A New Trend: Wealthy Americans Buying Citizenship in Other Countries
A new trend is emerging among wealthy Americans: buying citizenship in another country. For some, it’s a hedge against U.S. instability; for others, it’s a way to access better education and healthcare. This trend is raising concerns among law enforcement officials. Some worry it could be used to avoid prosecution for crimes committed in the U.S. Others fear it could undermine America’s status as a global superpower.
The trend of wealthy Americans buying foreign passports is becoming more common. For some, a new identity brings new opportunities. This might mean travelling more freely, accessing job opportunities overseas, or starting new businesses. However, obtaining new citizenship comes with risks, and awareness of potential consequences is essential. Those considering this option should research and consult with legal experts to make an informed choice about purchasing new citizenship.
Why Are Wealthy Americans Buying Citizenship in Other Countries?
Wealthy Americans are adopting citizenship buyback schemes in countries like Malta, Saint Kitts, and Nevis. This approach grants them greater access to global financial markets and enhances visa-free travel options. Additionally, it allows high-net-worth individuals to maintain stability and peace of mind amidst changing international economic and governmental conditions.
When immigration curbs or other factors make entering selected countries difficult, having a second passport can open up many opportunities. Finally, purchasing foreign citizenship often comes with tax benefits that wealthy people find attractive.
The Trend of Buying Second Citizenship as a “Plan B”
The idea of a “Plan B” has become increasingly attractive to affluent individuals in the United States and globally. With political unrest, economic instability, and the unpredictability of global events such as pandemics, more people are seeking a safety net outside their home country. A second citizenship provides a secure backup plan, ensuring they have an alternative place to reside if the situation in their home country deteriorates.
Security and Stability
One of the primary reasons for this trend is the desire for security and stability. Political instability, economic downturns, and social unrest can create an uncertain future. Citizenship in a stable country provides a secure option for relocation, offering peace of mind to escape potential turmoil.
Economic Opportunities
A second citizenship also opens up economic opportunities. It allows access to new markets, investment opportunities, and business ventures that might be restricted due to nationality. For instance, countries like Portugal and Spain offer Golden Visas, which grant residency and, eventually, citizenship in exchange for investment in real estate or business.
Case Study: John McAfee
John McAfee, the antivirus software magnate, sought citizenship in Belize to escape legal issues in the U.S. McAfee faced lawsuits and criminal investigations in the U.S., including allegations of tax evasion and involvement in the death of his neighbour in Belize. Relocating to Belize temporarily allowed him to evade these problems. This case illustrates the complexities and risks of seeking new citizenship to escape legal issues.
What Are the Benefits of Having a Second Citizenship?
Access to a New Way of Life
Acquiring second citizenship can offer a new way of life, including more opportunities for higher education and improved employment prospects.
Enhanced Travel Benefits
With a second passport, individuals can enjoy enhanced travel benefits, including visa-free access to many countries.
Financial Opportunities
Having dual citizenship opens up new financial opportunities and access to global markets.
New Identity Options
A second citizenship allows individuals to obtain a new identity, providing more freedom and security.
Case Study: Eduardo Saverin
Eduardo Saverin, co-founder of Facebook, renounced his U.S. citizenship and became a citizen of Singapore. This move was partly motivated by Singapore’s tax benefits to high-net-worth individuals. Saverin’s decision highlighted how obtaining new citizenship can provide financial advantages and a favourable business environment.
How to Go About Buying Citizenship in Another Country
Researching Citizenship Programs
If you’re considering buying citizenship in another country, start with thorough research. Look for a reputable company that specializes in helping people purchase foreign citizenship.
Ensuring Security and Transparency
Ensure the process is secure and transparent to avoid surprises later. Familiarize yourself with the procedures and documentation requirements, such as background checks and passport applications.
Consulting Legal Experts
Consult with legal experts to ensure you understand the legal implications and requirements of obtaining new citizenship.
The Cost of Buying a Golden Visa
Understanding Golden Visas
Golden Visas are residency or citizenship programs several countries offer in exchange for a substantial investment. These programs are designed to attract wealthy individuals by providing them and their families residency rights or citizenship in return for investment in real estate, business, or government bonds.
Typical Costs and Investments
The cost of obtaining a Golden Visa varies widely depending on the country and the specific program. Here are some examples:
- Portugal: The minimum investment for a Golden Visa in Portugal is €800,000 in real estate or €550,000 in a property requiring renovation. There are also options for capital transfer and job creation.
- Spain: Spain’s Golden Visa requires a minimum investment of €600,000 in real estate. Other options include investments in Spanish businesses, bank deposits, or government bonds starting at €1.6 million.
- Malta: Malta offers citizenship by investment starting at €900,000, which includes a donation to the national development fund, real estate purchase or lease, and a contribution to a local charity.
- Greece: Greece’s Golden Visa program requires a minimum investment of €450,000 in real estate, making it one of the more affordable options in Europe.
- Saint Kitts and Nevis: The citizenship-by-investment program starts at $190,000 for a donation to the Sustainable Growth Fund or $250,000 for real estate investment.
Additional Costs
Beyond the initial investment, there are often additional costs, including government application fees, legal fees, due diligence fees, and other administrative expenses. These costs can add up to tens of thousands of dollars.
The Pros and Cons of Giving Up Your U.S. Citizenship
Pros of Renouncing U.S. Citizenship
The biggest pro is relief from American taxes, laws, and civil liabilities. Those entering witness protection may also have no choice but to renounce their U.S. citizenship.
Cons of Renouncing U.S. Citizenship
Cons include losing access to services and benefits the U.S. offers citizens abroad, like visa-free travel, and permanent exclusion from re-entry unless granted special permission.
Case Study: Tina Turner
The legendary singer Tina Turner relinquished her U.S. citizenship to become a Swiss citizen. Turner’s decision was driven by her desire to live permanently in Switzerland, where she had resided for many years. By giving up her U.S. citizenship, Turner embraced a new lifestyle and the benefits of Swiss residency.
What Happens if You Have Dual Citizenship and One Country Revokes It?
Legal Complications
Having dual citizenship can have various benefits, but complications arise if one country revokes it. People may find themselves without legally established identities in either country. The revoking nation often refuses to support and recognize the individual’s claim within its jurisdiction, leaving the person in legal limbo.
Obtaining a New Identity
Obtaining a new identity instead of one revoked by their home country is possible but not without legal complications. A new name, social security number, and other identifying information can be acquired, but this doesn’t always guarantee the same rights as native-born citizenship. The process can be lengthy and fraught with bureaucratic hurdles.
Case Study: Hikaru Nakamura
Hikaru Nakamura, a chess grandmaster, experienced complications with dual citizenship when Japan, his country of birth, revoked his Japanese citizenship after he became a U.S. citizen. Nakamura had to navigate complex legal issues to ensure his ability to travel and compete internationally. His case highlights the difficulties dual citizens can face when one country revokes their citizenship.
Naturalization as a Solution
The best option for people whose citizenship has been revoked is to acquire a second passport from another country through naturalization, thereby gaining new residency and possibly new rights. This should be done with the advice of a trained legal professional to avoid potential long-term pitfalls.
Conclusion
Wealthy Americans and many others are buying citizenship in other countries as a backup plan. A second passport has many benefits, such as more accessible travel and better healthcare. However, there are drawbacks, like giving up U.S. citizenship and dealing with potential complications of dual citizenship. Contact a professional service to help navigate the process of obtaining new citizenship.
If you would like to work with a professional team that can help make your transition to a life of freedom, contact Amicus International for New Identity services today.
