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.
Single Investment Delivers Potential Profits, Dual Citizenship, and Visa-Free Travel
The Commonwealth of Dominica is located at the northern end of the Windward Chain of the Lesser Antilles in the Caribbean Sea.
Dominica’s economic citizenship program is first rate. Since its inception in 1991, it has operated successfully. A single investor may acquire Dominican citizenship via a direct cash contribution of US$100,000 to government and private projects; the sum is raised to US$150,000 for a family of up to four persons. A new citizen of
Dominica has the right to live and work there at any time, but living there is not required. Holders of a Dominica passport can travel without a visa to more than 100 countries and territories, including the U.K., Switzerland, Sweden, and Hong Kong.
Economic Citizenship in a Paradise with Splendid Beaches and Balmy Weather
St. Christopher & Nevis is the older of the two economic citizenship programs and it, too, has an established history of successful operation.
Applicants must invest US$350,000 in an “approved investment project.” Government registration fees are now US$35,000 for a main applicant and US$15,000 for each spouse and dependent child under 18. Young adult family members over 18 must pay US$35,000 each. In addition, professional fees are US$15,000 for the main applicant and US$5,000 for each additional family member. Or you can contribute to the Sugar Industry Diversification Foundation, in the amount of US$200,000 (for a single applicant). Using the charitable contribution is an easier route for most applicants, because it allows a set cost and avoids further expenses associated with owning real estate in a foreign country. Plus you don't have to live in St. Kitts or Nevis to secure your second citizenship, so buying real estate could just be an additional burden if you're not interested in spending time there.
St. Kitts (as it is called) and Nevis (say “knee-vis”) is in the Leeward Islands in the eastern Caribbean, 225 miles east of Puerto Rico, 1,200 miles south of Miami. Each tropical island is a volcanic mountain rising about 1,000 meters above the sea, with about 75% of the total population living on St. Kitts. The islands’ balmy, virtually unchanging weather and splendid beaches and accommodations have made them popular vacation spots, offering a wide range of recreational amenities.
Nevis, which has its own Island Assembly, is a recognized tax and asset haven. It has a no-nonsense banking and business privacy law that even the U.S. government can’t crack unless crime is involved. Its pro-offshore laws have existed for over two decades—so there is plenty of experience and precedent in the local courts—and the legislative assembly keeps the applicable laws current. There are well-established service companies that can manage an offshore business, establish a foreign trust, etc., and some have convenient U.S. offices.
Visa Programs Make This the Leading Destination for Foreign Retirees
Everyone knows about The Republic of Panama and its famous Canal, but Panama is also one of the world’s leading destinations for foreign retirees. That’s because it has numerous resident visa programs that welcome you with immediate residency status.
Perhaps the best known of these resident visas is the turista pensionado visa. Anyone entering the country as a qualified pensionado is guaranteed to retain that legal status so long as they choose to stay in Panama. (The word pensionado does NOT mean you must be retired to qualify.)
Under the pensionado program, the applicant must show proof of personal entitlement to a monthly income from an official foreign program (Social Security, disability, military retirement, government pension) or a private corporate pension plan, in the amount of at least US$500, plus an additional US$100 each for a spouse and other dependants.
Panama truly does offer probably the best residence deal in the world today. For this comparatively small price, the benefits are incomparable, including exemption from taxes, tax-free importation of your automobile and household goods, and discounts on a host of goods and services.
The visa application process for Panama’s basic pensionado program is simple; a onetime application and no renewals or additional fees. Getting your permit takes as little as 30 to 60 days. It’s fast, affordable and easy. But you need an attorney to do all this.
Significant Tax Incentives for Retirees
Although Belize’s economic citizenship program ended in 1991, the country still offers significant tax incentives to retirees and other foreigners. You can become a permanent resident if you have a US$2,000 minimum monthly income from non-Belize sources.
Belize is the only English-speaking country in Central America. Its mixed population of 280,000 includes descendants of native Mayans, Chinese, East Indians, and Caucasians. Independent since 1981, its language came from its colonial days when it was called British Honduras. Situated south of Mexico and to the east of Guatemala, Belize is on the Caribbean seaboard.
In 1998, the Retired Persons Incentives Act was enacted to attract foreign citizens and foreign currency. The law established a residency program for Qualified Retired Persons (QRPs), offering them significant tax incentives to become permanent residents (but not citizens) of Belize.
A QRP is exempted from all taxes on income from sources outside Belize. QRPs can own and operate their own international business based in Belize exempt from local taxes. There is no minimum time that must be spent in Belize and QRPs can maintain that status so long as they maintain a permanent local residence.
To qualify for the QRP program, the applicant must be 45 years of age or older and prove personal financial ability to support oneself and any dependants. A spouse and dependants (18 years and younger) qualify along with the head of household. Initial fees for the program are US$700 for the qualified retiree and US$350 for each dependant, plus US$100 for an ID card upon application approval.
Robert Bauman is Legal Counsel for The Sovereign Society and editor of The Sovereign Society Offshore A-Letter. A former member of the U.S. House of Representatives from Maryland, he is a graduate of the Georgetown University Law Center (1964) and the School of Foreign Service (1959).