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Where can I travel without a passport?

01/15/2018/0 Comments/in Articles, Second Passport, Second Residency, Taxation, Travel, Lifestyle and Culture/by Christian Reeves

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 Here’s where you can travel without a passport after it’s been revoked by the IRS.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 You won’t be able to apply for permanent residency status if your US passport has been revoked.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.

The easy path to residency in Mexico

12/08/2017/0 Comments/in Articles, Second Residency/by Christian Reeves

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

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.
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.
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.

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.
Original and copy of the document proving the ownership of personal property or fixed assets in favor of the foreign legal entity.
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.

Work continuously in Mexico for 4 years.
Get married to a Mexican citizen and have maintained your temporary resident visa for at least 2 years.
Have a child born in Mexico during your temporary residency.
Retirees or pensioners, who receive from abroad sufficient resources that allow them to live in Mexican national territory
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.

How to get residency in Nicaragua

12/05/2017/0 Comments/in Articles, Second Passport, Second Residency/by Christian Reeves

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.

How to become a nonresident of the United States

11/27/2017/0 Comments/in Articles, Foreign Earned Income Exclusion, Offshore Tax, Second Residency/by Christian Reeves

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.

The Best Cheap Residency Programs for 2018

11/07/2017/0 Comments/in Articles, Second Passport, Second Residency/by Christian Reeves

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.

The best EU residency visa in 2018

11/04/2017/0 Comments/in Articles, Second Residency/by Christian Reeves

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:

Transfer € 1 million into a bank in Portugal.
Invest € 500,000 into a qualifying small business.
Donate or invest € 350,000 into “research activities.”
Donate or invest € 250,000 into “arts and culture.”
Invest € 500,000 into real estate.
Invest € 350,000 into “urban” or distressed real estate.
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.

Low Cost Foreign Residency from China

05/16/2017/0 Comments/in Articles, Second Passport, Second Residency/by Christian Reeves

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.

For more on how to value a passport, see: How to Value a Second Passport.

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.

second passport from the dominican republic

The Lowest Cost Second Passport is from the Dominican Republic

11/14/2016/0 Comments/in Articles, Second Passport/by Christian Reeves

The lowest cost second passport is from the Dominican Republic… period. The program from the Dominican Republic is a fraction of the cost of competitors like St. Kitts, Dominica, St. Lucia, and Malta.

If you’re looking for a low cost citizenship option, take a look at the Dominican Republic. If you want to maximize the value of the U.S. Foreign Earned Income Exclusion, or improve your asset protection and banking options, a second passport from the Dominican Republic might be the way to go.

Note that this article describes a second passport from the Dominican Republic and not Dominica. Dominica has a strong passport which is available for purchase for about $140,000. For more, see: A Second Passport from Dominica is the Best Value in the Caribbean

I should point out that Dominica and Dominican Republic are not direct competitors. The uses and benefits of a DR passport are very different from those of Dominica or the European Union passports we offer (such as Malta which requires an investment of $1.2 million).

Who the Dominican Republic second passport program is for…

Here’s how to get a low cost second passport from the Dominican Republic in about 8 months from the date your residency is approved.

A second passport from the Dominican Republic is for those looking to diversify their current citizenship. It’s for citizens of top tier countries, such as the United States, Canada, United Kingdom, European Union, Japan, Australia, New Zealand, etc. Those who already have a strong passport and want a supporting travel and citizenship document.

If you’re concerned with the state of affairs in your home country, and want a hedge against country risk, consider a second passport from the Dominican Republic.

If you want to have a second passport in hand in the event that you decide to expatriate from the United States, think about the Dominican Republic.

If you want a smooth transition or landing spot should you pull the ripcord on your exit strategy, having a second passport is key.

If you’d like to invest and transact in private, a second passport from the Dominican Republic will help.

If you’re a U.S. citizen and concerned with the IRS or another government agency confiscating your passport, you must have a second passport in hand before trouble comes. Keep in mind that a U.S. passport is not a right, it’s a privilege bestowed upon us by our government. Your U.S. passport can be revoked for any reason at any time.

For more on how and why the U.S. can revoke your passport, see;

The bottom line is this: if you’re a citizen of a top tier country, and want the privacy, and security of a second passport, the lowest cost option is the Dominican Republic.

Who the Dominican Republic second passport program is NOT for…

The second passport program of the Dominican Republic is not for those who need to upgrade their passport. If you’re looking for a passport with more visa free travel options, the DR is not for you.

A passport from the Dominican Republic gets you visa free or visa on arrival access to only 54 countries and territories, ranking it 83rd in the world. Here is a list of visa free countries.

By comparison, a passport from China gives you access to 50 countries and a passport from India gets you access to 52 countries. There is little benefit to persons of these countries in buying a second passport from the Dominican Republic

Citizens of China and India are the most likely to want to upgrade their passports rather than diversify as Americans and Europeans do. For more on upgrading your passport, see: 10 Best Second Passports and Citizenship by Investment Programs For 2016

The lowest cost passport upgrade is Dominica at about $170,000 for a person from China and India (compared to about $140,000 for a U.S. citizen). You’ll receive your passport from Dominica in about 90 days.

The lowest cost residency program for Chinese and Indian nationals is Panama, which requires an investment of $80,000. You can apply for citizenship and a passport after 5 years of residency. This passport gets you visa free travel to 127 countries, including all of the European Union and the Schengen Region.

Citizens of China, India, and other restricted nationalities can apply for a passport from the Dominican Republic. I’m not suggesting you are ineligible… my point is that a DR passport won’t be a major upgrade to your current passport.

Process to obtain a second passport from the Dominican Republic

There are two second passport programs available from the Dominican Republic. The fast track investor program and the fast track retiree / foreign passive income option. Both will get you a passport within 8 months of your becoming a permanent resident.

Fast Track Investment Option: Start a business in the Dominican Republic with an investment of $200,000 or deposit $200,000 into a bank in the Dominican Republic (typically a CD which will provide a nice rate of return).

For the business option, all you need to do is form a corporation and deposit the capital into a local bank. There is no requirement to hire employees, operate the business, or pay taxes in the DR.

Your $200,000 must remain in the corporate account, or in your CD, for a minimum of 3 years. Some local banks offer accounts in US Dollars, Euros, the Dominican Peso (which is the local currency)

If you change your mind, you may withdraw your money from the Dominican Republic at any time. In that case, your residency and citizenship application will be cancelled.

Early withdrawal penalties may apply to CDs or other long term investments. If you perceive risk in the DR banking system, and want immediate access to your capital throughout the application process, hold it in a corporate checking account.

Most applications for citizenship under this fast track program are completed within 8 months of your residency being approved. The timeline of the corporate option is as follows:

We form a Limited Liability Company for you in the Dominican Republic. Typically completed in one week.
You travel to the Dominican Republic to open the bank account with our assistance. We suggest you stay a minimum of 3 nights on the island.
You deposit the $200,000.00 into your corporate bank account and receive a confirmation letter. Note that you are the only signer on this account and the funds are always under your control. Typical processing time is 5 business days.
Reporting the investment and filing various documents with the government. This takes 30 to 40 days.
You provide us the certified and apostilled documents listed below and return to the Dominican Republic for a medical exam. This can be completed in one day.
We prepare and file your permanent residency application, which requires about 30 days. In most cases, your permanent residency will be approved in 2 to 4 months.
You travel to the Dominican Republic to receive your permanent residency documents and photo ID.
Once you have your residency card in hand, you must wait for 6 months before you can apply for Citizenship. Typical processing time of these citizenship and passport applications is 60 to 90 days. You will need to travel to the Dominican Republic to receive your passport.

If you’re able to travel as soon as each step is completed, and you provide the required documents in a timely manner, we can complete your citizenship application in 8 to 10 months after you receive your residency card, depending on your availability.

The only timeline that’s fixed by statute is the 6 month wait between receipt of your permanent residency card and filing for citizenship.

Retiree / Foreign Passive Income Option: Retirees are those with passive income from retirement accounts. Passive income applicants are those with rental properties, dividends, foreign bank deposits (from banks outside of the Dominican Republic), investment returns from foreign companies, and other forms of passive income which has been earned over 5 consecutive years.

Retirees must show income from a pension or retirement plan of $1,500 per month plus $250 for each dependent. There is no minimum age requirement to be considered a “retiree.” So long as you have a pension plan sending you regular payments, you will qualify.

Passive income applicants must show a minimum fixed monthly income of $2,000 plus $250 for each dependent.

Dependents include your spouse and any children under 18 years of age. College students who can prove they are dependent upon you for support may also be included in your application.

The typical processing time for a retiree / passive investor application is 8 months after you have your permanent residency card in hand.

Documents to Become a Resident of the Dominican Republic

We will need the following documents from each applicant to complete your residency and second passport package for the Dominican Republic.

One questionnaire per family unit, a notarized copy of each applicant’s passport, and a notarized copy of a utility bill showing the primary applicant’s name and home address.
1. A family unit is the primary applicant, your spouse, and your dependent children under 18 years of age. Full time college students who are dependent on you for support may also be included.
A complete copy of each applicant’s passport (every page, including blank pages). Each passport should have 4 months of validity remaining. If less, you should renew before applying to the Dominican Republic.
A government issued birth certificate notarized and apostilled in your country, or at the nearest Dominican Consulate. This document must be translated to Spanish and the translation also must be certified.
Government issued marriage and divorce as applicable. These are to be translated into Spanish, certified and apostilled.
Resume or biography for the primary applicant. A resume or bio from your spouse will also be helpful. There is no specific format, just something that gives the reader an idea of your education, work history, and some interesting facts about you.
If applying as a retiree, proof of your monthly pension translated to Spanish and certified by the Dominican Consulate and at the Ministry of Foreign Affairs of the Dominican Republic.
If applying as a passive investor, proof of such income over the last 5 years translated to Spanish and certified by the Dominican Consulate and at the Ministry of Foreign Affairs of the Dominican Republic.
1. For example, a copy of the fixed income contract/certificate of deposit will be accepted.
If applying as a corporation, various corporate documents to be certified by a local notary and authenticated at the Attorney General’s Office. A
Police clearance report or FBI background report showing no criminal record. This should come from your home country. If you have lived abroad for 5 years or more, this should come from your country of residence.
1. U.S. citizens, click here for information on obtaining an FBI clearance report.
If you have lived in the Dominican Republic for 30 days or more (for example, during the residency period but before applying for citizenship), each applicant 16 years of age and older should provide a Certificate of Good Conduct by the Dominican authorities.
Each applicant over 16 years of age is required to provide 9 passport photos (6 front pictures and 3 right profile). For children under 16, 5 passport photos are required (3 front and 2 right profile). Pictures should be 2”x2”, against a white background, and accessories such as earrings or sunglasses are not permitted

From time to time, the government might ask for additional or supporting documents. You should begin collecting these documents after you submit the questionnaire. The police report or FBI report can take months to complete. If you plan to use the fast track or expedited fast track program, start on these ASAP.

Costs of Residency and a Second Passport in the Dominican Republic

The cost for a single applicant from the US, EU, UK, Canada, or a similar country is $35,000. The cost for a husband and wife is $45,000. Each dependent will add about $3,300, but fees will vary based on age and history.

Fees for those from restricted countries, such as China, India, Pakistan, African nations, etc. will vary from case to case. The average has been an additional processing and due diligence fee of $10.000 per adult applicant. So, a single applicant would be $55,000 and a husband and wife would be $65,000 on average.

The fees listed above include both your residency and citizenship. That is to say, they the include filing and management of your application throughout the program until you have your second passport from the Dominican Republic in hand. They also include all government and other costs.

The government of the Dominican Republic is planning to add one or two investment options to it’s second passport program in the coming months. While we don’t have any details yet, I expect they’ll be based around government bonds and green reforestation programs.

For example, it might be possible to invest $150,000 in teak and receive residency and a second passport in exchange. Alternatively, you might be allowed in invest $250,000 in government bonds for 5 years and become a citizen after 6 months.

No matter what changes come down, the lowest cost options will be those described above. If you have a pension or passive income, you can buy a passport from the Dominican Republic for $35,000. If you don’t have a consistent cash flow, you can deposit $200,000 and qualify for a second passport.

Second Passport Scams from the Dominican Republic

A number of countries have been the targets of passport scam artists. I’ve seen scams from Panama, Mexico, Antigua, Paraguay, Comoros, and the Dominican Republic.

The program we are offering was signed into law in 2014 and became active in 2015. Any website promoting a DR passport before this date is a scam. Only a formal program, founded in the law, will guarantee you a second passport.

Likewise, any website promoting an “instant passport” from the Dominican Republic is a scam. All legal programs require you become a resident for at least 6 months before you apply for citizenship. There is no way to expedite or pay a fee to circumvent this requirement.

Before publishing on this low cost second passport offering from the Dominican Republic, I did a great deal of research. I made multiple trips to the island, met with lawyers, promoters, and government officers and cabinet members at all levels.

Still not satisfied, I reviewed the files of 42 completed applications and spoke with many of the investors over the phone. In this way, I was able to confirm that each and every applicant has been approved and had received their passport after the statutory waiting period.

This is to say, I’ve been aware of the DR program for many months now. I did not write it up until I did my of research and had followed over 40 cases from start to finish. Only then did I feel comfortable bringing this to my readers.

I’m now 100% confident in the second passport program offered by the Dominican Republic.

Contact Us

Please contact me for more information on the Dominican Republic second passport program. We will be happy to work with you to gain residency and a second passport from the DR. All consultations are confidential. You can reach me directly at info@premieroffshore.com or at (619) 483-1708.

What’s the Difference Between Residency and a Second Passport?

06/04/2016/0 Comments/in Articles, Panama, Second Passport/by Christian Reeves

I’m asked just about every day to compare Panama residency with a second passport program from somewhere in the world. The caller usually has $200,000 to $500,000 to spend or invest and wants to know whether they should go for residency or a second passport. Here’s what you need to know about residency and second passport.

As for residency, I suggest Panama is the best available. If you’re from a “friendly nation,” then you can get residency for about $8,750, or even for free. If you’re not blessed with a good passport, then you need to deposit $300,000 into a Panama bank account and pay about $30,000 in fees.

For more on how to get your Panama residency for free, see Best Panama Residency by Investment Program

Residency allows you to live in that country. It usually permits you to operate a business there but not be employed by someone else. There are many different visas available in Panama, in addition to the Friendly Nations visa, and some do include a work permit.

Once you’ve had residency in Panama for 5 years, you may apply for citizenship. This doesn’t mean you will get a second passport, it means only that you may apply for one. The decision to grant citizenship lies solely with the president – whomever that may be 5 years from now.

Some presidents, such as Martinelli, gave out Panama passports to anyone who made sizable donation to his campaign. On the other hand, the current president, Juan Carlos Varela, is all about fighting corruption. I don’t think he’s granted even one Panama passport in his 3 years in office.

My point here is that residency means you can live in a particular country. It does not give you a travel document nor any of the benefits of citizenship. If you want to live in Panama and/or maximize the benefits of the Foreign Earned Income Exclusion, then you need residency in Panama. If you want a low cost exit plan, consider residency from Panama.

If you want a passport, then you can wait and hope that a “friendly” president comes to power… and with a “donation” amount you can afford… or you can buy a second passport from a country that offers economic citizenship.

A second passport is a whole different level of global access above residency… and at a completely different price point.

Someone from the US can get residency in Panama for $8,750. Someone from India can get residency for $30,000 + a deposit of $300,000 in a bank in Panama. This $300,000 is not a cost. The money belongs to you and can be taken out any time.

On the other hand, the minimum price for a second passport is $150,000, and can go as high as $8 million. Most second passports are sold for $240,000 or can be acquired with an investment of $550,000 + fees of $40,000.

Economic citizenship gives you all of the rights and privileges of a citizen from whichever country you buy in to. This means the right to live, work, vote, etc. It also gives you a passport from that country.

Second passports are valued based on 1) the number of visa free travel options they include and 2) where they allow you to live and work.

For example, a second passport from St. Lucia gives you visa free travel to 125 countries, which is very good. The cost is about $240,000 for St. Lucia.

For comparison, a second passport from Malta gives you visa free travel to 168 countries, including Canada and the United States, the two countries most difficult to access. A passport from Malta will cost about $1.2 million plus legal and other fees.

A passport from Matla also allows you to live and work anywhere in the Schengen Region of the European Union. Schengen encompases 26 countries including Austria, Germany, France, etc. For a complete list, click here.

So, St. Lucia is a valuable passport because it gives you access to 125 countries, plus an exit plan, the ability to give up your US citizenship and escape the IRS, etc.

A passport from Malta is valuable for all of these reason, plus several more visa free countries and the ability to live anywhere in the European Union.

Fore more, see Top 10 Second Passports, which includes a variety of economic citizenship options at different price points.

Here’s the bottom line on residency and second passports:

If you want to live in a country like Panama, then you need residency there. If you’re an American operating a business abroad, then you need residency to maximize the value of the Foreign Earned Income Exclusion. If you want a low cost exit plan, then you can start with foreign residency.

If you want a second passport, then you need to buy a second passport. This is the only guaranteed route to acquiring economic citizenship and a quality travel document.

I hope you have found this article helpful. Please contact me at info@premieroffshore.com or call (619) 483-1708 with any questions on second passports or residency programs. If you are from a friendly nation, can even help you get Panama residency for free.

Best Panama Residency by Investment Program

05/28/2016/0 Comments/in Articles, Latin America, Panama, Second Passport/by Christian Reeves

If you want to plant a major flag offshore, think about residency in Panama. For those who qualify, the best residency in Panama is the Friendly Nations Visa . Of the 8 or 9 visa programs Panama is running at any given time, the best Panama residency program is the Friendly Nations Visa.

Here’s why you want residency in Panama and how to get it.

Why You Want a Foreign Residency

If you’re an American, you have many reasons to want a second residency. Getting that residency in a tax friendly jurisdiction such as Panama is a no brainer.

First, Panama residency will allow you to maximize the benefits of the Foreign Earned Income Exclusion. If you’re living AND working abroad, you can exclude up to $101,300 of salary from your US taxes. A husband and wife operating a business from Panama could earn $200,000+ per year tax free.

I won’t bore you with a dissertation on the FEIE, as I’ve been known to do. Suffice it to say that, if you qualify for the Exclusion using the Residency Test, you can spend 4 months a year in the US. If you don’t have residency, then you must use the Physical Presence test and be out of the US for 330 out of 365 days.

For more information on how to maximize the benefits of the FEIE, see: Foreign Earned Income Exclusion 2016

Second, Panama allows you to plant a major flag offshore. Once you have your international bank account and your offshore structure, the next flag to plant is residency. Residency in Panama demonstrates that you are an international citizen – someone who is experienced at living, working and investing abroad.

Third, Panama residency gets you access to all of the international banks in Panama. About 90% of Panamanian banks prohibit US persons unless you have a residency permit. Big banks, such as Banco General, CrediCorp, Global Bank and Scotia Bank (the Canadian Bank with offices in Panama) all restrict access to US persons with residency in Panama.

Fourth, Panama residency gives you a place to “land” should you decide to leave the United States. Maybe you’re retired and don’t care about the tax benefits (the FEIE doesn’t apply to passive income or capital gains). If you’re planning an exit strategy, foreign residency is a must.

If you are concerned with the direction of our country, finding a safe haven, then residency is one of the most important flags to plant. First is an offshore structure, then offshore bank account, and finally residency for the trifecta.

Why Panama has the Best Residency Program

Panama has the best residency program because:

If you are from a friendly nation, a residency visa is very easy to get.
Panama is a place you can live and work tax free (if you have a portable / internet business).
Panama is a place many people would like to live. It’s one of the top business and retirement options for those seeking a higher quality and lower cost quality of life.

Considering Panama is where you want to be for lifestyle as well as business reasons, and because their residency permit is easy to get, Panama is my number one recommendation.

Let me be clear, I’m not here to analyze a bunch of jurisdictions and hedge my bets. I’m here to tell you what I think. Yes, I’m a big fan of Panama… a cheerleader if you will. Bullshite like the Panama Papers have reinvigorated that feeling.

For my thoughts on the Panama Papers, checkout the first few paragraphs of: What is Proper Offshore Business Planning

Premier is incorporated in Panama, it’s the home base of this business, it’s where I have lived for years at a time, it’s where I travel to often these days, and Panama City one of the best places in the world to live and work. Likewise, Boquete is one of the best places to retire on a budget.

Updated List of 50 Friendly Nations for the Panama Residency Program

In order to qualify for the Friendly Nation visa, you must hold a passport from an approved country. One that is “friendly” with Panama.

Here is the current list of friendly nations for the Panama residency by investment program. This list has been updated through May 24, 2016.

If your country is listed here, you may apply for residency in Panama under the friendly nations Panama residency program.

If your country is not listed, then you may apply for residency in Panama under one of their other programs. In most cases, you will need to enter under the Person of Means visa by making a substantial investment or a deposit of $200,000+ into a local bank.

For example, if you hold a passport from India, then you do not qualify for the Friendly Nations Panama Residency visa. The only way to get a visa from a non-friendly nation is to make an investment or deposit in a local bank.

For more information on countries NOT listed below, please see: Residency in Panama from Restricted Countries

Andorra	Czech Republic	Israel	Netherlands	South Korea
Argentina	Denmark	Japan	New Zealand	Sweden
Australia	Estonia	Latvia	Norway	Switzerland
Austria	Finland	Liechtenstein	Poland	Taiwan
Belgium	France	Lithuania	Portugal	USA
Brazil	Germany	Luxembourg	Serbia	Uruguay
Canada	Greece	Malta	Singapore	United Kingdom
Chile	Hong Kong	Monaco	Slovakia	Costa Rica *
Croatia	Hungry	Marino	Spain	Mexico *
Cyprus	Ireland	Montenegro	South Africa	Paraguay *

* Most recent friendly nations visa additions.

Italy: You might notice that Italy is the only Western European country not on the list. There are other EU countries missing (such as my favorite second passport option, Bulgaria), but Italy is the only major nation not on the list. This is because Italy and Panama have an unique immigration agreement that allows Italians to move to Panama without the Friendly Nations visa.

How to Get Panama Residency for Free

The typical cost for Panama residency under the Friendly Nations Visa is $8,750 for the first applicant. As I’ve said, it’s one of the easiest and least expensive foreign residency visas to get. It’s also one of the best because it’s Panama is a great place to live, work, and do business.

Now, here’s how to get residency in Panama for free…

Option 1: You can pay a fee, form a corporation and get Panama residency for $8,750 as I said above.

Option 2: You can make an investment in an approved project in Panama and get residency. Most projects are condos or other real estate costing hundreds of thousands of dollars. That’s not what I’m talking about.

There is one and only one investment you can make with a guaranteed return. One that costs only $20,000, including residency in Panama. One that doesn’t come with any carrying costs or tax obligations.

That’s an investment in teak wood….

Teak has always been a prized material. The tree that teak comes from, Tectona grandis, is native to the tropics. Since around the 7th century, it has been used to outfit and adorn the residences of the wealthy and powerful In addition to the most beautiful furniture, Teak is used in shipbuilding. It makes for an excellent ship wood due to its ability to ward off dry rot

Since the best wood furniture made from teak comes from mature trees, it can take around 25 years before a teak tree planted today is harvested for wood.

Here’s why I recommend only one teak program and why that investment is guaranteed.

The teak wood plantation I recommend has been established for years. The trees have been in the ground for 17 year already. The trees and the quality of the teak are verifiable and proven.

This is not one of those mango or coffee “opportunities” you read about on the web. Some deal that you invest in now and hope your crop gets planted. This is teak that’s been in the ground for many years. Teak that is verifiable and guaranteed. Teak that comes with Panama residency.

As I said above, I’m a big supporter of Panama. I believe it’s where you want to have a second residency. Where you want to plan your exit strategy. Where you want to have your home base.

Combine this with the fact that you can get your Panama residency for free through an investment in teak, and I’m all in. This is truly a unique opportunity.

I will close by telling you that I am writing about teak in this post on residency solely because I believe in it. No one has paid me to do this and I don’t make any money if you buy teak.

In fact, the opposite is true. If you hire me to negotiate your residency in Panama for $8,750, I make money. If you buy teak and get residency for free, I make nada. That should tell you how much I believe in this program. I am writing on this residency and teak program because I believe in it. Because I want to support the Panama I love and to let my readers know what’s available.

I hope you have found this post helpful. If you would like to learn more about the Panama residency program, or how to invest in teak to get your residency visa for free, please contact me at info@premieroffshore.com. I will connect you with experts on the ground who can help.

Move Your Internet Business to Cayman Islands Tax Free

05/13/2016/0 Comments/in Articles, International Business, Offshore Company, Offshore Company Taxation, Travel, Lifestyle and Culture/by Christian Reeves

Are you looking for a high quality of life, no taxes, and a cool offshore jurisdiction from which to operate your internet business? Ready to move you and your team to paradise for a few years to rake in the cash tax free? Then consider moving your internet business to Cayman Islands.

Cayman Islands had a tax deal you can’t refuse. Move to this business-friendly group of islands with its first-world infrastructure and amazing climate, and pay no taxes. You will also get a 5 year renewable work / residency visa for you, your staff, and their families. There are no restrictions on the number of workers you can bring with you and no requirement to hire locals.

Historically, visas and work permits were extremely difficult to obtain in Cayman. Securing residency previously required you to buy real estate of $500,000 to $1 million dollars and navigate river of red tape.

Because a residency permit and work visa are essential for the American to qualify for the Foreign Earned Income Exclusion, very few small businesses set up in Cayman.

Suffice it to say, those days are gone and now Cayman Islands is open for business. Today, you can relocate your internet business to Cayman Islands efficiently and without (most) of the impediments.

Moving a business to Cayman also gets you access to their world-class banks and credit card processing facilities that have been shut to Americans for several years now. Only US persons with a licensed business or a home on Cayman may open a account on the Island.

For example, to further reduce your contacts with the US, you might process credit cards through First Atlantic Commerce, a leading global online payment solutions provider. This enables you to accept payments in up to 145 world currencies in real-time on a 100% PCI-compliant platform. Merchant services include:

Multi-currency, multi jurisdictional settlement
Real-time processing
Virtual Terminal
Repeat and Subscription Billing
Card Number Tokenization
3-D Secure™ (bank dependent)
CVV2/CVC2/CID and AVS checks
PCI Compliant gateway

We also highly recommend banking and credit card processing services from Royal Bank of Canada.

Now on to US Taxes.

Here’s how to move your business to Cayman Islands tax free. Do it right and you and your staff can earn up to $101,300 tax free in salary. That’s right, everyone who moves to Cayman with you gets $101,300 tax free. That equates to about a 35% pay increase on your first $100,000 in salary… certainly worth hanging out on a beautiful Caribbean island for a year to earn.

You will pay US taxes on salary over $101,300. You might create defined benefit or other retirement structures to further defer tax. A small business might simply hold retained earnings tax deferred.

Even better, you and your team won’t be required to pay self employment tax or any of the US social taxes. No FICA, Medicare, or Obama taxes. That’s a savings of about 15% (7.5% to the employer and 7.5% to the employee).

Of course, you’re in business to make a profit, not just pay your employees. Any income generated by the Cayman Islands corporation can be held offshore tax deferred. If you accrue $5 million in net profits over 3 years on the island, so long as you hold them in your Cayman corporation, you won’t be required to pay US taxes.

The devil is in the details of the US tax code and I’ll get to that.

First, let me point out that I am talking about moving you and your business out of the United States and to the Cayman Islands. This is not some tax dodge using shell companies or hiding from the IRS. This is committing to the business, making the move, and earning the tax benefits.

Shell companies and offshore structures with no substance behind them are so 2000. These days, if you want to cut your US taxes, you must have employees and operations outside of the US. For most businesses, this means moving you and your workers out of the United States for a time.

Then and only then will some of the income generated by this division qualify to be held in the Cayman Islands corporation tax deferred. More on this soon….

In support of this fact, the Cayman Islands Government has granted a number of globally competitive tax holidays / tax free zones throughout the Island. They allow your businesses to establish a physical presence plus offer fast-track business licensing and visa processing. These programs attempt to eliminate the red-tape, excessive costs, and uncertainty that one would normally experience when trying to set up a business in Cayman Islands.

These tax free zones provide the following benefits:

No corporate, income, sales or capital gains tax in Cayman Islands – tax payable in the USA is a complex matter summarized below.
100% foreign company ownership permitted
A 3-4 week fast-track business licensing regime
Renewable 5-year work/residency visas granted in 5 days
Cutting-edge IT and business infrastructure
Offshore hosting & payment gateway
Minimal Government regulation
No Government reporting or filing requirements
A tech cluster with massive cross-marketing opportunities
’One-stop-shop’ Administration services
Work visas for your staff and residency permits for your spouse and children at no additional cost.

Note that you must operate your business in one of the Island’s tax free zones to get these benefits. Also, your business must be in one of the industries to which a tax holiday is available. Qualified businesses include:

Internet & Technology
Media, Marketing or Film
Biotechnology & Life Sciences
Commodities & Derivatives
Maritime Services

How to Maximize the US Tax Benefits of Moving Your Business to Cayman Islands

Let’s get back to the devil (the IRS) and those details.

The key to the offer in Cayman is the fact that you and your employees will receive work and residency permits on the island. In the past, these have been extremely difficult to get and required that you hire a proportional number of Cayman citizens.

As of 2016, Cayman understands that the days of the shell company are coming to an end. The government is moving to a service based offering that allows you to establish a real business with substance and employees who qualify for the Foreign Earned Income Exclusion. One that will pass muster with the IRS and allow you to minimize your US taxes.

Of course, you need to do your part to make Uncle Sam happy as well. You need to move your business, your workers, and yourself to Cayman Islands. You must reside on the island as a legal resident with a work permit (we have that covered for you), qualify for the Foreign Earned Income Exclusion, and obtain a license from one of their tax free zones.

To qualify for the Foreign Earned Income Exclusion, you need to move to Cayman for the foreseeable future, make the Island your home base, and stay out of the US approximately 8 months of the year.

Cayman Islands should be your home base and the jurisdiction from which you operate your business. You don’t need to spend a certain amount of time on Cayman, but you do need to be out of the United States for about 8 months a year.

This allows you to earn up $101,300 in salary from your Cayman corporation tax free in the United States, avoid US social taxes, and retain net profits from your active business in the Cayman corporation tax deferred. The fact that you are structured and licensed in one of the Cayman tax free zones means you operate tax free in Cayman also.

Note that I said net profits / retained earnings in your Cayman Islands corporation will be tax deferred – not tax free – in the United States. When you will decide to take out these retained earnings from your corporation, they will be taxed in the United States. You can decide when that occurs, but you must pay Uncle Sam some day.

The Foreign Earned Income Exclusion is a complex topic, and I have merely skimmed the surface here. For more details, see:

As you read through these thrilling posts, keep in mind that we are talking about moving you and your business to Cayman. You will qualify for the Foreign Earned Income Exclusion using the residency test and not the physical presence test.

Costs of Setting Up in Cayman Islands

I’ve been working offshore since 2000 and I can tell you that Cayman Islands is without a doubt the most beautiful tax paradise. Add to this their world class services, IT infrastructure, and top legal and business talent, and it’s an amazing place from which to operate an internet business. Cayman Islands is NOT a low cost option Cayman is the Hyatt or Nieman Marcus of the offshore world, not Wal Mart or Best Western.

Cayman is one of the more expensive jurisdictions from which to run your business. You will need to pay your employees the same as you do in a major US city like Los Angeles or New York to cover the cost of living. Everything you do, from equipment to meals to lodging, will cost about the same as the United States. And everyone will want to travel back and forth to the US to escape that Island Fever.

If you are looking for one of the most beautiful and professional spots on the planet from which to operate your business, Cayman Islands is it.

If you are looking for a place that offers low cost labor and a 4% tax rate, and you have at least 5 employees, consider Puerto Rico.

If you want to maximize the value of the Foreign Earned Income Exclusion in a lower cost city, consider Panama. Yes, Panama regardless of the BS you read about the Panama Papers.

Here is a summary of the costs of setting up your business in Cayman Islands. Note that the minimum number of employees in Cayman is one. The tax benefits described here assume you (the business owner) are the first employee. You might be the only employee or you can bring with you as many support staff as you like.

The tax free zones have created turn-key offerings that include your residency visa, work permit, and office. The total cost for all of this in a shared / group space is about $1,550 per month. The minimum term of the lease is 3 years and the first year of $18,500 is due at signing.

You can have up to two people working in the group space. If you have 3 or more employees, you will need a private office. See below.

The cost for a private office for one person with 90 to 100 sq ft., again including all permits, is about $3,000 per month on a three year contract. This includes furniture, phone system, etc. Payments are made quarterly at $9,237.50.

A three person office is $53,450 per year and a 2 person office can be either $41,250 or $49,250 per year depending on if a chooses the standard or large 2 person office. Payments are made quarterly and the minimum term is 3 years.

In addition, each resident will need to have health insurance, which starts at about $200 per person per month. Family plans are available.

And, speaking of families, there is no additional cost to bring your spouse and dependent children under 18 years of age to Cayman in this program. Their residency permits are basically processed for free and included in your office rent.

However, you might consider setting up an office and work permit for your spouse. That will allow him or her to also earn $101,300 per year tax free under the FEIE working in your family business In this way, you can double the value of the Foreign Earned Income Exclusion.

Also, your kids must be enrolled in private school in Cayman. They are not allowed to roam the streets unchecked. Private school costs about $1,300 per month and a wide range of options and price points are available.

Finally, employees are required to have some type of retirement account on Cayman after 9 months of employment. This may provide additional tax planning options.

As I said above, the cost of living in Cayman Islands will be the same or higher than a major US city. Rent in a residential neighborhood for a two bedroom will run you $2,000 to $3,000 per month. The commute would be about 20 minutes to the office. .

If you want to go big, the rent for a two bedroom on Seven Mile Beach will run you $5,000 to $6,000 per month. If you would like to scope out the area, I suggest you stay at one of the many hotels on Seven Mile.

We can have you setup and operating from Cayman Islands in about 40 days. For more information, and a quote on forming your Cayman corporation and US / Cayman tax planning, please contact me at info@premieroffshore.com or call us at (619) 483-1708.

Cayman Islands vs Puerto Rico

Allow me to close by comparing Cayman Islands to the US territory of Puerto Rico. Puerto Rico offers a tax holiday at 4%, a tax rate which is guaranteed for 20 years. The catch is that your business must move to Puerto Rico and have at least 5 employees on the island.

If you have fewer than 5 employees, Puerto Rico is not an option. Focus on Cayman Islands or Panama.

The tax deal in Puerto Rico is very different from that of Cayman Islands. In fact, it’s the reverse of the Foreign Earned Income Exclusion described above.

In Cayman, you earn $101,300 tax free and leave the balance of the profits in the offshore corporation tax deferred.

In Puerto Rico, you draw a reasonable salary and pay tax at ordinary income rates on that money. The remaining net profits of the business are then taxed in the corporation at 4%. If you are living in Puerto Rico, you can pull these profits (less the 4%) as tax free dividends.

So, if your salary is $100,000, and your remaining profit is $2 million, you will pay about $110,000 in Puerto Rico tax (($100,000 x 30%) + ($2 million x 4%) = $110,000). This is all of the tax you will ever pay on this income.

In Cayman, the $100,000 salary is tax free. At some point, you will pay US tax at 35% on the $2 million, or $700,000. This might be years or decades in the future, but the bill will come due.

For more on this topic, take a read through Puerto Rico’s Tax Deal vs the Foreign Earned Income Exclusion.

I also note that you, as a US citizen or resident, do not need an visas or special permission to move to Puerto Rico. It’s a domestic flight and you can relocate as easily as you would from New York to Miami.

Next, your cost of labor in Puerto Rico will be 30% to 40% lower than in Cayman Islands. The same goes for your cost of living and operating the business.

Finally, Puerto Rico allows you to spend more time in the US. You should be on the island for 183 days a year, not 240 as you should with the Foreign Earned Income Exclusion using the residency test.

Conclusion

Whether you want to operate your business from an island paradise like Cayman Islands or a fiscal paradise like Puerto Rico, all tax deals these days require substance. This means a business with employees abroad adding value and working in the business.

You need to move you and your business outside of the US to maximize the benefits of the Foreign Earned Income Exclusion or of the US territorial tax offerings of Puerto Rico.

I hope you’ve found this article helpful. For more information on moving your business to Cayman Islands or Puerto Rico, please contact me at info@premieroffshore.com or (619) 483-1708 for a confidential consultation.

Top 16 Second Passport and Residency Programs

05/02/2016/0 Comments/in Articles, Second Passport/by Christian Reeves

Summary of Second Passport and Residency Programs of 16 Countries

Below is a summary of the costs and procedures for obtaining residency in the 16 most commonly requested countries. As you know from reading my post on the 10 Best Second Passports, I believe that St. Lucia is the best value for a second passport.

I rank Bulgaria as the best combination of value and quality and Austria is far and away the best passport available at any price.

This article covers the following countries:

St. Lucia
Dominica
St. Kitts
Panama
Austria
Jersey
Monaco
Grenada
Slovakia
Hungary
Bulgaria
Cyprus
Portugal
Malta
Uruguay
Antigua

[sta_anchor id=”St Lucia Second Passport”]

St. Lucia – Summary of process to Citizenship

You can purchase a passport or make an investment in government bonds to gain citizenship in St. Lucia. Most applications are completed within 90 days from submission. As you read the St. Lucia statute, you will find there is a real estate investment option in addition to the purchase and government bond program. There are no approved real estate projects at this time, so I will not discuss that here.

I like St. Lucia because of the option to invest in non-interest bearing government bonds for 5 years. The investment amount is $500,000 to $550,000. Alternatively, you can buy a passport without an investment for $200,000 to $250,000.

St. Lucia provides visa free travel to 121 countries as well as visa free travel to Switzerland or 180-days in the Schengen area of the European Union. Here are all the visa free countries: https://en.wikipedia.org/wiki/Visa_requirements_for_Saint_Lucian_citizens

When you compare St. Lucia to its neighbors, it costs a fraction because you get your investment capital back in 5 years. No interest is paid. Total cost would be fees plus interest lost / opportunity cost of the capital invested into government bonds.

Investment Options: Cash Purchase / Government Bonds

The cost for one applicant for the purchase option is:

Legal / Background Check / Filing fees: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Processing: $2,000 single

Donation to Economic Fund: $200,000 single person +$25,000 per dependent

Government bond option is:

Legal / Background Check / Filing fees: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Processing: $2,000 single

Investment Required: $500,000 to $550,000 **

* Due diligence fees are fixed by statute. But, in my experience, the statute was written for US, UK, Canada, etc. passport holders. There might be some minor additional costs in your case. We do not mark-up the due diligence fees, so they will be billed by the government. See the attached document for more information.

** Your investment in government bonds is returned at the end of 5 years.

Residency Period: None, it’s a cash for passport program.

[sta_anchor id=”Dominica Second Passport”]

Dominica – Summary of process to Citizenship

You can purchase a passport or make an investment in real estate to gain citizenship in Dominica. Most applications are completed within 90 days from submission. We recommend the purchase program over the investment program.

Investment Options: Cash Purchase / Real Estate

Cash Option:

Purchase Price: $100,000 for a single applicant, $175,000 for an applicant with spouse, $175,000 for an applicant and up to two children below 18 years, $200,000 for an applicant, spouse and two children under 18

Additional $50,000 for each dependent (children over 18 and parents of the applicant over 65 years of age)

Real Estate Investment Option:

Purchase Price: $100,000 per adult applicant and $50,000 per dependent 21 years and under. Two or more applicants may apply for Citizenship by Investment together by purchasing one piece of real estate,

Government Fees:

Main Applicant $50,000

Spouse of main applicant $25,000

Children $20,000 for each child of the main applicant under 18 years

Dependents $50,000 for each dependent over 18 years of age

Other Costs:

Typical Legal / Due Diligence / Processing / Registration: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: None, it’s a cash for passport program.

You will be able to travel on your Dominica passport without a visa to more than 90 countries, including the United Kingdom, Switzerland and many others.

[sta_anchor id=”St Kitts Second Passport”]

St. Kitts – Summary of process to acquire Citizenship

The St. Kitts and Nevis passport is the most common second passport available. It offers:

Visa free travel to European Schengen area including UK, and Ireland along with other 80 countries
No prior residence requirements
No income or wealth tax.
Citizenship for family members (spouse and children)
Lifetime citizenship and no restrictions on Dual citizenship

To qualify for citizenship of St. Kitts and Nevis under its Citizenship-by-Investment Program, the Government requires either:-

Purchase Price: A non refundable charity donation of minimum US$ 250,000 to the Sugar Industry Diversification Foundation (SIDF) for single person + payment of processing fees. For accompanying family members (see below).

(or)

Investment option: Designated recoverable Real Estate Investment with a value of at least US$ 400,000 plus payment of various registration and other fees. For any accompanying family members, additional costs apply (see below).

Typical Legal Fees: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Fees and Costs: Minimum investment: $250,000 (SIDF) or $400,000 (Real Estate) Government Fee: $50,000 per person

Due diligence fee: $7500 per person

Passport fee: $350 per person

The total cost around $292,000 per person. Additional costs apply for dependents and family members.

[sta_anchor id=”Panama Second Passport”]

Panama – Summary of process to earn citizenship through residency

Panama is the lowest cost and most efficient residency program program for those from a favored nation. The favored nations program is our most popular residency opti0on.

If you do not hold a passport from a partner country, the POM visa below is for you. See also Restricted Country Visas.

Keep in mind that the options above allow you to get a second passport through investment or by making a “donation.” Panama offers a residency program that might turn into a passport 4 years in the future. So, we are not comparing equivalents here.

Purchase price: None

Investment Option: $0 Favored Nations and $250,000 Restricted Countries

Typical Cost: $8,750 Favored Nations and $50,000+ Restricted Countries / Person of Means

Residency period: 4 years

If you’re not from a ‘favored nation’ and you’re not planning to be employed or start a business in Panama, the Person of Means (POM) visa is your best option. In order to qualify, you must make an investment in real estate or deposit USD 250,000 into a Panama Bank.

You have three options available to obtain your POM visa:

Purchase real estate property in Panama in your own personal name, for a minimum value of USD 300,000 and you must submit proof of economic solvency to cover your daily living expenses in Panama;
Establish a fixed-term deposit in a Panamanian local bank, for a period of at least two years and for a minimum amount of USD 250,000;
You can combine the two previous options, provided the total adds up to at least USD 300,000. For example, if you buy real estate in your own name which costs USD 260,000, you may place the remaining USD 40,000 in a fixed two-year deposit to qualify for this permit.

A provisional POM visa is granted for one year and permanent residence is granted from the second year onwards (together with the right to obtain an official Panamanian identification card). Five years after obtaining the permanent visa, holders will also have the option to apply for Panamanian citizenship (read Panamanian nationality).

[sta_anchor id=”Austria Second Passport”]

Austria – Summary of Process to acquire Citizenship

Purchase Price: EUR 3 million

Investment Option: EUR 10 million

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: None

A passport from Austria is by far the most valuable available. The price is commensurate with the value.

Austria offers business investors citizenship and an EU passport immediately without a residency requirement on the basis of an investment in the country. This requires:

A minimum of at least EUR 3 million in Austria economy (donation to a charity)

(or)

A direct minimum investment of EUR 10 million+ in economy of Austria

makes one eligible for Austrian citizenship. An investment is usually done by starting or moving a sizeable business to Austria.
Austria Charitable Donation Route

This requires donating at least EUR 3 million to a public project or private project of public interest, recognized as providing extraordinary benefits. This might be in the form of an endowment for a scientific research, a contribution to an important museum, university, or similar. The can be spread out over several years.

Austria Direct Investment Route

Under the direct investment route, (§10/6 of the Austrian Citizenship Act), an applicant is required to provide extraordinary benefits to the Austrian State. This is usually in the form of direct investments in local business creating jobs or generating new export sales, etc. For example, manufacturing factories, science and research technology project, normally qualify under direct investment. A minimum equity investment of at least EUR 10 million is expected. the exact amount is negotiated with the government before the investment is made.

Investments in government bonds, real estate, etc. do not qualify under citizenship program.

[sta_anchor id=”Jersey Second Passport”]

Jersey – Summary of process to acquire Residency

Purchase Price: None

Investment Option: £125,000 tax payable per year

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: None

Note that this is a residency program only. it does not lead to citizenship. It is set up for EU citizens to minimize tax. It’s not efficient for US citizens looking to maximize the benefits of the Foreign Earned Income Exclusion.

To achieve High Value Residency status and be eligible to purchase property in Jersey the prospective applicant must make a contribution to the Island’s tax revenues; at the present rates of tax, the annual tax contribution would be in the region of £125,000, calculated on a sliding scale based on 20% of the first £625,000 of worldwide income and 1% on all income thereafter. Applicants are required to provide financial and other information in support of their application to take up residence in Jersey, evidencing sufficient capital wealth in order to produce in excess of £125,000 in tax revenues for the Island.

Once High Value Residency status has been granted, the applicant may apply for consent to purchase a property and will be granted the same status as other residentially qualified Islanders. They can be employed and employ and set up their own business in the Island and will be expected to purchase a single residential property worth in excess of £1m.

[sta_anchor id=”Monaco Second Passport”]

Monaco – Summary of process to acquire Citizenship

Purchase Price: None

Investment Option: EUR 1 million

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 10 years / present in the country at least 6 months of each year

To become a Monaco permanent resident (and ultimately a citizen), a foreign national must meet several requirements. First, you must invest a minimum of 1,000,000 euros – 500,000 euros of which must be deposited and kept in a Monaco bank. The other 500,000 euros to be invested in real estate. Additionally, you should prove to the Monaco government that you have sufficient bank funds to support yourself in the country.

As a resident, you can open a business in Monaco.

Once approved, you and your family are given permanent resident status. As permanent residents, you are eligible to live, work, and travel in Monaco. After ten years, you may apply for citizenship as long as the family spent at least 6 months of every year in Monaco.

While the investment amount is relatively low, this program has one of the longest residency periods.

[sta_anchor id=”Grenada Second Passport”]

Grenada – Summary of process to acquire citizenship

Purchase Price: None

Investment Option: $500,000

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency period: 2 years

Program Details:

Option One: US $350,000 to $500,000 investment required per applicant.

The most common investment in Grenada is to purchase a condominium and shares in a real estate project, such as a hotel. Investments are approved on a case by case basis.

Option Two- Non refundable Donation

A non-refundable donation to the Island Transformation Find of about $220,000 per person. This process involves first obtaining Grenada Permanent Residency and then applying for naturaliza

[sta_anchor id=”Slovakia Second Passport”]

Slovakia – Summary of process to acquire Citizenship

Purchase price: None

Investment Option: 3,000,000 EUR

Typical Costs: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 8 Years

Citizenship of the Slovak Republic may be granted to an applicant who is not a citizen of the Slovak Republic and:

has a continuous permanent residence in the Slovakia for at least 8 years immediately preceding the application for citizenship,
has no criminal record,
has a criminal record but:

– wasn’t a sentence of expulsion by a court,

– is not conducted by the prosecution,

– against him/her there is not conducted extradition proceeding or proceedings to execute the European arrest warrant,

– is not held on the deportation proceedings,

Citizenship by Investments: Procedure involves acquiring temporary residence, permanent residency, and then applying for citizenship. Citizenship will require an investment of at least 3,000,000 EUR. The more you invest, the better your chances of being approved. The result (Slovak citizenship and passport) can be obtained in 12-18 months. Your investment must create new jobs for Slovak citizens and/or or bring new technology. Decisions on citizenship applications are taken on case-by-case basis subject to approval of the relevant ministry and then by the Ministry of Interior. This option of citizenship without residence requirement is available not only for investors but also for people of art, science, etc., who contribute significantly to the interests of Slovakia.

[sta_anchor id=”Hungary Second Passport”]

Hungary – Summary of process to acquire Permanent Residency (not citizenship)

Purchase Price: None

Investment Option: EUR 300,000

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: Renewal every 5 years

You can receive a permanent residency permit in Hungary by purchasing a specially issued bond with a value of EUR 300,000 with a maturity of minimum 5 years. The applicant may purchase the above bond as an individual or via his/her majority-owned company. No language and physical residency requirement are in the program.

The bond is issued by a finance company which received a permission from the Economics Committee of the Hungarian Parliament. This finance company is legally required to immediately buy a specially-issued government bond from the investment proceeds. Thus, the bonds issued by the finance company are fully backed by the Hungarian Government Bonds. The finance company is also required to file a monthly list of participants in the Residency Bond System to the Immigration and Citizenship Authority.

After investing at least EUR 300,000 under the Investor Residency Bond Program, a residency permit valid for 6 months will be issued to you and your family (wife and kids under 18 years old). Afterwards, this permit can be converted to a permanent residency (card is valid for 5 years and renewed automatically).

Hungarian residency permit enables the applicant to live in Hungary, and visit (to a maximum of 90 days from any 180 days) any Schengen country. At the same time it should be noted that at present the program has no path to citizenship.

[sta_anchor id=”Bulgaria Second Passport”]

Bulgaria – Summary of process to acquire citizenship

Purchase Price: 305,000 EUR (approximate based on currency fluctuation)

Investment Option: 512,000 to 1,024,000 Euro

Typical Costs: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 2 to 5 Years

Permanent residence is granted upon investment of 512,000 EUR (BGN 1,000,000). This is a conservative investment which is made into government bonds. After 5 years money will be returned without interest. The investment / bond is guaranteed by the government.

You will be eligible for citizenship after 5 years with this program.

Fast track citizenship is available to those that make a second investment of 512,000 EUR into a qualified Bulgarian business or government bonds. This second investment should be made 1 year after you obtain permanent residency and held for at least 2 years.

The Bulgaria program is identical to the St. Lucia program – just double the cost or investment for a more valuable passport.

[sta_anchor id=”Cyprus Second Passport”]

Cyprus – Summary of process to acquire Citizenship

Residency by Investment: 300,000 EUR

Citizenship by Investment: 2,500,000 – 5,000,000 EUR

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 3 Years

Permanent Residency by Investment of 300,000 EUR

Citizenship by Investment 2.5 Million Euros

Permanent residency is granted to those who buy a property valued 300,000 EUR in Cyprus. Only new properties may be purchased under this program. Applications are normally processed in a couple of months (quite fast). In addition, the applicant must have a three years deposit 30,000 EUR with a Cypriot bank and must demonstrate annual income of 30,000 EUR.

Cyprus Citizenship by Investment

The average time-frame for the obtaining of a Cyprus passport is 90 days after the submission of the completed application.

To be granted the Cyprus (European Union) passport, investors and entrepreneurs apply personally or through a corporation. You should invest €2.5 million to qualify for citizenship.

The investment can be made in:

(a) government bonds;

(b) financial assets of Cypriot companies or organisations;

(d) purchase, incorporation or participation in Cypriot businesses and companies.

You are also required to have a residence in Cyprus of at least €500,000 unless you chooses to invest the amount of €2.5 million in the purchase of residential property/properties. The most frequent option is the investment in real estate (residential property).

That is to say, you must invest at least €500,000 in a residential property or properties. You might invest €2 million in government bonds and €500,000 into a residential property.

[sta_anchor id=”Portugal Second Passport”]

Portugal – Summary of Process to acquire Citizenship

Purchase Price: None

Investment Option: 500,000 EUR

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 6 years

This is a residency program with a path to citizenship. You will become eligible to apply for citizenship and a passport after 6 years from the date initial residency permit is issued.

Investment amount is 200,000 – 500,000 EUR irrespective of number of applicants in the family (amount depends upon the type of investment and region). In addition to the investment you will be expected to pay taxes in the amount of 8,8 % from the property price: 1) Transfer tax of up to 8%, and 2) Stamp duty of 0.8%. Government processing fee (application and renewal) – 514 EUR (plus 80 EUR per family member). Also, the Government charges 5,148 EUR for every visa. For a family of four, visa fees are over 20,000 EUR.

In order to apply for citizenship in Portugal you will need to show 6 years of legal residence + good command of the Portuguese language. You must live in Portugal full time for these 6 years.

[sta_anchor id=”Malta Second Passport”]

Malta – Summary of Process to acquire Citizenship

Purchase Price: None

Investment Option: EUR 350,000 + residence or rental + EUR 150,000 bonds

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: No specific years

Maltese Citizenship by Investment:

Contribution to the National Development & Social Fund. To qualify for Maltese citizenship the main applicant is required to contribute at least EUR 650,000. Spouses and children are required to contribute EUR 25,000; unmarried children between 18 and 25 and dependent parents older than 55 years old must contribute EUR 50,000 each. This contribution is to be made after the approval of the applicant’s citizenship application.

You must commit to retain a residence in Malta for a period of at least 5 years, either through the purchase of a property, for which the minimum value must exceed EUR 50,000, or through leasing of a property, for which the minimum annual rent must exceed EUR 16,000.

In addition, an investment of EUR 150,000 in Government approved financial instruments, which must be maintained for a minimum period of 5 years is required.

When you acquire citizenship under the Malta Individual Investor Programme, you and your family enjoy full citizenship for life, which can be passed onto future generations by descent.

Due Diligence Fees

Due diligence fees are as follows: EUR 7,500 for main applicant; EUR 5,000 for spouses, adult children and parents; EUR 3,000 for each child between 13 and 18 years old. Due diligence fees are non-refundable even in the case when citizenship application is not approved.

[sta_anchor id=”Uruguay Second Passport”]

Uruguay – Summary of process to acquire citizenship

Purchase Price: None

Investment Option: USD 100,000 per applicant

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 3 to 5 Years

Requirements: USD 100,000 investment per applicant for 10 years plus proof of pension earning $1,500 USD per month.

Citizenship: You may apply for citizenship after 3 or 5 years of residency. 3 years for married applicants and 5 years for single applicants. Due to high demand, processing time can reach 24 months.

The Process: File for residency at the National Migration Office. Get your first temporary identity card (cédula). Open a bank account, do the health check and Interpol (if applicable). Within 60 days we will file the rest of the documents on your behalf.

Once residency is granted you will be required to live in Uruguay 8 to 10 months in your first year and then at least six months after that. This is not an absentee residency program, it is for those who wish to move to Uruguay and make that country their home.

This is a great passport, but you must be committed to Uruguay to make this work. And citizenship is not guaranteed.

Uruguay passport is an excellent travel document, allowing the visa-free access to all of South America, MERCOSUR, and Europe’s Schengen Area. While a visa is required to visit the United States, approval rates are higher than other South American countries, so Uruguay is seen as a road to America.

Now for the bad news: About 50% of citizenship applications that meet the requirements are refused by judges for a myriad of reasons. If you want to turn your residency card into a passport, you must be committed to Uruguay, be well connected, and make the right donations and contributions to local elections.

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Antigua – Summary of process to acquire citizenship

Purchase Price:

Investment Option: $292,000

Typical Cost: Contact us for a quote at info@premieroffshore.com or call (619) 483-1708

Residency Period: 5 years

Antigua and Barbuda has a new economic citizenship by investment program for investors who can directly acquire citizenship and passport by donation to a charity or buying a real estate. Antigua & Barbuda is one of the most beautiful island nation in Caribbean with excellent beaches and posh climate to enjoy your winter vacation.

Antigua Barbuda passport is a great second passport for investors who want visa free travel.

Under the Citizenship program, there are following investment options (limited time offer) :

USD 200,000 donation to National Development fund (NDF) (or)
USD 400,000 investment in real estate (or)
USD 1.5 million business investment (or)

Additional costs for family and children apply.

For example: The cost for single person is about $310,000 plus legal and processing.

The passport is granted for 5 year validity period after it is renewed.

Benefits of the passport include visa free travel to EU countries, Canada and UK.

Puerto Rico Tax Deal vs Foreign Earned Income Exclusion

12/04/2015/0 Comments/in Articles, International Business, Offshore Company, Offshore Company Taxation, Puerto Rico Tax Incentives, Taxation/by Christian Reeves

The Puerto Rico tax deal is the inverse of the Foreign Earned Income Exclusion. Here’s why:

With a Puerto Rico tax contract you can live in the US, your first $100,000 or so in salary is taxable, with rest deferred at 4%.
If you live offshore and qualify for the FEIE, your first $101,300 is tax free in 2016 and the rest is taxable in the US as earned.

The FEIE is intended for those living abroad and operating a business that earns $100,000 to $200,000 max. The Puerto Rico deal is intended for those who live in the US or PR and net $400,000 or more.

This article will compare and contrast the Foreign Earned Income Exclusion with the Puerto Rico Tax Deal. There are still deals out there for Americans if you know how to work the system.

Here’s how the Foreign Earned Income Exclusion works:

If you live abroad and work for someone else, or have your own business, the Foreign Earned Income Exclusion is the best tool in your expat toolbox. The FEIE allows you to exclude up to $101,300 in salary in 2016 from your US taxes.

This salary can come from your own offshore corporation or from your employer. So long as the company is located outside of the US, and you qualify for the Exclusion, you’re golden.

If a husband and wife are both working in the business, they can each earn $101,300 in salary tax free for a total of $202,600. Take out more, and the excess is taxable in the US at about 40%.

Likewise, if you work for someone else, the amount you earn over the FEIE is taxable in the United States. If you work for yourself, and hold earnings in an offshore corporation, you can usually defer tax on these retained earnings.

To qualify for the Foreign Earned Income Exclusion, you must be 1) outside of the US for 330 out of any 365 days, or 2) be a legal resident of a foreign country, file taxes in that country, and travel to the US only occasionally for work or vacation.

What qualifies you a resident of a foreign country is a complex matter. For a more detailed article on the FEIE, see: Foreign Earned Income Exclusion Basics
The above assumes you are living in a low or no tax country and does not consider the Foreign Tax Credit.

The Foreign Earned Income Exclusion is an excellent tax tool for those willing to live and work outside of the US. If you wish to spend more than a couple months a year in the US, or to take out a salary of more than $101,300, the FEIE might not be your best bet.

Here’s how the Puerto Rico Act 20 tax deal works:

If you incorporate your business in Puerto Rico, you can qualify for an 4% corporate tax rate. That is to say, you can live in the US, operate your business through a Puerto Rico company, and get tax deferral at 4%.

In order to qualify, you must hire at least 5 full time employees in Puerto Rico and provide a service from the island to businesses or individuals outside of PR. Popular examples are affiliate marketers, website developers, investment funds, phone and online support providers, and any other business that is portable or operates via the internet. Really, any company that can put a division in Puerto Rico can benefit from Act 20.

If you don’t need 5 employees, we might create a joint venture that allows partners to share employees in one corporation that benefits the group.
EDITORS NOTE: On July 11, 2017, the government of Puerto Rico did away with the requirement to hire 5 employees to qualify for Act 20. You can now set up an Act 20 company with only 1 employee (you, the business owner). For more information, see: Puerto Rico Eliminates 5 Employee Requirement

If you, the business owner and operator, live in the US, you must take a “fair market” salary that’s taxable and reported on Form W-2. This might be around $100,000, but the exact amount will depend on many factors. The remaining net profits of the income attributable to the Puerto Rican company will be taxed at 4%.

This is basically the inverse of the Foreign Earned Income Exclusion. With a Puerto Rico contract, you pay tax on your fair market salary and defer the balance at 4%. With the FEIE, the first $100,000 (or $200,000 if married and both are working in the business) is tax free and the excess is taxable at ordinary rates.

I note that the Act 20 offer is a better deal than the multinationals have in Europe. Most of them are paying about 12.5% for tax deferral. Even at 12.5%, their tax contracts are under constant attack by the US and the EU. If you want to out maneuver Apple, and get an offshore tax deal blessed by the US government, move your business to Puerto Rico!

So, what’s different about Puerto Rico? As a US territory, it’s tax code trumps the Federal Code… or, more properly put, PR’s tax code is on equal footing with the US Federal code.

This is not the case in a foreign jurisdiction. So long as you hold a US passport, you’re subject to US taxation. The IRS doesn’t give a damn about the laws of your new country. They want their cut.

The US code is clear when it comes to Puerto Rico: Income earned in a Puerto Rican corporation, or as a resident of Puerto Rico, is exempt from US taxation. See: 26 U.S. Code § 933 – Income from sources within Puerto Rico.

The code as applied to foreign jurisdictions is incredibly complex. Try reading up Controlled Foreign Corporations, Passive Foreign Investment Company rules, and Sub Part F of the code.

I suggest a Puerto Rico tax contract is best suited to firms with at least $400,000 in net profits that can benefit from (or, at least, break-even on) three employees in Puerto Rico.

For more information on how to live in the US and pay 4% on corporate earnings in Puerto Rico, see: Blood in the Streets Offshore Tax Planning.

In contrast, the FEIE is great for those who wish to live outside of the United States and earn a profit of of $100,000 to $200,000 from a business. Additional tax deferral is available to business owners who live abroad operate through an offshore corporation.

I hope you have found this article on the Foreign Earned Income Exclusion vs. the Puerto Rico Tax Deal helpful. For more information, please send an email to info@premieroffshore.com or give me a call at (619) 483-1708.

Belize Residency Program Primer

08/27/2015/in Articles/by Christian Reeves

The Belize residency program is the best available if you want to live in Belize or if you’re on a budget. If you want access to a larger city, to operate a business, eventually gain citizenship, or not be required to live in your country of residence, look to Panama.

If you want to retire to happy and beautiful Belize, this residency program is for you. If you have a passport from a restricted country and can’t afford Panama, look to Belize.

The Belize residency program allows you to live and retire in Belize. If you’re a US citizen, it will help you maximize the value of the Foreign Earned Income Exclusion. Here’s everything you need to know about the Belize residency program.

Basics of the Belize Residency Program

Unlike Panama, the Belize residency program is focused on people who wish to “retire” abroad. But they use the term “retirement” quite liberally. In this context, it means that you have a pension or other type of guaranteed income stream of $2,000 or more per month and are at least 45 years of age.

And the cash doesn’t need to come from an IRA or other traditional retirement scheme. It simply needs to be a guaranteed payment (like an annuity) over a number of years. So, if you’re over 45 years of age, you can purchase an annuity of $2,000 per month and you qualify for the Belize residency program.

Also unlike Panama, Belize isn’t picky on who can qualify for residency. Anyone, no matter what passport you hold, who is 45 years of age or more and has a pension of $2,000+ per month can become a resident of Belize.

The only other limitations are that you must pass a medical check and a background check (no criminal history). They don’t want a repeat of John McAfee!

In Panama, those with US, UK, and EU passports have an easy go of it. Everyone else must pay to play. For a detailed article, see Panama Residency from Restricted Countries.

Another distinction is that the Panama residency program has a path to citizenship. This Belize residency program does not… there is no Belizean second passport at the end of the road.

Remember that the Belize program is meant for those who want to live in the country. So, one of the added benefits is that you can many thousands in taxes and import duty. But I am getting ahead of myself….

Let me tell you a bit more about Belize:

Belize is located at the south eastern tip of Mexico, so a short flight from the US. What draws me to the country is that English is the official language and spoken everywhere. No need to learn a language… no communication problems here.

Belize is the ONLY country in Central America where English is the official language. All business is conducted in English and everyone you come in contact with is fluent. In fact, while I often need my broken Spanish in my home town of San Diego, California, I have never needed it in Belize.

The Belize residency program is a great opportunity because of the many advantages the country has to offer.

First and foremost, cost of living is low.

Second, you can structure your life and business to pay zero taxes in Belize.

Third, because it’s tourist mecca there are tons of attractions, great weather much of the year, a slower but efficient pace of life, friendly people, beautiful beaches, to many islands to count (ok, Belize has 86 islands, but that’s alot!) and the list goes on…

Fourth, the US dollar is accepted as currency in Belize.

Here’s a list of reasons to sign up for the Belize residency program.

The low cost of living in Belize is one of the biggest reasons why one should think of moving to Belize

In Central America Belize is the only English speaking country, as I have already mentioned English is the official language

Real estate can be owned by foreigners (no fancy trusts or 99 year leases as in Mexico)

Easy access from the US and Canada

Being such a friendly country people are drawn by their loving and welcoming nature

There are no strict rules to the title to property owned in Belize, it could be taken individually, jointly or in a corporate name

One receives fee simple title to your property when purchasing in Belize

Financing is also easily available when purchasing property in Belize

Incentives is being offered by the government of the Caribbean to encourage more tourism

The cruise traffic has risen up to 300% in the last 5 years. This might sound like a negative, but a strong economy rises all boats!

Being a British commonwealth country Belize has a long standing tradition and independent judiciary

Belize is very diverse with rainforest, rivers, waterfalls, beaches and also tropical forest

The exchange rate is stable and fixed. US $1 = BZ $2

The waters in Belize is one of the best dive sites in the Hemisphere being the second largest reef in the world

The number of retirees gives opportunity to make friends and being social

Belize Residency Program – Qualified Retired Persons Incentive Program (QRP)

Ok, enough pontificating on why I love Belize. Let’s get back to the Belize residency program.

Anyone, and I mean anyone, that is at least forty five of years of age and can put up a CD earning $2,000 per month, can qualify for the Belize residency program. Just pass a background and medical check and you’re golden.

You will also need to open a bank account in Belize with cash to pay your local bills while living in the country. I typically recommend an account with an opening balance of at least $24,000 (24 months of expenses).

A qualified person can bring along his or her dependents – children who are under 18 years of age or who are person up to the age of twenty three if enrolled in a University. “Dependants” also include your spouse… everyone but the primary applicant is called a dependant.

This program was created for people of means who wish to live in Belize and who can prove a consistent permanent income from abroad with a pension or other form of annuity.

As such, the Belize residency program allows you to bring anything you need to live into the country tax / duty free. This includes cars, boats, planes, and everything necessary to build and outfit a home. If you are planning to live in Belize, the Belize residency program can save you tens of thousands of dollars on import duties alone.

Here’s how it works and how much it costs to get residency in Belize:

The applications are processed by the Belize Tourism Board in collaboration with the Ministry of National Security and the Department of Immigration and Nationality.

We will take you step by step through the Belize residency program. We will complete an application forms, coordinate your visits and medical, make your best claim for residency to the government, etc.

Items we will need are:

Birth and marriage certificates (the latter is only required if you wish to sponsor your spouse),
Copy of police record from current place of residence,
Notarized copy of every page of passport,
Medical certificate proof that shows that you do not carry any transmitted disease such as AIDS,
The items necessary to open a local bank account, like bank reference letters, and
Four front and four side view passport sized photographs.

Proof of income can be in the form of a bank reference letter or a bank statement mentioning the figures to at least be US $2,000 per month receivable as pension or retirement income. Or any financial statement from a financial institution in Belize stating that your account will be generating $2,000 per month.

If you’re an entrepreneur, we can help you structure your business so that you are not paying taxes in Belize. This typically means a corporate structure in another tax free jurisdiction like Panama.

Legal fees to prepare, file and negotiate Belize residency with Premier are $5,950 for the primary applicant and $3,350 for each dependant. Government fees are $1,000 for the primary applicant and $750 for each dependant plus $200 per person for the Belize residency card.

If you are interested in be Belize residency program, please contact me at info@premieroffshore.com. I will be happy to work with you to develop your international plan.