Doug Casey on Second PassportsCasey Research Doug Casey: Sure. Weve talked quite a bit about the increasing urgency of getting some of your assets out of your home country, especially if its the United States. Weve talked about having stores of precious metals in safe places abroad, and setting up bank and brokerage accounts abroad as well. Ive said that safest way to store wealth abroad is to buy property, which cant be seized by your home country without an act of war. The purchase of real estate solves several issues all at once. But thats all about protecting assets; to protect yourself, getting a second passport is unfortunately very important. LJ: Why unfortunately? DC: Because you shouldnt have to need government papers to live as you please. It used to be that a passport was a document that a ruler of one country would give to a traveler to ask the rulers of other countries to assist him in his travels. Now, instead of a convenience, its become a required permit for travel. Its degrading and actually runs counter to the whole idea of the thing. The original purpose of a passport has been turned upside down. LJ: Passports are becoming a world ID card and they will be, once the governments all link up their databases. DC: Thats exactly what they are, and Im sure its going to get worse. Its funny the way people treat these things like some sort of holy relic, or magical object they are nothing but another government ID. But since they are necessary in todays world, you ought to have several of them, for your own convenience. If nothing else, it prevents any one government from basically placing you under house arrest by taking your passport away from you. DC: Thats definitely a good reason for Americans to have a second passport, and increasingly for others, now that the war with Islam is under way. If you ever get caught in harms way, it helps that nobody starts by shooting all the people from countries theyve never heard of. LJ: Round up all the Uruguayans! DC: Right that just doesnt happen. Another reason certainly if youre an American is thatnobodyanywhere in the world wants to open a bank account or a brokerage account for you. It ranges from impossible to hard and inconvenient. Its a subtle and indirect form of exchange control that the US has already imposed. I have no doubtcontrols will become much more formal and seriousin the near future. LJ: Are you saying that if I go to Switzerland, and I look and sound like an American, but have a Mexican passport, theyll open a bank account for me? DC: It depends. Here in Uruguay, where Im still hanging out on the beach, I went with a friend from South Africa to open a bank account, using her South African passport. I didnt say a word, so I could have been a South African too, for all they knew. Still, the bank officer asked her: Are you also a US citizen? and Are you resident in the US? LJ: The long arm of Uncle Sam keeps getting longer. DC: It really is getting harder and harder. Banks really dont want the aggravations that come with dealing with US persons and their bullying government. Of course, its all going to eventually backfire on the US, but in the meantime its going to get worse. LJ: Yes I dont like it when they ask for my passport at hotels, and I hate it when they say they have to keep it. DC: As well you should, for all kinds of reasons. You never know how good the security at the hotel is, and the inconvenience of a lost or stolen passport is substantial. Id say a second one is a good thing to have, just on principle. An alternative would be to get documents from some of those people trying to set up new countries, like Sealand, the WWII gun platform off the coast of England taken over by Roy Bates. I spent an afternoon with him once, but foolishly never signed up as a citizen. Oh well Other outfits sell reproduction passports of defunct or renamed countries like Rhodesia and British Honduras. LJ: I shudder to think of what inconvenience means to a man who finds it amusing to argue with immigration officials in back rooms in flyspeck countries But at any rate, mentioning purveyors of passports from defunct countries underscores the importance of telling our readers that there are a lot of scams out there, and that it pays to be very skeptical of websites that claim to be able to set you up with documents, corporations, and bank accounts overseas. There are freelance thieves to worry about, and worse governments trying to entrap so-called tax evaders and money launderers. Theres no need to take such risks when you can go to any of the many countries that encourage immigration and permanent residency, and acquire government-issued documents legally. DC: Yes, these are indeed shark-infested waters. You really have to do things in a totally correct and proper way. For instance, there always seem to be people running around who have passports stolen from the issuing agency, and some fools buy them, not realizing theyll not only lose their money, but might wind up in jail besides. But, even among perfectly legitimate documents, not all passports are created equal. LJ: Why would that be? DC: The defining characteristic of a good passport is how much visa-free travel it allows. And by that I really mean visas that have to be applied for, and approved, before the trip begins, as opposed to those issued at the border. Avoiding those is the real key value. In spite of its reputation, a US passport is by no means the best one to have. First, if you have one, youre a US taxpayer, which isveryinconvenient, but it also means you need visas for a lot more countries than you would with some other passport. Argentina, Chile, and Brazil, for instance, all charge Americans about $150 to issue a visa. Its a perverse form of reciprocity, as thats what the US government charges their citizens. Its the same kind of thinking that starts trade wars, and I expect more of it in the years to come but thats another subject. Speaking of South America, two passports that are relatively quick and easy to get are those from Uruguay and Paraguay. Both countries are members of the Mercosur group of South American countries, which offers some additional advantages to their nationals. One of the best, Im given to understand and this is constantly changing is a Singapore passport. I also understand that Singapore has a number of ways to become a citizen in a relatively short period of time. LJ: What are some of the shortcuts to second citizenship? DC: One of the best is if you have parents or grandparents from a country that will give you citizenship on that basis. Ireland and Italy are known for this. Its true, under some circumstances, for the UK as well. Saint Kitts is a relatively easy place to get a passport quite quickly, but it involves a significant investment that adds up to a couple hundred thousand dollars. Selling IDs is a significant source of income for the island. And of course, in a number of countries you can obtain citizenship, and hence documents, relatively easily by marrying a national. Brazil is one, and a Brazilian passport is not a bad one to have. Theres information on this out there, but there have been scam reports done on this subject and many other sources that are simply unreliable, so watch out. I dont think theres ever been a truly definitive study done on all the ways, in all the 200 or so countries in the world. I believe my bookThe International Manwas the first to really explore the ground but its long out of date. Even if there were a current book, it would have to be updated monthly to be of real value governments are always changing their rules. And when it comes down to the particulars of a given situation, youll want to hire a tax attorney and maybe an immigration one as well, to make sure everything is done correctly. Its generally better not to try for shortcuts, but to move to a place you like living in, at least part of the year. Operating through the established, legally recognized channels, you can get a passport in two to five years. LJ: Okay. And, to be clear, the US allows second citizenships? DC: Yes. Many countries dont, and are strict about it. Others dont, but look the other way. You may feel you want to keep your US documents for various practical reasons, but remember that keeping your US citizenship means remaining a US taxpayer, which is most undesirable. LJ: I read that if your income is less than $100,000 per year and you live abroad, its not taxed, so maybe the tax issue is less important to people who earn less than you? DC: Thats true, but that exemption only applies on income earned outside the United States. You still pay capital gains taxes, and taxes on US-sourced income. I also understand that under current law, until 2013, theres a $5 million exemption on appreciated expatriated assets. That means theres a window closing soon on some of the benefits of getting rid of your US citizenship. LJ: Any reasons other than taxes youd want to get rid of your US citizenship? If I were young enough, Id worry about conscription, for example. DC: Thats a very good reason. More generally, as long as youre a citizen of a country, that countrys government is going to treat you like its property. So, if you are going to be a citizen of any place, which is unfortunately necessary, its better to be a citizen of a small and backward country, or one that just doesnt have the ability or interest to monitor all of its citizens like prison inmates, as the US does. LJ: I hear that. Its such a pity that America the beautiful has turned into the United State and is rapidly marching down the road to serfdom I really loved America. DC: Nothing lasts forever, Lobo. Its suicidal to let sentimentality blind you to reality. But, eternal optimist that I am, its always good to look at one of the major bright sides of the ongoing financial and economic collapse. Namely that the governments of most advanced nation-states are bankrupt. Theres a chance that some of them will be forced to cut back on their most noisome activities. Theres even a chance that one or two will be completely hollowed out and will exist mostly in theory, like Rome in the late 5th century. Its very hard to predict what will happen, so its best to have a Plan B. And a Plan C. Unfortunately, most people have a medieval serf mentality although they dont know it, and probably wouldnt admit it even if they did and have no plan at all, because they think everything is fine. LJ: I agree. And you know Im diversifying out of the US as well. Any other essential points? DC: Yes, remember that getting a second passport is just part of a larger permanent traveler strategy. The ideal is to live in one place, have your citizenship in another, your banks and brokers in other jurisdictions, and your business dealings in yet others. That makes it very inconvenient for any one government to control you. You dont want all your eggs in one basket that just makes it easier for them to grab them all. I understand it may not be easy for most people to structure their affairs that way. Thats exactly why most serfs stayed serfs; it was hard and scary to think of anything other than what they were told they should do. LJ: Understood. Thanks for the guidance. The more of your wealth you have in your home country, the greater the risks to your capital. Thats why its critical to start protecting your assets by moving them abroad as soon as possible. To help you do just that, Casey Research is hosting a web video event at 2 p.m. EDT on Tuesday, April 30. Internationalize Your Assets features investment experts Doug Casey, Peter Schiff, Mike Maloney, and more. This must-see webinar will reveal offshore strategies you can easily implement to protect whats rightfully yours. Click here for details and to register. linkwithin_text=Related Articles: 