The Best European Union Second Passport Program in 2018

The Best European Union Second Passport Program in 2018

The best European Union second passport program in 2018 is Bulgaria. This program often takes a backseat to Portugal’s Golden Visa, but Bulgaria offers far more value. Plus, I expect it the value of the Bulgarian passport to increase in the coming years. Here’s everything you need to know about the best European Union second passport program in 2018.

I’m often asked if Bulgaria is a member of the EU. Yes, Bulgaria and Romania joined the European Union in 2007. This expansion is known as “the fifth wave of enlargement of the European Union” which went on from 2004 through 2007. And, possibly, more importantly, Bulgaria is in the process of joining the Schengen Region. Once that process is complete, the value of its second passport will increase dramatically.

Why will Schengen membership increase the value of Bulgaria’s European Union second passport program? The Schengen region is an area without internal borders, an area within which citizens, many non-EU nationals, business people, and tourists, can freely travel without being subjected to border checks. For travel and business purposes, the Schengen region is one multi-nation state made up of the most powerful members of the European Union.  

List of countries in the Schengen area:

  • Austria
  • Belgium
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Iceland
  • Italy
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • Switzerland


And a second passport from Bulgaria is already a valuable travel document. Bulgarian citizens have visa-free or visa on arrival access to 169 countries and territories, ranking the Bulgarian passport 16th in terms of travel freedom (tied with the Croatian, Hong Kong and Romanian passports).

When Bulgaria is admitted to the Schengen region, I expect more countries to offer visa-free travel to Bulgaria, thereby putting its passport on par with Portugal. Portuguese citizens had visa-free or visa on arrival access to 186 countries and territories, ranking the Portuguese passport 4th in terms of travel freedom (tied with the passports of Austria, Luxembourg, Netherlands, Norway, the United Kingdom, and the United States).

  • For more on Portugal, which might be right for you if you wish to purchase real estate rather than bonds, see Portugal’s Golden Visa.

And there’s an economic reason that I say the best European Union second passport program in 2018 is Bulgaria. There’s no need to invest in real estate or make a “donation” to the government to get your passport. You can invest in government bonds that are guaranteed. This investment is returned after 5.5 years. Depending on the program selected, you may or may not earn interest on the bonds.

In order to get the best European Union second passport, you invest 512,000 € in government bonds. This gets you a temporary residency visa immediately and a permanent residency visa after 6 months.  

After you’ve held the permanent residency visa for about 6 months, so one year total since you made the initial investment, you buy another 512,000 € in government bonds. This gets citizenship and a second passport 6 months after you purchase the second round and 18 months since you made your first investment.

It may be possible, depending on your situation, to finance up to 50% of this bond purchase. However, I’ll tell you upfront that the interest and handling charges for financed programs are quite high. The vast majority of our clients make their own financial arrangements and simply invest 1,024,000 € in government bonds over two years to receive their second passports.

If you only wanted residency in Bulgaria, then you could invest 512,000 € (make only one investment). You “upgrade” your permanent residency status to citizenship and a second passport in year two with the second investment.

Theoretically, you could invest 512,000 € and get residency. Then you could apply for citizenship after 60 months under Bulgaria’s original laws (those enacted before the fast track program). We have only handled fast track applications.

And you’re not required to open an account in Bulgaria or send money to the government. You can buy Bulgarian government bonds on the Berlin, Frankfurt, Stuttgart or Luxembourg stock exchanges. The entire transaction is transparent and available on multiple global exchanges.

I hope you’ve found this article on why Bulgaria the best European Union second passport program in 2018 to be helpful. For more information on the fast track program, or citizenship in another country (such as Portugal, Panama or St. Lucia), please contact me at info@premieroffshore.com or call us at (619) 483-1708. All inquiries are confidential.

Where can I travel without a passport?

Where can I travel without a passport?

The US IRS will begin certifying tax debts on January 22, 2018. If you have a “seriously delinquent” tax debt, your passport can be revoked. Likewise, the government can refuse to renew your passport if you owe more than $50,000. Here’s where you can travel without a passport after it’s been revoked by the IRS.

I’ve been writing about this since December 2015, and it’s finally come to pass. The IRS will begin targeting American expats who haven’t paid their taxes in the next few days. Once your passport is gone, your travel options will be greatly reduced.

Before I get to where you can travel without a passport, let’s consider the situation for a minute.

I suggest that this bill targets Americans living abroad because, unless you have a second passport in hand, the loss of your US passport will force you back to the United States to deal with the IRS. For most Americans living in the US, the loss of their “travel privileges” is of little concern.  The ones who will be hit the hardest will be Americans living, working, and doing business abroad.

This is especially true for expats who don’t have permanent residency in a foreign country. If you’re traveling as a tourist, you’ll be forced back to the United States in a few days or months. If you’re a temporary resident, you’ll be required to return and account to the IRS when your temporary status expires. You won’t be able to apply for permanent residency status if your US passport has been revoked.

If you have a permanent residency visa, you should be able to remain in your country of residency. You won’t be able to travel or leave your country of residence without a valid passport. However, the IRS can’t easily force you home unless you lose your permanent visa status.

If you think you’ll have a tax issue in the future, or can keep the IRS at bay with an Offer in Compromise, you might apply for residency in a country like Panama. All you need to qualify is an investment of in this country’s friendly nations reforestation visa program. While there are many countries where you can get residency, Panama is the lowest cost quality jurisdiction for those from a friendly nation.

Of course, the question of where you can travel without a passport becomes mute if you purchase a second passport. So long as you have a valid travel document from a country like St. Lucia, the IRS can’t force you back by revoking your US passport.

But, once your US passport has been revoked, and you’re back in the United States, where you can travel without a passport? The following is based on a decade of experience. This article is not a statement of the law, but rather how things work at the border.

First, you won’t be able to fly to any country without a passport. No airline will risk allowing you to fly if you don’t have a passport. Remember that the airline is responsible for returning you to your home country if you’re denied entry.

So, that means you have only two options of where to travel without a passport. You can drive to Canada or Mexico. Because Canada can be quite picky about whom they let in, the safest port of entry is Mexico.

If you travel within the Border Zone (usually up to 20 kilometers south of the US – Mexico Border) or the Free Trade Zone (including the Baja California Peninsula and the Sonora Free Trade Zone) no passport will be required by Mexico. However, if you wish to pass these zones, you’ll need a passport and, if you’re driving a US car, your auto will need a permit.

The maximum period of time you’re supposed to stay in Mexico without a formal visa is six months. However, when you arrive by land, there’s no entry stamp and no way for the government to know how long you’ve been in the country. In my experience, so long as you don’t cause any trouble, the Mexican government won’t bother you.

In order to return to the United States, you’ll need a valid US ID and your birth certificate. While many websites say you need a US passport, including official government sites, I’ve asked immigration officers and they say you can pass with a birth certificate and photo ID. The last time I inquired was 2 days ago, so this is recent information.

By the way, I’m assuming that the US IRS will revoke all travel documents if you owe more than $50,000. This means the loss of your US passport, your US passport card, and your SENTRI card. US passport cards and SENTRI cards are only valid at land crossings (Mexico and Canada).

I haven’t seen any statements by the IRS or immigration on passport and SENTRI cards. It’s possible they would remain in effect if you lost your passport.

With that said, I don’t see any practical reason a US person couldn’t drive from San Diego to Tijuana and live in Baja indefinitely without a passport. Your chances of having a problem with Mexican authorities is low and you should be able to return to the US occasionally without a passport.

Where you’ll have issues is opening a local bank account and getting an apartment lease. It would be best if you can get these done before losing your US passport.

With all of that said, the best place you can travel without a passport is Northern Mexico. Again, this is 20 kilometers south of the US – Mexico Border and Baja California. All of my experience has been in Baja, from Mexicali to Tijuana and Playas to Ensenada. In 10 years of travel in Northern Mexico, I’ve never once been asked for a passport.

I hope you’ve found this article on where you can travel without a passport to be helpful. For information on setting up an offshore structure while you still have your passport, or with Panama residency or purchasing a second passport, please contact us at info@premieroffshore.com or call us at (619) 483-1708.

Residency in Mexico

The easy path to residency in Mexico

If you wish to live and work in a country in Latin America, Mexico might be your best option. It’s proximity to the United States and its high ranking schools make it one of the most competitive economic countries in Latin America. Mexico also has one of the most relaxed immigration systems compared to the rest of the world. In some cases you don’t even need to leave home to become a Mexican resident.  

All you need to start the process to become a temporary Mexican resident is an active visa and a job offer from a business in Mexico. You or your attorney will file your residency application with the Instituto Nacional de Migracion (INM), which is a unit of the government of Mexico under the Secretariat of the Interior that controls and supervises migration in the country.

Here’s a list follow a list of requirements to become a residency of Mexico.

Requirements for a Work Visa and Residency in Mexico

  1. Copies of your identification and passport. Proof that you are not in the process of obtaining a temporary work visa or a permanent residency – meaning that you can’t have two applications going on at the same time.
  2. An original copy of the job offer with the company letterhead featuring a description of the functions that you will be performing within the company, the legal address of the business hiring you, and your salary.
  3. Copy of the registration document you submitted to the Institute.

The temporary work visa or temporary Mexican residency is only given if you have a job offer in which your education and skills match the description given by the employer. This needs to be in accordance with the stipulations and rules governed by the Sistema Nacional de Clasificación de Ocupaciones.

This process usually takes 30 days to complete, after which authorities will send you a notification confirming that you have 15 days to come to the Mexican Consulate in your country to receive your visa. The issuing of the visa usually takes two business days.

After this you’re legally allowed to work and live in Mexico. The Mexican government prohibits anyone being a Mexican temporary resident to vote or to influence local, state, or federal elections. The visa lasts 4 years since the day of issuance and after your period of temporary residency you qualify to become a Permanent Mexican Resident.

Temporary Residency through Investment

In order to obtain a temporary residency through investment you need to accredit your investment done in Mexico through a series of documents.

  1. You need the original document and a copy of the Mexican company’s structure detailing your involvement in the company and how your investment is being used.
  2. Original and copy of the document proving the ownership of personal property or fixed assets in favor of the foreign legal entity.
  3. Original and copy of the documentation that accredits the development of economic or business activities in the national territory, which may be accredited, but not limited to, contracts, service orders, invoices, receipts, business plans, licenses or permits, and a certificate issued by the Mexican Institute of Social Security (IMSS) proving that the foreign legal entity is the employer of at least three workers.

The amount of investment varies by consulate. This visa is valid for 4 years and can be converted into a permanent visa after four years.  

From Temporary Resident to Permanent Resident of Mexico

There are many ways in which you can apply for Permanent Residency in Mexico after being given the work visa.

  1. Work continuously in Mexico for 4 years.
  2. Get married to a Mexican citizen and have maintained your temporary resident visa for at least 2 years.
  3. Have a child born in Mexico during your temporary residency.
  4. Retirees or pensioners, who receive from abroad sufficient resources that allow them to live in Mexican national territory
  5. By decision of the INM, according to the established points system (basically, a deal negotiated with the INM).

Being a permanent resident has many benefits. You can leave and enter the country as you please, you never have to renew your visa again, you can change jobs without any additional government procedures.

From Permanent Resident of Mexico to Second Passport

If you’ve hold temporary residency or permanent residency status in Mexico for 5 years prior to the solicitation date you can apply for a naturalization letter. To obtain the naturalization letter you must prove that you can speak Spanish, that you know the country’s history, and that you are integrated to the national culture. This process takes an estimate of one year to complete and costs approximately $6,954 pesos or US $370. When your naturalization letter is given to you, you must legally renounce to your rights as a Panamanian citizen in Mexico. At this time you also give back your Temporary or Permanent resident visa. When you receive the naturalization letter you obtain the same rights that a Mexican born citizen has.

I hope you’ve found this article on Mexican Residency to be helpful. For more information, or for assistance in moving to Mexico, please contact us at info@premieroffshore.com or call us at (619) 483-1708. We’ll be happy to assist you with your international tax plan and support  you through the coming changes.

residency in Nicaragua

How to get residency in Nicaragua

Nicaragua is the second most popular residency program in Latin America. Residency in Nicaragua is for those who don’t want the high pressure life of Panama City, Panama and for those who aren’t from a top 50 country. Here’s how to get residency in Nicaragua no matter what country you’re from.

The top two Latin residency programs are Panama and Nicaragua. Panama is for citizens of the US, EU, UK, and any of the top 50 countries. Those who qualify can get residency in Panama with an investment of $20,000 in this country’s friendly nations reforestation visa program.

Those who want a more laidback lifestyle or a lower cost of living often prefer Nicaragua. For those who are not from a top 50 country, Nicaragua is the best second residency program available.

Here’s how to get residency in Nicaragua:

If you’re over 45 and have a guaranteed monthly income of $600, you can qualify as a retiree in Nicaragua. This program is aimed at retirees and most qualify using their fixed pension payments. However, it’s possible to set up a bank annuity that will qualify.

You’ll need guaranteed income of $600 a month for you plus $100 per month for each dependent. Your spouse is a dependent, as is each child 18 years and under.

The more popular of the Nicaragua programs is their reforestation visa. Invest $35,000 in one of the government approved reforestation programs and get permanent residency. Additional legal and government fees apply.

  • Fees for those from restricted countries are about $10,000 per person. Fees for those from the US, EU, Canada, etc. are much lower.

If you’re on the fence between residency in Nicaragua and Panama, I think you’ll find that Nicaragua is a better investment opportunity. Yes, Panama is lower, but you get a lot more teak or hardwoods in Nica per dollar. Your ROI in Nicaragua will be higher than Panama.

Before I go any further, let me point out the big difference between Panama and Nicaragua. With Panama, you need only spend a few days a year in the country to maintain your residency. That is to say, Panama doesn’t have a physical presence requirement to keep your visa.

Nicaragua requires you spend at last 180 days a year in country. Nica is looking for real residents – people who are willing to commit to the country. They want residents who bring with them money and a desire to become a part of the community, not just pay an annual fee to hold a residency permit.

Second Passport from Nicaragua

Both Nicaragua and Panama allow you to apply for citizenship and a second passport after 5 years. The application process for Nicaragua is easier in Panama, so long as you can prove your 180 days a year over your residency period.

We value second passports by the number of countries they give us visa free access too. Nicaraguan citizens have visa-free or visa on arrival access to 112 countries and territories, ranking it 46th in terms of travel freedom (tied with Marshallese passport).

By comparison, a passport from Panama gets you visa free access to 127 countries. If you want the best of the best, a second passport from Portugal gets you visa free access to 171 countries, including the United States.

US citizens are usually looking at a second passport as a backup travel document or as a way to give up their US citizenship and escape the IRS. The number of US expatriations have been doubling each year under both Obama and Trump.

Citizens of China, India, and other countries with lesser travel documents are looking at a second passport as a way to increase their travel freedom. Nicaragua’s 112 countries is better than India at 49 and China at 51 visa free countries. Also, it’s easier to get a US visa with a passport from Nicaragua than it is from China or India.

The big difference in quality between Nicaragua, China and India is that Nicaragua gets you into the European Union without a visa.  A second passport from Nicaragua gives you visa free access to the Schengen region of the European Union. You can spend up to 90 days a year in the EU without a visa with a passport from Nicaragua.

In order to apply for residency in Nicaragua, you’ll need the following:

  • A copy of your birth certificate
  • A copy of your passport
  • A certificate or letter from your doctor stating that you’re in good physical health, are free from communicable diseases, and are mentally sound
  • A certificate or letter from your local police department stating that you’ve not been convicted of any crime or an FBI background check
  • A certificate of income from your bank or pension plan affirming that you’ll have enough money to meet the minimum requirement of US$600 a month
  • A list of the household goods you will be importing.

A residency visa from Nicaragua also allows you to import certain household goods from the US tax free. For example, a car worth $25,000 and household goods worth $20,000. In most cases, visa holders are bringing used items from their US home.

As an added bonus, you can import a car tax free worth $25,000 every 5 years. This tax break is a big deal in Nicaragua where import taxes are quite high. I hope you’ve found this article on how to get residency in Nicaragua to be helpful. For more information on this program, you can reach me at info@premieroffshore.com or (619) 483-1708. 

nonresident FEIE

How to become a nonresident of the United States

The 330 day test for the Foreign Earned Income Exclusion is being eliminated by President Trump. If you want to keep this tax break, you need to become a legal resident of a foreign country as soon as possible. Here’s what you need to do to become a nonresident of the United States for tax purposes.

Of course, the most important component of the residency test for the FEIE is residency. You must be a legal resident of a foreign country for a full calendar year to qualify for the FEIE using the residency test. Where the 330 day test was over any 12 month period, the residency test is January 1 to December 31.

It doesn’t matter where you get your residency visa for US tax purposes. So long as you have legal residency in a country which is your home base, you’re covered.

Of course, if you want to minimize your worldwide tax obligations, you should become a resident of a country that doesn’t tax foreign source income. For more on this, see: Which Countries Tax Worldwide Income?

For those that want to live in Europe, the most popular residency visa is Portugal. Buy a home for 500,000 euros, or deposit 1 million euros in a local bank, and you can qualify for residency. A resident of Portugal can live anywhere in the EU. You just need to spend a few weeks  a year in Portugal.

The most popular visa in the world is Panama. Invest $20,000 in their friendly nations reforestation program and become a permanent resident. This visa can also lead to citizenship and a second passport in 5 years. For more, see: Best Panama Residency by Investment Program

Once you have your residency visa, you need to cut as many ties with the US and create as many ties with your new home country as possible.  That is to say, a US citizen who wants to become a nonresident for US tax purposes must truly move and become a part of their new community, including:

  • Selling your US home;
  • Leaving US employment and becoming an employee of an offshore corporation reported on IRS Form 5471;
  • Establishing and spending time in a home located in your new country. This home should be of equal size, cost, and amenities as your US home;
  • Establishing business and social ties in the new country;
  • Discontinuing business and social ties in the United States;

Do not:

  • Keep your US home and let the children live there;
  • Have children in school in the United States;
  • Vote in State elections (Federal elections by mail, listing your foreign home as your residence is OK);
  • Have mail sent to your old address in the US. Establish a PMB address if necessary;
  • Continue to use US physicians, dentists, or other professionals who require the taxpayer’s physical presence to transact business.

Remember that you need to be a nonresident for Federal and State tax purposes. Sometimes these tests are different. Here is a list of ties a California court listed as indicating residency (In the Appeal of Stephen D. Bragg, May 28, 2003, 2003-SBE-002).

  • The location of all of the taxpayer’s residential real property, and the approximate sizes and values of each of the residences;
  • The state wherein the taxpayer’s spouse and children reside;
  • The state wherein the taxpayer’s children attend school;
  • The state wherein the taxpayer claims the homeowner’s property tax exemption on a residence;
  • The taxpayer’s telephone records (i.e., the origination point of taxpayer’s telephone calls);
  • The number of days the taxpayer spends in California versus the number of days the taxpayer spends in other states, and the general purpose of such days (i.e., vacation, business, etc.);
  • The location where the taxpayer files tax returns, both federal and state, and the state of residence claimed by the taxpayer on such returns;
  • The location of the taxpayer’s bank and savings accounts;
  • The origination point of the taxpayer’s checking account transactions and credit card transactions;
  • The state wherein the taxpayer maintains memberships in social, religious, and professional organizations;
  • The state wherein the taxpayer registers automobiles;
  • The state wherein the taxpayer maintains a driver’s license;
  • The state wherein the taxpayer maintains voter registration and the taxpayer’s voting participation history;
  • The state wherein the taxpayer obtains professional services, such as doctors, dentists, accountants, and attorneys;
  • The state wherein the taxpayer is employed;
  • The state wherein the taxpayer maintains or owns business interests;
  • The state wherein the taxpayer holds a professional license or licenses;
  • The state wherein the taxpayer owns investment real property; and
  • The indications in affidavits from various individuals discussing the taxpayer’s residency

The above is basically a list of why expats have relied on the 330 day test. It’s easy, you don’t need to invest or spend money to get a visa, and you don’t need to worry about your ties to the US. Just be out of the US for 330 out of 365 days and you’re good to go.

The problem is that expats often pushed their days in the US and the IRS loves to audit these returns. Many don’t realize that travel days and time in international waters can count as US days. Because the FEIE is all or nothing, the risk in these cases is significant.

More importantly, President Trump is moving the US from a global tax system to a territorial tax system. This likely means an end to the 330 day test and a move towards residency.

Because it takes time to become a legal resident of a foreign country, and time to break ties with the US, and you must qualify for a calendar year, I’m recommending clients begin this process as soon as possible.

I hope you’ve found this article on how to become a nonresident of the United States for tax purposes to be helpful. For information on residency visas, or to setup an offshore business, please contact me at info@premieroffshore.com or call us at (619) 483-1708. 

Privacy Flag Offshore

Top two max privacy options to plant your flag offshore

The last few months have seen a striking increase in demand for offshore residencies and investments. Americans are looking to diversify out of the dollar, move their assets abroad, and to plant as many foreign flags as possible before the year end. Here are the top two max privacy options for 2018.

Because of the political climate in our country, Americans are renouncing US citizenship at record rates. In the third quarter of this year, 1,376 Americans renounced their US citizenship, putting the annual tally on pace to beat 2016’s record. That’s a 26 percent increase from 2016’s total of 5,411 – which was itself a 26 percent jump from 2015.

Those who are planning on burning their blue passports, want to diversify and create a safety net abroad, or wish to build an escape route and landing spot should things go badly, need to plant as many flags offshore as possible. The hottest offshore plans this quarter are:

  1. A second residency in a low or no tax country that leads to citizenship and a second passport, and
  2. Belize is suddenly the most active real estate market for those seeking personal freedom. This is a very new development and can be summed up in one word – Bitcoin!

Here’s where to get a second passport or second residency and why Belize has become the hottest offshore real estate market out there.

Second Residency Programs

There are two ways to acquire a second passport: you can buy it or you can earn it over time. You can buy a passport from a country like St. Lucia for $125,000 (single applicant) to $300,000 (family). St. Lucia is the lowest cost quality passport for purchase.

If you want a top tier passport, or don’t have an extra $250,000 lying about, you can earn a second passport through residency. Get a residency visa, maintain that visa for 5 or 6 years, and you can apply for citizenship.

The best top tier residency program Portugal. This country’s golden visa program get’s you EU residency, which means you can live and work anywhere in the Union during your residency. You can apply for citizenship and a passport after 6 years of residency.

You can get residency in Portugal by depositing money in a local bank or with the purchase of real estate. The most popular option is to deposit € 1,000,000 into a bank in Portugal (you don’t need to spend or invest it, just hold it in the bank). You can also buy any property for at least € 500,000 and get residency. If you buy a property that’s 30+ years old or located in an “urban renovation” area you need only spend € 350,000.

The best low cost residency program is Panama. If you’re from a “friendly nation,” you can get residency in Panama with an investment of just $20,000. You can then apply for citizenship and a second passport after 5 years of residency.

The investment must be made into one of Panama’s approved reforestation programs and covers the entire family. That is, only one investment is required for a husband, wife, and dependent children 18 years and under. Legal and government fees apply per person.

If you’re not from a friendly nation, the best residency program with a path to citizenship is Nicaragua. Anyone can apply, no matter your country of citizenship and the investment is only $35,000. Legal and government fees are higher than Panama, about $10,000 per person.

The big difference between Panama and Nicaragua is that you must spend 180 days a year in Nicaragua to keep up your residency. Panama does not have a physical presence requirement.

Real Estate in Belize

The Belize real estate market has been on fire for the last 2 months. Belize developers are now allowing buyers to pay 100% of the purchase price and all fees in cryptocurrency. For those looking to get their coins out of the US and away from the IRS, real estate in Belize provides an excellent opportunity to trade Bitcoin and diversify out of cryptocurrency.

Most of the buyers in Belize have been early adopters of Bitcoin. Those with significant gains and a desire to diversify out of cryptocurrency. Belize provides the best, and often the only, way for these investors to exchange coins for property.

The reason Belize and crypto have gone so well together is that Bitcoin’s original business model of privacy and security is what Belize has been about from day 1. Belize is one of the last tax havens standing where personal privacy is a natural right.

As Bitcoin grew, government’s perverted the original intent, but early adopters can still find a libertarian and (nearly) tax free existence in Belize. This country doesn’t tax capital gains and won’t ask you to report your holdings or your transactions.

Conclusion

For the above reasons, the top two max privacy options to plant your flag offshore is a second residency in a low or no tax country and buying real estate in Belize with your appreciated cryptocurrency. Both have seen major increases in demand this quarter and I expect them to do even better in 2018.

If you would like more information on second residencies, second passports, or real estate in Belize, please contact me at info@premieroffshore.com or call us at (619) 483-1708. We’ll be happy to assist you to diversify offshore. 

The Best Cheap Residency Programs for 2018

The Best Cheap Residency Programs for 2018

Here are the best cheap residency programs for 2018. These are the best low cost residency programs that include a path to citizenship and to a second passport. If you’re looking to earn your second passport, check out this list the best cheap residency programs.

Residency allows you to live in a particular country. Some require you to spend a certain amount of time in country and some do not have a physical presence requirement.

Most second residency programs allow you to start a business (work for yourself) but don’t permit you to work for someone else. The intent is that you will come to the country and become a valuable part of the community. The government doesn’t want you to take jobs away from locals… they want you to create new jobs.

There are three ways for you to earn a second passport: 1) through residency, 2) by investing a large amount of money in real estate or government bonds, or 3) purchasing citizenship for cash. This article is focused on the best cheap residency programs for 2018 that allow you to earn a second passport.

These residency programs allow you to “earn” citizenship by becoming a part of the local community. Most require you maintain residency for 5 or 6 years before you apply for citizenship. That is to say, you must prove your commitment and your value over several years to earn citizenship.

Thus, citizenship through residency is a negotiation with the government. Become a part of the community, create as many ties to your new country as possible, and then apply for citizenship. This is very different from the cash for citizenship programs available from St. Lucia and St. Kitts (from these links you’ll see I’m a fan of St. Lucia’s program but not St. Kitts).

So, without more ado, here are the best cheap residency programs for 2018

Residency on a budget from a top 50 country: Panama

If you’re a US citizen, or from the UK, EU, or any of the other top 50 nations, you can get residency in Panama for cheap! Panama’s friendly nations reforestation visa program is the most efficient second residency program in the world, guaranteed.

Invest $20,000 in one of Panama’s approved teak reforestation programs and receive residency for you and your family (you, your spouse, and dependent children 18 and under). This is the lowest cost residency by investment program with a path to citizenship.

And Panama allows you to purchase your reforestation parcel with your US retirement account. Use IRA money to purchase the teak and personal money to cover legal and filing fees to stay within US IRA rules.

If you also want to take your US retirement account offshore, we can help. See: Here’s how to take your IRA offshore in 6 steps

Residency on a budget for everyone else: Nicaragua

For those of you not from a “friendly nation,” or just prefer a more laidback country, consider Nicaragua. Nica copied Panama’s program and opened it up to all nationalities.

Purchase $35,000 in a bundled reforestation package and get residency for you and your family. If you’re from a restricted country like China, India, or Pakistan, legal and government fees will be about $10,000 per person.

The big difference between Panama and Nicaragua is that Panama doesn’t have a physical presence requirement to maintain your residency visa. Nicaragua requires you spend at least 180 days in country during your residency period (5 years). Once you have your passport, you can spend as much or as little time in Nica as you wish.

Residency for retirees on a budget: Belize

The Belize QRP program was designed for retirees, but can be used by anyone with an annuity or is otherwise receiving fixed and guaranteed monthly payments. In most cases, these are distributions from a retirement account.

To qualify for the QRP, you must be receiving $2,000 a month or $24,000 a year in guaranteed payments. If you have this cash flow, you and your family can qualify for residency in Belize.

As with the other visas, the QRP program covers you, your spouse and your dependent children 18 years of age and under.

Belize has a very light physical presence requirement. You must spend 30 consecutive days each year to maintain your residency.

Residency in the European Union: Portugal

The best cheap residency program in the European Union is Portugal’s golden visa. To qualify, you must purchase real estate worth € 500,000 or deposit € 1 million in a local bank.

Obviously, € 500,000 or € 1 million are large amounts of money. I list Portugal as a “cheap” residency program because all you need to do is make a deposit in a local bank. You don’t need to spend the money or invest it. You can simply leave it in a local bank or buy a CD for the term of your residency.

Portugal’s golden visa gets you a top tier passport after 6 years. Residency in Portugal also allows you to live and work anywhere in the European Union.

Finally, you need only spend 2 weeks a year in Portugal to maintain your residency. You can send the rest of your time in the EU or wherever you like.

Conclusion

I hope you’ve found this article on the best cheap residency programs for 2018 to be helpful. For more information on any of these programs, please contact us at info@premieroffshore.com or call us at (619) 483-1708  for a confidential consultation.

best EU residency visa

The best EU residency visa in 2018

The best EU residency visa in 2018 is Portugal. Portugal is the most efficient and lowest cost residency program in the EU. Portugal is also the best second passport option by investment in the European Union. Here’s why you want a residency visa from Portugal in 2018 and how to get one.

Let me preface this article by saying that Portugal is the best EU residency visa in 2018. Portugal is not the cheapest residency and second passport program, it’s the best! Most investors put up € 1 million to start a business or buy real estate for at least € 500,000. Legal and government fees are additional.

If you’re on a budget, then you’re not going to get an EU residency visa or an EU second passport. You should consider Panama with an investment of $20,000 or Nicaragua with an investment of $35,000 + fees of about $10,000 per applicant. To qualify for Panama, you must be from a top 50 country. Nicaragua will accept anyone from any country.

Portugal is the best EU residency visa in 2018 because it allows you to live and work in the European Union. It also guarantees you citizenship and a top tier passport in 6 years. This makes Portugal the best, not the cheapest option.

A passport from Portugal is top tier second passport because it gets you visa free access to more countries than lesser passports. Portuguese citizens have visa-free or visa on arrival access to 171 countries and territories, ranking the Portuguese passport 6th in terms of travel freedom (tied with the Canadian, Greek and Swiss passports).

By comparison, holders of a United States passport can travel to 174 countries and territories visa-free or with visa on arrival, and the United States passport was ranked 3rd (tied with the Danish, Finnish, Italian and Spanish passports) in terms of travel freedom. Also, a second passport from Portugal gives you visa free access to the United States and Canada.

There are 7 ways to qualify for residency in Portugal. You can:

  1. Transfer € 1 million into a bank in Portugal.
  2. Invest € 500,000 into a qualifying small business.
  3. Donate or invest € 350,000 into “research activities.”
  4. Donate or invest € 250,000 into “arts and culture.”
  5. Invest € 500,000 into real estate.
  6. Invest € 350,000 into “urban” or distressed real estate.
  7. Start a business that will employ 10 persons full time.

The majority of applications for residency in Portugal are from those investing € 500,000 or more into real estate. Most of these are buying a home to live in, or as a second home. A fair number are buying commercial or residential rental properties.

Because Portugal doesn’t have physical presence requirement like Malta does, you can basically invest in any property you wish. Rental, commercial, industrial or residential properties all qualify for the golden visa program.

To keep up your residency, all you need to do is spend a couple of weeks a year in Portugal. You can spend the rest of your time in the European Union or abroad. Remember that, as a full member state, residency in Portugal allows you to live and work anywhere in the European Union.

You can also gain residency in Portugal by investing € 350,000 into “urban” or distressed real estate. A lot of our clients consider this, but few go this route. Approved buildings are usually 100 year old historic buildings (the law says at least 30 years old, but most are much older). As a result, the maintenance costs are significant. Also, because of their historic designation and locations, it’s difficult to find a profitable use for an approved building.

The second most common method for obtaining residency and a second passport from Portugal is starting a business. There is no minimum investment required, but you must employ 10 people full time.

And you must keep the business going for a minimum of 6+ years. That is to say, the business must continue, and support a minimum of 10 employees, throughout your residency period. You can close the business after you receive your passport.

Here’s how I get to 6 years minimum: You must maintain your permanent residency for 5 years (renewable twice during that time) before you get permanent residency. Then you must maintain your permanent residency for 1 year before you can apply for citizenship. Citizenship should take a few months (thus the + after 6).

Because Portugal doesn’t have a physical presence requirement, you might not need to pay taxes in Portugal on your worldwide income. If you spend less than 183 days a year in Portugal, you won’t pay income tax on income earned outside of Portugal. If you spend 183 days or more a year in Portugal, you will pay tax on your worldwide income.

If you buy a rental property in Portugal to qualify for residency, your net profits will be taxed at 28%. The capital gains rate in Portugal is also 28%.

I hope you’ve found this article on the best EU residency program in 2018 to be helpful. For more information, and to be connected with our European Union expert, please contact me at info@premieroffshore.com or call us at (619) 483-1708. We’ll be happy to review your residency options and recommend the program that best fits your needs and your budget.

immigration trouble

Are you living in Panama without a visa? Watch out, the government is targeting expats!

If you’re living in Panama, making multiple visits to the country in a year, or are spending more than 90 days in Panama over a 12 month period, you must get a visa. The government is cracking down on people “living” in the country without a residency permit.

Per the U.S. Embassy in Panama: “The US Embassy in Panama would like to inform all US Citizens in Panama that on March 6th 2017, the Panamanian Immigration Authority (Servicio Nacional de Migracion-SNM) announced new guidance for Panamanian immigration officials on the enforcement of pre-existing regulations. According to the SNM, immigration officials have been instructed to be stricter about the enforcement of the regulation that foreigners entering Panama with tourist status prove that they are in fact entering Panama as tourists and not residing in Panama.”

The above warning was issued by the US Embassy in Panama to US citizens. But it’s equally valid for anyone making multiple trips to Panama within a year. Whether you’re from the US, Canada, Latin America, UK, or the EU, you’re at risk of being refused entry to Panama.

Also, Panama is adding stronger requirements to the “onward departure” rule. Whenever a tourist enters Panama (or just about any country for that matter), you’ve always needed a fight out… a departing flight… a onward departure.  Tourists can’t usually enter a foreign country on a one-way ticket.

For example, I could fly from California and fly out in 90 days to Medellin, Colombia. Since this was the cheapest flight, it costs me less when I cancel and stay in Panama.

As of 2017, proof of onward departure may no longer be sufficient. Panama is sometimes asking for proof of a return flight to the country from which your passport is issued. This can be a HUGE headache for those living in a country other than their country of birth.

There are several reasons for the change. First, Panama wants to increase fees and keep closer track on people “living” in their country, using their services, driving on their roads, and crossing the border multiple times in a year.

For years, many of us have been living in Panama without getting a visa, without paying any taxes, and without paying any government fees. We’ve been entering as tourists, leaving for a weekend party trip to Colombia or Costa Rica every couple months, and returning to Panama.

I did this for 3 years and never had a problem. I even did the border walk from Panama to Costa (Puerto Viejo). Walk across from Panama to Costa Rica, stay for an hour at the border bar, and walk back… usually paying the border guard $20 to modify the date on your stamp.

Now, it’s a new world where the government needs to increase control and fees.

Second, the Panama Papers put a lot of negative attention on Panama. Banks, airlines, and everyone in between is worried about being mixed up in money laundering. One way to fight this stigma is through tighter border controls.

And it’s not just the Panama Papers causing the problem. The US government has been all over Panama for the last few years and Papers gave them the news coverage they needed. For example, the US Government Shutdown Balboa Bank back in 2015. This had a big impact on the economy as thousands of locals lost their jobs.

All of this has forced Panama to appear stronger in fighting money laundering. One of the ways they’re doing this is by tightening border crossings. It’s all about appearances, even though it’s causing great pain for many of us expat entrepreneurs.

Third, pressure has been put on the government by real estate developers in the country (pressure or payment, however you see it) to increase sales. The most common residency visa for those living in Panama is to buy a condo in the city with a value of $350,000 or more.

But there is a way for those of us from friendly nations to get residency in Panama without buying real estate and without those high carrying costs.

If you’re from the US, Canada, UK, EU, or any of the 50 Friendly Nations, you can get residency in Panama through the Friendly Nations Reforestation Visa program. Invest $20,000 in teak and get residency immediately.

No more questions about how many days you spend in Panama each year. No more worrying at the border crossing. No more buying and cancelling airline tickets. No more pirate style border runs (though, they were fun).

Simply invest $20,000 to help keep Panama green and you’re in. And this investment amount will cover you and your family (your spouse and dependent children under 19). Legal and filing fees will apply to each person, but the investment amount remains the same.

And US citizens can make this investment using their IRA. Invest your retirement money in teak, and pay the fees with personal money to ensure compliance with US rules. For more, see: How to get Residency in Panama Using Your IRA.

The bottom line is this: If you have significant ties to Panama, you must get a residency visa. If you have investments in the country, spend more than 90 days a year there, or make multiple trips within a 12 period for any reason you need a visa.

The easiest visa to get is the Friendly Nations Reforestation Visa. If you don’t want to buy a condo in the city, take a look at this teak program.

For more information on this and other Panama residency programs, please contact me at info@premieroffshore.com or call us at (619) 483-1708. We’ll be happy to review your options and get you residency in the most cost effective way possible.

foreign residency from China

Low Cost Foreign Residency from China

The demand for second passports and foreign residency is strong from China. The vast majority of US EB-5 foreign residency visas are issued to Chinese nationals and Chinese are very active in other countries as well.

For example, the first billionaire in the Caribbean was Wu Xu of China. He’s worth $1.9 billion and obtained his foreign residency and a second passport from St. Kitts in 2016. Mr. Xu is now the second wealthiest Caribbean citizen because Jacky Xu, a 32-year-old Singaporean-born business man, with a net worth of $3 billion, became a citizen of St. Kitts in early 2017.

A passport from St. Kitts will cost a  person from China about $300,000. However, I do not recommend this program for anyone in 2017 (even billionaires). For the reasons why, see: St. Kitts Passport Program Crashes and Burns.

A better option is St. Lucia with an investment of $500,000 in government bonds or Dominica with a purchase price of around $140,000 (including fees) for Chinese nationals. In my opinion, Dominica is the best value in the Caribbean.

The US program that’s most popular with Chinese investors is the EB-5 Investor’s Visa. If you invest $500,000 to $1 million, you get a green card immediately and are guaranteed a US passport after 5 years of residency.

The State Department says Chinese investors poured in $3.8 billion in the fiscal year that ended Sept. 30–approximately 85 percent of the EB-5 investment total, Bloomberg reported.

The EB-5 program is being evaluated by the Trump administration. Most expect the investment amount to increase from $1 million to $1.8 million and the targeted employment area minimum from $500,000 to $1.35 million. For more, see: Wealthy Chinese Moving Money To US Before Congress Hikes Visa Minimum.

If you’re not a Chinese billionaire, what are your choices? Here is the only low cost foreign residency open to Chinese nationals.

Chinese citizens can get foreign residency in Nicaragua with an investment of $35,000 plus legal and other fees. Then, like the US EB-5 program, you can file for citizenship and a second passport after 5 years.

If you have $500,000 to $1.8 million, you can get a US passport after 5 years of residency. With $35,000, you can achieve the same in Nicaragua.

And a passport from Nicaragua is a solid travel document. Nicaraguans had visa-free or visa on arrival access to 112 countries and territories in 2017.

For comparison, holders of a Chinese passport have  visa free access to 51 countries and territories, ranking the Chinese passport 85th in the world (tied with the Bhutanese, Chadian, Malian and Rwandan passports).

Nicaragua is the best deal for Chinese nationals because their passport provides access to the Schengen Region of the European Union. Passports with visa free access to the EU sell for $130,000 or more… and that’s the purchase price and not an investment. To get a passport of this quality with a $35,000 investment is an amazing opportunity. 

Keep in mind that I’m talking about how to get residency in Nicaragua from China. Residency allows you to live and run a business from Nica. Then, after 5 years, you can apply for citizenship. This is quite different from the passports for purchase programs described above (Dominica, St. Kitts, etc). If you have the cash, you can buy a passport and have it in your hands in about 90 days.

If you don’t have $130,000 burning a hole in your pocket, you can earn a second passport by moving to Nicaragua and becoming part of the community. You will need to spend at least 180 days a year in the country during your 5 years of residency. Once you have your passport, you can spend as much or as little time in Nica as you wish.

Remember, you can buy a passport with cash or earn it by living in the country. The government hopes you’ll become part of the community, spend money, maybe start a business and hire employees, etc.

For more information on how to become a resident of Nicaragua as a Chinese citizen, please contact us at info@premieroffshore.com or call us at (619) 483-1708. We’ll be happy to assist you to become a productive member of the community.