As fighting intensified in the Gaza Strip, Israel last Friday began allowing individuals possessing a foreign passport to leave the crowded Palestinian territory. Hundreds left before Israel's ground forces invaded the Gaza Strip the next day.
They were the fortunate ones. Ordinary Palestinians have few options to escape the war zone. Gaza is surrounded on three sides by Israel, and on the fourth by Egypt. Both countries have closed all border crossings. And while the Palestine governing authority issues a passport, Palestinians can't use it to leave Gaza. Only Palestinians fortunate enough to possess a non-Palestinian passport can leave.
Even in better times, a Palestinian passport isn't an ideal travel document. Only a handful of countries recognize it, although more than 100 countries have diplomatic ties with Palestine. Even when the borders are open, persons carrying a Palestinian passport must negotiate a labyrinth of legal requirements to depart legally. And, they may not be allowed to return.
How you would react if the country you live in now became a war zone? Would the authorities allow you to leave your own country? Or, as in Gaza, would you become a virtual prisoner? Further, what would you do if your own country—or an authority controlling access to it—wouldn't allow you to return home?
One way to protect yourself from this possibility—and to obtain many other benefits—is to obtain a second passport. If you don't qualify for a second passport by virtue of your ancestry or your marital status, you can purchase one from a handful of countries that offer "economic citizenship." The Commonwealth of Dominica, the Federation of St. Kitts & Nevis, and Austria all have official, legally mandated, economic citizenship programs. To qualify under any of them, you must pass a strict vetting process that includes a comprehensive criminal background check.
The least expensive option is to obtain economic citizenship from Dominica. Under this country's economic citizenship program, you may acquire citizenship and passport in return for a cash contribution. Total costs including all fees for a single applicant come to about US$103,000. Add US$25,000 if you need a passport for your spouse and up to two children under 18. Dominican passport holders can travel without a visa, or obtain a visa upon entry, to nearly 90 countries and territories.
In the Federation of St. Kitts & Nevis, there are two ways to obtain economic citizenship. The most practical strategy is to make a direct contribution. Total costs including all fees for a single applicant under this option come to about US$215,000, or US$265,000 for an applicant with up to three dependents. Alternatively, you can purchase qualifying property worth a minimum of US$350,000. However, fees and taxes under this option are much higher than if you make a direct contribution. St. Kitts & Nevis passport holders can travel without a visa, or obtain a visa upon entry, to more than 100 countries.
Finally, you may be able to obtain Austrian citizenship and passport after making a substantial investment in that country. Unlike the programs in Dominica and St. Kitts & Nevis, in Austria, you must make your investment first and then apply for citizenship. You don't get your money back if you're not approved. Generally, you must invest several million dollars to have a reasonable chance at qualifying, and pay legal fees of US$30,000 or more. Austrian passport holders can travel to more than 120 countries visa-free and live and work in any of the 27 members of the European Union.
Other than giving you an "exit strategy" in case of domestic unrest, having a second passport and dual citizenship has numerous additional benefits. It can expand your travel possibilities, reduce your profile to terrorists, give you the right to reside in other countries, and give you a way to cross international borders if your primary passport is lost or stolen. For Americans, a second passport has another benefit. It is an essential prerequisite to expatriation; i.e., giving up U.S. citizenship in order to permanently disconnect from U.S. taxing authority.
The Nestmann Group, Ltd. can assist individuals seeking alternative citizenship and tax-advantaged residence. Please contact us for more information at info@nestmann.com.
Copyright © 2008 by Mark Nestmann
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