What are some residency options leading to citizenship and second passports?

[citizenshipskr]

I am a US citizen and I am looking at getting a residency that will lead to a second passport...not just a residency. I am an entrepreneur running my own Information Technology consulting company in the US. I want to have a "plan B" citizenship and passport, but, I don't have $100,000 USD lying around to spend on a second Citizenship by Investment program like St. Kitts, Dominica, etc. in the Caribbean. I can work remotely and in about 2 years when my younger son completes High School in the US, I can live in another country for part of the year. So, I am looking at citizenship by naturalization options that are under $100k USD like Nicaragua, Mexico, or other Latin American countries. I am also looking at just living in the Caribbean and getting citizenship through naturalization like Barbados. I would prefer shorter term naturalization periods like Argentina, Paraguay, or Ecuador. I am also looking at getting a D7 visa in Portugal and living there part of the year until I can get an EU citizenship/passport in 5 years.

Also, as a US citizen, I understand that I can gan live in the Dutch Caribbean like Aruba and Curacao with similar rights to a Dutch citizenship and apply for citizenship after 5 years. The only issue with the Netherlands is they don't permit dual citizenship and I don't want to necessarily renounce US citizenship due to family located in the US.

Any lower cost (less than $100k) recommendations on countries where I may have to put in time on the ground that will get US citizenship?

Thanks,

Passportskr

 

[luap]

Argentina

 

[void]

Paraguay is probably cheapest and easiest

 

[luap]

Paraguay is probably cheapest and easiest

Paraguay has become very difficult to get a passport, despite what is shared online by lawyers/agents selling their vastly overpriced Paraguay Residency packages. Paraguay is cheap and easy if you just want a residency.

 

[Martin Everson]

Any lower cost (less than $100k) recommendations on countries where I may have to put in time on the ground that will get US citizenship?

You may want to look into citizenship by ancestry aka citizenship by descent.

Top 20 Ancestry Groups in the U.S.​

2015 Results
Rank	Ancestry Group	Population
1	German	46,403,053
2	Black/African-American1 (non-Hispanic)	38,785,726
3	Mexican (of any race)	34,640,287
4	Irish	33,526,444
5	English	24,787,018
6	American1	22,746,991
7	Italian	17,285,619
8	Polish	9,385,766
9	French	8,272,538
10	Scottish	5,409,343
11	Puerto Rican	5,174,554
12	Norwegian	4,445,030
13	Dutch	4,289,116
14	Swedish	3,933,024
15	Chinese	3,852,099
16	Asian Indian	3,303,512
17	Scotch-Irish	3,046,005
18	Russian	2,843,400
19	West Indian (non-Hispanic)	2,824,722
20	Filipino	2,717,844

 

[daxbr]

Argentina

Predatory worldwide taxation. No option to renounce.

 

[JohnnyDoe]

Dominican Republic anyone?

 

[citizenshipskr]

Thank you for the various replies.

From my research, it is easy to get residency but harder and more complicated to get citizenship in Paraguay. Specifically from what I have heard about Latin America and I suppose the same is true in other developing countries, the government immigration departments can be slower and more bureaucratic as opposed to Europe where timelines are followed more closely.

So, while the minimum time is usually promoted on the internet, it can often take longer to get citizenship.

From doing research online, listening to what seems like reputable sources for second citizenship and offshore resources online, the following countries with shorter term immigration can take longer.

Country/Minimum time to citizenship

Paraguay - 3 years
Argentina - 2 years
Peru - 2 years
Honduras - 3 years
Ecuador - 3 years

The reality is that it usually can take at least 5 and closer to 10 years to get citizenship. This can be for an American let alone someone coming from a developing country that is discriminated against more.

Also, I don't think it is necessarily enforced strictly in Latin American, but, some of the other countries like Guatemala, Nicaragua, Honduras, or Paraguay do NOT for allow dual citizenship. I am not necessarily going to renounce US citizenship for family reasons.

I don't just want a second residency, but, I also want to get a second citizenship or a passport. I want a good "Plan B" passport in case another COVID happens or things go badly here in the US.

If you don't have $100k minimum donation or closer to $200k for real estate, what should you do?

This leaves citizenship by ancestry, by place of birth, naturalization or shortened naturalization with an investment as the remaining options. Most citizenship by ancestry options are not an option if you don't have a grandparent or grandparent who was a citizen of that country.

I am of UK (Scotland/British) heritage and I can trace my family in the US back to the 1700's so getting a UK passport is likely not an option.

Since the US taxes globally, if I really want to get out of paying taxes, it looks like I would have to renounce US citizenship. However, the IRS excludes the first $100k of income from being taxed so only remaining earnings are taxed if you are an expat.

The Dominican Republic looks like a good option, but, has a fairly weak passport with I think about 71 visa free countries. If you don't have $100k in income to show or $200-250k in real estate (mortgages are not likely an option in the DR), that eliminates this option.

Mexico seems to be a pretty good passport and is close to the US. They have a pretty good record of granting citizenship in 5 years and it is relatively easy and cheap to get temporary residency. This lasts for 4 years and you only need to visit for about 1-2 weeks per year (vacation). I would need to spend year about 1.5 years in Mexico in year 4 and 5 after getting permanent residency. From what I can see, the financial for temporary residency are $2500-3000 a year or roughly about $50-60k on annual average in a US bank account. You have to visit a consulate in the US or an embassy abroad.

The other option I found that might be a good option would be the D7 visa in Portugal. This is not to be confused with the Golden Visa option of a minimum of 300k EUR that might be eliminated this year. I found out I would need to spend at least 6 months per year and have a passive monthly income of 800 EUR. I would also have to lease an apt. for a year annually for 5 years and live there 6 months out of the year. In year 5, I could submit my application for citizenship and it is generally granted in 5 years at least from what it sounds like. This would get EU citizenship benefits.

Sorry for the long post and to make this centered on Americans, but, this is what I found out and I thought it could be useful for other Americans who have a decent income but are not yet or are not High Net Worth individuals.

Passportskr

 

[Allisgood]

Don’t forget the processing times - once you are eligible. So you spend 5 years waiting, you apply - then it can still be another 1-2 years on top (Portugal for example). So you are looking more like 6-7+ years.
Also not sure the minimum of 6+ months will be enough. They will want to see you living there most of the year and have ties to the country (again example Portugal).
You will also have to pass the language test (again example Portugal). It’s all doable but you have to commit.

 

[benbao]

I mean to be honest you don't have the money and you don't really want to leave the US. Why exactly would you expect any country to make you citizen? The best advice is get more wealthy and then buy what you need instead of trying to weasel your way in for now.

 

[citizenshipskr]

Benbao,

I get your point. I am not trying to "weasel" my way in to getting a passport. Respectfully, I am willing to make an investment (i.e. Nicaraguan or put time on the ground in country by naturalization. I don't have a problem leaving the US per say. My mom is getting elderly (around 78) and I am unsure about actually renouncing US citizenship in order to visit her/. I do alright financially and I am working towards the CBI program and it is attaiable.

There is a market for people who work and make six figures, but, are not necessarily HNW individuals, but, still want to get a cheaper plan B passport. If you are not an HNW individual (i.e. $5 million net worth), then it means pursuing citizenship by naturalization or an investment. I just wondered what options are out there where people actually get a second passport and not just residency. The answer seems to be in Latin America, but, the problem is that those developing countries are bureaucratic and while it states you can get citizenship in theory in 2-3 years like Argentina, Peru, or Ecuador, in practice it can be more like 5-10 years.

If this post is in the wrong forum, I apologize, but, I am just trying to educate myself by viewing what options have actually worked if they are not CBI programs. I don't consider living in a country part or full time "weaseling" in. You are putting in your time on the ground and "paying your dues" to become a citizen.

Passportskr

 

[benbao]

I understand what you want but "living abroad for a part of the year" sometime after your family is done with highschool is not what countries look for when considering people for naturalisation. Hence why I said either you buy a passport which is fine or you actually move your life to a country you want to become citizen in. No one in Latin America will give you a passport for speaking 3 words Spanish and having a holiday there every few months.

 

[citizenshipskr]

Benbao,

I see your (and the potential govt's perspective). So after my younger son's high school graduation, If I am in a place where I could naturalize pretty permanently (maybe occasional yearly visits home to US), but, where I would live pretty much full time most if not all the year, what countries would you recommend that give out citizenship faster? I do speak some moderate Spanish and I would be looking to improve it.

Intially, the countries on my list are:

Ecuador
Nicaragua
Costa Rica
Belize
Peru
Paraguay
Honduras
Argentina
Belize
Barbados

Although I am not bilingual, I do speak rough conversational Spanish and I can pick it up more quickly. An English speaking country would be my first choice so that is also why I am looking at countries in the Caribbean even like the Bahamas or Barbados that have citizenship by naturalization or lower cost investment routes.

Passportskr


I would

 

[lacomaco]

Benbao,

I see your (and the potential govt's perspective). So after my younger son's high school graduation, If I am in a place where I could naturalize pretty permanently (maybe occasional yearly visits home to US), but, where I would live pretty much full time most if not all the year, what countries would you recommend that give out citizenship faster? I do speak some moderate Spanish and I would be looking to improve it.

Intially, the countries on my list are:

Ecuador
Nicaragua
Costa Rica
Belize
Peru
Paraguay
Honduras
Argentina
Belize
Barbados

Although I am not bilingual, I do speak rough conversational Spanish and I can pick it up more quickly. An English speaking country would be my first choice so that is also why I am looking at countries in the Caribbean even like the Bahamas or Barbados that have citizenship by naturalization or lower cost investment routes.

Passportskr


I would

If you do not want or you can`t really live in the new country, then it will be harder and harder to eventually get citizenship. I think the paralel is banking/taxation where substance is getting one of the most important aspects. No subtance, no serious investment or no real ties to the society would mean no citizenship - at least in the developed countries. If it would be so easy, then tens of thousands of people from all over the world (China, India, Vietnam, Nigeria, Egypt) would stream there. Of course eventually those countries will stop offering this as abuse will be wide-spread. That is why only thirld world countries “offer” citizenship. For someone thinking about renouncing I strongly advise you not to use an easy solution

 

[dread pirate]

I feel you dude. I have looked into this idea as well as getting a second passport through my greek ancestry is proving a nightmare.
Have you considered Chile, I didn't see it on your list? Not the fastest citizenship but it's one of the better economies in S.A and a fairly efficient country to live in, if you know what I mean. Uruguay, although a bit more sedate, is another good option but both these countries expect you to live there and be a contributing member of society, crazy right? lol.

Forget Nicaragua, the political situation is too unstable. I would scrap Honduras as well - too violet. Mexico I love but again, outside the main cities and even inside some of the main cities its dodgy. I wouldn't let my daughter go to Cancun let alone step foot in Tijuana.

I would choose Argentina personally. I know the tax situation is not idea but there are workarounds (apparently Argentines are as good at hiding assets as they are at passing a football) and inflation needs to be negotiated thru using western union but the city is beautiful, the cost of living is low, the women are crazy, and the food is superb. The country you choose should be one you can actually see yourself living in. Some of the countries you named have easy pathways to citizenship for a good reason.
For Argentina: Setup a trust to enable you to get a rentista visa, live there for 183 days a year at least, pay taxes on the money that supports your rentista (this is all from memory, you should double check all this) and after a few years you will be able to apply for citizenship.
Cheers.

 

[aiello]

Predatory worldwide taxation. No option to renounce.

Are citizens taxed even if they have their residence abroad? I don't think so, because my parents are Argentina citizens, but they lived in EU for 40 years without paying a cent to Argentina

 

[Marshal]

Are citizens taxed even if they have their residence abroad? I don't think so, because my parents are Argentina citizens, but they lived in EU for 40 years without paying a cent to Argentina

Residents are taxed on all their national and international incomes while non-residents are only taxed on income received in Argentina.
The Argentinian law divides individuals into three categories concerning their residency status:

• Residents (nationals living in the country; nationals working abroad for up to 13 months or when they obtain a permanent residence for migration purposes in a foreign country; foreigners assigned to work in Argentina for more than five years; foreigners residing in Argentina not for working purposes, starting from the 13th month)
• Non-residents (foreigners assigned to work in Argentina for less than five years)
• Foreign beneficiaries (foreigners working temporarily in Argentina for less than six months in a calendar year; Argentine nationals working abroad once they have lost the tax residence status; and foreigners residing abroad).

 

[CaymanCruiser]

Residents are taxed on all their national and international incomes while non-residents are only taxed on income received in Argentina.
The Argentinian law divides individuals into three categories concerning their residency status:

• Residents (nationals living in the country; nationals working abroad for up to 13 months or when they obtain a permanent residence for migration purposes in a foreign country; foreigners assigned to work in Argentina for more than five years; foreigners residing in Argentina not for working purposes, starting from the 13th month)
• Non-residents (foreigners assigned to work in Argentina for less than five years)
• Foreign beneficiaries (foreigners working temporarily in Argentina for less than six months in a calendar year; Argentine nationals working abroad once they have lost the tax residence status; and foreigners residing abroad).

What is written in law, and how it actually works in practice, are two completely different things in Argentina. I can guarantee you that virtually no one (who earns decent money/has a USD income) here pays any significant amount of taxes, and most just don't pay at all. Nothing happens because the lawmakers do the same thing.

 

[elcontestador]

What is written in law, and how it actually works in practice, are two completely different things in Argentina. I can guarantee you that virtually no one (who earns decent money/has a USD income) here pays any significant amount of taxes, and most just don't pay at all. Nothing happens because the lawmakers do the same thing.

Do those people only use cash? Because otherwise the government becomes aware of their income the second the money are deposited in bank account, no?

 

[Cloudbanck]

How about Ireland? English speaking. Much better passport than all the Latam and Caribbean ones. Reasonable tax if you run your own business or are non-dom. Less dodgy, safer, better rule of law, higher salaries than Latam. Takes 5 years though, plus application process.