Plan B passports and Taxes
Plan B passports have risen in popularity over the past five years. JH Marlin Law (jhmarlin.com) has assisted clients in over 50 countries acquire a second passport through citizenship by investment programs. People’s motives for doing citizenship by investment vary. Common reasons for seeking a Plan B passport include; safety & security, increased visa free travel, ability to have a second passport to be able to renounce their current citizenship and having a Plan B passport for tax planning purposes.
Many people are looking to strategically tax plan. Citizenship by investment is often a solution for people from the United States who are looking to renounce their United States citizenship and then eventually reside in a no or low tax country. While most countries tax people based on their residency, the United States taxes citizens based on their citizenship. This means that a US citizen who lives abroad still has tax obligations in the United States regardless of how long they have lived outside of the United States. By obtaining a Plan B passport such as a Caribbean passport through citizenship by investment, a United States citizen can be in a position to renounce their citizenship. Not only are people from the United States interested in Plan B passports, there has also been an increased trend of people from countries such as Canada to get a Plan B passport and go and reside in their new country of citizenship.
Many US citizens that are cryptocurrency investors look at citizenship by investment as a way to be able access investment opportunities that otherwise would be limited if they maintained their US citizenship. The US under Biden’s administration is looking to clamp down on cryptocurrency gains of over US$10,000. As cryptocurrency investors are often required to operate in an uncertain environment, having a second passport can serve as a safety Plan B option or can sometimes be a Plan A option for people who are looking to renounce their United States citizenship.
There are many countries that offer citizenship by investment which include; Grenada, Dominica, Saint Lucia, Saint Kitts and Nevis and Antigua & Barbuda. For example, in St.Kitts & Nevis and Antigua & Barbuda there is no taxation on cryptocurrency and there is no personal income tax in the country.
For more information about citizenship by investment you can contact:
jhmarlin.com
Jennifer Harding-Marlin
