Creating Multiple Options For Global Mobility
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Freedom of movement - is something most of us largely take for granted. We only appreciate something, when its gone.
If we suddenly lose our mobility, we will quickly realize the freedom we have lost. Applying for a second passport frees us from the limitations imposed by the country of our birth.
No longer are we limited to the circumstances due to birthplace, but are free to create a 'second opportunity' through our choices.
Being tied to any single country and its government, is essentially giving away your freedom to an institution, and making your future dependent upon its continued viability. Like all such institutions and state actors, they rise and fall. It is our responsibility to have an escape plan when they do.
For those of us who do not live within a stable political system and live in a highly volatile environment run the added risk of being prone to the temperament of dictators or autocrats who single handedly can impose martial law, close down borders, enforce capital controls, confiscate property, close bank accounts, all on a whim.
However, it doesn't take a dictator or living in a developing nation to see banks confiscate you money (Cyprus), tight capital controls (Greece) travel restrictions (US).
Giving your authority over to a foreign body limits your capacity to act according to your interests.
Having a second passport gives many benefits for those looking to liberalize their escape options.
Shultz's Flag theory, a 1950s philosophy echoing the importance of global diversification - recommends putting our 'flag' in different countries, flags representing, passport, residency, assets, so as to minimize risk, and expand our opportunities.
Creating an 'offshore lifestyle', a lifestyle-free from the restrictions of a single country expands our possibility and reduces our exposure to risk. No longer must one abide by travel restrictions, tax rates, governmental regulations just because you were born there.
It also opens up the door to more visa free travel, gives social and tax benefits if you decide to get residency in a low tax jurisdiction, provides alternative investment options, and keeps you from loosing your freedom to choose.
The power to chose our future is something we all want. And it is something we should ensure we will still have.
When we rely upon the intuitions of one country, we are making ourselves vulnerable and expose ourselves and our assets unnecessarily.
Many countries offer, such as Vanuatu or Nevis for instance, what can be coined as an 'offshore-citizenship'; which is a citizenship granted to individuals looking to reap all the lifestyle benefits that a second passport offers without having to actually live or reside in the respective country.
While this is the quick alternative it might not be for everyone as it comes with a six figure price tag. However, acquiring a second passport can be had by other other means such as Panamas Friendly nations visa, that might a process that allows you to get one of the worlds easiest passports.
Whether ones is seeking to escape from oppressive overbearing governmental regimes, would like to be treated as a first class citizen, or would like to secure their future in a second land of opportunity, a second passport may be worth investigating.
Having a plan B is something we are well familiar of. Though often we have it limited to health insurance, trust, a small nest egg, perhaps some gold, or a pile of cash stored away somewhere, but rarely do we see dual nationality as a sufficient plan B. While in all likelihood we will be fine, however insurance isn't something that is bought hoping to use it, but is bought just in case.
When state actors have the power to freeze your bank accounts at the push of a button (in the case you have a civil suit filed against you court orders can freeze your assets prior to and proof of evidence) and bar you from leaving the country with a stroke of a pen (the IRS has been given the authority recommend to the State Department to cancel peoples passports if they have unpaid taxes) its sensible to have an insurance plan.
An emergency situation, as much as we hope it doesn't happen to us, can indeed happen. There are any number of scenarios that can drastically alter our immediate circumstances where having a alliterative residence or passport could be lifesaver.
Second passports aren't just about fleeing from ones trouble country or past life, but about creating new possibilities, new opportunities that come when we are free to pursue.
No one should be restricted to living in their country of birth merely because they were born there. Having dual nationality opens up new frontiers and lifestyles options afforded only in specific locales.
The simple fact is, one country does not have it all.
Its not only another location or nationality that passport gives you, its the mindset. A mind-set that is more enabled by ones own freedom to become, create and envision a life free from restraints. Having the freedom to pursue our happiness wherever we may find it. Unfortunately, not everyone is empowered with the freedom to choose.
Having freedom of mobility comes the freedom from having to live according to a predefined pattern of obliging others or governments, from paying more, from receiving less, from having to conform to duties and services that are not for us. The Freedom to go and pursue where we are treated right.
Being bound by a single state actor is uncomfortable to any globally minded person. Whether that is a government, bank, or institution of any kind.
One need not be the globetrotting "citizen of the world" type to see the limitations that come when you localize your life, your citizenship, physical address, assets together all in one place.
We tend to localize our lives. We are born in one country and in it we spend the entirety of our lives. Everything we have ever done and own is it in. We go to school, get a job, live, work, bank, hold investment, have retirement accounts, our physical assets, fiat currency, physical gold, house, all in one state.
May of us are learning that this is a recipe for disaster. The tremendous global push toward perpetual traveling, digital nomadic lifestyles, global entrepreneurs, internet business's, foreign investing, globetrotting etc.. are all a push toward freedom of movement and diversification.
A Second passport is generally for people who are looking for an alternative, fast. While there are a few other ways to get a second passport, such as through naturalization (after being a resident for x number of years) or family lineage (not all of us are so fortunate), citizenship by investment on the other hand is open to anyone and is immediate (60-90 days).
Usually those individuals looking for a second passport fall into three categories.
(1) Those who come from politically or economically unstable countries. Much of the world is plagued by despots, dictators, hostile governments that create precarious social and/or economic conditions that make living there undesirable. Living in any autocratic country or even one that has severe capital controls can be a little unnerving when institutions have such much power of you.
(2) If you are an American citizen looking to renounce their citizenship and move to a country where there are more relaxed tax codes then having a second passport is a necessity. Americans are increasingly renouncing their citizenship. And those numbers are climbing, as last year (2018) more than 5,000 Americans decided they had enough.
(3) If you are a citizen of a country where there are significant travel restrictions and less visa-free travel opportunities. Not everyone has access to a Japanese passport, who now hold the world's most powerful passport, with visa-free travel to 190 different countries. If you are a citizen of Russia, China or Nepal, you are ranking much lower down, and looking at numbers around 118, 76, and, 51. ouch.
(4) Anyone looking to effectively re-structure their tax status. A second passport option can open up the door to significant tax reductions. It's much harder to reside in a high-tax jurisdiction and effectively eliminated your taxes - even with a company in an offshore jurisdiction. A decade ago, this was more common practice, however, with all the tax information sharing, governments are much more keen on closing those loopholes. To eliminated your tax burden, you have to move more than just your assets.
(5) Anyone looking for a Plan B, or an insurance against the state, a second passport firmly internationalizes your standing and frees you and (if you have a properly structured offshore company and bank account) your assets from the grip of any institution or single state agency. Freedom from the confines of any single system is an investment option that we not often consider. Though we might diversify our investment portfolio across different countries or regions, little do we think of diversifying ourselves - and our obligations to the state.
A Passport is an International Travel Document issued by a government for identity and citizenship declaration allowing individuals to travel in countries that have favorable relations with a certain level of protection from unlawful persecution.
While having a second passport is often talked about, what is really meant is having a second citizenship, which a passport exemplifies, as really, a passport is just a travel document while a citizenship is something which grants one certain rights and protections granted to them by the issuing governmental authority.
Governments usually have policies in response to dual nationality in one of three ways.
(1) Dual nationality is accepted with out any problems
(2) Having a Second passport is not formally allowed but is still widely used (U.S.)
(3) You are not allowed to hold a dual nationality (Singapore)
So be sure to see what category you fall into before you decide to puruse a second passport.
There are several ways to get a second passport. While we offer Citizenship by investment programs that offer second passports to individuals who have the economic investment capability, there are several other ways to get a second passport through:
Having a second citizenship gives one the advantage of being recognized as a citizen of a second country in which the individual is afforded the same benefits, protections and rights in a second country.
Depending on the country benefits include social services, ability to vote, have access to health care, and pay local taxes if you are a resident of a low tax jurisdiction. Having a second citizenship is a fundamental step in globally diversifying your
Having dual-nationality gives one the options to reside permanently in two jurisdictions together with two passports.
Residency gives one the benefit of being legally allowed to reside within a given country without the need to apply for a visa or leave after the duration of their visit, as well as being able to access services usually restricted for permanent residents.
Residency is an important aspect of the international diversification process. If you are gaining citizenship through a naturalization process (which can take anywhere from 2-5 years depending on the country) usually getting a form of temporary or permanent residency status starts you on the path toward citizenship.
For instance, in Panama, through their friendly nations visa one can get citizenship after 5 years of getting permanent residency. The requirements are very minimal and with just proof of a few thousands dollars in your bank account and the desire to buy real-estate or start a Panamanian company.
Despite ones nationality, there are many ways to transcend this narrow definition by increasing ones global positioning through the many means that are available.
For more information, contact us.
Or continue reading about 2nd Passport in Panama options or in any of our Citizenship by Investment Programmes:
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