There used to be a time when the United States was the symbol of greatness. In fact, it was often referred to as the “land of opportunities.” Unfortunately, recent events have led to the downfall of this once great nation. So much so, that a second passport for US citizens seems like the only rational way forward.
If you are an American citizen who took advantage of the opportunities provided to you to create wealth for yourself, you need options. Actually, you need several options to ensure that no one tries to unfairly tax you or take your hard-earned money away from you.
So, if you are looking for a second passport for US citizens, you wouldn’t be the only one. Many people have started to look for dual citizenship for Americans. It’s just the reality of the current climate in America.
The country is now on the verge of interfering with personal freedoms and outright coming after the wealth you’ve managed to accumulate. So, what should you do to protect yourself against this?
Well, you will have to get a second passport. It might seem unreasonable to get another citizenship, but the times call for it. If you want to protect yourself, this is what you have to do.
WHY YOU NEED A SECOND PASSPORT
We admit that the decision to get a second passport for US citizens might seem a bit radical. Surely, things haven’t gotten so bad, have they? Unfortunately, the answer is yes. Of course, you could choose not to get a second passport.
But then, there is so much uncertainty within the political sphere that it’s probably a better idea to get another citizenship.
Trust us, dual citizenships for Americans are a necessity these days. Here is why you should opt for it.
1. UNFAIR TAX LAWS
Did you know that the top 10% of households accumulated 48% of the total US income while paying 71% of federal income taxes? This is in addition to any state taxes, cuts, or over-the-top tax reform bills.
Moreover, US citizens are required to pay tax on their global income capital gains. If you ask us, this doesn’t sound fair at all. It’s one thing to be taxed either at home or abroad; it’s another to get taxed everywhere with no cuts whatsoever.
It is extremely unfair for a portion of the population to be the main tax residents of a country of 300 million people. Unfortunately, Congress is expected to continue working towards more exaggerated tax policies specifically targeted at a select portion of the population.
Bearing this in mind, it seems like a better idea to move overseas or possess another passport which may help protect you against the United State’s aggressive tax policy.
After all, who knows what the next tax laws will include?
All you need is a little tax planning when you get the second passport for a US citizen, and you can significantly lower the tax burden on yourself.
2. GLOBAL FREEDOM & INSURANCE
Aside from domestic issues, having a second passport for US citizens offers greater travel freedom as well. You are truly restricted when you are tied to only one passport. The world is only open to you, as your government deems it fit.
For example, if China and the United State’s foreign relations worsen, it will be a problem for you. It will become increasingly difficult for you to conduct any private business dealings in China. You will always remain at a disadvantage, irrespective of your intellectual or business prowess.
But that is not the only case. As an American passport holder, you will also face restrictions when traveling for holidays. Imagine wanting to visit Russia when there is political tension between the two governments.
You simply can’t.
A second passport for a US citizen offers true freedom.
HOW TO GET A SECOND PASSPORT FOR US CITIZENS
Before we give the list of great options for exploring a second passport for US citizens, let us understand how to get a second passport or residence visa.
1. CITIZENSHIP BY INVESTMENT
Luckily for you, wealth is the most powerful tool in the modern world. It can open opportunities unavailable to everyone else. While the US government may not appreciate your ability to create wealth, plenty of other countries do.
So, if you need to get an easy second passport quickly, citizenship by investment could be your gateway. All you must do is either invest in government bonds or a business or purchase real estate.
Your paperwork will begin immediately after your investment or purchase is verified. The amount of investment or real estate will differ from country to country.
As with all things, some countries have a higher price for citizenship while others have a lower price. Still, this method saves you a lot of time.
The beauty of this strategy is that you don’t even have to physically be present in a specific country to get the passport. Caribbean countries, in particular, have this fantastic option.
2. CITIZENSHIP BY MARRIAGE
Now, before we move on, let us be clear; we are not encouraging people to get married for the sake of a second passport for US citizens. It is not the right reason to marry someone, and people who do this usually get caught.
All we’re saying is that the union of two people from different countries benefits both parties. Usually, both of you will end up getting a second citizenship. So, if your partner is from Europe and you want a second passport, marriage is a good way to do so.
3. CITIZENSHIP BY DESCENT
Obtaining citizenship by descent can be challenging since it requires proving ancestral ties to a country. But it is not impossible. In fact, if you’re of Spanish descent, you can benefit from the citizenship by ancestry scheme offered by the government.
This is highly useful if you are looking into Israel as an option as well. Israel has a law of return that can be used to obtain a second citizenship.
If there is a country where you can easily get second citizenship by descent, it is encouraged.
4. CITIZENSHIP BY NATURALIZATION
This is, by far, the simplest and cheapest way of getting a second citizenship. Of course, it will take more time than the others, but it is almost a guaranteed way of obtaining a second passport.
Do note that there can be many bureaucratic elements to this method. However, it is simpler than the descent method and cheaper than getting citizenship by investment.
We would recommend using this as a last resort since it takes too much time. However, if you want to move to a certain country, you could choose this method if you’re not in a hurry to acquire a second passport.
Realistically, for a seven and eight-figure net worth entrepreneur, citizenship by investment should be the go-to method of getting a second passport for US citizens.
WHAT SECOND PASSPORTS AND RESIDENCIES SHOULD US CITIZENS GET?
It is natural to imagine that any country you’ve grown fond of would be the right place to move to. In an ideal world, you would have a second passport or residence permit belonging to that country.
Unfortunately, making this decision isn’t straightforward. Since the pandemic, it has become increasingly difficult for US citizens to move compared to the citizens of other western countries.
As we’ve mentioned, the future of the United States looks a bit gloomy, but here’s what you can do to combat it.
1. MEXICAN RESIDENCY
Mexico should be the first country on your list when looking for a second passport for a US citizen. There are several reasons behind this as well.
The first is the ease of transportation. Since the United States and Mexico share a land border, you can drive there and even fly there in case of an emergency. Having a Mexican passport can make things better for you in terms of taxes as well.
Of course, do note that Mexico has not always been very welcoming to tourists from the US. So even a residence permit is an upgrade from tourist status and will save you from many bureaucratic troubles.
If you want an immediate backup to protect you and your family, a Mexican residence permit might be a better option than a passport. It is quicker than the citizenship process, and getting a residence permit as a US citizen is also relatively cheap.
You can also choose not to live in Mexico, and that is fine. Getting a residence permit in Mexico gives you the advantage of living in the United States as long as you want and leaving if you need to without any problems.
2. A CARIBBEAN PASSPORT
The next obvious choice is being a resident or even a citizen of a tax-friendly or even tax-free country. If you are looking for immediate options, various Caribbean citizenship by investment programs are available to you.
Antigua & Barbuda, St Lucia, Dominica, St. Kitts, and Nevis; all of these countries can be great options to look into when getting a second passport.
Though, there are certain factors you’d want to consider when thinking about the Caribbean for a second passport.
Tax planning is very important in the Caribbeans.
For example, if you are living off capital gains, then St Lucia, Dominica, or Grenada are essentially tax-free countries for you. But if your income portfolio is different, then maybe you’d look someplace else.
The slight issue with considering all of the Caribbean Islands is their connectivity with the rest of the world.
Many of the places in the Caribbean do not have direct access to other parts of the world due to the current infrastructure, so that must be considered when deciding.
In light of all this, if you are interested in the Caribbean, it would be wise to target St Lucia or Antigua & Barbuda since they are infrastructurally more developed and connected to the rest of the world via airports.
3. LATIN AMERICAN RESIDENCE PERMITS
Latin American countries are great for both residence permits as well as passports. In fact, countries such as Brazil, Chile, and Ecuador are great countries for getting a second passport for US citizens. These countries give residence by investment or purchasing land.
If you stay there for up to two or three years, you can even get citizenship.
All that is required is a monthly income of up to twenty-five thousand dollars or the purchase of land. This would be helpful if you plan on renouncing your US citizenship.
The Latin American residence permits come in handy if you’re considering the absolute worst-case scenario. These countries have great climates and are quite self-sufficient as well. So, if you find yourself stuck here for a bit, they are not bad places to stay. You can even enjoy your stay here.
TAX-FREE SECOND PASSPORTS FOR AMERICANS
Exploring places such as Panama or Georgia are good options to consider as well. As a US citizen, you want to pay at least not more than what you were paying in the US when you move to another country.
When the time comes when you decide to renounce your US passport, you probably want to pay nothing or a negligible amount in taxes.
While Malaysia, Singapore, and Hong Kong are not tax-free options, the negligible tax rates in comparison to other countries pull them into this bracket. Here, though, a factor to consider would be the cultural differences.
Would you be able to be accustomed to environments and cultures such as those mentioned?
These are questions to be answered the further you move from the US. It’s really up to you at this point and largely depends on your preferences.
EUROPEAN PASSPORTS FOR AMERICAN CITIZENS
Europe is another option if you want to get a second passport. The cultural differences in Europe compared to Asia with the United States are less, making adjusting to life there relatively easier.
Countries like Switzerland have relaxed tax laws for the wealthy, and the quality of life is excellent. The possibility of getting a second passport for a US citizen in Switzerland is quite high, especially if you’re investing in a local business.
The only concern with European countries is that they are almost the same as the US. The exact reasons you would have to leave the US could easily be replicated over there. It would be nice to have a European passport, but only having the US and European passports beat the purpose of having a plan B to begin with.
GET A SECOND PASSPORT FOR US CITIZENS WITH NOMAD CAPITALIST
As you can see, this is what we think is a great plan B for US citizens who are worried about the future. Whether it’s because of the taxes or even the changes in lifestyles that have gotten you worried, there are plenty of reasons why people want to leave the US.
You have to know what’s the correct way to do it.
To sum it up, any other place brought into consideration for getting a second passport for US citizens must be either tax-friendly or tax-neutral. It must also allow you the possibility of buying a property with comfort and ease of travel.
You can get your second passport by investment easily. The Caribbeans are a great place to go for that, and we’ve discussed many opportunities for second residencies as well.
You achieve true freedom of movement, wealth, safety, personal peace, and satisfaction by doing this. Passports have always been a way to restrict the movement of people and the flow of capital. By crossing the barrier via multiple passports and residencies, you truly ascend to the heights of freedom many can only hope to achieve.
Get in touch with the team at COLOMA Group right away to learn more.