Citizenships - Why Two is Better than One
Citizenships - Why Two is Better than One
The benefits and advantages to obtaining a second citizenship
Recently, the thought of attaining a second citizenship has become more appealing to citizens in many parts of the world. With the existence of countries that don’t tax income, wealth, capital gains, and inheritance, it is no wonder that many Americans, Canadians, and Europeans, are acquiring second passports. Holding two passports provides people with many forms of security –financial, residential, business and work, safety, and travel.
Right now people ranging from young entrepreneurs to retirees are moving to foreign countries for various reasons, whether it is to live comfortably at a low price, to escape the economic hardships in the United States, or just to experience a new culture. For a majority of countries, it is not necessary that a second passport be obtained in order to live abroad. Instead, a person may acquire a residency card, allotting a specified amount of time for his/her stay in that specific country.
Why Bother with a Second Passport?
Acquiring a second passport is like opening the door to a whole new world, quite literally. Opportunities increase exponentially when a person has two citizenships, ranging from traveling to working. Some advantages include:
- Have the freedom to work and live in another country
- Enter a country visa-free, encountering less limitations than those who enter on a visa
- Avoid potential governmental restrictions and limitations from birth country for citizenship on travel, investment, and international money management
- Avoid limitations on property ownership by foreigners in some countries
- Open a bank account in another country
- Prevent negative judgments and attitudes if birth country of citizenship is disliked
- Escape potential acts of terrorism specifically targeting citizens of birth country of citizenship
- Have a place to reside in case birth country of citizenship experiences hardships and political instability
- Travel to countries that birth country of citizenship may prohibit its’ citizens from visiting
- Experience greater flexibility, privacy, and control of life
Furthermore, a person may find that with a second passport, he/she is no longer treated as a tourist, but rather a citizen. People may be more welcoming and accepting. Additionally, locals may not try to overcharge you, knowing that you are not some naive one-time visitor who can easily be duped. Feelings of additional support and security are instantly accompanied by personal and financial freedom.
How to Obtain a Second Citizenship
Citizenship requirements vary for each country, which may make it easier to become a citizen in one country compared to another. In order to go about attaining a second passport, a person must decide what relation he/has has to the desired country of citizenship, and apply accordingly. Possible ways to obtain a second passport include:
- Having ancestral links
- Marrying a citizen from respective country
- Fulfilling residence requirements
- Participating in Economic Citizenship Programs/ Citizenship by Investment by making a financial investment in a country through a non-refundable deposit
The United Kingdom, Italy and Ireland are among the countries that offer more leniencies to those Americans and Australians looking to obtain their second citizenship – as long as they can prove their ancestral roots. Specifically in Ireland, a person can be granted citizenship as long as he/she had one grandparent born in Ireland. Other countries give citizenship to those who are married to person from that respective country.
Moreover, a person can obtain citizenship by undergoing an extensive process of fulfilling residency requirements, which vary per country, but are by no means short. In all of these scenarios, a person must provide substantial documentation, fulfill a magnitude of requirements, and wait a lengthy amount of time just to be considered for citizenship. In some circumstances, families may be subjected to individual qualification processes, therefore not guaranteeing citizenship to all members. Each country has different requirements for citizenship, so it is suggested to do additional research.
However, if financially capable, a person is able to obtain a second passport in a much shorter amount of time. Instead of idly waiting around for a few years, hoping to eventually obtain a second passport, for those looking to take the faster, easier route, it is advisable to engage in economic citizenship programs. Through these programs, a second passport can be obtained by financially investing in the country. This option has become increasingly popular by those who are looking to retire abroad, by frequent world travelers and businessmen, and those looking to pursue greater freedom- both financially and personally.
Dominica and St. Kitts & Nevis are amongst the most popular destinations for those looking to acquire a second passport through economic investment. The processes for these two locations tend to move quicker and are more straightforward than those of other countries, making it more desirable to those who like clarity and easiness.
Dominica Economic Citizenship:
- Individual applying for Dominica Citizenship: US$75,000 donation to Government of Dominica
- Family of four (2 spouses + 2 children under the age of 18) applying for Dominica Citizenship: US$100,000 donation to Government of Dominica
- Procedural, professional and legal fees: US$25,000 family of four, US$15,000 single applicant
- Due diligence charge – ranging from US$3,000 to US$10,000.
St. Kitts & Nevis Investment Citizenship:
- SIDF Option: Cash donation to Sugar Industry Diversification Foundation (SIDF) ranging from US$250,000 (for single applicant) to US$450,000 (for applicant with up to seven dependents)
Or
- Real-estate option: Purchase real estate, starting at US$400,000 (property can be resold after 5 years).
- Additional US$50,000 for head of household, US$25,000 other spouse, US$25,000 per child under 18, US$50,000 dependent child between the ages 18-25
- Additional charges: Due diligence charge
The investment opportunities in both Dominica and St. Kitts & Nevis lead to instant citizenship, such that no permanent residence requirement is needed.
In addition to Dominica and St. Kitts & Nevis, there are over 70 other countries that offer the opportunity to invest economically en lieu of a second passport. In some the process is even simpler but in others it is considerably more complex and may take a little longer. Nonetheless, they are desirable countries that should be further considered.
Some countries include, but are not limited to, Austria, Argentina, Australia, Canada, the Bahamas, Brazil, Dominican Republic, Ecuador, Guatemala, New Zealand, Panama, Peru, the United States, and Venezuela. You’ll see that the United States is included. Despite harsh rhetoric about 2nd citizenships in tax havens, the US remains the largest tax haven in the world (except for US citizens) and a major promoter of 2nd citizenships to the world.
Remember: Before giving money to an economic citizenship program, it is important that research is done to ensure that the program is legitimate! Fraudulent companies are known to exist, promising the fastest, most efficient route, however all that is received is a phony passport for which a large sum of (non-refundable) money was paid. Please be aware of countries that allow for dual citizenship, and those that do not. Provided is a link that lists countries that allow and do not allow citizens of the United States to obtain dual citizenship: http://www.immihelp.com/citizenship/dual-citizenship-recognize-countries.html. Look over the list to be sure that your projected country of interest is on the list for allowing dual citizenship.
In all cases, applicants are subject to a comprehensive criminal background check.
Obtain a Second Passport Today!
Undoubtedly, there are many advantages to having two passports. Not only is a person presented with many more opportunities with regards to travel, work, financial measures, etc., but also develops a stronger sense of security. As taxes increase, as pensions quickly diminish, and as the desire for comfortable living at a great price becomes greater, many people are emigrating from the United States, Canada, and Europe and obtaining a second passport.
Furthermore, some expats will chose to renounce their home country citizenship and can be exempt from paying taxes in their home country and even possibly in their second country of citizenship, ultimately leaving them tax-free. These expats are opening a door to a new freedom that provides them with legal tax-reduction, privacy of travel, and a plethora of various opportunities.
But, be sure to act fast! More than any other country, the United States is realizing the threat of losing its citizens to other countries and is putting pressure on these countries to minimize, and potentially discontinue, the programs. While hypocritical at best, the reality is a likely wave of more restrictive legislation going forward.
Examine your options and be in touch to share any thoughts or ideas you have on this topic. ECI continues to stay at the forefront of programs and possibilities available for people desiring a 2nd citizenship, including some soon to be announced destinations as well. We’ll keep you posted about some great options.
