Her Britannic Majesty's Secretary of State, inside a British
passport, requests and requires in the name of Her Majesty all
those whom it may concern to allow the bearer to pass freely
without let or hindrance. The United Nations Declaration of Rights
says you can leave any country whenever you want to. But have you
ever tried to leave your native country without a passport? And
despite talk of freedom of movement within Europe, I have to show my
passport to enter England, where I was born, while Spanish friends
don't. Under European Union regulations, they just need identity
cards. (Admittedly not having an identity card is one advantage of
being British - but for how long?)
This authoritarian urge to control people's movements is a
fairly recent development, introduced at the same time as modern
"democracy" supposedly gave us more freedom. Centuries ago, traders
and skilled workers like stonemasons did roam Europe "without let or
hindrance." Even when you have physically left, "your" government may
insist that you haven't really. Your absence is seen as a temporary
aberration. You will soon come to your senses and return. So even
though you have removed your assets from the clutches of "your"
tax officials, and now earn your living elsewhere, they still claim
the right to pry into your private affairs.
The United States, land of the free, is the least willing to let
you escape. Unless you renounce American citizenship you stay on
U.S. tax records forever. The Internal revenue service considers
you should file tax returns indefinitely, in whatever corner of
the world you live and earn your money. Worse with the recent
FATCA laws that became effective January 2013 obtaining
or keeping an offshore bank account for Americans is enormously
difficult.
The Spanish Parliament has passed an "EXPAT Tax" to tax its citizens
on their worldwide income for 5 years after departing their motherland!
Britain insists that you mustn't spend any significant time in
the U.K., for several years before you qualify as a tax exile,
only returning for short holidays. If you spend even slightly more
than half the year in the U.K., you are definitely considered
a resident, and liable for tax. Just having a house available
to stay in can make you a resident to the taxman - even if you
never visit Britain. Having a mainland British bank or building
society account or credit card means you haven't cut your links
to the satisfaction of the tax inspector. You can be "deemed to
be resident in both countries at the same time." This amazing bit
of official doublethink is taken from a booklet on double taxation
relief issued by the Inland Revenue.
Germany insists its citizens continue to pay tax unless they can
prove they pay tax at exorbitant rates elsewhere. Denmark fines
you several years' tax if you move to another country not on its
approved list (most aren't), and Sweden has an immigration tax.
What is the solution?
Instead of becoming a resident in a high-tax country, or in
two countries at the same time, you should plan ahead to live
nowhere. Living nowhere means not having any significant financial
or banking records available in the countries where you live,
work and play.
The first stage could be an account with a reputable bank in one
of Britain's offshore tax havens: The Isle of Man, the Channel
Islands or Gibraltar. You will find adverts in magazines like
"Resident Abroad" and upmarket financial publications. (But if you
live in Britain, be wary of banks which keep records in mainland
Britain,) often you can open an account by post, if you're careful
not to leave a paper trail. If you're on holiday, always look out
in airports, hotels and bars for free publications aimed at Expats
and business people such as "Europa Times," published in Brussels,
but available throughout Europe. In the south of Spain you will
find "The Reporter," "The Entertainer," and "Sur in English." Study
the adverts, then go on a day trip to Gibraltar. From the north of
Spain or the south of France, the independent tax haven of Andorra
can be reached in a day, although you would probably want to stop
overnight. Further north, visit Luxembourg, perhaps Switzerland
or preferably its tiny mountain neighbor Liechtenstein, where you
may not even have to leave any address in the bank's computer's -
just care of the bank. Mail is then sent if you request it.
U.S. residents have a host of Caribbean tax havens like the Cayman
Islands and the Bahamas to choose from, between them holding
more funds than all the American banking system. But the danger
is that some of them keep records in computer networks in the
USA. Remember, in itself having an offshore bank account is not a
criminal offence. If it were, would the British government tolerate
branches of high street bank's such as NatWest and the Royal bank
of Scotland in jersey or Gibraltar? You are only breaking the law
if you use one of these accounts illegally.
The second stage is to obtain a second passport, which offers good
visa free travel. A lot of high-tax countries have altered their
tax legislation to catch wealthy citizens out and ensnare them in
their fiscal net. But with more than one nationality you can reduce
or even eliminate your taxes. Even most high-tax countries exempt
foreigners who live there less than six months a year. Obtain a
second passport and you could live in a high-tax country nearly
half the year and remain tax-free as a foreigner.
A second citizenship can also put you in a position to:
* Invest in offshore unit trusts or mutual funds.
* Buy and rent out property wherever you choose without punitive
taxation.
* Avoid electronic logging of your existing passport
* Take greater advantage of offshore business opportunities.
* Obtain employment world-wide.
* Travel and live free of bureaucratic meddling in a great deal
freer life style with more anonymity and privacy
The very fact that a second passport opens up the additional options
already mentioned is actually reason enough to obtain one, but in
case you need a little more convincing.
"Your" passport is in fact the property of "your" Government,
which claims, and increasingly exercises, the right to confiscate
it at any time. Even if you have sensibly removed the bulk of your
assets to an offshore haven, they are no good to you there if you
are trapped in your "home" country because your passport is no
longer valid or has been confiscated. Most countries have laws,
which allow them to restrict not only entry but also exit from
their territory. Exchange controls can be imposed overnight -
the necessary legislation is already in place in the US and many
other countries. U.S. citizens are subject to tax wherever they
work and live in the world. But a second passport can eliminate
the need for disclosing income and assets.
If your citizenship demands fulfillment of military service contrary
to your beliefs, it would pay you to have dual citizenship. If
your passport allows your government to supervise your movements,
monitor or control your travel in any way, or restricts your liberty
to invest, borrow, or participate in any currency transactions,
you are at a disadvantage. If you are not a citizen of a member
state of the European Union, freedom of movement within the EU may
not be an option open to you as there are now much tougher controls
on non-EU nationals.
The answer to this problem could be obtaining citizenship of a
country which is either already, or likely in the future to be
admitted as, a member of the Union. Alternatively obtain a 3rd
world document and use that for legal residency within the
European Union and then obtain nationality and an EU passport
via naturalization after a few year.
If you wish to keep a low profile, for reasons of nationality, religion,
race and or sexual orientation, etc., a second passport can give you
the necessary mobility you require. It could even save your life. As
an Insurance policy against future economic instability, political strife
or war, you should think about a second or third passport.
When catastrophe is imminent you've left it too late. A second
passport in these circumstances would be worth its weight in
diamonds.
Contact us for your second passport: BankerTrust@gmail.com
We offer valuable information which includes obtaining a Passport, offshore accounts and company formation
