DAFT treaty for Dutch citizenship Curacao - citizenship renunciation required for US citizens?

[citizenshipskr]

I am a US citizen and looking at different options that result in getting an alternate second passport or citizenship but I don't have the $100K right now for a CBI program so I am looking at creative options that might require time on the ground.

I learned about the Dutch American Friendship Treaty which allows US citizens to get residency and eventual citizenship in the Netherlands. Specifically, I recently looked at a company called daftnomad.com that was advertising residency in Curacao. Their fee to facilitate residency is $5,000.

The downsides I can see to Dutch citizenship are 5 years of tax residency (not sure if this is required if in a low tax destination like Curacao) and potentially having to renounce US citizenship. Although I don't like being taxed on worldwide income, I don't know I can renounce US citizenship due to family reasons.

The Netherlands does not permit dual citizenship *unless* you either marry a Dutch national or can prove it is a hardship (i.e. renunciation fee of $2500 is too expensive). I know that would sound like a joke on an offshore forum catering to HNW individuals. It would not be a hardship for me financially, I just can't renounce US citizenship right now.

I have heard Curacao is beautiful along with Aruba and Bonaire. Opinions?

Passportskr

 

[Sols]

The Netherlands does not permit dual citizenship *unless* you either marry a Dutch national or can prove it is a hardship (i.e. renunciation fee of $2500 is too expensive). I know that would sound like a joke on an offshore forum catering to HNW individuals. It would not be a hardship for me financially, I just can't renounce US citizenship right now.

It doesn't sound like a joke, but I have a hard time seeing the Netherlands accepting financial difficulties renouncing as a valid reason to make an exception. I could be wrong, though.

I have heard Curacao is beautiful along with Aruba and Bonaire. Opinions?

All have their pros and cons. Aruba and Bonaire have a lot less going on than Curacao outside of tourism. Depends on what you want out of life.

 

[void]

Go to Curacao and test the water (literally). If you're into sailing, scuba/free diving, snorkeling and sea life, it's one of the best places in the world.
The rest of the island is anywhere from mediocre to terrible.

 

[Mr Gus]

The offshore industry used to be really big in Curacao and had all kinds of interesting low tax options however today not much is left. You could have a look at an "SPF" or if you are 50 years and older the "penshonadoregeling".

Most of the corporate tax incentives are crap and the place is now mainly used for gambling licenses.

 

[jafo]

The downsides I can see to Dutch citizenship are 5 years of tax residency (not sure if this is required if in a low tax destination like Curacao) and potentially having to renounce US citizenship.

No! This does NOT apply to you! I have several American friends who now have the Dutch passport and they kept the American one.
What clearly can't be done is to possess Dutch nationality and go out and get a second one.
Just like you, all Moroccans and Turks have kept their respective nationalities and in addition, have added the Dutch one.
Source:
Dubbele nationaliteit

PS. Use Google translate

not sure if this is required if in a low tax destination like Curacao

I don't think Curacao has been a low-tax jurisdiction for residents in a long time. Better confirm that with Belastingdienst.cw

Specifically, check out this link:

Inkomstenbelasting - Belastingdienst

I have heard Curacao is beautiful along with Aruba and Bonaire. Opinions?

I can tell you that crime is rampant. I used to own an ocean-front townhouse in Royal Palm Beach Resort, a gated community with 24/7 security. I still had problems. I would NOT recommend anyone to go there and live. Vacation? Sure. To live? H*ll no!

 

[citizenshipskr]

No! This does NOT apply to you! I have several American friends who now have the Dutch passport and they kept the American one.
What clearly can't be done is to possess Dutch nationality and go out and get a second one.
Just like you, all Moroccans and Turks have kept their respective nationalities and in addition, have added the Dutch one.
Source:
Dubbele nationaliteit

PS. Use Google translate


I don't think Curacao has been a low-tax jurisdiction for residents in a long time. Better confirm that with Belastingdienst.cw

Specifically, check out this link:

Inkomstenbelasting - Belastingdienst

Hi Jafo,

Do you know how the Americans have kept their American citizenship when acquiring Dutch citizenship? Were they married to in a civil partnership with a Dutch spouse. Or, were they able to prove "financial hardship" of the cost of the US renunciation fee being about $2500 if their income is low? I know this low amount sounds like a joke to most High Net Worth individuals on an Offshore Corp Talk message board. Either marrying a Dutch spouse or proving that renouncing your current citizenship (i.e. citizenship cannot be renounced like in Argentina, required military service, high cost of renunciation, or emotional hardship) seemed to be only grounds for *not* renouncing citizenship in the US.

I think that Curacao would be an attractive residency for 5 years utilizing setting up a business using the DAFT treaty for an American and the Dutch passport is strong. I have heard learning Dutch is not terribly difficult. It is also quite an attractive country but not low tax unlike some of the Dutch Caribbean options like Aruba or Curacao. Since my mom is getting older at 76 and my 21 and 17 year old are not necessarily leaving the US, I am afraid to renounce US citizenship. If I would not be able to keep US citizenship, I am looking at the D8 Digital Nomad or D7 Portugal Visa for EU citizenship.

Also, I am looking at Argentinian, Mexican, Uruguayan, or Chilean citizenship as another backup "Plan B" citizenship and a UAE or Oman residency.

Citizenshipskr

 

[jafo]

Hi Jafo,

Do you know how the Americans have kept their American citizenship when acquiring Dutch citizenship? Were they married to in a civil partnership with a Dutch spouse. Or, were they able to prove "financial hardship" of the cost of the US renunciation fee being about $2500 if their income is low? I know this low amount sounds like a joke to most High Net Worth individuals on an Offshore Corp Talk message board. Either marrying a Dutch spouse or proving that renouncing your current citizenship (i.e. citizenship cannot be renounced like in Argentina, required military service, high cost of renunciation, or emotional hardship) seemed to be only grounds for *not* renouncing citizenship in the US.

I think that Curacao would be an attractive residency for 5 years utilizing setting up a business using the DAFT treaty for an American and the Dutch passport is strong. I have heard learning Dutch is not terribly difficult. It is also quite an attractive country but not low tax unlike some of the Dutch Caribbean options like Aruba or Curacao. Since my mom is getting older at 76 and my 21 and 17 year old are not necessarily leaving the US, I am afraid to renounce US citizenship. If I would not be able to keep US citizenship, I am looking at the D8 Digital Nomad or D7 Portugal Visa for EU citizenship.

Also, I am looking at Argentinian, Mexican, Uruguayan, or Chilean citizenship as another backup "Plan B" citizenship and a UAE or Oman residency.

Citizenshipskr

If you are a native-born American or obtained American citizenship due to one or both of your parents being American, you do NOT have to give it up to acquire Dutch citizenship.

This lady was born in the US. Her parents are Dutch (autochtoon) and she is also Dutch. Sadly, she had NO idea she also had US citizenship. Her family returned to the Netherlands when she was an infant so she doesn't remember anything. Like her, there are tens of thousands. She holds both American citizenship and Dutch citizenship. Get it?

Youtube:

In summary: No! You won't lose your US citizenship.

 

[citizenshipskr]

Jafo,

Yes. this makes sense. I think the option for this lady is what is called citizenship by option. I want confirm that this is the case for me so let me briefly explain.

In no way shape or form, do I have *any* Dutch heritage. I was born in the US as were my parents, grand parents, great grand parents, etc. My ethnic background is Scottish/English. I can trace my family in the US to either at least 200 years or before America was even a country.

From a legal perspective, this woman has American citizenship because she was born here even though she wasn't aware of it. Her parents are Dutch and she was raised in the Netherlands.

I would acquire Dutch citizenship by naturalization through living in a Dutch territory (i.e. Curacao) by naturalization and not by option. I am not an immigration attorney but her situation is different than mine. I would aquire my Dutch citizenship by naturalization and not by option. It is different.

https://ind.nl/en/renouncing-your-nationality
So, unless I meet a nice Dutch or Caribbean lady to remarry (my wife died from breast cancer 3 years ago at 47 and I am 49) or I can prove emotional or economic hardship (I don't think INL immigration is going to look at an individual making $100k closer to 200k and think that $2350 is a "hardship" economically. Since my sons are not wanting to leave the US and my my Mom is 76 and getting older, I don't want to lose US citizenship to potentially visit her or them. If I have to renounce US citizenship, unfortunately Dutch citizenship is not an option. Despite high taxes and not having visited there, I could definitely see myself living part of the year in the Netherlands and part of the year in Curacao with some time in the US from a pure quality of life perspective. If the Netherlands is not a citizenship option, I am looking at Portugal as it is also 5 years and allows dual citizenship. I think the safest bet is to probably consult with a Dutch immigration attorney.

What do you think?

Thanks, Citizenshipskr

 

[jafo]

Jafo,

Yes. this makes sense. I think the option for this lady is what is called citizenship by option. I want confirm that this is the case for me so let me briefly explain.

In no way shape or form, do I have *any* Dutch heritage. I was born in the US as were my parents, grand parents, great grand parents, etc. My ethnic background is Scottish/English. I can trace my family in the US to either at least 200 years or before America was even a country.

From a legal perspective, this woman has American citizenship because she was born here even though she wasn't aware of it. Her parents are Dutch and she was raised in the Netherlands.

I would acquire Dutch citizenship by naturalization through living in a Dutch territory (i.e. Curacao) by naturalization and not by option. I am not an immigration attorney but her situation is different than mine. I would aquire my Dutch citizenship by naturalization and not by option. It is different.

https://ind.nl/en/renouncing-your-nationality
So, unless I meet a nice Dutch or Caribbean lady to remarry (my wife died from breast cancer 3 years ago at 47 and I am 49) or I can prove emotional or economic hardship (I don't think INL immigration is going to look at an individual making $100k closer to 200k and think that $2350 is a "hardship" economically. Since my sons are not wanting to leave the US and my my Mom is 76 and getting older, I don't want to lose US citizenship to potentially visit her or them. If I have to renounce US citizenship, unfortunately Dutch citizenship is not an option. Despite high taxes and not having visited there, I could definitely see myself living part of the year in the Netherlands and part of the year in Curacao with some time in the US from a pure quality of life perspective. If the Netherlands is not a citizenship option, I am looking at Portugal as it is also 5 years and allows dual citizenship. I think the safest bet is to probably consult with a Dutch immigration attorney.

What do you think?

Thanks, Citizenshipskr

You are totally fine! I'm 100%!

To give you peace of mind though, pay and get yourself a legal opinion from this Dutch scholar: Frank Kunneman.
Frank Kunneman – VANEPS

 

[citizenshipskr]

Thank you for the information and referral. I will contact him.

Jonathan