What is the need for having a second citizenship?

There are many Americans who seek second citizenship and second passport and these people come from either middle class or very wealthy background. Each individual has different long term plans. However, all of them, irrespective of their economic condition aim towards minimizing their tax bills and restore their right to privacy and freedom. Amongst all the developed countries, U.S. is the only one which taxes its citizens not considering their residency. For those people who have a lot to lose in taxes, citizenship renunciation could be a solution. According to statistic, almost 58% people who get citizenship elsewhere ultimately renounce their U.S. citizenship.

There is a constant fight to prevent attempts to evade taxes and deal with the quantity of money that is leaving the country. New laws are being set in place in order to curtail the capital losses. The government has also started recognizing the fact that a number of former U.S. citizens are renouncing citizenship. In an effort to try and control the loss of revenue the U.S. government has introduced an obligatory new tax. Here citizens who have renounced their citizenships for the purpose of tax evasion will be taxed at the similar rate if they visit U.S.A. once in any year. However, it is possible to avoid this problem when you are applying for a new citizenship. If you want to renounce your U.S. citizenship then you would require a long-term financial planning and also proper professional advice in order to gain significant tax benefits.

If you have proper timing then you can derive the majority of your tax benefits after 5 years of acquisition of the second citizenship and consequent U.S. assets transfer abroad. In the next 10 years after the renunciation of citizenship, you will completely cease tax slavery for your lifetime. Hence, second citizenship can be your solution to tax freedom. You should remember that citizenship renunciation is a step very far. If you want to be in business and develop and invest energetically without obstruction of different kinds of taxations then second citizenship and second passport are going to provide you with better opportunities.