How To Buy a New Identity and a Passport with Bitcoin

How To Buy a New Identity and a Passport with Bitcoin

 

Have you ever considered becoming a citizen of another country, renouncing your primary passport, or securing a new identity using Bitcoin? This strategy can be tempting, especially in secrecy and without paying taxes. Amicus International offers clients with cryptocurrency the ability to buy a second passport and a new identity through their services.

Choosing Your Tax Haven

 

When selecting a tax haven, various factors, including the legal framework, tax benefits, and the ease of obtaining a second passport, must be considered. Here are detailed insights into the seven countries that offer good tax protection but no options to buy a new legal identity.

Antigua and Barbuda

Antigua and Barbuda’s Citizenship by Investment Program (CIP) is one of the most popular options. It offers visa-free travel to over 150 countries, including the UK and the Schengen Area. The investment options include a donation of $100,000 to the National Development Fund, a real estate investment of at least $200,000, or a business investment starting at $1.5 million. No personal income, capital gains, or inheritance tax makes it a favourable destination for crypto investors who buy an identity.

<h4>DominicaDominica’s Citizenship by Investment Program requires a minimum donation of $100,000 to the Economic Diversification Fund or a real estate investment of at least $200,000. Dominica offers visa-free travel to over 140 countries and territories. It is known for its tax-friendly environment, with no wealth, gift, inheritance, foreign income, or capital gains tax. Dominica is an attractive option for those looking to protect their new identity and assets.

Grenada

Grenada’s Citizenship by Investment Program is unique because it provides visa-free access to China and over 140 other countries. The program requires a donation of $150,000 to the National Transformation Fund or a real estate investment of at least $220,000. Grenada also offers an E-2 Investor Visa Treaty with the USA, allowing Grenadian citizens to operate a substantial business in the United States. There is no foreign income, wealth, gift, inheritance, or capital gains tax, making Grenada a top choice for those looking to disappear legally and protect their assets.

Nevis

Nevis, part of the Federation of Saint Kitts, offers a Citizenship by Investment Program that includes a donation of $150,000 to the Sustainable Growth Fund or a real estate investment starting at $200,000. It provides visa-free travel to over 150 countries and territories. Nevis is known for its strong privacy laws, which include not-taxed worldwide income, capital gains, inheritance, or gifts. Its robust asset protection laws make it an ideal location for new identity creation and protection.

Saint Kitts

Saint Kitts and Nevis’ Citizenship by Investment Program, established in 1984, is the longest-running program. Applicants can either make a $150,000 donation to the Sustainable Growth Fund or invest in real estate worth at least $200,000. Citizens enjoy visa-free travel to over 150 countries. Saint Kitts and Nevis does not impose taxes on personal income, capital gains, gifts, wealth, or inheritance.

Portugal

Portugal offers a Golden Visa Program, which grants residency to investors who spend at least €500,000 on real estate or €350,000 on properties over 30 years old or located in urban regeneration areas. Portugal’s program is unique as it provides a path to citizenship after five years of residency without requiring a permanent stay. Portugal has a favourable tax regime, including the Non-Habitual Resident (NHR) tax regime, which offers significant tax benefits to new residents, such as a flat 20% income tax rate and exemptions on foreign income.

Saint Lucia

Saint Lucia’s Citizenship by Investment Program requires a donation of $100,000 to the National Economic Fund or a real estate investment of at least $300,000. Visa-free travel is available to over 140 countries. Saint Lucia has no capital gains, wealth, or inheritance tax, making it an attractive option for those seeking to disappear legally and protect their identity. The country is also known for its swift processing time, often taking just three to four months.

Vanuatu

Vanuatu offers a fast and straightforward Citizenship by Investment Program, which requires a donation of $130,000 to the Development Support Program. The process can be completed in as little as one month. Vanuatu provides visa-free travel to over 130 countries, including the UK and Russia. There is no personal income tax, wealth tax, capital gains tax, or inheritance tax, but unfortunately, Vanuatu does not allow a person to buy a new legal identity.

<h4>Considerations for Crypto InvestorsWhen choosing a tax haven, crypto investors should consider the country’s stance on cryptocurrency. Some countries have favourable regulations and do not tax crypto gains, making them ideal for protecting your assets and ensuring a safe disappearance.

In summary, selecting the fitting tax haven involves evaluating various factors, including tax benefits, legal framework, and ease of obtaining a second passport. Each country offers unique advantages, making it essential to choose the one that best aligns with your needs and goals for a new identity and safe disappearance.

The Panama Papers Scandal and Asset Protection

The Panama Papers scandal exposed how wealthy individuals and public officials hid their assets in offshore accounts. This revelation significantly impacted how people approach asset protection and buy an identity change.

Impact on Asset Protection

The Panama Papers, a leak of 11.5 million documents from the Panamanian law firm Mossack Fonseca, revealed how the rich and powerful used offshore entities to hide their wealth. This scandal led to increased scrutiny and regulation of offshore financial activities. Consequently, those seeking to protect their assets and ensure a safe disappearance must now navigate a more complex legal landscape.

Identity Change Post-Panama Papers

In response to the scandal, many countries have tightened their regulations regarding offshore accounts and anonymous ownership. This has made it more challenging to hide assets without drawing attention. As a result, the demand for new identities and legal identity creation has increased. Individuals looking to disappear legally, buy a new legal identity and protect their assets must now consider more sophisticated methods, such as obtaining a second passport or establishing residency in tax havens with favourable privacy laws.

Legal and Financial Considerations

You can maintain your U.S. passport or surrender it if desired and buy a new legal identity. One critical aspect is that you must pay specific fees and donate $100,000 or $150,000 to the country’s sustainable growth fund. Remember that most cryptocurrency transfers are taxable unless they qualify as gifts or charitable contributions. If you plan to pay with cryptocurrency, consider this.

It is unclear whether this is a genuine donation or an attempt to purchase citizenship. If it is the latter, the IRS will likely state that paying with cryptocurrency will result in U.S. taxes. The IRS always looks for people who don’t pay significant Bitcoin taxes. It would be convenient to have a second passport, but what about those who give up their U.S. citizenship but are still required to pay U.S. taxes?

Navigating IRS Compliance

Ironically, this could lead to additional taxes in the form of the U.S. Exit Tax. To get out, you must show that you have complied with the IRS’s tax requirements for five years. Getting into IRS compliance can be expensive and stressful. If your net worth is more significant than $2 million or your average yearly net income tax for the five years before the current one was $171,000 or more, you may be required to pay an exit tax.

Strategies to Avoid Exit Tax

This tax on capital gains is calculated as if you had sold the property when you moved out. If long-term residents give up their green card, they may also be compelled to pay the exit tax. Sometimes, proper planning, gifts, separate tax returns filed by married couples, and appraisals can reduce or eliminate the tax. However, planning and calculating figures correctly is essential because the potential for tax liability is always present, even for those who can avoid the tax.

Administrative Fees and Renunciation

The U.S. charges a fee of $2,350 to issue a passport, more than twenty times higher than the rate typical for other high-income countries. As a result, the administrative expense is more manageable. The U.S. increased the renunciation fee by 422%, now costing $2,350 per direction. According to the State Department, the fee increase is due to the increased paperwork and applications required.

Reasons for Renunciation

People outside the U.S. may decide to stop due to familial, tax, or legal issues, common reasons for renunciation. An official list is updated and published every three months. The names added for the final quarter of 2020 brought the yearly total to 6,707, a 237% rise from 2019. 2020 broke the previous record for people who surrendered their U.S. citizenship or handed in their long-term green cards.

Case Study: The Foreign Account Tax Compliance Act (FATCA)

The IRS and the FBI actively pursue Americans who have left the workforce. Some former U.S. citizens explain why they gave up their citizenship and acquired a new identity. Financial factors frequently influence the decision. Expats have been requesting tax reductions for a long time, and the Foreign Account Tax Compliance Act (FATCA) throws gasoline on a raging fire. FATCA mandates filing Form 8938 annually if your foreign assets exceed a certain threshold.

Impact of FATCA

FATCA has created a unique reporting network, mandating that foreign banks and governments submit depositor bank details. If they don’t, banks and financial institutions worldwide that are not based in the U.S. will be subject to severe penalties. Because of worldwide tax reporting and FATCA, several countries waive it. This infographic demonstrates why holding dual nationalities is not always feasible.

Challenges of Compliance

Compliance with and disclosure of U.S. global income tax regulations can burden U.S. citizens and residents outside the country. Generally, Americans who live and work outside the U.S. must file tax returns where they reside. They must also continue submitting their taxes in the U.S., which requires them to record their income from elsewhere globally. A foreign tax credit does not permanently eliminate the problem of being taxed twice. There is also FBAR, which reports on accounts held in foreign banks yearly.

Penalties and Consequences

Failing to comply with these regulations can result in severe civil and possibly even criminal sanctions. Civil penalties can wipe out an entire account’s worth of funds. Ironically, even leaving the U.S. can be expensive.

Solution: Amicus International Consulting

Amicus International Consulting can provide an expedited solution to all your concerns by providing an entirely new identity. Contact us today for a free consultation on how to disappear legally and protect your identity effectively.