Want a second passport or alternate citizenship?
Why You Should Consider a Second Citizenship
For example, a passport from the Commonwealth of Dominica gives you the right to live in Dominica but also in other members of the Organization of Eastern Caribbean States (OECS), including St. Kitts & Nevis, St. Lucia and St. Vincent.
Until last year, Malta offered a Citizenship by Investment program that gave you the right to live, work and study anywhere in the European Union.
A second passport also reduces your profile to terrorists. Unlike the US, many other countries have no enemies. Their governments don’t have troops stationed in more than 100 countries and they aren’t launching cruise missiles.
And finally – a second citizenship helps you prepare for expatriation – giving up your US citizenship and passport. For Americans, this is the only way to permanently and legally eliminate US tax and reporting obligations on your worldwide income and estate.
Clearly, almost everyone can benefit from a second citizenship and passport. Wouldn’t you feel safer if you had a second passport stashed away – just in case?
But which Second Passport is right for you?
The remainder of this article will focus on these Citizenship by Investment, or CBI, programs. That’s because – for those that can afford it – it’s the fastest, easiest way to enjoy the freedom that comes with knowing you can leave when you want to.
But first, I need to clear something up.
Getting a second passport will NOT lower your tax bill
Many people seem to have the idea that just getting a second passport will automatically lower their tax bill or allow them to suddenly lose the restrictions that come with being an American citizen.
That’s simply not true.
The United States is almost unique in the requirement that citizens pay taxes on their worldwide income simply because they’re American. So even if you get a second passport and leave the US permanently, you’re still required to pay taxes and file paperwork at home.
The only legal way to completely break free of Uncle Sam is to formally expatriate and give up your US passport.
That’s a BIG decision and not to be made lightly. And this isn’t the place to have such a discussion, but you should be aware.
There are lots of good reasons to get a second passport, but tax savings isn’t it.
And assuming that’s not the case, you might be asking: