland, and Hungary have appropriated private pensions. Even the US government temporarily dipped into federal employee pensions.

Western governments are making every possible effort to take over the Internet. Despite every previous attempt (SOPA, PIPA, etc.) failing due to public outcry, they keep trying and trying (ACTA, CISPA, etc.).

They’re raising taxes, creating new ones (including Maryland’s new ‘rain tax’), imposing capital controls, racking up debt, and rapidly devaluing their currencies.

It all reeks of desperation… and it’s all so obvious. At least, for anyone paying attention.

Unfortunately it’s easy to lose sight of the truth. After all, how can there be any economic problems when the stock market is at an ‘all-time high’ and Nobel Prize winning pseudo-scientists tell us that debt levels don’t matter?

Truth is, these enormous challenges shouldn’t be ignored. The entire global financial system is sitting on a bed of dynamite. Central bankers are dousing the pile with gasoline while politicians are standing around smoking.

The potential for epic disaster cannot be understated.

This is not to say that the world is coming to an end. Far from it. History is quite generous with past example of once-great civilizations that collapsed under the weight of their own hubristic debt.

Things didn’t end. They changed. Simple. And that’s what’s happening now in a textbook fashion.

Governments in trouble almost ALWAYS resort to the same destructive tactics. When things are clearly on the decline, rather than INCREASING freedom and opportunity, they try to control EVERYTHING.

We’re already seeing the early stages of this with competitive devaluation, basic capital controls, and bank withdrawal limits.

These will soon give way to wider capital controls, increased border controls, wage and price controls, asset confiscation, and more.

It only delays the inevitable. The more they control, the more rapid the deterioration becomes. Again, this isn’t some sensationalist prediction; it is the very common historical trend.

The other thing that history shows us, however, is that there are always a handful of people who see the writing on the wall and take action.

Why A Dominican Passport?

Quite simply, it is the most economical insurance policy you could have – especially for US citizens. Located in the Caribbean, the Dominican Republic is only 90 minutes from Miami. The weather is perfect all year round and the cost of living is low. It’s a great escape in case things unravel. Other factors which make this an ideal second passport …

Safety – Dominican Republic passport holder are relatively safe worldwide. These passport holders can travel on any continent without the fear of being kidnapped or worse. That’s not the case with US or European passport holders.

Cost – The procurement cost of the Dominican Republic passport can be as low as $24,900. This compares favorably with Dominica at $150,000 or St. Kitts at $395,000.

Wait time – A second passport from the Dominican Republic can be acquired in as little as 9 months.

Other reasons for acquiring a Dominican Republic passport – Buy and rent out property wherever you choose without punitive taxation; Avoid electronic logging of your existing passport; Take greater advantage of offshore business opportunities; Obtain employment worldwide and invest in offshore mutual funds and other vehicles closed to US passport holders.

The very fact that a second passport opens up the additional options already mentioned is actually reason enough to obtain one, but in case you need a little more convincing … Your passport is in fact the property of your government – and for US citizens, government which claims, and increasingly exercises, the right to confiscate it at any time. Even if you have sensibly removed the bulk of your assets to an offshore haven, they are no good to you here if you are trapped in your home country because your passport is no longer valid or has been confiscated. Most countries have laws which allow them to restrict not only entry but also exit from the territory. Exchange controls can be imposed overnight and the necessary legislation is already in place in the US.

U.S. citizens are subject to tax wherever they work and live in the world. But a Dominican Republic passport can open opportunities for sheltering income and protecting assets. If your citizenship demands fulfillment of military service contrary to your beliefs, it would pay you to a Dominican Republic passport that does not. If your passport allows your government to supervise your movements, monitor or control your travel in any way, or restricts your liberty to invest, borrow, or participate in any currency transactions, you are at a disadvantage.

If you wish to keep a low profile, for reasons of nationality, religion, race etc., a second passport can give you the necessary mobility you require. It could even save your life. As an insurance policy against future economic stability, political strife or war, you should think about a second passport. When catastrophe is imminent you’ve left it too late. A second passport in these circumstances would be worth its weight in diamonds.

Anyone who reads much about international tax law knows that the USA is the only country on earth that taxes its citizens on their worldwide income, even if they choose not to live there. This situation, though the US government doesn’t want to admit it, has led to long waiting lines at US consulates abroad as America’s brightest and most productive citizens queue up to renounce their citizenship.

British citizens still have the freedom to leave the UK, and as long as they don’t have any UK income they don’t even have to file British tax returns any more, never mind pay taxes.This, however, may be changing soon. France may not be a country we normally expect to follow the US example, but French politicians are increasingly stating: “We’re going to apply what the Americans apply… a tax based on citizenship.”

French politicians wants to tax “tax exiles” but not French expat workers. Good luck drafting laws that make that distinction work! We somehow doubt this proposition will come to fruition too quickly.

What advantages really are there to having French citizenship, if one does not live in France?

Granted, it’s a pretty good passport to travel on. And if you get into a spot of bother in Colombia or Afghanistan they might send some commandos from Paris to help you out. But is that worth paying more than half your income for?

France was also in the news recently due to a lone Al Qaeda gunman who went on the rampage in Toulouse, killing seven people including two children. A very, very sad case, but it shows again the probability that terrorists will single out French citizens just as they will single out American (or British) citizens.

You probably don’t need the implications of this news spelt out. Other countries have crazy politicians too. Will the UK, Australia, or Canada be the next country to propose worldwide taxation for its citizens? Or will it be Brazil or Russia or China? We don’t know, but it is highly on the cards that this will happen.

Could It Happen in the US?

Earlier last year, we were shocked to learn about Senate Bill 1813, also known as the “Moving Ahead for Progress in the 21st Century” Act.

Its original purpose was to “Reauthorize Federal-aid highway and highway safety construction programs, and for other purposes.”

Other purposes? What could that possibly mean?

Much of it described funds that would be allocated to create jobs building roads and digging ditches for the government.

But there was another section in this 1,676 page document, a small section, tucked away – all about tax delinquency.

There were two disturbing things we found almost immediately. The first one was that if you owed money to the IRS, your debt would be multiplied for inflation, and if that amount was not a multiple of $1,000, they would be so kind as to round it up to the next $1,000 mark for you!

But that wasn’t the real kicker… It also read that if you are believed to owe $50,000 in taxes or more, the Internal Revenue Service now had the ability revoke or deny your passport – eliminating your right to free travel.

I think we all breathed a sigh of relief when this act got shut down. But it got us thinking – could this possibly happen in the US?

When learning about World War II and the Holocaust, a natural question is, “Why didn’t the Jews just leave?”.

Obviously it wasn’t that simple. In 1935, the first of the anti-Semitic laws (called the Nuremberg Laws) were instituted – Mainly to get and keep the Jews out of any civil service positions.

In 1938, the Nazis ordered that all Jews were to register their wealth and property and Jews over the age of 15 were also required to apply for identity cards to be shown – on demand – to any police officer.

Soon after, Jewish passports had to be stamped with a large red “J” and were not allowed to leave the country.

Many who tried to leave were simply denied visas to do so. Those who did escape were officially stateless so no country would even take them in!

Then in 1939, Jews in Germany were subject to a curfew and doctors, lawyers, and dentists were forbidden to practice.

They were gathered in Ghettos and required to wear yellow stars on their clothing. Shortly after, the Ghettos were sealed off and the mass killings followed suit.

In the end, an estimated 11,000,000 people were killed – 6,000,000 of which were Jews.

In this case in history, people were forced to register all of their wealth and then denied the right to travel (sound familiar?).

US citizens are already required to register all their wealth and property. They are already required to have identification on them at all times. There are no secrets.

We ask you this:

Would it be so far-fetched that the government places a 75% tax on the wealthy? (Already happening in France…)

Would it be so far-fetched that the government creates “tax-police” that pull over Ferraris and other nice cars to ask for tax returns? (Already that’s happening in Italy…)

Would it be so far-fetched that while the economy collapses and wealthy people attempt to expatriate, the government imposes laws to take the majority of their wealth before they leave? (It’s are already trying that here!)

Lastly…would it be so far-fetched that the government decides it should stamp large dollar signs on wealthy people’s passports so that they can easily identify who they need to take money from?

Who knows …

Our solution: Getting a second passport.

Have the right to travel freely no matter what happens and do what others in history weren’t able to do: leave!

WHY NOW IS THE TIME TO GET A SECOND PASSPORT

Why should you get a second passport now? Simply, because if you don’t get the process started now, it may be too late. The trend is undoubtedly that things will become more difficult and more expensive.

We would say there is at least a 50% chance that some European nations, Canada or Australia will move to worldwide taxation of citizens in the next five years. Some might argue the chance is much higher.

One significant reason this might happen is simply that it is getting more possible to track international assets. Before there was not much point in worldwide taxation because it was unenforceable from a practical point of view. With information exchange on assets and bank accounts becoming the norm rather than the exception, this has changed. The US is blazing the trail with FATCA and will likely share the FATCA information with other friendly governments, who will thus have even more incentive to introduce worldwide taxation for their citizens.

We are not here to preach doom and gloom. We hope we’re wrong and that taxation of worldwide income for expats does not become the norm. But having a second passport up your sleeve would definitely seem like a smart strategy.

How to get one? We procure passports from the Dominican Republic as well as other jurisdictions. Please call our office at (809) 712-4412 or email BankerTrust@gmail.com. One of our qualified professionals will contact you within 24 hours.

July 12, 2013

Living Overseas

How Can Having A Second Passport Save Your Life When Things Go Wrong

written by Escape From America

November 8, 2010

Overseas Retirement

Why Retire With One Passport When You Can Have Two?

written by Escape From America

Why Retire With One Passport When You Can Have Two?

The driving factors behind many people’s decisions to move abroad in retirement are financial ones. Whether you want to find a more affordable cost of living, you want to make your pension go further or perhaps you want to get more for the money you have to spend annually, a solution can be to retire overseas as some countries are certainly more affordable than others.

However, there is one factor that you may not be aware of, and that is that if you’re an American citizen and you retire overseas, the US still effectively ‘owns’ you and has the right to tax you, no matter where in the world you’re living.

For this reason alone a strikingly increasing number of US citizens are choosing to adopt a second nation as their home abroad by applying, entirely legitimately, for a second passport from a more taxation advantageous and financially free nation.

US citizens are not alone in seeking a second passport solution either…

Whilst Americans are the only ones so harshly affected by the taxation issue, there are other international citizens from the likes of Western Europe and the former Soviet Union who can benefit substantially from the acquisition of a second passport. Therefore, if you’re contemplating a retirement abroad and you want to ensure you’re well looked after, can travel freely and that your financial and political interests are best served, why retire abroad with one passport when you can have two?

In this report we’ll show you how you can potentially benefit from a second passport, why it makes sense for a large number of people to legitimately acquire a second citizenship, and how you can take action today towards getting your own second passport in place as soon as possible to help you save money and enjoy greater freedom abroad.

Who Needs a Second Passport?

A second passport is a particularly valuable asset if you herald from a nation that levies exceptionally restrictive taxation on your worldwide income, assets and gains such as America for example. Those who hold a passport from a country against which there are international travel restrictions can also benefit from a second passport. Furthermore, wealthy citizens from countries where there is high crime or a high potential price on such a high net worth individual may find personal security reasons lead them towards considering a second passport.

Therefore, anyone seeking financial advantages, personal security and confidentiality and international freedom of travel could potentially benefit significantly from holding a second passport.

10 Main Advantages of Holding a Second Passport

If for some reason you have to renew your passport frequently you may find it beneficial to have a second passport from a nation where the renewal rate is 10+ years.
If the nation you herald from is politically unstable and your right to your passport could be under threat at any time as a result, a second passport could help.
If your nationality restricts the way you travel, invest, where you live or how you move or manage your money internationally speaking, a second passport may help you get around these restrictions.
If you are not permitted extensive visa-free travel, a second passport may be a way around this barrier.
If the government in your nation taxes your worldwide estate then a second passport may have advantages in terms of the better international protection and management of your money.
If the passport you carry from the country you come from makes you a target for terrorists or criminals, a second passport could save your life.
If you wish to have greater freedom from your government’s control and intrusion into your affairs perhaps a second passport will help you.
If your passport is from a nation disliked by the one in which you wish to live or work then a second passport could prevent negative attitudes towards you.
If the country you come from has National Service, forcing you or your children into military service, a second passport could protect against this demand.
If you want to gain greater flexibility, freedom and control in your life, a second passport may be the key.

Could You Benefit from a Second Passport?

Americans who move abroad quickly discover that despite the fact they carry an internationally recognised passport and herald from what is arguably the most powerful and influential nation on earth, most international banks and financial institutions will not assist them when they want to open even the simplest bank account. These reputable institutions simply do not want the ‘hassle’ of having to contend with the all powerful US Internal Revenue Service, and many of them are extremely open about the fact. As useful as it is to know that most banks won’t assist you and that your nation will tax your worldwide income, assets and gains if you’re an American, it’s not a particularly advantageous position for you to be in, therefore a second passport could potentially be the perfect answer to your dilemma.

Europeans who relocate overseas such as British and Irish citizens soon discover that their passport is not such a financial restriction because their nation differentiates between residents and citizens when it comes to most forms of taxation – unlike America. However, there are still long-term tax planning advantages potentially available to those from Europe who obtain a second passport particularly when it comes to estate planning – and then there are the lesser talked about advantages such as the fact that some countries will discriminate against you if they don’t like the country you hold a passport from. This is a harsh reality – but if you prefer to think of it in a more politically correct or palatable way, consider the fact that on entry into international airports worldwide there are always different queues at immigration depending on which passport you hold. Well, wouldn’t it be nice if you could whip out the passport that allowed you to join the shortest queue possible and answer the fewest questions to gain entry into that country!

You may find you are treated better, charged less and welcomed more openly in certain nations depending on the passport you hold too – with the likes of Britons and Americans often over-charged in many international locations because they are thought of as so very wealthy. Those who move to live in a country that traditionally has less than positive feelings towards their original country of citizenship may enjoy greater security and peace of mind with an alternative passport when they travel to and from as well as around their new nation of residence as well.

Finally, anyone who is in a financially strong enough position and who can choose the nation they acquire a second passport from thanks to the economic citizenship programs that exist around the world, may well be able to buy themselves taxation freedom, travel freedom and personal freedom in the form of a second passport.

How to Obtain a Second Passport

Having quite possibly convinced you that you can no longer leave home without a second passport if you want to get anywhere in this world with your privacy, freedom and financial integrity intact, I expect you would like to know how you go about obtaining a second passport. The good news is that there are a number of options available to you, but whether any one is suitable for you will depend on your own personal circumstances. If in doubt, seek specialist advice about the best way to proceed in your own individual case.

Ireland, the United Kingdom, Germany and Italy are possibly the most generous countries in the world in terms of handing out passports to the likes of Americans and Australians who can prove qualifying ancestral links. Other countries such as Canada and New Zealand are relatively considerate when it comes to granting citizenship and therefore a passport to those who marry one from that nation. However, if you’re struggling to prove that your Great Grandmother came from Dublin, that you genuinely married a stranger from Toronto for love rather than just a passport, or you don’t want to have to wait the average of between two and five years to get your second passport, your easiest way of obtaining a second passport is the financial route.

A number of nations in the world have what are called ‘economic citizenship programs’ – whereby, for a given financial commitment, you are granted a second passport from that country. This is an entirely legitimate route to gaining second citizenship, and one used increasingly frequently by those who want to retire abroad, by international business persons, frequent global travellers and by anyone who requires greater personal and financial freedom.

Economic Citizenship Programs – Your Passport to a Second Passport

Economic citizenship programs are also often referred to as citizenship-by-investment schemes; they are implemented by governments which use the incentive of a valuable passport to gain investment into their nation. The form that these programs take differ slightly from country to country, but basically you are usually required to invest a given sum of money into a nation, typically on a non-refundable basis, and in return you are granted citizenship and therefore, a second passport.

America has been responsible for placing great pressure on nations such as Belize, which were traditionally very popular with US citizens seeking a second passport, to rescind their economic citizenship programs. As a result there are fewer and fewer economic citizenship programs in existence – this means that if you want to gain a second passport you should act sooner rather than later to obtain one as you never know how quickly all doors will be shut, barred and locked to you, thus meaning you are potentially restricted by your current passport for life.

The most popular destinations still offering second passport programs to international citizens willing to invest are Dominica and St Kitts & Nevis. They have typically the fastest, most straightforward programs in place. Note however that these are not the only countries in the world that will grant second passports and citizenship in return for economic investment. Countries such as Paraguay, Uruguay, the Dominican Republic, Argentina, Peru and Ecuador have perhaps less well-publicised and administered programs, but are worth consideration and exploration if you feel a passport from any of these countries would benefit you more.

The reason why so much focus is however placed on the programs in place in Dominica and in St Kitts & Nevis specifically is that everything is well documented and processed in these countries when it comes to the economic citizenship program. Therefore, if you want it easy, perhaps consider either of these two countries.

The Benefits of Dominica for Your Second Passport

If your application is successful you are granted citizenship for life with a 10-year renewable passport that grants you visa-free entry into many leading nations such as the US and the UK. You have the option of changing your name and as a citizen you can benefit from the fact that there are no taxes levied on your foreign sourced income unless you decide to reside in Dominica and remit your funds to the country. There are no taxes levied on capital gains, gifts, wealth or even your estate upon death – and you don’t have to give up your current citizenship either.

You are not obliged by Dominica to report your new citizenship to your old country, you are not obliged to reside in Dominica to obtain or retain citizenship, the application process is fast and relatively affordable with your requisite investment not required before you’re granted citizenship. Finally, the program is based on the nation’s law and is guaranteed by the government.

The required investment is as follows: –

Single applicants: a non-refundable donation of US$75,000 is required – in addition there will be professional and legal fees in the region of US$15,000. Finally, you need to factor in costs associated with due diligence procedures of circa US$3,000.

Family applicants: a non-refundable donation of US$100,000 will qualify a family of four the right to citizenship in Dominica. This will therefore cover the main applicant, their spouse and two children under eighteen. Add on additional professional and legal fees of about US$25,000 and the cost of conducting due diligence on all the family which will cost circa US$10,000. Note, if you have more children or your children are over eighteen then the following applies: – US$15,000 for each additional child under eighteen, US$25,000 for every child over eighteen but under twenty-one and ‘children’ over the age of twenty-one are required to apply separately under the single applicant option detailed above.

The Benefits of St. Kitts & Nevis

Again you get full and irrevocable citizenship for your lifetime and visa-free entry to leading international nations. You can choose to change your name, you needn’t give up your current citizenship and you don’t need to be living in St. Kitts & Nevis when you apply. In addition however you can choose the way you invest by either making a governmental donation or investing in real estate.

You are not subject to personal income taxation and there is no gift, wealth or inheritance tax, no long-term capital gains taxes and no estate duties. Your investment is not required until you have been granted citizenship, the investment program is guaranteed by the government and protected by law and it is believed to be the longest standing economic citizenship program of its kind having been inaugurated in 1984.

The required investment is as follows: –

Cash investment: between US$200,000 and $400,000 is required and made payable to the Sugar Industry Diversification Foundation (this is known as the SIDF option).

The amount required depends on the number of applicants within a family group and the donation covers all registration and due diligence fees. Additionally you will be required to pay legal and service fees of any promoting agent you use and these are usually in the region of US$15,000 for a single applicant and up to about US$25,000 for a family of four.

Real estate investment: definitely a preferable option for economic citizenship is investment into a government approved real estate development. The minimum value of investment that will qualify you is US$350,000. At the moment there’s a choice of luxury villas and apartments in several resort development projects that are approved for investment by the government of St. Kitts & Nevis. Note, after 5 years you can resell your property – although it will not qualify the next buyer for citizenship, it does mean your investment is relatively ‘safe.’

Note: the registration fees under the real-estate investment option are US$35,000 for the head of the household or any other adult applicant, US$15,000 for a spouse, US$15,000 for each child under 18, and US$35,000 for unmarried dependent children of the applicant between the ages of 18 and 25. The same legal and service fees as above apply and the due diligence fee is in the region of US$3,500 per each person over the age of 18.

There are additional expenses associated with the purchase of real estate including fees for the real estate closing process, insurance, tax on the land and property for example.

To Wrap it Up

There are certainly many potential benefits and advantages to having a second passport, and there are a number of solid paths that an interested party can follow to reach their goal of obtaining citizenship in another nation. However, whether the benefits and advantages outweigh the costs and the hassle factor involved in obtaining a second passport is only something that you can determine on an individual basis.

About the author: Susan Beverley is a writer and editor for Escape From America Magazine and also writes for and maintains Expat Daily News – the expat news blog for EscapeArtist.com. She traveled extensively before becoming an expat herself having found a place to call home in South America where she has lived since 2005. She understands the concerns, needs and difficulties that expats face from first-hand experience and is dedicated to supporting and encouraging anyone who is looking for a new nation to call home.

March 2, 2010

Asset Protection

Does Your Family Tree Hold the Key to Your Second Passport?

written by Escape From America

Want a second passport? – Try looking in your family tree

Are you resident in a high tax nation?

Are you plagued by the erosion of your income and assets thanks to the taxman?

Are you looking to relocate abroad, with your heart set on living in a country that doesn’t favor your particular passport?

Perhaps you’ve heard that there are taxation, security, privacy and freedom benefits associated with having dual or even multiple citizenship?

Do you want a second passport?

Whatever your personal reasons are for exploring what has become one of the most popular searches on Escape Artist, i.e., ‘getting a second passport,’ there’s a chance that your family tree could actually hold the key to you gaining second, or even multiple citizenships and that much desired second passport.

If you begin a search on the Internet into gaining a second passport, you are inundated with adverts for services from companies offering to assist you in purchasing citizenship elsewhere in the world. Certain nations offer economic citizenship programs, or citizenship-by-investment schemes, – the best well known and popular are Dominica, St. Kitts and Nevis. However, the investment commitment and financial outlay required to effectively purchase a second passport from these nations can be restrictive to all but a determined and wealthy few.

The good news is that even countries such as Great Britain and Ireland may legitimately welcome you as a national, depending on your family’s history and your ancestors and direct relatives’ nationality. Therefore it is up to you to get working on your family tree, and plot your family’s national identity back as far as your grandparents. Even a deceased member of your family could provide you with the key you need to getting a second passport from a desirable country.

How To Get Started on Your Family Tree

Your first requirement is to identify the nationality, place of birth and country of domicile of each member of your immediate family, going back as far as your maternal and paternal grandparents. If you’re married, your spouse should do the same. It may be very obvious to you that your father is British for example, if he was born and raised in the UK, but just moved abroad in adult life, he will be British by domicile and nationality. In other cases, it can be more complex to determine.

For example, if your paternal grandfather was born and raised in Ireland but emigrated to America and was naturalized there before your father was born, does that make your father American or Irish? Generally speaking, it makes your father an American by birth and by domicile. However, for every close relative you have who has a less than clear path of nationality and citizenship in the nation in which you or they now reside, there is a chance that they could offer you the key to a second passport!

If you have any siblings or aunts and uncles who have relocated abroad and adopted another nationality, or who have gained residency and citizenship elsewhere overseas, make a note of these people and their status too when plotting your family tree. If it helps, literally draw your family tree to plot out whose background you will need to research.

In terms of what you’re looking for, an example will be you looking for the data associated with current and previous nationality, place of birth, country of residence and domicile for your mother, your father, your brothers and sisters, your mother’s mother, your mother’s father, your father’s mother and your father’s father.

Consider counting your mother and father’s siblings if, as mentioned, they have relocated abroad and/or adopted citizenship elsewhere too – it could be that they could potentially act as ‘sponsors’ to your relocation abroad if you wanted to live in and eventually gain a passport from the country in which they are now living.

You can begin researching your family’s history by asking living relatives about where they were born, which country they grew up in and where they are entitled to hold a passport from. If it’s the case that a close family member was born in another country and grew up there, you have a strong potential claim on a second passport from that nation.

Are You Entitled to Second Citizenship?

Having identified a member of yours or your spouse’s close family who has strong national ties with another nation, you need to look at that specific country’s citizenship criteria and see whether you are eligible to apply for residency, citizenship and/or a second passport. The very confusing fact of the matter is, every single country in the world has different criteria and different rules about who is eligible, what they are eligible for, and even whether a citizen of their nation can hold more than one passport and nation of citizenship.

The good news is that countries like the US, Ireland and the UK are all comfortable with the idea of individuals potentially having more than one country of citizenship. Other nations almost actively encourage their residents to embrace multiple citizenships where it’s possible because it enables international business flow and even inward investment to their country. The main countries against the idea of individuals being citizens of more than one nation are Denmark, China, Japan, Saudi Arabia and Singapore.

With a clear idea of which nation, (or nations), you may be entitled to apply to for citizenship and a passport, the very first step forward is establishing that country’s criteria for eligibility.

To that end, the fastest route to information is via the Internet, so go to the given nation’s government website or, if you find that the website is inaccessible due to a language barrier for example, you can look at that nation’s embassy in your own current country. There will usually be clear instructions about who is and is not potentially eligible for citizenship, and who can therefore apply for a passport. If in any doubt, it’s in your best interests to personally contact your chosen country’s embassy or consulate in your nation and request advice, support and direction.

How Does The Process of Application for a Second Passport Work?

Just as different nations have different criteria of eligibility for citizenship, so they have different processes that you have to go through to apply for a second passport. You will however have to prove your identity and your reasons for eligibility, and you will almost always have to pay processing fees with your application. You may have to attend an interview, be in your home nation when you apply for citizenship in the second nation, and there can sometimes be a lengthy delay whilst your application is reviewed, especially as your application is often sent to the local embassy, but then processed overseas in the second country.

Is It Worth the Hassle?

Only you can decide whether it’s worth going to the time, effort and expense associated with getting a second passport. You need to think about what second citizenship will offer you – there are potential advantages associated with travel freedom, taxation reduction, personal protection, privacy and security – but whether these advantages apply to you is only something you can work out. When it comes to taxation, it’s not clear cut that if you get citizenship in a country with lower taxes than your own that you will benefit from this advantage. It depends on the tax treaties in place between your current country and the second nation at the very least – and if there are no such treaties in place, you could complicate your tax situation even more!

If you’re in any doubt about whether to proceed, there are those in a position to advise you. You can speak to staff in the embassy of the nation you’re interested in gaining citizenship in for their feedback, and they may suggest third parties who can help you. International taxation and legal consultants may also offer advice, and then there are some companies who advertise their services on the Internet who may also be able to guide you. A word of warning however, it is usually in such companies’ best interests to convince you to go ahead, because they can then charge you a fee for helping you apply.

In Conclusion…

Your family could hold the key to you gaining a second passport entirely legitimately, and for minimum outlay. The process involved may be relatively complex and time consuming, but there are potentially great benefits available to those who hold citizenship, and therefore a passport, from more than one country. It’s an individual decision however, so do take advice before you proceed to ensure that this is the right path for you to follow.

February 8, 2010