Tax-planning is by nature an international business with players from all over the world offering all kinds of ways to reduce ones tax burden. As such, it is a highly accessible market and as with all legal business start up costs are low. Not surprisingly there is also a large number of tax planning firms of dubious character. The legal service that is most susceptible for fraud is the second passport market.

If you google for 'second passport' you are led to believe obtaining a second passport is a simple procedure and a quick fix for your tax liability. The majority of websites are either not showing the whole picture or are straight forward scams. The truth is that there is no cheap or easy way to obtain a second passport and it will not absolve you from your tax liabilities. But there are certainly advantages in having a second passport.

Citizenship

The most common way of obtaining a second passport is by becoming a citizen of another county and be eligible for a passport program. Whether it is by marriage with a citizen, an ancestral link, or being a long term resident, the bottom line is: it takes time. Few countries in the world have passport programs for people who are not permanent residents. Citizenship also includes a new tax liability to replace your old obligations. So while your new home country might offer a better fiscal climate, it will not set you tax free.

Instant passport

As we mentioned, there are some countries that do have more lenient passport programs. It often depends on how much money is involved. Montenegro for example issues a passport to anybody who is willing to spend half a million Euros in the country, part of which would go to the treasury. Then there are countries where government officials enjoy a high degree of autonomy in passport application procedures and can overrule certain legal requirements. Lastly there are some very hospitable countries that have a broad interpretation of what constitutes political asylum and humanitarian reasons.

Only countries that are flexible in the interpretation of their laws and have existing passport programs are interesting for those that wish to obtain a second passport without having to commit to a new country entirely. Flexible in this context can mean for instance a lowered minimum investment that is normally required to qualify for a program, or applying for a retirement visa without being old enough, or get political asylum for people from potentially dangerous countries like Russia and China.

To acquire a second passport using these more effective strategies requires the work of a qualified legal specialist with the ability to read between the lines of the law without actually breaking it. The Freemont Group does not offer any second passport services but we work with many law firms that do.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.