Dual Citizenship is The Best Freedom Insurance Money Can Buy – It Could Even be Free
It was recently reported that Google co-founder Larry Page had been granted a permanent residency visa for New Zealand. Page was able to apply for a special visa for New Zealand under a special visa program for people who invest more than $7m in the country. This visa will lead to New Zealand citizenship in 5 years.
It’s also been reported that billionaire Peter Thiel has citizenship in New Zealand. In fact, most of the super-rich have second residences and passports. They make sure that they have options. They have backup plans to ensure that they have bolt holes to escape to in times of crisis.
But it’s not just billionaires who can benefit from having second residences and citizenships. Anybody who values personal autonomy and freedom can benefit from having more options. A second passport is the ultimate insurance policy. Even though requiring a document from a government would seem anti-freedom at first glance. The fact is that international travel is all but impossible without a government-issued document. The more passports you have, therefore, the more freedom you gain.
So, just what are the benefits of dual citizenship?
Bank in Private – No reporting under FATCA and CRS
Financial privacy is more difficult than ever to achieve. Banks are subject to privacy-destroying regulations like the Foreign Accounts Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). This means that in the case of FATCA, your offshore accounts are reported to the US government if you’re a citizen or resident there. In the case of CRS, your accounts are reported to your country of residence. We’ve examined CRS in detail here and here.
If you open your offshore account with your second citizenship, which may be from a country that doesn’t impose tax burdens on you, you have the possibility of keeping your financial affairs private. Between you and your banker only, as it should be.
No Control by One Government for Those With Dual Citizenship
When Edward Snowden fled Hong Kong in 2013, he was originally headed to Ecuador. The only way to get there safely was via Moscow. When he arrived in Moscow, he discovered that his US passport had been canceled. That’s why he was forced to end his journey in Russia and apply for asylum there. This shows the level of control governments have over their citizens. You don’t own your passport. Your government does. They can withdraw it at any time. For any reason, they choose. That could be non-payment of taxes, civil disputes, or any reason a petty bureaucrat can dream up.
If you don’t have a second passport, you’re much less free.
Dual Citizenship Means You Have a Permanent Safe Haven
Many billionaires choose New Zealand as their safe haven because it’s far away from the rest of the world. They buy large estates there where they hope to escape whatever may be going on in the rest of the world. Dual citizenship gives you the freedom to have a permanent bolt-hole elsewhere that you can escape to in times of crisis.
Lower Terrorist Threat
There have been many occasions in the past where terrorists have targeted citizens of larger Western countries like the US or the UK. In any kind of hostage situation, terrorists would be more likely to target citizens of the USA or the UK than citizens of Ireland or Estonia.
In this kind of situation, dual citizenship could quite literally save your life.
Leave Increasingly Unfree Western Countries
There’s no doubt that the major English-speaking countries have become less free in recent years. Countries like Australia and the UK banned their citizens from travel. Australian citizens even found it difficult to return to Australia. Canadian citizens have recently been banned from travel if they don’t want to get vaccinated. These are trends that are likely to continue. As the Western world becomes less free, you must increase your options. It’s important even for those with moderate wealth to work on their plan B. This kind of insurance can be free, but it must be arranged well in advance of any problems occurring.
No Worldwide Taxation
Certain countries, notably the US, impose a worldwide tax burden on their citizens. While it may be possible to use tax planning strategies to avoid this kind of oppressive taxation, it’s still necessary to waste time and reduce privacy by having to file tax returns. It’s possible that more countries may follow the US and introduce citizenship-based taxation in the future.
Having dual citizenship gives you the possibility of renouncing your original citizenship if their rules become too oppressive. You then keep the freedom to travel whatever happens.
Increase Visa Free Travel
Having a portfolio of passports increases the number of countries where you can travel without first obtaining a visa. For example, if you’re a UK passport holder, you can’t travel visa-free to Russia or China. Both are major countries. If you’re able to add a Serbian passport to your portfolio, you’ll add visa-free travel to both Russia and China to your travel options.
Having multiple citizenships can only increase your freedom and your options. Of course, you must be careful not to get any citizenships that may come with obligations such as military service, as with Israel, or worldwide taxation, as with the US. Fortunately, most passports don’t come with additional obligations. Most will give you more freedom and prepare you and your family for any eventuality. If things continue to go downhill in the west, you’ll be one of the few who have additional options. You’ll have a backup plan that you can implement immediately, thanks to your dual citizenship.
Second Passport Blueprint
For dozens of options on how you can get new citizenship without investing millions check out Second Passport Blueprint. This new report goes into detail about how you can get a second passport without spending any money. In some cases, without setting foot in the country where you’re getting citizenship. This report avoids the expensive options where you have to make a large donation or investment to get a new citizenship. It focuses on the citizenships you can get for free. Even without being fortunate enough to have an ancestor from another country.
Your Questions Answered
What is dual citizenship?
Dual citizenship refers to the status of an individual who is a citizen of two countries at the same time.
Why do billionaires and super-rich individuals have second residences and passports?
Billionaires and super-rich individuals often have second residences and passports to ensure they have options and can maintain personal autonomy and freedom.
How does dual citizenship provide financial privacy?
If you open your offshore account with your second passport, which may be from a country that doesn’t impose tax burdens on you, you have the possibility of keeping your financial affairs private.
Why do many billionaires choose New Zealand as their safe haven?
New Zealand is often chosen as a safe haven by billionaires due to its geographical isolation and the ability to buy large estates there to escape global events or crises. Many other countries fit the bill too.
How can dual citizenship help in leaving increasingly unfree Western countries?
As major English-speaking countries become less free, having dual citizenship provides individuals with more options to maintain their freedom by leaving restrictive environments.