I'm Taking My Marbles Home! Whahhhh
Don't let the door hit in the ass on your way out
Over the last few years, American demand for second passports has skyrocketed.
That's celebrities, tech entrepreneurs, billionaires and just plain millionaires paying to receive passports from another country - in addition to their US passport.
One company that services such Americans - Latitude - says their business surged 300% from 2019 to 2021.
The three most popular reasons given are:
* The Covid pandemic
At one point, those on just an American passport could not enter Europe.
* Climate catastrophe
Check local altitudes, especially if you're tempted to buy beach property. If ocean waters really do start rising, today's beach will be tomorrow's ocean bottom.
* Cryptocurrencies
I believe they're saying Americans with lots of crypto can afford to live outside the US.
I would add certain caveats.
1.
Not all countries welcome crypto transactions. Even if they do, you’ll need physical cash to pay cab drivers and noodle peddlers on the street. US dollars are also welcome, and easier to turn into physical cash.
2.
Not all countries have much of a financial or electronic infrastructure. You may not even have access to your bank account via a local AMT.
3.
Physical wallets can be stolen. So can phones and laptops - so if you're depending on crypto, you better be highly conscious of your security.
You Don't Have to Be Rich, but It Helps
According to another firm that helps Americans obtain second passports, most of their clients are worth between $50 million and $20 billion.
"Portugal is the Next California"
One of the most in-demand second passports for Americans is Portugal's "golden passport."
It's actually more like a golden visa. It's a five-year residency permit.
You must invest a little over $200,000 and spend 7 days a year in Portugal. Then you can apply for a full-time visa, though that takes another three years.
But the visa allows you to enter the 26 countries of the European Union.
Many of the firms performing this service for Americans say the ultra-rich want to have a legal foot in Europe for the sake of their children and grandchildren.
If you prefer, you can obtain a golden passport from Malta for $1.1 million. One from Austria costs $9.5 million.
Every country has its own requirements, but obviously the passport-seeker investing a large amount of money into the country's economy is most important.
They may also require you to stay in the country a certain length of time.
However, many Americans with second passports rarely visit their second "homes." They simply want the option to use the passport.
Demographic trends in other developed countries all point to a dramatic decline, and that includes Europe.
Countries with rising populations tend to be less developed. They have more people, more crime and less infrastructure.
If you're looking for a safe refugee from American uncertainty in the years ahead, India, The Philippines and Vietnam are better bets than Austria.
More Points to Research
4. Does your country have a reliable power grid?
Most of the developed world does, but you never know for sure until a powerful storm hits.
5. Are the police and politicians corrupt?
If you have plenty of cash, you may like that. You can afford to pay for protection from both criminals and local laws you might want to break.
But if you get into a dispute with a local, they will likely have the law - or, at least, the police - on their side. Local lawyers probably won’t do more than help you go through the motions. Or, you may need one as a bagman to bribe a judge with.
If you have enemies who can pay the police and judges more than you, you could really be in trouble.
6. Much of the content I've seen around getting second passports or moving to another country assumes the expat will start a business in the new country.
This is fine, but expect unexpected problems.
You can find groups who rate the United States as more difficult to do business in than some other countries.
But don't think your host country is going to be easy to do business in, just because it’s higher on those lists than the Untied States. Many countries around the world, even developing ones, have more paperwork and bureaucracy than the United States - especially for foreigners.
Some have less, it's true. But you may still run into problems. You may need special licenses or permits that amount to little more than bribes to local cops and politicians.
Your competition may not appreciate having a foreigner in their space. Some of your competitors may be quite nasty.
As a foreigner, are you even allowed to own property in that country? You may have to marry a local.
Besides, I can tell you, many immigrants to the United States are starting businesses. They're becoming building repair contractors, truck drivers and lawn care specialists.
If the US is so bad for business, why do foreigners come here to start businesses?
Besides, I for one believe luck plays a bigger role in business success than successful businesspeople wish to acknowledge.
Just because in the 1990’s you started a successful pizza restaurant on downtown Main Street here in America doesn't mean you can duplicate that in the Czech Republic or Indonesia.
If your wealth consists of accumulated stocks and bonds, and you just live on the interest and dividends, then you're in more favorable circumstances.
You can spend all day on the beach, in almost any country in the world.
But you don't need a second passport just to go on vacation.
Carry Out Your Due Diligence
Decide what you want.
Are you seeking a second home? Or even a first post-retirement home? Many Americans now live full-time in countries such as Mexico and the Philippines. The US dollar goes a lot farther there than it does in the US itself.
You can live on the beach or have your own pool. You can enjoy palm trees, year-round warm weather and friendly local people.
Or maybe you just want to have a passport that will get you into Europe in the unlikely event of another pandemic.
Maybe you just want to brag about how you'll leave the country next year if Trump/Biden wins the presidential election.
I don't believe we're going to suffer a second "civil war." But I too am apprehensive about where this country heading, and I'm sure there's going to be a lot more violence between now and when next year's election is actually over.
More Factors to Consider
This is based on the six years I spent living in The Philippines.
How reliable is the electricity where you want to go?
What is the medical care like? Can you get emergency heart surgery if you need it? Does the local pharmacy sell your medications?
What do local doctors and hospitals take as payment, and when?
Outside the US, nobody cares about your Medicare or health insurance. In many countries, they want cash or credit card.
Right now - before you receive services. Or before they'll discharge you from the hospital. They won't send you a bill to pay later. They'll hand it to you while you're lying in the bed, and expect you to pay right away.
Will you have someone you trust to run to the nearest ATM for you? Is there a nearby ATM? Will you have someone you trust to stand in line for you at the hospital cashier?
Where're You Going to Run?
1. Another pandemic of infectious disease?
If you had plenty of money and mobility, in 2020 you could have just gone to a small rural town in America. That to me would have been safer and smarter than boarding an airplane bound for Europe or some country that doesn't want you.
Europe is fairly densely populated. If you just want to get away from people, the US has a lot more open territory.
If you have plenty of money, the United States has the world's best medical system. Why run to some country that might want you to wait for care behind their own citizens?
In short, if there's another pandemic, I want to be right here in the United States.
2. Widespread violence
That could certainly happen in America: this year, next year and beyond.
I'm afraid of it, and Europe would probably be a good place to run to - until it suffers its own riots. There're neo-fascists all over Europe.
We still have a long tradition of peacefully transferring power. Trump is disrupting that, but he won't permanently change American democracy unless he gets back into the White House.
And then I may join you in another, better, country, such as Sudan or Haiti.
3. War and Rumors of War
The United States is positioned as the safest country in the world, from hostile military action.
Mexico couldn't invade us even if it wanted to - and it doesn't.
Canada is not going to attack us either.
Everybody else would have to land on the East or West Coasts. Won't happen.
We could be struck by a missile or bombed, but so could anyplace in the world.
If a nuke is set off somewhere, radiation will go wherever the wind takes it, and no passport will protect you.
In the near future, if the US abandons its post-WW2 role as world peacekeeper, expect more regional conflicts such as Ruzzia invading Ukraine and Hamas attacking Israel.
4. Food and Energy
The United States has plenty of rich farmland and energy sources, from uranium to oil to shale to natural gas.
No other country in the world is as insulated from potential supply chain disruptions such as wars, pandemics and other problems.
Many American companies are reshoring jobs back to the United States.
5. Medical care
Our system has a lot of problems. If you're an ordinary person with ordinary medical problems, a single payer government system is probably best for you.
But US medical researchers are carrying out a lot of studies and developing technologies to help us live longer.
If you have Big Bucks, this country has the best medical care.
Others know it too. I know a wealthy Filipino man who flew to the Mayo Clinic to treat his prostate cancer. I bet they have a lot of wealthy patients from other countries.
6. Climate Change
If you're afraid of the oceans rising, move to Colorado or other states near the Rocky Mountains.
High altitudes in the US are just as high as high altitudes in other countries.
If You Really Love Another Country . . .
Fine, go there. I feel that way about the Philippines.
And, as noted, many of the American clients of these second passport firms never actually use them.
They just want the option.
Renouncing American Citizenship?
That isn't anything to do lightly.
And the government doesn't make it easy. Even if you renounce it this year, the government says you must be doing it to escape paying income taxes, and therefore you still must pay for ten more years.
If you do wish to avoid American income taxes, see a professional.
You Have to Pay Your Money and Take Your Chances
An American passport is not technically the most powerful, but it's powerful enough for almost all of us.
If you're ever captured by leftwing or Muslim terrorists, showing them a Malta passport instead of an American one may save your life.
Maybe.
On the other hand, they're not stupid.
If you look like an American, act like an American and speak like an American, they're going to know you're an American even if you hand them an Austrian passport.
Sprechen zie Deutsch?
In emergencies, showing an American passport to the American military or at an American embassy may get you placed on the next helicopter flying to safety.
With Hamas holding some Americans hostage along with Israelis, the United States government is going to take action to save them - but not for Maltans, Portuguese or Austrians.
Conclusion
Second passports for Americans are highly overrated. How many of us really need one?
Very few, I believe.
If you do move to another country you love, and you qualify for their passport through marriage or money, take it, but without giving up your American passport.
My widowed mother's investments enabled her to live a comfortable lifestyle for over 50 years, beating the pants off the Wall Street gurus even though she couldn't have read a balance sheet to save her life.
Find out how.
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