Traveling
or Doing Business as an American may be Hazardous to your
Physical
and Financial Health
Investigating
a Second Citizenship To Aviod Business Hassles ~ By John Schroder
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clients ask about some of these second citizenship programs they might
have heard or read about. In fact, there does seem to be an increased
interest in this topic, now more than ever, when American Citizens especially
might be exposed to danger (traveling as an American) or might be rejected
by a non-US bank or Investment firm because they are American.
However, we
first must define what are basically the three programs in existence (or
did exist as the case may be). The first are some of these official
and government sponsored instant economic citizenship programs (Belize,
Granada, Dominica, etc.). Basically, you donate anywhere from US$50,000
on up to the local government, you must of course pass the rigorous application
process, and then you get your citizenship (often within 30 to 90 days).
However, these programs of course have either disappeared altogether, due
to pressure from the US Government who did not like to see their citizens
gaining a new fairly good visa free travel document so quickly, or have
been changed to such an extent that they no longer look attractive (I hear
Dominica now wants US$150,000). Dominica, by the way, is an English
speaking island nation in the Caribbean that is not affiliated in any way
with the Dominican Republic (a Spanish speaking nation). |
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Next we have
the regular programs and processes that all countries have in place, which
allows for application to immigration for RESIDENCY, with the ability to
convert that status to Citizenship or Naturalization at some later date.
Each country is of course different, and has their own set of rules, requirements,
time frames, etc. The norm or standard to get citizenship in many
countries is 5 to 7 years. However, there are some exceptions, which
do allow for Naturalization much quicker (the Dominican Republic is one
such example). These processes, by the way, are not anything special
other than they are the regular programs and policies each government has
in place to allow for foreigners to become residents (and later on citizens
if you so choose). Which is to say, they are not any special or new
fangled programs as previously mentioned above (instant or economic citizenship).
However, one very important point is, that going this route means you are
moving through very legal and normal government channels (which is what
we offer, by the way).
You cannot
ask that they change your name on the documents (they will not) as they
are using your existing passport or legal identity documents in the process.
However, this does not necessarily mean they are going to wave a red flag
to your home country either (that all of a sudden you have permanent residency
status or citizenship somewhere else).
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John
Schroder, of Ascot Advisory Services in Santo Domingo writes for a number
of publications about living & investing in the Dominican Republic.
He is also the author of The
Dominican Republic Report - and The
Panama Report - Now available online. |
| Ascot Advisory
Services provides assistance and advice to both individuals and business
owners regarding Offshore Incorporations, Offshore Banking & Investments,
Residency Matters & Second Passports, plus other matters of interest
to “Expatriates”. For more information or to contact John Schroder
directly: Telephone 809-334-5387 or 809-756-1917 |
Email:
info@ascotadvisory.com
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http://www.ascotadvisory.com
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The
last program, which unlike the two listed above, is what I will call a
black market under the table situation. Meaning, you are NOT going
through official government channels in regards to the process and your
documents. So, you read an advertisement someplace offering a REAL
passport from country X, complete with new name and so on. All well
and good, and it is quite possible that the passport is very REAL, freshly
stolen out of the passport office, but it may or may NOT be officially
and
legally registered in the computer system (which will bring you a world
of trouble later on, especially when you try to renew it). This is
not to say that all people offering these deals are not legitimate, or
that your passport is not going to appear in the government system.
Just keep in mind that it could be the case. Also, keep in mind that
there is no legal and official file in immigration either. These
deals usually involve Joe (our fictitious name for an attorney or government
official in country X) who has a buddy, cousin, whatever working down at
the passport office or in government somewhere. You pay Joe, and
Joe promises wonderful things within 30 days. Joe is supposed to
get your passport, but let us suppose he does not. Who are you going
to complain to? The local government where you are trying to get
this done? What will you say? I gave Joe money under the table
to get me an illegally acquired passport, and he stiffed me? Just
understand the risk involved with these kinds of deals. Also, if
Joe tells you that you cannot use the passport to enter and leave country
X, be very afraid. That is an instant tip off that your passport
is not registered. |
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Many countries
in the world do recognize DUAL CITIZENSHIP, and the US also is one country
that does as well. Obtaining residency status in another country
does not in any way jeopardize your existing citizenship and obtaining
a second citizenship usually will not as well. There are some quirky
things in the US regulations about joining a foreign army and so on, but
I tend to think this does not apply to most people. However, the US State
Department does say that if you have dual citizenship (along with a US
passport), then you are required to use and demonstrate your US passport
when entering and leaving the US. As a very real and very practical
example of this, I know of many Americans who have become Panamanian and
Dominican Citizens (and in fact have children, born in a foreign country,
who have dual citizenship as well). When they leave Panama (for example),
they use their Panamanian Passport and when they enter the US, they give
their US Passport. This is what is done and it is very legal to do
so. What advantages do you gain by having dual citizenship?
Well, first off, you get to travel as a non-American, which these days
could be a life saving necessity. Germany, for example, started to
segregate American and British travelers last year in their airports -
sending them to separate departure terminals, etc. Why? The
logic was that if the Arab Terrorists wanted to retaliate and kill US or
UK citizens, then at least German Citizens (and everyone else) hopefully
will not be in the same place to get caught in the crossfire. So,
traveling as Mr. Citizen, from some small non-violent country (that is
not involved with carpet bombings or is involved with supporting military
coups in other countries because they do not like the current political
leaders) is always to your benefit.
The other issue
is of course investments. As we have indicated earlier, many banks,
brokers and mutual fund companies (outside of the US) will NOT accept US
citizens as clients. Not because they are legally prohibited in any
way from doing so, but because they do not want the hassle and bother of
having to deal the American tax authorities. So, again, being something
other than a US citizen might get you a warm reception (as opposed to being
told in a polite way to get lost).
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| For additional
information about residency and second citizenship in the Dominican Republic
or Panama (Dominican Republic being the faster of the two), please contact
John Schroder as follows: Telephone 809-334-5387 or 809-756-1917 Email:
js@firstantilles.com |
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