Second Passports through Adoption or Marriage
Second Passports through Adoption
For the sake of completness
Second Passport through Ancestral or Ethic Connection
Passports by Discretion and unpublished programs – Second passport
Common Routes To Second Passports
How do you go about getting a second passport then?
There are those lucky enough who can claim a second passport instantly and for free — such as children whose mother and father each has a different nationality.
Others, such as long-term residents of countries other than their native one, or those married to a foreign spouse, are often also entitled to a second passport. Whilst free, this is not a route that’s open to everyone for reasons of practicalities. Moreover, patience is needed: this can be a slow route, often filled with obstacles; it typically takes several years before a second passport is granted.
So is there a fast and hassle-free route to a second passport?
Second passports – No-Nonsense, Present-Day Perspective
Get the FactsBefore Getting a Second PassportAs politicians at national and international level curtail our personal freedoms, more and more people are searching for a second passport to escape the clutches of the bureaucrat. Before you begin your search, arm yourself with the facts and reject the fiction.
No-Nonsense, Present-Day Perspective
Ole Wallin outlines some of the benefits of owning a second passport.
Second Passports: Who Needs Them?
In the classified advertisement section of many international publications and all over the Internet, you will find many organisations and individuals who advocate owning a second passport. It clearly has many advantages.As with anything that is unusual, misunderstood and moreover a direct threat to big government authority, there are many misconceptions concerning second passports.
Contrary to the most widely held myth, it is not in itself illegal if the necessary procedures are handled correctly and professionally.Neither are benefits of owning a second passport purely limited to a name change and for those in society who for whatever reason feel the need to disappear — although clearly it does offer a great advantage to this class of person.
The ownership of a second passport means freedom from whatever forms of oppression — fiscal or political — you may be subjected to.As a privacy tool and as a means of reducing taxation liabilities and protecting assets, a second passport is of undeniable importance. To the politically and economically oppressed or those unlucky enough to live in pariah nations, a second passport is a lifeline.
Second passport and citizenship program from Lithuania
How to Easily Obtain Instant Alternative Citizenship
Unless you are the lucky one to become a citizen of another state by reasons of marriage, lineage or religious affiliation, the economic citizenship program is the easiest way to get an instant alternative citizenship. You don’t have to break the law nor be a millionaire to afford yourself getting a second passport and a lifestyle of “Rich and Famous” with the same level of freedom and security.
Economic Citizenship Program Requires Investments
Economic citizenship programs are the official government sponsored programs of instant citizenship. Some countries have adopted programs which allow the acquisition of citizenship in return for a direct contribution to the state as a means of development of the country. They are either seeking for a donation into their budgets or trying to attract significant foreign investments into the economy.
Why Would Somebody Need a Second Passport and citizenship program
If you already surfed the web for the information about second passport you’d have probably found plenty of articles very informative and truthful but noticed that they are obviously trying to persuade or convince you that you need to get an alternative passport as fast as of yesterday. We believe if you are reading this article, no need to convince, you already belong to the group of people who would certainly benefit from having one. Speaking simply, there are two categories of reasons: personal (including political) and economic.
Second Passport Increases the Degree of Your Freedom
First of all passport is a traveling document. And if that document does not allow you to travel free, say you need to get all kind of visas, register here and there, report on your travels to your home country authorities and so on, why not to get another document to increase the degree of your freedom and latitude of movement.
The “Right” Second Passport Contributes to Your Personal Safety
When traveling in certain countries where your US or UK or whatever else current passport is very unpopular and may provoke local people to negative attitude towards you and even jeopardize your life, making you a target for terrorists, you might prefer to use an alternative identification document.
Get an Insurance Policy with Second Passport in Times of Strife
If your home country is politically unstable you cannot be even sure that your passport will not be canceled or renounced at any time by the new coming governments. What will insure you and your family against unforeseeable troubles of that kind?
Second Passport Can Extend Your Business Opportunities
Your current nationality may limit your investment or entrepreneur abilities. Some bank would not even open you a bank account if you hold a passport of a “blacklisted” country. Blacklisted by a particular bank that doesn’t want any troubles with, for example, US tax authorities.
Save Your Earnings Thanks to Alternative Citizenship
Not to mention taxation reasons. Many states would tax you with your worldwide income. At the same time some other states let you keep your hard-earned money with you if the source of income is not related to that particular country. Why not to take this opportunity and save some money that might be better used for the needs of your family.
Change Your Current Place of Residence to a Decent Country
You may want to emigrate to change your current place of residence by moving to some decent country because of the crime within your home country or just to avoid the requirement to serve in the army or by any other reason you may have, but your current citizenship is not the best “partner”. You don’t even need to become a citizen of a first world country to live in there, there’s plenty of small peaceful states that you can get a citizenship and a passport and then choose almost any country in the world for your next residence. You may even unexpectedly find out a paradise to live in the country of your new passport, which you never heard before you bought its citizenship. Besides that your new passport can give you more chances for successful application to immigration of the mentioned first world countries and get their citizenship later. This may be the case, for example, of citizens of the former USSR or some Asian countries. There’s also a category of people who is seeking for alternative citizenship to, vice versa, never live in this country since being a PT (permanent traveller) they follow the “theory of five flags” prescribing them to have their countries of citizenship, residency, source of income etc. as juridically different states. There’s plenty of other reasons you might have still not listed above though being the main cause for you to consider obtaining a second citizenship for you and your family. Every country has its citizenship program in place. But those programs financially available for middle-class people are coming and going and one day you may appear in a situation of no options at all. If you feel you might need it in future you better go for it now!
Exit Tax for US Expatriates – Second passport and citizenship program
If you have taken the far-reaching and irrevocable decision of giving up your US citizenship to permanently disconnect from your US tax obligation, you still have to settle your exit with the IRS. On June 17, 2008 the new law came into force that made it relatively easier comparing to the previously existing regulations. Though now, if you are wealthy enough, giving up your US citizenship proves to be a rather expensive step.
Covered Expatriates and Exit Tax Threshold
The law applies to US citizens who expatriate, as well as long-term US permanent residents who give up their green cards, which they have held for 8 of the last 15 years. Both categories are subject to immediate “exit tax” on unrealized gains on all their assets in the US and worldwide, including grantor trusts, as well as on any future gifts or bequests to US citizens and residents, if any.
You qualify for the covered expatriate and the related exit tax, if you meet any of the following criteria:
- you have a net worth of US$ 2 million or more;
- you have an average net U.S. income tax liability of greater than US$ 139,000 for the five year period prior to expatriation; or
- you fail to certify that you have complied with all U.S. federal tax obligations for the preceding five years.
The exceptions are dual nationals from birth, who have not lived in the US for more than 10 years from the last 15, and persons younger than 18½ who have not lived in the US for more than 10 years.
Mark-to-market Tax on Unrealized Gains
The exit tax is being applied to the net unrealized gains on the covered expatriate assets estimated on the “mark-to-market” basis, as if the assets were sold on their fair market value on the day preceding the expatriation. The first US$ 600,000 gains are exempt from the tax. Any gain over US$ 600,000 is subject to US income tax.
The tax payment is due within 90 days after giving up your US citizenship. Expatriation is considered effective for tax purposes even if you fail to file the Expatriation Information Statement (form 8854).
The exceptions from the main rule are certain deferred compensation items, specified tax deferred accounts, and non-grantor trusts.
Specified tax deferred account is subject to immediate inclusion in the expatriate’s income subject to exit tax. This provision covers among all certain individual retirement plans, tuition programs, Coverdell education savings accounts, and health savings account, Archer MSA. No further tax, such as early distribution tax, is to be applied to these items thereafter.
30% Withholding Tax
Deferred compensation items, depending on their nature, are either subject to 30% withholding tax at the moment of payment, or to be included in the personal income of the expatriate subject to exit tax. Those items, that are subject to 30% withholding tax by being a distribution to covered expatriates, are also most likely to be taxed again at the 30% rate as payments to non-resident aliens. Such treatment may cut certain pension plans and retirement accounts by up to 51% net tax.
Withholding tax rate is not subject to reduction under any of the existing tax treaties between the US and other countries.
Distributions of non-grantor trusts are treated the same way with certain exceptions.
Future Gifts and Bequests
If being a covered expatriate you make a gift or bequest to a US citizen or resident in the amount exceeding US$ 12,000 in any calendar year, the recipient, including in case it is a US trust, is to withhold the tax at the highest marginal estate or gift tax rate existing on the moment of the gift or bequest, with no regular allowances for the same taxes granted to US persons. Though, any tax already paid to a foreign country in regards with the covered gift or bequest is allowed for credit in the US.
The covered gift or bequest is exempted from the tax, if the recipient is a US spouse or a qualified charity.
This provision is effective for your lifetime.
Furthermore, if you were not a covered expatriate at the moment of exit, but you qualify as such following the same criteria at the moment of making gift or bequest, the latter fall into the category of covered.
Procedure to Relinquish the US Citizenship or Residence
Basically, you need to undertake the following:
- Get a second citizenship in another country.
- Leave the US.
- Appear before the US Consul in that country to renounce your US citizenship.
- File the form 8854, Expatriation Information Statement.
- Pay the due exit tax.
As a covered expatriate, you will be able to visit and even stay for certain time in the United States, and the mere fact of being an expatriate does not make you a US tax resident. You still can become taxable in the US under the normal US tax rules.
Best Time to Exit
Interestingly, but entry into force of the new rules concurred with development of the global financial crisis. The real property and other assets values are really depressed right now. The lower is the fair market price, the smaller unrealized gains it’s bringing, the easier it is to fit into the US$ 600,000 threshold.
If you have thought it well, you better do it now.