WHO NEEDS A SECOND PASSPORT?
Short answer:
Anyone with property or business interests probably needs a second passport -even if they don’t know it yet.
Most people never think about obtaining a second (or a third) passport. In fact, most people don’t even have one passport.
But passports can be lost, stolen, confiscated, or cancelled by the government. Your ability to escape, to travel, to protect your assets abroad; all these hang by a thread. That thread is your passport.
Lose it, and you can be a victim or prisoner in a dangerous, unfriendly country. That country may be your own (present) country.
But by obtaining a second passport, you open up new options – new paths to freedom hitherto unknown and undiscovered. You will cease to be a pawn of governments. You will legally pay less tax. You will achieve financial privacy. Your ass and your assets will be protected.
This report is the first step on your quest for a completely legal second citizenship and passport…
CHAPTER 1
WHAT? A SECOND PASSPORT?
Let’s start with a look at The Land of the Free and The Home of the Brave.
The U.S. government has adopted some policies of Nazi Germany and the old Soviet Union. Other countries may as bad or worse, but the USA serves as an example. Today a U.S. passport is used for coercion. For instance?
- In the United States, the government will deny you a U.S. passport simply for being in debt to the Internal Revenue Service.
- You can also be denied a passport if you owe back payments for alimony or child support.
- If your politics are ‘wrong,’ or you are suspected of ‘suspicious behaviour,’ you can’t use your passport to exit the U.S.A. and you won’t get a new one.
- The USA currently has no military draft, but if they enact one, you can be sure no-one of military age will get a passport.
The USA’s restrictive policies are fast being adopted by many, if not most other countries. In most cases, they already have similar rules regarding passports.
The USA passport already has several restrictions as to what countries may be visited by citizens – Cuba for example. If a USA passport has a stamp in it from a ‘tax haven’ or a Muslim jurisdiction, it is likely that the returning holder will be questioned if not detained at the border on returning home.
THE IRS CRACKDOWN ON AMERICAN PASSPORT HOLDERS
Passport renewals require an applicant's Social Security number. Thus, the IRS uses this information to see if applicants have filed income tax returns.
Since 1986, the U.S. State Department has informed the IRS about any American who renews their U.S. passports from a foreign address.
As of 2009, however, things are worse. The IRS is making a special effort to question all US citizens who renewed USA passports while living in tax havens like Switzerland, Monaco, Andorra, etc. You can guess why! Where is all this leading?
YOUR PASSPORT AS A TRACKING DEVICE
A USA Passport (now with chip included so it can be monitored at a distance without you even knowing) is a monitoring device, just like the prisoner's leg bracelet!
More recently, the Department of Homeland Security (DHS) used their "fighting terrorism" excuse to track the movements of every US passport that comes or goes by air or sea. They track foreign stamps and recently added land border crossings, so they can create a travel profile of each and every American leaving or arriving in the U.S.A.
One friend of mine in government says: "Instead of keeping track of only known or suspected terrorists, the government now tracks everyone who crosses a U.S. border. Since there are no limits to how the government uses the data collected, the information will be used for politically motivated surveillance."
Another acquaintance who is an activist in the ‘anti-war’ movement is always detained and questioned – even by friendly countries outside of the U.S.A.
How can you avoid these problems? Simple! Travel with another passport (from another country) when you travel between countries outside of the United States.
If you're a U.S. citizen, you must use your U.S. passport when you enter or leave the United States. But you're under no such obligation when you enter or leave other countries.
The U.S. Supreme Court has repeatedly ruled that American citizens retain their citizenship when there is no clear intent to end that status. Accordingly, obtaining a second passport from another country does not affect in any way your U.S.A. citizenship status. Further, we know of no foreign countries that will inform the U.S.A. or any other country of citizens obtaining their passport. The few exceptions to the rule may be certain Scandinavian countries or others that require a renunciation of any prior citizenship as a condition precedent to obtaining their passport.
Interestingly enough, at any time after renunciation, a local U.S.A., Canadian, or most other consulates will re-issue the ‘renounced” or cancelled passport. Most countries follow the rule: “Once born American, always American.”
The U.S.A. Supreme Court, as well as the Courts of Canada, Great Britain, Australia, and others, have consistently supported their citizens' rights to hold dual citizenship.
CHAPTER 2
WHAT IS DUAL NATIONALITY AND WHY DOES IT MATTER?
Dual nationality simply means that you are legally a citizen of two countries at the same time, qualified as such under each nation's law.
You automatically receive this status if you're born in a foreign country and one of your parents is a U.S. citizen, for example. In that case, you would become both a U.S. citizen and a citizen of a foreign country because of your foreign parent, or your birthright.
You can also become a dual national by automatic ‘operation of law.’ For example, as a
U.S. citizens, you could marry a foreigner and become a citizen of your spouse's nation. Or if you were a foreigner who naturalized as a U.S. citizen, you still retain your citizenship from the country of your birth.
But if you are not lucky enough to have been born a dual national, what can you do?
After a period of residence abroad – as little as two years in some places, and longer in others – you can apply for local citizenship. Other countries including the USA have investment programs where for money (a qualified investment) you get on a fast track for citizenship and a new passport.
In still other countries, like Austria, Switzerland, and most of the third world you can be granted instant citizenship and a passport by legislative or judicial order in ‘special circumstances.’
Still another way is to become an honorary diplomat or employee of a foreign government. In Bye Bye Big Brother we detail several dozen avenues towards a legally obtained second passport.
There are also ‘under the table’ ways to do it. The most common of these is the Mariage Blanc – a marriage carried out especially to qualify for citizenship.
One method we most emphatically do not recommend is ‘rebirth.’ This involves obtaining a phony birth certificate in the country of your choice. In Africa, this can be done for a few hundred dollars. But there are many paths to a second passport. It is so easy to do it legally, there is no reason to engage in any frauds.
Get the idea?
The most important point is that acquiring and using a foreign passport does not usually endanger your present citizenship. It's common for virtually all wealthy or intelligent people of most countries to have two or more passports. Where the ordinary passport is not good for visa-free travel (think Russia!), every upper-class citizen has two or more passports.
COUNTRIES THAT DO NOT ALLOW DUAL CITIZENSHIP
Only a very few countries won't officially permit their citizens to keep their present citizenship if they are granted the passport of another nation where they have no business ties nor family connections (think Sweden!)
This was the case in the U.S. until 1967 when the U.S. Supreme Court upheld the right of all U.S. citizens to apply for and hold a second, foreign passport. Before that time, the official rule was that a person acquiring a second nationality by getting a foreign passport and renouncing the USA automatically lost U.S. citizenship. However, ‘official’ is one thing, and reality is often another.
Although the U.S. Government recognizes dual nationality, it does not encourage it ‘officially.’ But since that ruling in 1967, the USA government (to avoid losing taxpayers!) presumes a U.S. citizen never intends to surrender citizenship even if he or she verbally renounces citizenship and burns their draft-card. The U.S. government will not generally let anyone give up U.S. citizenship without filling out a myriad form, getting them approved officially, being personally interviewed, and essentially, agreeing to pay taxes for 12 years after expatriation. This presumption is set forth in a U.S. Department of State publication, Advice About Possible Loss of U.S. Citizenship and Dual Nationality, (1990).
HOW A SECOND PASSPORT CAN BE A LIFESAVER
Big Brother’s Homeland Security Department is already tracking everyone’s movements. The real reason seems to be more to catch taxpayers, not dangerous terrorists. Germany, Great Britain, Spain, and France, among others, have similar programs. High net worth and minority group Europeans have always had second passports. These days, successful Americans also need second passports. There are already too many restrictions on freedom of travel, finances, and associations with foreigners.
Currency controls are always a threat. In Great Britain, for years into the early 1980s, Brits could not take out more than the equivalent of one hundred pounds. This meant no vacations except for those with illegal bank deposits abroad. Virtually every country imposes exchange and currency controls of some form in times of crisis.
In addition, a Second Passport can mean safe passage without delay to a place where your particular religious group would be free of persecution. Who would have thought that when leftist regimes took over, that landlords and business owners would be subject to arrest, and in many cases, execution? Even in the USA, people forget that the landed gentry were forced to flee the country to avoid imprisonment or death… Once during the American Revolution, a second time in the Civil War, and more recently – several times when certain groups like Blacks, German-Americans, Japanese-Americans, were declared persona non grata.
Today, when a defendant appears in court, the first order is often ‘Surrender your Passport within 24 hours or go to jail without bail.’ This can happen in a civil case like divorce. A second passport can be a life-saver.
By ‘second passport’ in this case, we mean a passport from a different country than the place you live in. It is possible to legally obtain a second or ‘duplicate original’ passport from your home country. These can also be useful, as explained in our full report. But not nearly so useful as an undisclosed second passport from an entirely different country.
THIS IS YOUR WAKE-UP CALL
Can you see now see why a second passport would be useful? It’s cheap insurance for mobility and financial survival.
Why? Banking, Travel, Escape... Americans, Germans, and Brits are already unwelcome as customers in many banks, not just in Switzerland but around the world. If doors are closed to you only because of your nationality, perhaps that is a wake-up call. Most offshore banks absolutely refuse to take any American customers. Why? Because Uncle Sam is continually interfering with and punishing banks with American customers.
A passport is the gold standard identity document. Like it or not, for practical purposes the passport we carry defines our identity. It defines our freedom to travel, to do business, to handle financial transactions, to marry or divorce, and much more.
Having only one passport means you are under the complete control of one government. You are at their mercy. They can withdraw your passport at any time.
Having two or more passports opens up options and gives you the freedom to decide which government will be your chosen service provider!
When? We believe that ‘yesterday’ was the appropriate time to start getting your second passport. ‘Tomorrow’ could be too late!
THE INTERNATIONAL ELITE HAVE LONG USED SECOND PASSPORTS –
NOW THE MIDDLE CLASSES HAVE DISCOVERED THE BENEFITS
For generations, the international super-rich has been expatriating and changing citizenship. Why? To maximize freedom, preserve wealth, and avoid persecution. Look at the most successful and influential people in history and you will find many examples of people who changed their citizenship during their lives. Victor Hugo, Albert Einstein, and Barack Obama are on our lists of thousands who have benefitted from second passports.
Look at the first page of your own passport. It says that your passport belongs to the government. Your keepers reserve the right to take it away at any time for any reason. You have no ‘right’ to a passport.
In today’s business world, people treasure mobility. Unfortunately, the world of passports – the fundamental document that enables us to travel – hasn't kept up with people’s needs. Any passport can be subject to seizure, curtailed travel benefits, or political jeopardy.
There is also another factor: opportunity. It is probably easier to make your fortune outside of your home country than it is to make it where you are. The new American dream, for instance, is to leave the USA. Yes, the poor unwashed masses are still going into the USA… but many productive, rich and intelligent Americans have left. Smaller, faster-moving economies offer a better, lower cost, tax-free lifestyle.
Many people like you are not ready to leave yet, but they see that things might get worse. They want to keep options open. A second passport is all about keeping your options open.
CHAPTER 3
TWELVE GOOD REASONS WHY YOU MIGHT WANT A SECOND PASSPORT
Here are a dozen of the most common reasons why liberty seekers and sovereign individuals seek second passports. In fact, this is an extract from Grandpa’s powerful plan for a life free of bureaucratic interference, Bye Bye Big Brother.
You need a second passport if:
- Yours has to be renewed or extended more frequently than once every ten years. Annual renewal or five year expiration periods are common. Renewals sometimes involving a required return to the home country, a visit to an inconveniently located consulate in person – or facing the third degree on whether you have paid your proper taxes. Renewal can be expensive or impossible. In terms of your own life and travel plans, it can be a real bother. The country of your second passport should have no taxes on non-residents, no military, few enemies, and no reason to shun or abuse its citizens.
- Could your passport be withheld or cancelled by Big Brother or his agents ‘on suspicion of a crime’ or for political reasons? The USA, for example, has a long tradition of pulling the passports of its citizens who have traveled (or might travel) abroad to espouse views unpopular with the current administration. The most famous American case was that of Paul Robeson, an internationally famous black singer and actor of the 1960s. He had leftist views. Under the USA Patriot Act, with a new hysteria having taken hold, not only can passports be revoked; even the citizenship of native-born Americans can now be cancelled, consigning ‘suspected’ Americans to a legal no-man's-land. You have no absolute right to travel. The issuance of a passport is completely within the discretion of bureaucrats. You cannot depend upon one passport. Your Freedom to move out of possible danger, civil wars, and tax confiscations of your property is too important a right to be left in the hands of others!
- Does your existing/present passport limit your investment possibilities and entrepreneurial activities? Many countries boycott other countries and impose criminal penalties on ‘trading with the enemy.’ Of course, your enemy and the government's enemy may well not be the same. We feel that free trade is the best way to keep things peaceful. Yet private investments can be wiped out due to political changes. Innocent Iranian, Kuwaiti, and Iraqi investors, some residents in Europe and the USA, had billions of dollars confiscated by western nations such as in the Gulf War era. Americans lost all their investments in Muslim countries in a tit-for-tat. Various governments have gripes against other governments and this serves as an excuse to simply confiscate private investments of citizens holding non-neutral passports.
- Does your existing/present passport expose you to retribution and other dangers? Americans and Brits were chained to missile targets in Saddam's Iraq while Swiss and Mexicans were being evacuated. In the Argentine-British conflict over the Falkland/Maldives Islands, innocent Brits again were beaten up and jailed in South America. Americans and Israelis are always being kidnapped and murdered, just because of their nationalities. Using a second neutral passport for travel can camouflage your true nationality. It will save your ass and your assets.
- Does your existing/present passport expose you to income taxes on your worldwide income? Many governments impose no personal income taxes at all, resident or not. Think Central and South America and all tax haven countries. Only one nation, the USA, expects non-resident USA passport holders to pay ‘Uncle Sam’ the same income taxes as residents who get the benefits (?) of living there. This anomaly is the reason why international tax consultants all refer to the USA passport as ‘The Most Expensive Passport in the World.’
- Does your existing/present passport make you a target for suicide bombers, kidnappers, or terrorists? Could you be selected as a target – over other nationalities? Why travel with a high-profile document when a second passport from a neutral country will be the cheapest life insurance you can get?
- Does your existing/present passport allow your present Government to control or restrict your travels? Look in your passport. For example, does it say ‘Travel to Cuba (or anyplace else) is forbidden?’ Your personal travel freedom is important. That is another reason why you need an unrestricted passport, issued by a neutral country without political enemies.
- Does your existing/present passport show that you are a citizen of a hated, very unpopular, or ‘pariah’ state? When this happens, it becomes difficult or impossible to get a visa to go anywhere. South Africa used to be the example in the 1980s. Today it may be North Korea or Iran. Some passports, like Thai for instance, maybe not good for visa-free travel but they do offer a very decent alternative for offshore banking. A Nigerian passport, due to the prevalence of frauds emanating from that country, is good for nothing. Bankers won't open an account for a Nigerian and it is difficult for Nigerians to get a visa to go anywhere. It is almost as bad to be a Nigerian as it is to be an American. Only joking. A U.S.A. passport is better than a Nigerian for travel – but just as bad for banking.
- Does your existing/present passport force you or your family into unwanted military service? Avoid countries with mandatory armed forces enlistments, unless you are unfit for service as over-age or handicapped! Israeli citizenship is easy to get and actually a pretty good passport for travel and banking. However, if you are of military age, or if you want to travel in the Arab world, it is not desirable.
- Does your existing/present passport limit your freedom of movement? Poor, population exporting countries like India, Pakistan, Bangladesh, and the Philippines have lousy passports. Russians, Lebanese, and CIS nationals also have big problems arranging ordinary visas required for business trips, etc. Their travel documents are basically no good for travel! To get a tourist or business visa to Western Europe or North America is nearly impossible without a local sponsor. This sponsor must accept full financial responsibility for the tourist’s return to the home country within a few weeks or months.
- Is your existing/present passport issued by a state like Somalia which is politically unstable or even doesn't exist? Some countries are ‘here today, gone tomorrow.’ Their passports become worthless when they go to war or are absorbed by a neighboring country. Think Tibet or Zaire. Other countries are already gone --not even here today. New ‘mini-countries’ often issue passports that are not recognized by any other country. These have included Seborga in Italy, Sealand off the coast of England, Minerva on a Pacific Ocean Coral reef, Freeland (which apparently never got off the ocean floor), Melchezidek, and so on.
- Does your existing/present passport penalize you for changing your legal permanent residence to a tax haven? This is another way that Big Brother restricts free movement. As explained elsewhere, a second passport may be a necessary intermediate step. Example: A Frenchman can't escape French income taxes by moving to the tax haven of Monaco. But he might be able to finesse a tax-free status in Monaco if he first becomes a citizen of somewhere else (say St. Kitts). An American can't legally escape USA income taxes and annual filing requirements. Period. He must get a second passport, and move his legal residence abroad. Then and only then can he escape the USA tax net, and to do it legally – he needs expert advice. The six flags of Bye Bye Big Brother (explained in this report and detailed in the 3-volume book) gives an outline of the legal PT way of doing this.
CHAPTER 4
SECOND PASSPORTS FOR ASSET PROTECTION
Most people buy insurance to protect the health, life, home, car, and personal possessions. Intelligent people will acquire a second passport for exactly the same reasons:
- Plaintiff Lawyers, courts, and juries look for defendants to award million dollar verdicts. The cases can be ridiculous: A burglar injured his spine falling over a kid’s skateboard while robbing the defendant’s house. In such a case in the USA, the burglar won lifetime support when he became a paraplegic. The deep pocket theory makes a wealthy defendant pay up – regardless of the facts of any case. Robin Hood judges can take your money and give it to ‘deserving poor’ criminals!
- Government agencies can confiscate everything you own, on the strength of an erroneous or unfounded suspicious activity report. Due process? Forget it.
- Property rights have been eroded to the point where the State decides what you can keep – and if you may remain outside of prison. Read Ayn Rand’s The Fountainhead to get your head around the facts of life.
- Selective Prosecution means that the most highly paid, successful people with visible assets run a much higher risk of criminal indictment.
- Finally, consider inflation. Your purchasing power is cut in half every five or six years. You might be fooled because you have MORE dollars in your bank account – but your money is it dollars, pound sterling, or Euros will be worth a lot less with every passing day!
Do you need asset protection options? Yes!
Is a second passport a good asset protection option? Yes!
Immigration and citizenship are often overlooked in wealth planning. Big mistake! Getting this right is the single most important factor in determining whether the wealth and power of your family will grow. Without an international approach, the odds are that your family will lose wealth in your lifetime. Future generations will not benefit from your hard work and planning.
HOW A SECOND PASSPORT SAVED AN AMERICAN BUSINESSMAN MILLIONS
Here’s a simple, straightforward example to illustrate the point. A few years ago, a friend of ours helped an American client, let’s call him Sam, obtain a second passport. Sam hadn’t planned it for asset protection purposes originally. His original idea was to gain more flexibility and security when he travelled on business. He just had a gut feeling that keeping options open was a smart plan.
How right he was. A disgruntled business partner who had tried to embezzle his funds but got caught filed suit against Sam in the courts, claiming that Sam had defrauded him! The ex-partner tried to paint Sam as a flight risk and easily persuaded the judge to seize his USA passport. He figured that clipping his wings, effectively destroying Sam’s ability to carry on running his international business, would force him to capitulate and make a multi-million dollar settlement.
Imagine how delighted Sam was that, unbeknown to the scammer, he already had a second non-American passport that helped him elude his former partner’s trap. Instead of being trapped in the USA, he was able to carry on business as normal. The disgruntled partner’s contingency fee lawyer refused to handle the case further once he saw what was happening.
Our office and advance planning had given the client a powerful strategic option that helped him win a battle worth millions of dollars, at a stroke.
WHY MOST DOMESTIC ASSET PROTECTION SCHEMES DON’T WORK –
AND HOW A SECOND PASSPORT OFFERS STRONG ASSET PROTECTION
Most domestic asset protection schemes are ineffective. By domestic, we mean keeping assets in your home country, where claimants – government or private – can easily seize and freeze them. Are there any exceptions? A few: If you can keep some precious, small objects accessible, yet safe and well-hidden near to where you live that is an option for say, a stash of gold or silver coins that might be needed for an emergency escape.
In my book Bye Bye Big Brother I will give you insights into little known, powerful legal options… things you have probably not considered. Surely, strategies your domestic lawyers can’t even imagine!
We will show you how to move your assets to safety at a very low cost, at the same time cutting out all those lawyers, accountants, and tax preparers eager to take a slice of your assets. More importantly, you will make new contacts plus, earn much more money on your investments than you ever dreamed possible. You'll learn what it means to be a "P.T." or Sovereign Individual.
Your private papers and personal records will be invisible and undiscoverable. They will be hidden encrypted in cyberspace, so you will have convenient access to them from anywhere you happen to be, but nobody else will even know they exist, let alone be able to access or seize them.
Your assets are likewise made invisible and undiscoverable. You stay liquid without complicated trust arrangements, and you can cash out any time.
Estate Planning? Forget it! Using the standard techniques of local lawyers, tax planners and soon, far too much of your assets will find their way into the pockets of lawyers, “licensed professionals” court-appointed appraisers, administrators, and state and federal tax collectors. Our strategy shows you how (without any lawyers) to completely avoid probate costs.
At a stroke and at no cost, you'll learn how to eliminate the possibility of family squabbles over your assets after you've gone. You'll find out how wealthy people preserve and pass on 100% of their estates to the loved ones and good causes they really want to have it – not the State. And how they do it PRIVATELY!
What about Personal Income Taxes? They too can be legally eliminated... legally and completely. If you could double your income and eliminate taxes would you be willing to move abroad -perhaps to a tropical paradise?
Would you like to learn how to run your existing businesses through an offshore corporation that also insulates you from personal liability?
Consider the Risk of Criminal Prosecution! One in every seven Americans now destined to serve jail time often for newly defined “victimless crimes,” You don’t just have to protect your assets. Your ass is on the line too! We feel you need to plan for a personal escape or “bolthole” long before you are sued or become enmeshed in the legal process.
You can ensure your personal freedom, safety from criminals, lawyers, and Big Brother. Your money can be invested with 100% security, completely avoiding scams, and rip¬offs.
Yes, we are promising a lot... but this is a strategy that has been employed over the years by the world’s elite super-rich families and also by free-thinking individuals of more modest circumstances...
A second passport can make things incredibly simple. As in the example of Sam the American businessman above, the solutions used by PTs usually are incredibly simple and do not need to involve accountants, lawyers, trusts, family foundations, or complicated “structures” like two-tiered, bearer share offshore holding companies. Often you don't need a lawyer or accountant at all.
CHAPTER 5
SIX FLAGS UNFURLED
What’s the basic PT philosophy as explained and expanded upon in Bye Bye Big Brother?
Any ambitious or wealthy person will enjoy life more and protect his ass and assets better with the six flags.
The First Flag of a PT Is the Passport of a country that doesn't try to tax or control you once you have left. According to the original authors, any citizenship and passport will serve this purpose -except for the USA’s. Only American citizens, according to the six flags theory) have to renounce. Why? The USA is the only country that taxes the worldwide income of non-residents. It is the only country that regulates its citizens' morals abroad by making a long list of conduct of its citizens outside the USA criminal acts – punishable by jail sentences when they get back home. These “Thou Shalt Not” commands from Big Brother include travel to forbidden places like Cuba, paying backshish in countries where it is the only way to accomplish anything, or simply enjoying many forbidden pleasures.
Each "Flag" is fully explained in Bye Bye Big Brother. For instance: The suggestion that everyone should have a second passport is illustrated with opportunities "in over 100 countries." Once you read this section (Volume 3) you will know how to take the necessary steps to get your own second passport.
The Second Flag of a PT Is a Tax Haven Official Residence (On Paper). Every millionaire needs one! This concept is followed up with detailed information on such places as Monaco, Campione, Great Britain, Liechtenstein, The Channel Islands, Isle of Man, Andorra, Gibraltar, and Switzerland. There are no income taxes in these fiscal paradises.
After getting a legal residence thereby having eliminated income taxes many individuals can double their income at a stroke. How to get a tax haven residency is explained in detail.
The Third Flag Is One Or More Playgrounds: --Where can a jaded tycoon enjoy a good climate and gourmet food? Where is the companionship of beautiful, sexy young companions thrust upon PTs? Where to find the illusion of love, if not the reality? A “playground” of course is the place to retire and enjoy your assets! These playgrounds are listed and described in detail.
The Fourth Flag is the place where informed millionaires keep their liquid assets (Stocks, Bonds, Cash, and Precious Metals). These are countries and institutions where funds are placed to get maximum safety and returns – tax-free. One should get secrecy, insulation from lawsuits, guarantees against government confiscations, and protections versus other dangers.
In Bye Bye Big Brother we visit the "offshore" world and rate the service providers who provide appropriate “structures” and services. Cayman Islands, Panama, Bermuda, Singapore, Bahamas, and many other banking secrecy centers are explored. Setting up an anonymous bearer share corporation or trust is as easy as pie. Anyone who reads Bye Bye Big Brother will know how to hide their wealth offshore and profitably.
The Fifth Flag explores the best places to work, invest, earn money, and have an active business. One of several recommended options is to incorporate abroad, have your headquarters, administrative work, and billing is done from abroad, but sell products and services worldwide, while legally escaping regulation and taxation. You capture sales and profits in important first-world markets. Investing in real estate, particularly with leverage (mortgages), is the best way to profit from inflation. With low down payments, non-recourse loans, and rents that cover, your long term investment returns will be at least 100% per year. That beats inflation by a handy margin!
The Sixth Flag? This Is your online WWW flag in cyberspace… revealed and explored for the first time in Bye Bye Big Brother. For commerce, confidential communication, banking, it is the ‘Perfect Thing’ for PTs!
By unfurling your six flags, any government you deal with will assume you are just ‘Passing Through’ as a ‘Permanent Tourist’ or ‘Perpetual Traveler.’
CHAPTER 6
CITIZENSHIP, RESIDENCY, AND DOMICILE EXPLAINED
Citizenship is the right to live, work, and carry the passport of a particular country. Some citizenships offer more benefits or rights than others.
Benefits may include visa-free travel to most of the world, or the right to live and work in other countries that are part of the same trade bloc – such as a citizen of Europe or Australia/New Zealand. Other trade blocks such as NAFTA (USA/Canada/Mexico) don’t give an absolute right of abode but do offer preferred entry for professionals or business people.
Most major countries honor and recognize dual citizenship. If your current passport does not permit extensive visa-free travel, and freedom of movement is of importance to you, then obviously you want to get a passport that does.
For USA citizens, it is important to note that while the US passport does permit extensive visa-free travel, it is also the most expensive passport in the world to own with regards to taxation matters, due to the USA being the only country to tax non-resident citizens. The USA truly does not care about whatever other passports its citizens might hold, provided they pay up. In this regard, they are truly democratic and without prejudice (taking tax money from all equally).
Residency is the right to live in a country – as a foreigner. It affords more rights than being a tourist, but also comes with more obligations (think taxes!) Foreign residents generally don’t have the right to vote and can be thrown out of the country at any time.
Residence can, however, be parlayed into citizenship through a legal process known as naturalization. In the UK and its territories, the naturalization period is five years; in Canada and New Zealand it’s three years, and in Singapore, it’s only two. In Switzerland and Italy it’s twelve years, and in Liechtenstein and San Marino more than twenty-five years!
Domicile is another legal concept that should be clearly distinguished from citizenship and residence. In federal systems such as the USA, citizenship and domicile will be different. Hence, one might have American citizenship and domicile in Texas. Everybody is born with a certain domicile at birth. A person who has reached the age of majority is free to choose a new domicile.
CHAPTER 7
THE BILLIONAIRE’S LOOPHOLE
This chapter is especially for citizens of the USA. It’s about possibly the most effective and totally legal strategy to protect your assets against taxes, governments, and predators of all types!
USA citizens choosing this route can save literally billions of dollars in future USA income, capital gains, gift, and estate tax. But given the stakes involved, it’s a sensitive matter. A lot of care, research, and good advice is required before you take this route.
And another thing – this loophole might well be closed sooner rather than later. I can’t say when, but the political pressure is definitely there. So again, now is the time to take action!
Here are some folks who have already taken advantage of this loophole: Getty Oil heiress Tara Getty, Campbell’s Soup heir John Dorrance III, former Star-Kist Foods Chairman Joseph Bogdanovich, former Wheelabrator-Frye Chairman Michael Dingman, investment manager J. Mark Mobius, Templeton Group founder Sir John Templeton, Carnival Cruise Lines founder Ted Arison, and Robert Miller.
All of the above have cut their tax bills using what the populist press has started to call the "billionaire's loophole".
The loophole is simple: acquire a second passport, then renounce US Citizenship.
WHY US CITIZENS NEED TO RENOUNCE CITIZENSHIP
The United States is the only country on the planet that imposes a tax on a US citizen's worldwide income, irrespective of where he or she lives.
No surprise then, that the USA passport is known as “the most expensive passport in the world!” The Philippines tried something similar once but gave it up because they found enforcement was impossible.
If you are a citizen of the UK, Canada, Australia or elsewhere in the world, your obligation to pay tax on your worldwide income ends if you leave the jurisdiction. That’s the basic rule. There’s a little more to it than that, but not much.
There is also no guarantee things will stay this way – indeed we would venture to suggest that in the future more countries may be seeking to tax citizens on their worldwide income. As of 2009, Australia in particular was making noises in this direction.
So even if you are not a US citizen, you might want to read and absorb this chapter and keep it at the back of your mind for strategic planning purposes! This can enable you to be one step ahead of your fellow countrymen.
HOW AMERICANS LEGALLY ELIMINATE USA TAXES AT A STROKE
USA citizens, in order to legally sidestep federal tax obligations, must take the radical step of permanently relinquishing their American citizenship. This process is called ‘renunciation.’ Of course, it also requires them to leave the USA.
The image of ridiculously wealthy ex-US citizens living completely tax-free in tropical paradises remains an irresistible leftist target. Renouncing citizenship to save taxes is not a politically-correct plan.
A so-called ‘departure tax’ enacted by Congress in 2008 sought to close the renunciation loophole. Congress said that Americans who renounce citizenship for tax purposes should be forced to pay a one time tax on their entire net worth. They would also require a special visa to return to the USA – even for brief visits. But, our understanding is that not one person has ever paid a renunciation tax and not one person who did renounce has ever been denied re-admission.
‘Taxpatriates’ who leave must theoretically pay a one-time tax on all unrealized gains of their worldwide assets. How are you supposed to pay the tax without liquidating your assets? Well, that's your problem—not the IRS's!
The tax applies not only to renouncing US citizens but also to long-term green-card holders who have resided in the United States for at least eight of the previous fifteen years.
Besides the departure tax, headlines such as "And don’t come back!" give the impression that so-called ‘taxpatriates’ will never be allowed to visit the USA in the future. This is far from true – but the propaganda does scare some off what is otherwise an excellent tax tactic. Still, if one can legally save millions, and never have to file anything nor pay taxes again for the rest of their life, some individuals won’t really care about political correctness!
Now here’s the good news: We don’t feel it is necessary to renounce in order to get most of the advantages. For the moment (and please pay special attention to those last three words!) there are still numerous ways to legally avoid this departure tax – and take advantage of this one remaining legal strategy to permanently opt-out of the US tax
system. We choose not to detail these methods here in this introductory-level report, but serious future PTs will certainly find further information in our other works. Bye Bye Big Brother is the place to start.
And more good news: You don’t need to be a billionaire or even a millionaire to take advantage of this expatriation strategy. Any couple earning under around $200,000 a year, for example, can be legally exempt from USA income taxes, without renouncing or even acquiring a second passport.
A practical example of tax savings through second passports? Official US census figures released in 2006 put at 34.5 million the number of US residents who claim Irish ancestry. This number is almost nine times the population of Ireland itself. Most of these individuals can claim Irish citizenship with a little effort. The US$1 billion estate of an Irish citizen dying in 2008 who lived anywhere in the world outside Ireland would pay zero gifts and estate tax for all bequests going to beneficiaries outside of Ireland. Whereas the US$1 billion estate of a US citizen dying in 2008 who lived anywhere in the world would pay a maximum combined gift and estate tax burden of more than US$450 million! With an Irish passport, you will get the proverbial “Luck of the Irish.”
CHAPTER 8
THE CARIBBEAN ISLANDS WHERE YOU CAN BUY CITIZENSHIP
In the nineteenth century, in many countries, you had to be a property owner before you could vote in elections. While nowadays the general population can vote, some countries still respect property ownership as a route to citizenship.
One of these is St Kitts, one of the so-called “sister isles” making up the Federation of Saint Kitts and Nevis. St Kitts is one of two countries on the planet today where you can legally ‘buy’ a second passport even if you don’t have any prior connection with the country. This is a fully legitimate program, and funds will be held in escrow by the Royal Bank of Canada or Scotiabank as custodians until your citizenship is approved and you can apply for your passport.
The St Kitts program requires you to purchase property worth at least $350,000 on the island in an approved development – typically a luxury beachfront condo.
Dominica, meanwhile, is the other country where you can legally buy second citizenship. Dominica is a small, English-speaking sovereign nation -not to be confused with the much larger, Spanish-speaking Dominican Republic that is mentioned below.
Dominica charges a fee of $75,000 for citizenship for a single individual, or $100,000 for a family. Substantial extra processing, due diligence, legal and government fees must be added.
Once you are into either of these programs and have your passport, it is good for travel around the world. St Kitts now has visa-free travel to the Schengen area in Western Europe, as well as Canada, and visas to most other countries are not hard to obtain.
The cost seems high. When these two programs were launched in the 1990s, many of the applicants were newly-rich Russians seeking a better travel document. Chinese and Arabs also signed up in numbers.
But – a sign of the times – most of the applicants now are from USA citizens. For anybody with say a million dollars upwards of net worth, $100,000 for the opportunity to renounce US citizenship and never have to pay a penny in US taxes again may seem like a drop in the ocean. Certainly, a steady stream of applicants is flying down to the Caribbean.
DOMINICAN REPUBLIC EXPEDITED PROGRAM
An interesting and lesser-known alternative is offered by the Spanish-speaking Dominican Republic. Although they do not have an instant citizenship program, it is fairly easy (and much cheaper than in St Kitts or Dominica) to obtain residence. A special program for those investing at least $50,000 in the country allows for VIP treatment and expedited processing via a special desk at the immigration department. Using this route, it should be possible to obtain a Dominican Republic passport in as little as 6-12 months.
FURTHER DETAILS
Further details and advice on all three of these programs, together with many more, can be found in Bye Bye Big Brother. Vol III
CHAPTER 9
HOW TO GET THE EQUIVALENT OF AN EU OR SWISS PASSPORT IN 3 – 6 MONTHS FOR JUST A FEW THOUSAND EURO
You can get the Equivalent of an EU and a Swiss Passport in 3-6 months – for the cost of renting a great waterfront apartment in Switzerland!
With Swiss banking secrecy under serious attack right now, we wonder why most people overlook the fact that anyone can simply move to Switzerland and live virtually tax-free, legally, and have a secret account – without being subject to notoriously strict Swiss immigration controls.
How? Via the Italian tax-haven enclave of Campione d’Italia – a little part of Italy, misplaced by an ancient map-maker entirely inside Swiss territory! Campione functions mostly as a part of Switzerland.
Campione was the first tax haven I ever read about, back around 1956. Casino Campione, the largest gambling Casino in Europe, is still located in this small upscale village on the shores of Lake Lugano in Switzerland.
Campione has many quirks and very special tax concessions. For instance: you can own an unlimited number of expensive cars like Lamborghinis, Ferraris, Maseratis, Jaguars, and Porsche — but pay only one tax for only one set of Swiss tags. Your one license plate or “targa” can be transferred (with magnetic attachment) to the car you happen to use on that particular day. You also can have unlimited use of all toll roads in Switzerland for a small “vignette” costing under 40€ per year. You would spend more than in one day travelling the toll roads in France or Italy!
Income tax in Campione is essentially NIL. But the unique system needs a bit of explaining. Some of the more sensitive “loopholes” are reserved for paid clients.
Later, a “PT Campione Report” by Scope International around 1980, recommended purchasing a villa in Campione, then tearing it down to build a condo apartment block to sell at a huge profit. Several readers did exactly this, and are now multi-millionaires!
Today, almost all the villas are gone, and the new apartment blocks are home (or at least ‘legal residence’) for some 2000 expats.
There is a small marina for your mini yacht – if you have one. The official currency is the Swiss Franc, but Euros and US dollars are widely accepted. Banking is done through Swiss banks, though there are two Italian banks in the village where only residents can have accounts and get anonymous credit cards.
Europe’s largest gambling Casino generates substantial revenue, which is the main reason why the residents of Campione enjoy these very special tax concessions. Most Campionese pay no taxes. They enjoy cheap, efficient Swiss telephones, Swiss postal address, Swiss car license plates, excellent free schools for the kids. Swiss driving licenses, and first-class health care in Swiss facilities. The town is super-clean, quiet, and crime-free. There is even a lively street with Parisian-style sidewalk cafes and several excellent restaurants.
Milan, Zurich, Liechtenstein, France, Monaco, Germany, Austria are all nearby, reached by bus, boat, car or fast train… Lugano airport is a short drive away.
Campione’s tax advantages apply to private persons resident in Campione – not to companies domiciled or managed from there (except that there is no VAT in Campione, which could be a big advantage for some online sales operations).
OBTAINING THE COVETED RESIDENCE PERMIT
The Campione Resident ID card is equivalent to a Swiss and Italian passport for unlimited EU travel. So besides the tax advantages, this may be an ideal solution for non-European business people who need to be able to travel in Western Europe at a moment’s notice.
How can you obtain a residence permit in Campione? You must normally buy an apartment or a house -simply because there are very rare opportunities to rent. Currently, however, we know of a unique deal to obtain a residence permit by renting. I have a private ‘in’ to a few apartments that are available for rent by my personal consulting clients. Contact me, Grandpa, via my publishers if you are seriously interested and ready to pay my consulting fees. Please quote the ‘Confidential Registered Copy’ number of your personal set of Bye Bye Big Brother books.
CHAPTER 10
HOW TO AVOID ILLEGAL SECOND PASSPORT SCAMS
Sadly, there have been (and continue to be) many offers by unscrupulous characters for economic citizenship programs that do not exist. Even worse, some middlemen pay off government officials to get real but fraudulently issued passports. Not only does the purchaser have no recourse when the fraud is discovered – but is often blackmailed.
Most of the scammers simply vanish after a short time. The buyers often get nothing for their money. Or, if they do, it is a worthless and perhaps very dangerous, illegally obtained document. Even though the client may have obtained it in good faith, he or she will be arrested if the document is detected as being fraudulent.
Some of these fake passports are obtained by means of identity theft. Another person's birth certificate is used with the client’s photo. This scam often requires the complicity of a corrupt official in a passport issuing office.
In other cases, passports are stolen blanks, filled in but not registered. Belgium, for example, until recently issued passports in local town halls with very poor security. Stolen Belgian passports were offered at hugely inflated prices, apparently to justify their first-world "quality". Nevertheless, these documents landed many of their owners in very deep trouble as they were reported as stolen and listed in Interpol databases.
How to avoid scams? Be sure of not just the ‘consultant’ offering the program but also the validity of the program itself. It may be that the advisor himself is scrupulously honest but has himself been deceived. This is not uncommon. In the grey market passport business, what was perfectly legitimate one week may turn out to be bogus the next.
Bottom line? If you are considering acquiring a second passport, it would certainly pay you to read the detailed advice in Bye Bye Big Brother. Want to check out a program yourself? Often, this is as simple as calling the embassy or consulate of the country in question. Describe the deal you have been offered. If you tell your ‘facilitator’ about your intention to do this and he tries to dissuade you, alarm bells should go off in your mind immediately!
Remember: if it seems too good to be true, it probably is…
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