Hello-o-o, I’m ba-a—cc-kk!
Let’s pick up where we left off yesterday. Why in the world would someone even want to get a 2nd residency, or even dual citizenship? What’s in it for them?
First of all, aside from the very attractive reasons to consider living in the Dominican Republic, this country has gone out of its way to simplify these matters. I told you they were a welcoming sort didn’t I? The Dominican Republic offers a very simple and uncomplicated process both for residency status and naturalization (citizenship and second passport) . OK, that being said, let’s get back to the why of it all. Some questions that some people may have are: Why would someone be interested in going through a process for residency status or even a second citizenship? Is this legal? What are the benefits?
The three main reasons are: taxes, banking or investments, and personal safety, usually in that order. In Europe, your personal and corporate income taxes could go as high as 65% or more. If you live in the United States or Canada, you could be paying close to 50% also. OUCH!! So relocating to a country where you can legally opt out of paying these (I believe) exorbitant taxes is impetus alone for doing so.
Would you like to know how to do this? I bet you would! Well, Europeans and Canadians especially, (and other countries as well) can declare themselves legally non-resident for tax purposes. If you prove that you are legally resident someplace else, if you are no longer living in your previous home country, and you are not using the various government services you would otherwise pay taxes for and use, you should not have to pay for these services. “Por supuesto y si claro as we say here! Of Course! This makes perfect sense to me!
The laws are quite different for Americans. But, Americans can exempt up to about US$82,000 or so (this figure is indexed up each year) if such a person is both living and working outside of the US. Did you catch that folks? I said “Exempt”, this is no write-off…it’s as if your first 80 Grand is TAX-FREE! I hardly think I need to say too much more about that! Isn’t that exciting?
Did you know that Americans especially have a difficult time establishing a bank account, brokerage account or other kinds of investments outside of the US. What could be the reason for this? It’s certainly very legal for a US citizen to own a bank account or investment account outside of the US. It is also very legal in most countries for foreigners to establish accounts as well. Legality is not the problem. Banks and investment firms make up their rules. The US government makes up its rules. Guess what? Many banks and investment firms don’t like the US governments rules. They don’t want to play with the US government! They believe the US Governments rules and regulations are an aggravation, a harassment…a real pain in the ol’ nalgas to be blunt! (H-m-m, I’ve felt the same thing myself once or twice!).
These financial institutions would rather just do without. Many such firms have decided against accepting American citizens investments. They very simply do not want the aggravation of being beleaguered by the US tax authorities. So, they simply do not accept US citizens as an internal policy. So, if there were a legal way around this dilemma would you do it? Of course you would…you’re a smart cookie! Why not become something other than a US citizen? I’m not saying you should give up your American citizenship. Heck, I’m as Red, White and Blue –blooded as anyone! I’m proud to be an American! But since obtaining a second citizenship is perfectly legal for Americans (and for many other nationals as well), and it could help me keep some of my hard earned money, and especially since I truly am NOT using the various government services I normally would be paying for…shoot, sign me up! If you or I have a second passport, we can get around these ‘harassments’ and start earning some of those great interest rates we discussed earlier.
I really hate talking about the personal safety aspect. Unfortunately, this is a very real consideration for Americans. It cannot be denied there are many areas in this great wonderful world where US citizens are not warmly welcomed. I must say, the Dominican Republic is definitely not one of them. Here, we are welcomed with open arms and wide Dominican smiles. Even in my somewhat limited travels I have been acutely aware that my American body was perhaps fouling up the air. Having legal travel document from someplace else, an ‘alter-identity’ so to speak – may help you steer clear of jeopardy and in the most severe circumstances, perhaps even save your life.
Every country has a process allowing you to become a legal resident, and eventually at some point in the future, a citizen (entitling you to a passport). And this is true when it comes to the Dominican Republic. The main differences here, are the costs, requirements and waiting time. As I mentioned earlier, the Dominican Republic has an open arm policy and they have streamlined the method for doing this.
OK, have I helped? Have I bored you to tears? Tomorrow, I will add the step-by-step outline for making this happen. Thank you again for your time and interest. I am at your service if you need me for this, for travel arrangements to the DR, and especially for helping you find the right Dominican Republic Real Estate investment for you!
Until tomorrow then,