It may seem a radical idea to those born and bred in one country, but almost anyone with the financial means and determination will become an international citizen eventually. Here at The Sovereign Society, our friendly international outlook is well established. We feel just as home "offshore" as we do in our native lands. Sometimes even more so. We know from experience that offshore quite often offers more personal freedom, economic liberty and financial success than we can now obtain in the country of our birth.
There are many valid reasons to consider acquiring an alternative citizenship and second passport. This new passport can expand your legal rights, allowing world travel, unmolested by curious border guards and nosey customs and tax officials. It can open doors that otherwise would forever remain closed to you. Best of all, a second citizenship or second passport can serve as the key to reducing your taxes and protecting your assets - or even your life.
The articles below originally appeared in our montly newsletter, The Sovereign Individual and will give you some of the basics, but you may need professional help to guide you along the way. You can learn more about second passports and citizenship, tax havens and offshore banking in The Sovereign Individual each month by becoming a member of The Sovereign Society.
More About Second Passports and Citizenship
Best Second Citizenship & Residency Programs
by Robert E. Bauman, JD
Having a second passport and dual citizenship can bring you greater travel safety, faster access to living abroad, and may even lead to potential tax free existence in another country. And it all can be done legally.
If you’re in a hurry and want a second citizenship in a matter of months, there are only two nations that offer this quick service, but for a price. They call it “economic citizenship” but it’s really citizenship for sale. The two nations are the Commonwealth of Dominica and St. Christopher & Nevis, both in the Caribbean area.
Several other nations, including the U.S. and Canada, offer immediate residence in return for substantial investments in a job-producing business, but not immediate citizenship. That usually requires several years of actual presence.
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Expatriation: Ultimate Solution to Cut Your Taxes, Make Money & Protect Your Wealth
By Robert E. Bauman, JD
Q: “How can I avoid paying U.S. income taxes?”
A: You can’t, as long as you are a U.S. person.
In my travels, I often get this question from folks the U.S. Internal Revenue Service calls “U.S. persons.” That’s IRS shorthand for those multi-millions (citizens and resident aliens) that must pay American income taxes.
Since the U.S., alone among major countries, imposes taxes on its citizens, no matter where a U.S. citizen lives, where their assets are located, or where their income source is based, American income taxes apply.
A U.S. person can be born in, but spend their entire life outside the U.S., and the law says they still owe U.S. taxes. That’s because U.S. citizenship is so easy to acquire. Virtually everyone born in the U.S., or a U.S. dependency, automatically acquires it. In addition, certain individuals born outside of the U.S. are U.S. citizens because one or both parents are U.S. persons or otherwise have close connections with the U.S.
In contrast, most other countries impose taxes only on the income of actual residents. A U.K. citizen who permanently relocates to low-tax Switzerland is no longer subject to U.K. income tax and (after five years) U.K. capital gains tax. Similar rules apply in the remainder of the EU and in Canada, although Canada imposes an onerous exit tax on expatriates. Thus, moving to a tax haven is a legal way to avoid income taxes for nearly everyone, except those hapless “U.S. persons.”
Fortunately, there are several options that a wealthy U.S. person can take to legally avoid the long arm of the taxman
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Your New Country in a Matter of Months: Economic Citizenship for Sale
By Robert E. Bauman, JD
I often get questions concerning how to acquire dual citizenship and the second passport that comes with it. Folks want to know how it can be done, and why they should consider it.
I start by assuring them that dual citizenship is legal under American law, as it is in many nations, and that the U.S. Supreme Court upheld this right in several cases decades ago. And of course, if the person is interested in “expatriation,” the formal act of surrendering U.S. citizenship (also a legal right), I explain that they certainly need a second citizenship to avoid becoming a man (or woman) without a country, a modern day version of Edward Everett Hale’s disturbing novel from 1917.
A second nationality is a hedge against unforeseen events. It provides the option to legally reside and work in another country that may offer tax advantages, although this is of limited benefit to U.S. citizens. (If you are a U.S. citizen or green card holder, you are still accountable to Uncle Sam when it comes to reporting your taxes, no matter where you live.)
Most countries require a foreigner to become a resident and live there for an average of five years or more before they are granted citizenship. But there is a quick route to a second passport in just a matter of months—but it will cost you dearly.
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