Residency
& Dual Citizenship
(Of Interest to Americans)
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About The Author
This information has been prepared and
presented by John
Schroder of Ascot Advisory Services. The firm provides assistance
and
information regarding residency and naturalization in the Dominican
Republic, incorporated companies, legal title transfer services in
regards to real estate, plus other related services. John has
lived in
the Dominican Republic for over seven years and has helped numerous
clients in the Dominican Republic accordingly. |
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Possibly
you have made up your mind to live in another country - to expatriate
as it were. Maybe you are just thinking about it.
Regardless, there certainly are some myths and falsehoods floating
around - especially among Americans principally when it comes to
matters related to Expatriation, Residency in your new country and Dual
Citizenship as well.
.
First off, the topic of expatriation - The Merriam-Webster dictionary
defines it as follows: Medieval Latin expatriatus, past
participle of expatriare to leave one's own country - 1: to withdraw
(oneself) from residence in or allegiance to one's native country, 2:
to leave one's native country to live elsewhere; also to renounce
allegiance to one's native country.
.
In other words, the term expatriate could refer to someone that simply
has decided to live in another country or it could refer to someone
that has decided to renounce previous citizenship as well. Both
definitions apply. So, for example, you are an expatriate if you
are an American that decided to retire to say Ecuador, or where ever
else for that matter, but of course maintain your existing citizenship
as well. Simply moving to another country does not mean you loose
your existing citizenship, just as obtaining legal residency status in
your new country does not jeopardize your existing nationality or
citizenship either (more on this in a moment). So, becoming an
expatriate does not mean you are a criminal or some kind of
anti-patriotic malcontent - nor does it mean that you have necessarily
renounced or relinquished your previous citizenship either (although
this is something you could do as well). It simply could be that
you decided to live in Thailand or the Dominican Republic, for example,
because in such places you can live very well on your US$1,500 per
month pension (whereas this is near impossible in many parts of the US
or Europe). Some people do of course take it a step further, and
seek to become a citizen of their new country as well. But again,
dual citizenship is recognized and perfectly LEGAL
in most countries, including the US. However, choosing a country
because of residency and or citizenship requirements can be just as
important of a factor as climate, real estate prices, and so on.
Important because perhaps the requirements are too restrictive for you,
too costly in terms of real estate purchase or other kinds of
investment - or perhaps not - as the case may be.
.
So, let us discuss residency first and then move on to dual citizenship
as the next progression thereafter. It is important to note that
in your new country, one should obey the local laws and adhere to
whatever legal requirements might exist. In terms of immigration
or residency matters, each country of course has their own set of rules
and requirements. In fact, this alone may be an important point
to decide where you wish to live as well. For example, in places
such as the Turks and Ciacos Islands, in order to qualify for residency
status, one must demonstrate a fairly expensive home purchase and or
investment. This is true also for the Bahamas, and a number of
other destinations as well. So, as an illustration, if you are
not prepared to spend say US$250,000 for a second home - then that may
eliminate such jurisdictions from the list of consideration.
Also, keep in mind that in can be almost impossible to obtain
naturalization (ability to become a citizen) in the Turks and Caicos,
so you must remain with residency status alone (and are subject to the
whims of local government if they want to renew your residency status
or not, and if not - you have a problem, especially after spending a
considerable amount of money on a home purchase). This was the
very recent case in the Turks and Caicos, whereby many foreigners were
forced to leave simply because the local political tide turned against
them (and renewal of residency status refused).
.
In contrast, countries such as the Dominican Republic have a fairly
simple and straight-forward process for obtaining residency, and the
requirement is that an applicant demonstrate assets or investments
equal to RD$500,000 Pesos, which is about US$16,000 under current
exchange rates. So, doing something as simple as establishing a
US Dollar Bank Certificate of Deposit (with a local bank) for a very
affordable monetary amount will allow you to qualify. In
addition, one can become a naturalized citizen within a fairly short
period of time (in comparison to other countries) after having achieved
Permanent Resident status. Panama allows for a fairly simple
process if one establishes a bank deposit for US$200,000 and so it goes
it many other jurisdictions as well (although the naturalization
process is much quicker in the Dominican Republic than it is Panama, if
this is an end goal).
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Naturalization in your new country, whether you decide to maintain dual
citizenship (have two citizenships and thus two passports) or
relinquish your previous one is often a natural progression for some
people, but certainly not all. However, in today's climate both
in Europe and in the US, many people decide to obtain another
citizenship out of investment necessity. To explain further, any
American that has attempted to open a banking or investment account in
Switzerland and a host of other jurisdictions, will find the door
closed to them simply because they are American. Is it somehow
illegal for an American to open a bank or investment account
abroad? Not at all, and neither is there any law or regulation
prohibiting a bank in say Ireland, Switzerland, Liechtenstein, etc. to
accept an American client either. They simply will not do so,
because they feel it is more hassle than worthwhile (hassle and
aggravation from the American IRS to name just one). It is
interesting to note that for Americans, as just stated, a foreign
account is perfectly legal - IF you can find a bank or broker to take
you on as a customer.
.
Europeans also have a problem in countries such as Switzerland now that
the European Union has gone into full force, and has recently started
pressuring tax reporting (and tax collection) when a citizen from one
EU nation has an account in another. Switzerland is not a member
of the EU, but they have certainly been feeling the heat. So,
many Europeans as well are interested to become a citizen of Brazil,
Costa Rica, where ever - simply for banking purposes also. But
banking or investing is not the only reason one might consider a dual
nationality. Travel is another concern, all depending upon what
former country you come from. To be sure, I know of many people
that would prefer to travel as a Dominican, or a Costa Rican, etc.
rather than their previous nation of citizenship (always better to be
from some peaceful country not involved in politics or war
elsewhere). Of course the reasons for seeking dual nationality or
dual citizenship do not stop there. Some countries for example
have more favorable tax legislation when it comes to inheritance
matters. Many others do NOT tax its citizens on interest or
earnings from outside the country as well, so there are indeed many
reasons on a personal level for someone to have an interest in this
topic.
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One of the most troublesome things about the topic of dual citizenship
(and residency also) is the lack of knowledge most people have.
Which is to say, they often rely upon rumor, innuendo or simply bad
information to formulate an opinion. Many Americans especially
are ill informed. For example, if you visit the following US
State Department Web Site, you will find the information reprinted
below:
.
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A person who: (1) is naturalized in a foreign country; (2) takes a
routine oath of allegiance or (3) accepts non-policy level employment
with a foreign government and in so doing wishes to retain U.S.
citizenship need not submit prior to the commission of a potentially
expatriating act a statement or evidence of his or her intent to retain
U.S. citizenship since such an intent will be presumed. When, as
the result of an individual's inquiry or an individual's application
for registration or a passport it comes to the attention of a U.S.
consular officer that a U.S. citizen has performed an act made
potentially expatriating by Sections 349(a)(1), 349(a)(2), 349(a)(3) or
349(a)(4), the consular officer will simply ask the applicant if there
was intent to relinquish U.S. citizenship when performing the act. If
the answer is no, the consular officer will certify that it was not the
person's intent to relinquish U.S. citizenship and, consequently, find
that the person has retained U.S. citizenship.
.
DUAL NATIONALITY (From US State
Department Web Site):
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Dual nationality can occur as the result of a variety of circumstances.
The automatic acquisition or retention of a foreign nationality,
acquired, for example, by birth in a foreign country or through an
alien parent, does not affect U.S. citizenship. It is prudent, however,
to check with authorities of the other country to see if dual
nationality is permissible under local law. Dual nationality can also
occur when a person is naturalized in a foreign state without intending
to relinquish U.S. nationality and is thereafter found not to have lost
U.S. citizenship the individual consequently may possess dual
nationality. While recognizing the existence of dual nationality and
permitting Americans to have other nationalities, the U.S. Government
does not endorse dual nationality as a matter of policy because of the
problems, which it may cause. Claims of other countries upon
dual-national U.S. citizens often place them in situations whereby
their obligation to one country are in conflict with the laws of the
other. In addition, their dual nationality may hamper efforts to
provide U.S. diplomatic and consular protection to them when they are
abroad.
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In summary, dual citizenship is perfectly legal if you are a US Citizen
- Now You Know. In addition, it is perfectly legal and accepted
if you are a citizen of a large list of other countries as well.
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Do you become a legal resident of your new country or do you eventually
become a citizen? That is entirely up to you, and certainly a
very personal decision for each individual. But, the important
point is, investigate the TRUTH and know the facts regardless of what
you decide.
.
This information
has been compiled and presented by John Schroder of Ascot Advisory
Services: Providing assistance with Residency Applications,
Naturalization, Incorporation Services and Banking Introduction
Services in the Dominican Republic, Panama, Nevis and other
jurisdictions. Visit: http://www.ascotadvisory.com/
Tel. 809-334-5387 or 809-756-1917
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