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Many clients have written in about the idea of obtaining a second citizenship and or second passport. In order to discuss this, we first must define what are basically three programs in existence (or did exist as the case may be). The first are some of these official and government sponsored instant economic citizenship programs (Belize, Granada, Dominica, etc.). Basically, you donate anywhere from US$50,000 on up to the local government, must of course pass the rigorous application process, and then you get your citizenship (often within 30 to 90 days). However, these programs of course have either disappeared altogether, due to pressure from the US Government who did not like to see their citizens gaining a new fairly good visa free travel document so quickly, or have been changed to such an extent that they no longer look attractive (I hear Dominica now wants US$150,000). Dominica, by the way, is an English speaking island nation in the Caribbean that is not affiliated in any way with the Dominican Republic (a Spanish speaking nation).

Next we have the regular programs and processes that all countries have in place, which allows for application to immigration for RESIDENCY, with the ability to convert that status to Citizenship or Naturalization at some later date. Each country is of course different, and has their own set of rules, requirements, time frames, etc. The norm or standard to get citizenship in many countries is 5 to 7 years. However, there are some exceptions, which do allow for Naturalization much quicker (the Dominican Republic is one such example). These processes, by the way, are not anything special other than they are the regular programs and policies each government has in place to allow for foreigners to become residents (and later on citizens if you so choose). Which is to say, they are not any special or new fangled programs as previously mentioned above (instant or economic citizenship). However, one very important point is, that going this route means you are moving through very legal and normal government channels (which is what we offer, by the way). You cannot ask that they change your name on the documents (they will not) as they are using your existing passport or legal identity documents in the process. However, this does not necessarily mean they are going to wave a red flag to your home country either (that all of a sudden you have permanent residency status or citizenship somewhere else).

The last program, which unlike the two listed above, is what I will call a black market under the table situation. Meaning, you are NOT going through official government channels in regards to the process and your documents. So, you read an advertisement someplace offering a REAL passport from country X, complete with new name and so on. All well and good, and it is quite possible that the passport is very REAL, freshly stolen out of the passport office, but it may or may NOT be officially and legally registered in the computer system (which will bring you a world of trouble later on, especially when you try to renew it). This is not to say that all people offering these deals are not legitimate, or that your passport is not going to appear in the government system. Just keep in mind that it could be the case. Also, keep in mind that there is no legal and official file in immigration either. These deals usually involve Joe (our fictitious name for an attorney or government official in country X) who has a buddy, cousin, whatever working down at the passport office or in government somewhere. You pay Joe, and Joe promises wonderful things within 30 days. Joe is supposed to get your passport, but let us suppose he does not. Who are you going to complain to? The local government where you are trying to get this done? What will you say? I gave Joe money under the table to get me an illegally acquired passport, and he stiffed me? Just understand the risk involved with these kinds of deals. Also, if Joe tells you that you cannot use the passport to enter and leave country X, be very afraid. That is an instant tip off that your passport is not registered.

Many countries in the world do recognize DUAL CITIZENSHIP, and the US also is one country that does as well. Obtaining residency status in another country does not in any way jeopardize your existing citizenship and obtaining a second citizenship usually will not as well. There are some quirky things in the US regulations about joining a foreign army and so on, but I tend to think this does not apply to most people. However, the US State Department does say that if you have dual citizenship (along with a US passport), then you are required to use and demonstrate your US passport when entering and leaving the US. As a very real and very practical example of this, I know of many Americans who have become Panamanian and Dominican Citizens (and in fact have children, born in a foreign country, who have dual citizenship as well). When they leave Panama (for example), they use their Panamanian Passport and when they enter the US, they give their US Passport. This is what is done and it is very legal to do so.

What advantages do you gain by having dual citizenship? Well, first off, you get to travel as a non-American, which these days could be a life saving necessity. Germany, for example, started to segregate American and British travelers last year in their airports - sending them to separate departure terminals, etc. Why? The logic was that if the Arab Terrorists wanted to retaliate and kill US or UK citizens, then at least German Citizens (and everyone else) hopefully will not be in the same place to get caught in the crossfire. So, traveling as Mr. Citizen, from some small non-violent country (that is not involved with carpet bombings or is involved with supporting military coups in other countries because they do not like the current political leaders) is always to your benefit.

The other issue is of course investments. As we have indicated earlier, many banks, brokers and mutual fund companies (outside of the US) will NOT accept US citizens as clients. Not because they are legally prohibited in any way from doing so, but because they do not want the hassle and bother of having to deal the American tax authorities. So, again, being something other than a US citizen might get you a warm reception (as opposed to being told in a polite way to get lost).

EDITORS REPLY: Yes. Some of the local banks in the Dominican Republic have started to offer both Euro-denominated savings accounts, along with certificates of deposit as well. Although, the interest is not as attractive as it is in US Dollars. In addition, we can also suggest the new guaranteed principal fund from the Appleton Group out of Dublin, which is available in Euros.