Lecture on Second Passports and Tax-Friendly Citizenship Options

Introduction

• Importance of a second passport for protecting finances, freedom, and family.
• Rising tax rates in some countries.
• Focus on fast and tax-friendly second passports.

Dominican Republic (DR)

• Not a citizenship by investment program.
• Different from Dominica in the Eastern Caribbean.
• More affordable than Cayman Islands, Turks and Caicos, Bahamas.
• Residency permit with $200,000 investment in property or business.
• Potential passport in as little as two years.
• Territorial tax system: taxed on local income but not on foreign income for first three years.
• Bureaucratic process, citizenship can take longer than expected.
• DR passport offers good travel benefits in Latin America, Africa, Eastern Europe, and parts of Asia.
• No visa-free access to Europe, Schengen area, or UK.

Mexico

• Mexican residence as a cheap plan B.
• Five-year timeline to citizenship, but residence does not require staying in Mexico.
• Need to demonstrate ties to Mexico for naturalization.
• Tax residence differs from immigration residence.
• Strong passport with global travel benefits, better than 20 years ago.
• Citizenship timeline can be shortened by having a child born in Mexico.

Uruguay

• Offers 11-year tax exemption or 7% lifetime tax for foreign income.
• Known for being tax-friendly, "Switzerland of South America."
• Requires time on the ground for citizenship (3 years for families, 5 for singles).
• Need to establish local ties to qualify for citizenship.

Eastern Caribbean (Caribbean Citizenship by Investment)

• Five countries: St. Kitts and Nevis, Antigua and Barbuda, St. Lucia, Grenada, Dominica.
• St. Kitts and Nevis: no personal or corporate income tax.
• Antigua and Barbuda: personal tax-free, corporate tax with structuring.
• Other countries have taxes if living there full time.
• Citizenship by investment offers tax-friendly living, not always tax-free.

Considerations

• Importance of evaluating the role of each passport in a portfolio.
• Caribbean citizenship offers flexibility and options for tax-friendly living.
• Importance of understanding the difference between residence and citizenship benefits and obligations.

Conclusion

• Eight tax-friendly passports available quickly, mainly in Latin America and the Caribbean.
• Suitable options for those seeking fast citizenship with tax benefits.