Plan B; Why Not Live Outside of Your Home Country?
Posted by David Kafka on 05/04/2021 05:49 AM
Have you heard of Simon Black from Sovereign Man or Robert Kiyosaki who talks about the pension crisis in his latest book Who Stole My Pension?: How You Can Stop the Looting? They talk about the vast amount of debt the United States and other countries have. Simon Black talks about having a Plan B and with COVID-19 it seems even more of a reason to have that Plan B.
In 2019, the United States had a total debt of over $21.6 TRILLION USD. At the start of 2020, it was $22,622,684,674,364.43, that is OVER $1 Trillion in debt in 12 months. With COVID-19 an extra $2.2 trillion stimulus package the federal government passed at the end of March. More funding for federal programs is expected to move through Congress. Who will pay for this? Who will get bailed out?
As if Trillion of dollars of debt isn’t enough to worry about, there’s the pension fraud going on. Again, who will pay for that? Unfortunately, it will be our children, their children, and the generations after.
So, what is Plan B, and is it an option? Plan B is about having the option of dual citizenship, a second passport issued by a government to certify the holder’s identity and citizenship within that country. Aside from dual citizenship, a second passport provides more options and freedom in business, studies, investments, and living. It also gives you a wider range of traveling to countries without a visa.
Here are some benefits of having secondary citizenship and passport:
- Freedom of Movement - Freedom for
- Education for children
- Equal rights independent of gender or race
- Safe environment
- Work opportunities
- Ability to travel
- Freedom of speech and self-expression
Ease of Travel - They say travel broadens the mind. However, does this saying still stand if your passport does not grant you to travel as you wish? Looking at your passport, you can easily tell if you have the opportunity to visit countries of your choice freely. The vast majority of travelers will have to apply for a visa each time they travel.
Not Applying for a Visa - Applying for a visa takes time, is expensive, and is not guaranteed. Should you be granted a visa, you should know that it is not permanent, and you will need to re-apply. The constant renewal process can be long and tedious. It can, however, be easier for those living in countries with excellent credit ratings. Top countries will typically have entry rights to 180+ countries. These include many of the most developed European countries and part of the Schengen area.
Generational Benefits - Once you obtain a second passport, the political diversification benefits will last for generations. You will be able to pass on multiple citizenships to your future children and grandchildren.
Tax Benefits - Any potential tax benefits of second citizenship will depend largely on the country you are from and your country of second citizenship. Some countries around the world, particularly in the Caribbean, offer much lower tax rates than many developed countries. Therefore, becoming a second citizen of such a country may present opportunities for greater tax efficiency. There is also the potential to classify any expense associated with your citizenship application (such as travel between the two countries) as a business expense, lowering your tax liability.
Avoiding Political and Economic Instability - It goes without saying that any political or economic unrest in your home country is a worst-case scenario. But with the current geopolitical and economic landscape being as it is, such incidents need to be considered. Here, second citizenship has two clear advantages:
Should the country where your business is based undergo any significant financial, social, or political upheaval, you have the option of relocating your assets to another more stable country. This is far easier when you have a second citizenship.
In addition, having second citizenship can provide you with an escape route from any potential conflict, civil unrest, or travel sanctions imposed upon your home country. Again, this is an absolute worst-case scenario, but should your home country become unsafe, you can leave to live and work in more secure surroundings without time-consuming bureaucracy.
There are many more reasons why to consider having a secondary citizenship and passport. Not all passports are created equal, and some countries offer more expensive passports than others. It’s important to understand the different passports and the intrinsic values they offer based on the countries you can access through them.
Passports and the programs offering them fall under three major tiers and you can learn more about them on passportindex.org. I became a Belize citizen earlier last year and have a Belize passport. The process to get a Belize Passport is easy, it just takes time. In Belize, you start out by being in Belize for one year without leaving the country for more than two weeks as a tourist or under a work permit. This will allow you to qualify to be a resident. After five years of residency, you will be eligible for nationality.
Belize is one of the fastest-growing Caribbean destinations and they offer a way to apply for a secondary passport. There are other ways to live in Belize, either as a tourist or through the QRP, which we will discuss in a later article.
Until next time, stay safe and well.