Worldwide expansion

[Globalcit]

I'm new here, reading as much as I can and looking for your input.

I'm an US citizen who owns commercial and residential real estate in the US. I want to expand outside the US.

It all started with wanting a Schengen passport which led me to all the CBI schemes (Citizen by Investment). That led me to offshore bank accounts and offshore incorporation. Now I'm wanting both the secondary passport and also to begin banking and investing worldwide.

If you were new to all of this like me, where would you start to build a solid knowledge base? I've been reading as much as possible, but do you suggest certain credible and reliable information pools or resources?

Looking forward to more here.

 

[Sols]

I could be wrong but I get the impression you don't have a clear goal in mind. You can spend years just researching, which is certainly interesting but it doesn't yield much. Define goals and start working towards those...

What do you want?

Own real estate abroad? If so, where? Research markets

Save on taxes? As long as you have that black passport in your pocket, Uncle Sam is going to tax you wherever in the world you live. You can leverage double taxation treaties to avoid paying double — but no one escapes the IRS, short of renouncing citizenship.

Obtain new citizenship? If we exclude Austria and Bulgaria because their programmes are very specialised or being wound down, there is only one Schengen passport for sale, and that's Malta starting at around 650,000 EUR (expect at least double that when all is said and done). There is another EU passport for sale is Cyprus starting at 2.5 million EUR (typically around 3-4 million EUR total). The passports available in the Caribbean and Vanuatu are a waste of time if you also keep your US passport. For travel purposes, US is better than any of those. For tax, you're only saving money if you renounce your US citizenship which is a decision not to be taken lightly.

Safeguard wealth for your family and future generations? Not necessarily any need to go offshore for that. Look at South Dakota trust law, and other states which have mimicked it.

Start an overseas business? Where? To do what?

 

[JustAnotherNomad]

The passports available in the Caribbean and Vanuatu are a waste of time if you also keep your US passport.

I’ve heard you can buy a passport from Caribbean Commonwealth country (Nevis?) and then use that to get UK citizenship. Not sure if that still works though - or if it ever did.

 

[Globalcit]

Goal #1 is the Schengen passport. I heard that Portugal is the best for that... both for price and also the dual citizenship allowed. Anyone have experience with it?

Goal #2 is the offshore account for the purpose of having funds in the Euro instead of only the Dollar. Also looking for better interest rates than I can get in the US.

Goal #3 is to purchase investment properties... probably in Europe where I have contacts. I need to understand if it's better to purchase in the name of an offshore company and to use that offshore bank.

The 3 goals are obviously interrelated. For example, I think I'd want the offshore bank with my money in Euros before buying the property for the Schengen passport. But my priority is the Schengen passport.

 

[Sols]

Goal #1 is the Schengen passport. I heard that Portugal is the best for that... both for price and also the dual citizenship allowed. Anyone have experience with it?

Portugal does not have a CBI programme. They do have a residence by investment programme, though, and after five or six years of residence, you can apply for citizenship.

Goal #2 is the offshore account for the purpose of having funds in the Euro instead of only the Dollar. Also looking for better interest rates than I can get in the US.

The European Central Bank has implemented negative interest for EUR. Interest rates with banks vary from -0.50% to 0% in most cases. However, Raisin is a company and service which acts as a marketplace for EUR term deposits, which might be interesting: Raisin | Raise Your Interest With Europe's #1 Deposit Marketplace Their network varies. Right now, I'm only seeing three banks.

If you look at other European currencies, you might be able to find better interest rates but you're stuck with a far less useful currency and exchanging for EUR or USD can be volatile. You can probably find around 0.10% – 0.50% for CHF and GBP, though.

 

[Globalcit]

The Portugal program has an investment program that can be ongoing or lead to citizenship. The advantage is the 14 day per year in-country requirement.

I don't need the bank to be in Europe, but only to allow multiple currencies which I've heard is possible in many places outside the EU. Isn't the advantage of offshore accounts to gain access to better rates in other countries? Or are most people just using it for tax evasion?

 

[Globalcit]

One more question and I"m not sure where to post it on this forum as I'm new. It seems like there are consultants out there who want to help you set up a plan for a 2nd passport and offshore accounts. Is there a place on this forum where people share their experiences with these consultants and give reviews?

 

[Sols]

I don't need the bank to be in Europe, but only to allow multiple currencies which I've heard is possible in many places outside the EU. Isn't the advantage of offshore accounts to gain access to better rates in other countries? Or are most people just using it for tax evasion?

With increased transparency and exchange of information, secrecy is increasingly difficult and costly. Opening a foreign bank account is more about financial stability, types of investments not available domestically, and/or reaching specific markets than interest rates or secrecy.

One more question and I"m not sure where to post it on this forum as I'm new. It seems like there are consultants out there who want to help you set up a plan for a 2nd passport and offshore accounts. Is there a place on this forum where people share their experiences with these consultants and give reviews?

I would be surprised if you found people speaking openly about their passport purchases. There aren't that many such purchases and most are people who keep a very low profile.

Start with identifying a jurisdiction and then research service providers. In countries with CBI or golden visa programmes, the governments often provide list of licensed and authorised service providers.