August 3, 2025 • 59 mins
The American passport was once considered the gold standard of global mobility. Today, a growing number of US citizens are seeking second citizenship as insurance against political instability, rights erosion, and uncertainty. This episode delves into the legitimate, legal pathways to obtaining additional passports through Citizenship by Investment (CBI) programs.
We explore how certain countries—particularly in the Caribbean—offer full citizenship in exchange for financial contributions starting around $100,000. These aren't shadowy deals but government-sanctioned programs that bring critical development funding to small nations while providing investors with powerful travel documents, rights, and options. Our expert guests David Lesperance and Basil Elzecki explain how St. Kitts and Nevis, Antigua and Barbuda, and Dominica lead this market with varying advantages: prestige, family value, and affordability respectively.
The conversation isn't just theoretical—it's grounded in real concerns facing Americans today. Political polarization has transformed citizenship planning from a billionaire's luxury to practical preparation. As Lesperance frames it, "You live in a political wildfire zone," making second citizenship a form of "fire insurance" when facing uncertain futures. The evidence? Americans have become the #1 applicants for these programs worldwide, with applications surging 300% during recent political upheavals.
For those without six-figure investment funds, we also examine citizenship by descent—the possibility that your Irish grandmother, Italian grandfather, or German Jewish ancestors might already entitle you to a powerful EU passport without any investment at all. This ancestral connection could be your most accessible pathway to global mobility.
Whether you're concerned about political targeting, seeking enhanced travel freedom, or simply creating options for future generations, understanding these pathways isn't about abandoning America—it's about securing choices in an increasingly unpredictable world.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
David Lesperance (00:06):
Hello, my name is David Westfrance and in the
over 35 years since I was calledto the bar in 1990, I've been
advising American and globalfamilies on the tax and
immigration issues involved indesigning and executing
international backup plans.
Along with my legal expertise,I also draw on my experience as
a border official while in lawschool, acquiring lineage
(00:30):
citizenships in severalcountries for myself and
numerous family members andmoving my own family overseas
three times.
Unlike most advisors in thisarea, I do not take commissions
from third parties such asgovernments, fund managers or
real estate developers.
This allows my clients to haveconfidence that my advice is
unconflicted and agnostic andalways in their own best
(00:53):
interest.
Shawn (01:03):
Welcome back to Leaving America, the podcast where we
don't just ask what if I left.
We ask how, where and what doesit cost?
In today's episode, we're goingto talk about golden passports,
citizenship by investment andcitizenship by lineage.
You may have heard of theseprograms before, maybe in a news
(01:24):
article featuring a shadyoligarch or in a whispered
conversation between hedge fundmanagers at an airport lounge.
But citizenship by investmentisn't just for the ultra-rich,
the Peter Thiels or the ElonMusks.
It's a legitimate, legal andincreasingly common path for
people looking to hedge againstpolitical instability, diversify
(01:44):
their options or, let's behonest, gain a little more
global freedom.
Some countries will grant youfull citizenship passport, and
all in exchange for a financialinvestment, not residency, not a
visa citizenship.
Citizenship by investment, orCBI, is as wild and interesting
as it sounds.
Citizenship by Investment orCBI, is as wild and interesting
as it sounds.
(02:04):
So today we're going to breakit all down.
We'll start by explaining whatCBI is and why it exists.
Then we'll focus on someCaribbean locations, looking at
some of the most popular andsurprisingly affordable programs
on the planet, and we'll alsotalk about the risks, because
these programs don't exist in avacuum and we're doing all of
(02:25):
this to help you answer thequestions is this option for you
, who should consider it and whoabsolutely should not?
Spoiler alert if you're checkingyour bank account before paying
your car insurance this month,this probably isn't your path.
But if you're planning for thelong term and can think
strategically, even if you'renot mega wealthy, there might be
(02:45):
a backdoor you've neverconsidered.
I'm your host, Shawn C Fettig,and if you've ever wondered
whether a strategic real estatepurchase in the Caribbean could
double as your escape plan,you're absolutely in the right
place To stay updated on thelatest episodes.
Follow, like and share LeavingAmerica on the Deep Dive with
(03:06):
Shawn podcast feed wherever youget your podcasts, and if you've
already realized that securinga second passport might provide
more stability than trustingCongress with your future, or
you need help choosing betweenEU mobility and actual democracy
, email us at deepdivewithsehawnat gmailcom.
All right, pack your bags.
(03:28):
This is Leaving America.
David Lesperance (03:39):
I've been using this analogy, which is a
little dangerous for a Canadianto use to an American audience,
or a little cheeky, which is Itell my Americans, you live in a
political wildfire zone.
So what is that wildfireconcern?
Well, it may be politicalpolarization or political
violence.
It may be that you feel you'rea part of a particular targeted
(04:01):
group and you're worried aboutracism or anti-Semitism or
Islamophobia or LGBTQ, or if youare very politically active,
that means the other half of thecountry hates you, and so
clients are really looking atwhat those levels of concern are
(04:22):
.
And in a wildfire, people say,well, I'm going to fight the
fire, and that's a very nobleand good thing to do.
I'm going to vote, I'm going toregister, I'm going to drive my
neighbors to the polls, etcetera.
But no chief drops a crew intoa hot zone without having an
exit strategy, because it'scalled a wildfire for a reason.
(04:43):
So what happens if, despiteyour most noble and earnest
attempts, you fail to put outyour wildfire?
Well, you better have the fireinsurance of an alternative
residence or citizenship and afire escape plan.
And the fire escape plan tendsto come into three types.
One is what I'll call thego-bag option oh, there's been a
(05:04):
hurricane or an earthquake or aliteral wildfire.
I need to go somewhere,probably longer than two weeks,
but not so long.
I'm going to become taxresident in another country.
Then the next is, you know, I'mgoing to leave for maybe the
next four years, or maybe longer, for maybe the next four years
or maybe longer.
Shawn (05:26):
That was David Lesperance , founder of Lesperance
Associates, which is a team ofexpert immigration and tax
advisors, explaining how asecond passport can act as
insurance against a failingUnited States.
Citizenship by Investment is aprogram offered by a growing
number of countries whereforeign nationals can obtain
full citizenship, not justpermanent residency, in exchange
(05:50):
for a significant financialinvestment.
These investments can take theform of donations to a national
development fund, real estatepurchases, business investments
or, in rarer cases, purchases ofgovernment bonds.
Investments or, in rarer cases,purchases of government bonds.
At first glance, this mightsound like a shady loophole for
rich people to buy their way outof accountability, and in some
(06:12):
cases that critique has merit.
But it's also more complex thanthat.
For many countries, especiallysmall island nations or
developing economies, cbiprograms serve as a critical
economic development strategy.
These programs bring inhundreds of millions of dollars
in foreign capital that can beused to build roads, schools,
(06:34):
hospitals and infrastructurethat might otherwise be
impossible to fund.
These are real programs,approved by national parliaments
and overseen by immigrationagencies.
You're not buying your way intoa bribe.
You're contributing to nationaldevelopment and being rewarded
with a passport.
Citizenship offers a hugeadvantage over mere residency.
(06:57):
Citizenship gives you a newpassport, which can mean
dramatically better visa-freetravel options.
It also gives you voting rightsand access to services in your
new country, a legal right tolive, work and do business there
, generational benefits yourchildren can often inherit your
new citizenship and maybe mostimportantly for some, a plan B
(07:20):
if things go sideways in yourhome country.
Let's say you're concernedabout I don't know the direction
of US politics and society orfuture political violence.
If you have a secondcitizenship, you're not trapped.
You have options.
You can move, you can stay, youcan protect your family and,
(07:40):
let's not kid ourselves,americans are starting to think
like this more and more.
There was a 300% increase inGoogle searches for how to move
to Canada the day after the 2016election.
Imagine what that looks likenow.
Wealthy Americans, especiallythose with international
business, dual national familiesor future-focused advisors, are
(08:02):
taking second citizenship veryseriously.
Here's David Lesperance onceagain explaining why this moment
in history makes this optionespecially relevant.
David Lesperance (08:18):
I think it's one of the things is people
understood kind of theoreticallythat this was an important
thing to do but it wasn't urgent.
And with the currentadministration it has
dramatically increased the senseof urgency.
(08:39):
So it's kind of like I shouldreally stop smoking, I should
really lose 10 pounds, but it'swhen you have the heart attack
and you survive it, you go.
No, today I'm stopping smokingand today I'm going to go lose
those 10 pounds, and so thiskind of external triggering
event is happening, is ishappening, and so a lot of
(09:09):
people who are reallyre-evaluating their options and
hoping, you know, in in the bestcase scenario is that they,
they come up with with asolution, they get fire
insurance and a fire escape plan.
Even if they don't trigger it,they've got the comfort of
knowing that that's that's there, them triggering it and, you
know, setting up a better lifefor themselves and future
(09:31):
generations.
It's just one of those periodsof the morning of September 1st
1939.
There's a little island in themiddle of the Gdansk harbor
(09:53):
called Vestoplata or Westplat,which is kind of Poland's Alamo,
and this area was known, as forthose who are history-minded,
the Danzig Corridor, was known,as for those who are
history-minded, the DanzigCorridor.
And so the Second World Warstarted.
One morning, september 1st 1939, when a German warship opened
up on this military installationon Westerplatte and the Polish
(10:19):
regiment there survived for ninedays.
There was all kinds of Marineset cetera, etc.
And I was visiting thispre-covid and, as you get at
every historical site around theworld, a very earnest history
major is your tour guide andtalk about the brave poles.
Now, they lasted for nine daysnow the, the, the ship's captain
(10:42):
, was so impressed that he letthe remaining commander, co,
hold his sword as a thing ofhonor.
And there was a group of Polesthat were there, but there was
also a Polish-American guy fromChicago who of course gravitated
towards me because I spokeEnglish, and somebody asked so
what happened to the survivors?
(11:02):
And they said well, they turnedthem over to the SS and shot
them all.
Whereupon the American guyturned to me and said yes, my
family left in 1938.
And our family motto was thepessimist left and lived, the
optimist stayed and died.
So getting the comfort ofoptions should, whatever you
(11:31):
know the trigger is for for yourparticular family, is the
comfort, and then, if that eventhappens, being able to move
your family out of out of fire.
And again, there is no loss ofnobility in um.
You know, if you can't put outthe wildfire, of using your exit
(11:51):
to stay alive, to continue tofight the wildfire in a
different way.
Shawn (12:03):
So how does it work?
Most CBI programs offer atleast two or three pathways.
There's the donation route,where you make a non-refundable
payment to a nationaldevelopment fund.
Think of it as a membership feeto a very exclusive country
club that also gives you apassport.
There's the real estateinvestment, where you buy
pre-approved property in thecountry, typically with a
(12:26):
minimum value and a requiredholding period of five to seven
years.
Some people resell after thatand recover much of the cost.
And then there's bonds orbusiness investment.
Some countries allow you toinvest in local businesses or
government bonds.
These tend to be more complexand riskier, but also more
rewarding in certain cases.
(12:46):
So you send in your application, submit your documents, pay
your fees and, after a seriousdue diligence process, you might
be granted citizenship.
Some countries will do this in60 days, Others take a year or
two, but it's real.
You'll get a passport you cantravel with, potentially live
under and even use to renounceyour American citizenship, if
(13:09):
that's something you'reconsidering down the road.
So let's take a look at some ofthe countries that offer the
best CBI programs, and we'llfocus on the Caribbean.
This is a region that mightconjure images of rum, reggae
and retirement fantasies, butit's also home to some of the
most robust, well-known andaccessible CBI programs in the
(13:30):
world.
This is Basil Moral-Zecchi,managing partner at Henley
Partners North America, a globalleader in residence and
citizenship by investment,explaining why the Caribbean is
such an attractive option forAmericans looking for a second
passport.
Basil Mohr-Elzeki (13:49):
So in the Caribbean it's often attractive
for Americans as well becauseclose proximity, easy flights in
and out.
Many of the Americans havetaken vacations within those
regions.
But what makes it so attractiveis you do not have to relocate
to.
Two of the countries would beAntigua and Barbuda or St Kitts
and Nevis.
You don't have to relocate tothose countries to become a
(14:11):
national or a citizen.
In fact, it's one of thefastest ways to become a citizen
in the world.
So you're looking at aroundeight months and under eight
months with a contribution,again a donation route.
Usually that would start at$230,000 in Antigua, and this is
in US dollars.
Or you can invest in realestate in Antigua and then you
(14:31):
can also obtain a citizenship,generally starting at the
$300,000 range.
So by making that investment ordonation in Antigua and Barbuda
, that will get you acitizenship in under eight
months without relocating to thecountry or being deemed a tax
resident.
Shawn (14:49):
So here's why the Caribbean is such a hotspot for
CBI.
These nations are small, oftenvulnerable to external shocks
like hurricanes and tourismdownturns.
They've turned CBI into arevenue stream, not just a niche
offer but a national strategy.
The process is fast, affordable, relatively speaking, and low
(15:09):
hassle.
Speaking and low hassle, andtheir passports are powerful,
offering visa-free orvisa-on-arrival access to about
140 to 150 countries, includingthe Schengen area, the UK, hong
Kong and Singapore.
There are five major players inthe Caribbean CBI market St
Kitts and Nevis, antigua andBarbuda.
(15:31):
St Kitts and Nevis, antigua andBarbuda, dominica, granada and
St Lucia.
Each country has its own set ofrules, costs and reputational
strengths, but all of themoperate under a similar basic
model you apply, you passbackground checks, you invest
and you receive citizenship.
We're going to take a look atthree of the most popular St
(15:52):
Kitts and Nevis, antigua andBarbuda and Dominica.
So let's start with thetrailblazer.
St Kitts and Nevis launched theworld's very first citizenship
by investment program in 1984.
So this program has beenrunning for over 40 years.
It was originally designed toattract investment and stimulate
development in the wake ofindependence from the UK.
(16:13):
Today, it's one of the mostprestigious programs on offer,
often considered the goldstandard.
The donation route requires aminimum of $250,000 as of 2023
to the Sustainable Island StateContribution Fund for a single
applicant.
For a family of four expect topay $350,000 US dollars plus.
(16:36):
The real estate option requirespurchase of pre-approved real
estate worth at least $400,000,with a mandatory hold period of
seven years, and the processingtime is around four to six
months, or just 60 days if youuse their accelerated
application process and pay apremium.
The perks here are visa-freetravel to 155 countries,
(17:01):
including the UK Schengen area,hong Kong and Singapore.
There's no personal income tax,no inheritance tax and no
capital gains tax.
But there are downsides.
The cost is high, one of themost expensive in the region.
The real estate route mayinvolve overpriced developments
you never actually want to stayin, and some banks and countries
(17:24):
are starting to scrutinize StKitts passports more closely due
to concerns over past lax duediligence.
Still, if prestige andlongevity matter to you and you
want a passport with seriousinternational respect, st Kitts
remains a top-tier choice.
Antigua and Barbuda is a twinisland nation and it's a rising
(17:45):
star in the CBI world,especially for families, because
they've made it exceptionallyaffordable to bring your entire
household along.
The donation route requires$100,000 for a family of up to
four through the NationalDevelopment Fund, and that's not
each, that's total.
The real estate option requires$200,000 minimum investment in
(18:05):
government-approved developmentsand processing time is about
four to six months on average.
You do have to spend at leastfive days in Antigua within the
first five years of citizenship.
It's not a big lift, but it isa requirement.
Antigua is appealing because ofthe value.
If you've got a spouse and twokids, antigua is almost
certainly the cheapestlegitimate CBI option in the
(18:28):
world.
The passport also offers accessto over 150 visa-free countries
and the lifestyle, beaches,sailing, reggae festivals and a
laid-back Caribbean vibe.
But be aware infrastructure onthe islands can be inconsistent
and you do have to show up,albeit briefly, to maintain your
(18:49):
citizenship, and some US banksmay not accept Caribbean CBI
passports for identityverification purposes.
It's not a deal-breaker, butit's something to be aware of.
Dominica, not to be confusedwith.
The Dominican Republic, offersone of the cheapest and most
efficient programs in theCaribbean and, arguably, the
world.
The donation route requires$100,000 for a single applicant
(19:14):
and $175,000 for a family offour.
The real estate option requires$200,000 minimum investment
with a three-year holdingrequirement.
The processing time is aboutthree to five months.
Dominica is known for itsrigorous due diligence process.
It's not just a pay-and-goscheme Applicants must pass
(19:35):
background checks anddemonstrate a clean source of
funds.
Dominica is especiallyattractive because it's one of
the least expensive programsavailable period and its
passport is stronger than youmight think, with visa-free
access to over 140 countries,including the Schengen Zone, uk
and many Commonwealth nations.
And the country is stunning hotsprings, volcanoes, lush
(19:59):
rainforests and waterfalls.
In fact, it markets itself asthe nature island.
But do be cautious because,while it is beautiful, dominica
is remote and lacks majorinternational infrastructure and
, like other Caribbean nations,its CBI program has drawn
occasional criticism from EUauthorities, mostly related to
(20:19):
transparency concerns.
But overall, for a relativelymodest outlay, you can gain a
second citizenship that unlocksa world of opportunity or at
least a very handy plan B.
This is Basil Elzecki, againexplaining how and why a second
passport might be useful.
Basil Mohr-Elzeki (20:41):
Now you might be asking well, why would
somebody want a citizenship ofAntigua and Barbuda, right?
Well, first and foremost, theUS citizenship is stronger, so
why would I need it?
In fact, it's more along thelines of hedging your bets,
hedging geopolitical risk.
So if you were to get anAntiguan Barbuda passport God
forbid, there's travelrestrictions on the United
States passport at least youhave an option to travel, you
(21:03):
can travel.
Covid was a perfect example oftravel restrictions throughout
the United States.
I mean throughout the world, infact.
So when you're looking at COVIDthroughout the world, in fact.
So when you're looking at COVID, particularly the US passport
had at the time.
Now it has less but 187countries that we can travel to
visa-free.
That dropped down to around 61countries due to the travel
(21:23):
restrictions.
Now many US citizens feltlimited, felt restricted, and
they said, well, we're nevergoing to let that happen again
to us.
So they started to look atquick and easy routes to
citizenship, and Antiguan,barbuda and St Kitts and Nevis
were perfect examples of that.
So that's one of the benefits.
It's usually not to live in theCaribbean.
It's usually to have analternative travel document.
(21:44):
In case of geopoliticaltensions, travel restrictions,
sometimes reputational risks, inthe event there's God forbid a
war with the United States, youcan travel on an alternative
passport.
Shawn (21:57):
Okay.
So you've got the basics down.
You invest money, you can get ashiny new passport and suddenly
you're a global citizen, with abeach house in Dominica and an
apartment lease in Valletta.
Sounds like a dream, but tapthe brakes, because while
citizenship by investment can bea legitimate and even
life-changing path for many,it's not all velvet ropes and
(22:18):
private jets.
There are real risks,reputational issues, legal gray
zones and geopolitical tensionsthat can make this global
opportunity feel more like agilded trap, especially if you
don't go in with your eyes wideopen.
There are risks andcontroversies surrounding CBI
programs feel more like a gildedtrap, especially if you don't
go in with your eyes wide open.
There are risks andcontroversies surrounding CBI
(22:39):
programs, so here's what youshould be looking out for.
The first and arguably biggestrisk is reputation.
Cbi programs have long been amagnet for criticism.
They've been called passportsfor sale, citizenship laundering
and even tools for globalcorruption, and while these
criticisms aren't always fair,especially given the legitimate
economic function these programsserve, they've still stuck.
(23:03):
You might be a tax-abiding,freedom-seeking American looking
to diversify your options, butto a border agent in Paris or a
bank in London, your St Kittspassport may raise red flags,
because for years, theseprograms were notoriously lax.
Some countries handed outpassports like candy no real
vetting, no transparency.
(23:24):
That has changed, however.
Today, many CBI programs useTier 1 due diligence firms like
SRM, thomson Reuters or Exegerto conduct deep background
checks.
Applicants are vetted forcriminal activity, sanctions,
source of funds and politicalexposure.
Still, some jurisdictions, andparticularly some banks, remain
(23:48):
wary.
You may find your Caribbeanpassport treated with more
suspicion than your old blue USone.
Some US banks won't accept CBIdocuments for Know your Customer
processes.
You might even be required toshow both passports when
traveling.
In other words, you're notbuying anonymity, you're not
disappearing.
(24:09):
You're just giving yourselfanother door and you should know
how it's labeled.
Here's another thing toconsider Geopolitical risk.
Cbi programs don't exist in avacuum.
They're subject to pressurefrom powerful international
players, especially the EuropeanUnion, united Kingdom and OECD.
In recent years, these bodieshave begun pushing back hard.
(24:33):
In 2023, the UK revokedvisa-free access for citizens of
Dominica, st Lucia and Vanuatu,citing concerns about due
diligence and the potential forabuse.
The OECD regularly reviewsthese programs for abuse related
to tax evasion and bank secrecy, flagging some passports as
(24:54):
high risk in global finance.
So the translation is you mayspend $150,000 or more for
visa-free travel to Europe andfind that benefit gone in a year
or two if diplomaticrelationships shift.
Cbi programs are political.
They can be renegotiated, shutdown or revised.
(25:15):
There are no guarantees whatyou buy today could be
diminished tomorrow, especiallyif you're relying on it as a
travel or mobility strategy.
One example of things gone wronghere is Cyprus.
It once had a highlysought-after citizenship by
investment program.
In 2022, it shut down itsprogram after a bombshell.
(25:40):
Al Jazeera investigationrevealed that passports were
being sold to criminals,sanctioned individuals and shady
business people with no genuineties to the country.
The scandal rocked the EU,forced high-level resignations
and led to a dramatic overhaulof how CBI is viewed in Brussels
.
And it wasn't just Cyprus.
Malta also had an amazingcitizenship by investment option
(26:01):
until recently when theEuropean Court of Justice ruled
it unconstitutional.
As a result, your dream ofbuying your way into European
citizenship is just that a dream.
Bulgaria also ended its program, and Montenegro the list of
former CBI countries is growing.
So here's the takeaway Ifyou're considering CBI act while
(26:25):
programs exist, but do notassume they always will.
It's a game of timing,geopolitics and public relations
.
Something else to consider isactually a common
misunderstanding CPI doesn'tmean you can live anywhere.
So let's say you getcitizenship in St Lucia.
That gives you the right tohold a St Lucian passport, live,
(26:46):
work and vote in St Lucia andtravel visa-free to about 145
countries, but it does notautomatically allow you to live
in France, canada or even the US.
These programs don't come withmagic permanent access to other
countries and don't confusecitizenship by investment with
residency by investment, oftencalled golden visas.
(27:09):
They're not the same.
Countries like Portugal andSpain, and now Malta, have
golden visa programs that offerresidents, not citizenship, in
exchange for investment.
You still have to live thereand apply for naturalization
like everyone else.
Cbi is faster, but the rightsyou acquire are more tightly
limited to the issuing countryand you still owe US taxes.
(27:33):
So let's say you go all in, youbuy a passport from Antigua,
you start a business in Europe,you even open a bank account in
Switzerland.
You're still an American andAmerica has one of the most
aggressive global tax regimes onthe planet.
Unlike most countries which taxbased on residency, the US
taxes its citizens no matterwhere they live.
(27:55):
So even if you earn everydollar abroad, even if you never
set foot in the US again, theIRS still wants its cut, you'll
still need to file annual taxreturns, disclose foreign bank
accounts and possibly pay taxesdepending on your income level
and treaty status.
To escape this and truly enjoytax freedom, you'd need to
(28:18):
renounce your US citizenship,which comes with a whole
different set of complications,emotional considerations and
fees, including the notorious$2,350 renunciation fee and a
potential exit tax.
$2,350 renunciation fee and apotential exit tax.
We'll be covering all of thatin Episode 12s, by the way, so
make sure you're subscribed, butfor now, understand this A
(28:42):
second passport is not a taxloophole.
It's a door.
Whether you walk through it andwhat you leave behind is a
separate question.
The final and most soberingrisk I want to talk about is
fraud.
There are legitimate CBIprograms, and we've talked about
a few of them, and then thereare hundreds of websites and
(29:02):
self-proclaimed passportconsultants offering fake or
unauthorized versions Thinkdiplomatic passports from
obscure African republics, fakeSt Kitts documents or instant EU
citizenship for $15,000 onTelegram.
So here are some red flags.
You should be looking forPrices that seem too low.
(29:24):
I've outlined here the generalballpark.
You should be looking for.
Anything below that besuspicious.
No mention of due diligence orbackground checks.
Guaranteed approval claims,payments in crypto, only zero
transparency about fees ortimelines, and sketchy websites
with no government affiliation.
(29:45):
Always, always, work through anauthorized agent listed on the
government's official websitefor the CBI program, and
preferably also engage anindependent attorney or
immigration consultant with nofinancial stake in your
investment decision.
Two of them are on this episodeBasil Elzecki and David
Lesperance.
(30:06):
This is your legal identitywe're talking about.
Treat it with the seriousnessit deserves.
A citizenship by investmentprogram isn't like opening a
bank account or applying for awork visa.
It's not a side hustle, abucket list item or a casual
move.
It's a deliberate, strategicdecision that involves real
(30:26):
money, real risk and, if doneright, real rewards.
So let's talk about who this isreally for and separate the
daydream from the actual usecase.
This might be obvious, but CBIprograms are good for high net
worth individuals looking for aplan B.
This is the classic audience forgolden passports, entrepreneurs
(30:48):
, investors, tech founders andpeople with international
holdings or global mobilityneeds.
They may not be planning toleave the US permanently, but
they want options now and in thefuture.
Think of it like an insurancepolicy.
You hope you'll never need touse it, but if the US continues
to go through civil unrest,political turmoil or makes
(31:12):
foreign travel harder than italready is.
You'll be glad to have a secondcitizenship in your back pocket
.
Cbi can also appeal to remoteworkers and digital nomads
who've outgrown the typicaltourist visa grind and want
something longer term,especially those with families.
Rather than string together90-day stints in Bali, mexico
(31:34):
and Georgia, they may want tobase themselves somewhere
full-time, while holding asecond passport that gets them
into Europe or across borderswithout a visa maze.
Cbi programs are also good forfamilies planning for
intergenerational benefits.
It doesn't just help you.
In many programs, your childrenautomatically become citizens
(31:54):
too.
That can mean better schoolaccess, better health care and
residency rights.
Think of it as legacy planning.
And CBI programs are good forpolitical dissidents,
marginalized identities andvulnerable populations.
It's easy to think of goldenpassports as a billionaire's
plaything, and often they are,but for members of marginalized
(32:18):
groups, especially LGBTQ, plusindividuals, journalists or
people of color facingpersecution or instability in
their home countries, a secondcitizenship can be a form of
survival.
Basil Elzecki describes why andthe trends he's seeing as a
result.
Basil Mohr-Elzeki (32:40):
In the last 10 years we've seen quite a
shift, not just necessarilyclose to these elections, but
historically this industry wasmainly consumed by second world,
third world countries lookingfor better pastures, better
education, better businessopportunity, stability of the
(33:01):
governments.
So they would be applying toEurope, us, canada.
These are all hotspots and,depending on their budget,
perhaps other countries, anddepending on their budget,
perhaps other countries.
Now, over time, in the last 10years, we've been seeing first
world countries consume thisproduct more and more, and I say
product, which would be theresidence or citizenship
(33:23):
programs.
So how?
First world countries arelooking at this and the US is
now the number one country inthe world that is applying and
inquiring for alternativeresidencies and citizenships,
where it wasn't always the case.
So they're doing it.
As you mentioned, usually, Iwould say hedging against
geopolitical risk.
(33:43):
The United States is quite asophisticated market and they're
very used to having insuranceproducts.
How do we diversify?
We have our trusts, we have ourinternational real estate, we
have our insurance policies.
This actually became almost afinancial product, a component
of their hedging strategyhedging where your family can
(34:03):
live, hedging where you can openbusinesses, avoiding trade risk
, right?
So all these items make it moreattractive because it's simply
a part of the portfolio.
Now the trend is, the UnitedStates has steadily and
consistently moved to the numberone spot in terms of inquiries.
(34:24):
Where you're looking at, almost25 percent of Henley and
Partners business now comes fromthe United States, which is
quite, a quite crazy number.
Compared to many years ago,we've had I don't have the exact
percentage, but unprecedentedgrowth from the United States.
Now, as of recently, anypolitical change, whether an
(34:46):
election, whether a law thatcomes out, whether you know, the
US is quite divided politically.
So no matter which directionthe elections would have went,
we would have had demand.
Where Americans are concernedabout what the future of the
United States look like, andthey're not necessarily thinking
for the next 10 years, they'rethinking well, what about in the
(35:08):
next 50 years, next 100 years,if I'm going to plan a legacy,
so a citizenship passes down, somy kids, my grandkids, my
great-grandkids have a plan Bdown?
Shawn (35:18):
so my kids, my grandkids, my great-grandkids, have a plan
B.
Why wouldn't I do Now?
It's true, most people invulnerable communities don't
have six figures lying aroundfor a passport, but there are
those who do through inheritance, savings or business, and who
might face risks staying inplace, like the US, where civil
rights are being challengedstate by state and at the
(35:40):
federal level.
For them, this isn't about taxplanning, it's about freedom and
safety.
So those are the folks that CBIprograms might be good options
for.
Let's talk about people whoshould probably avoid CBI Anyone
who has to stretch to afford it.
So, to be clear, this is not agood use of your emergency fund.
(36:02):
If you're not alreadyfinancially secure meaning no
high interest debt, acomfortable nest egg and income
stability you should not bespending six figures on a second
passport.
There are other, far moreaffordable paths to
international residency.
We've covered some in earlierepisodes and we'll cover more in
the future.
(36:22):
Cbi is for those with extracapacity, not those looking for
a shortcut out of hardship.
These programs are also notgood for people expecting a tax
escape hatch.
We covered this in detailalready, but it bears repeating.
Unless you're renouncing UScitizenship, you're still a US
taxpayer.
Getting a second passport doesnot exempt you from filing US
(36:45):
tax returns, disclosing foreignbank accounts or complying with
the FATCAP, the Foreign AccountTax Compliance Act.
In fact, getting a secondcitizenship might make your
reporting more complex.
If your sole reason forconsidering CBI is to avoid
taxes full stop, call a CPA.
Then listen to episode 12 in acouple weeks.
(37:08):
Cbi programs are also not goodfor people who aren't sure what
they're trying to achieve.
This might sound obvious, butit's shocking how many people
approach CBI like a menu item.
I think.
Maybe a Caribbean passport,maybe Portugal?
That's not how this works.
Before you shell out $150,000or more, you need a clear
(37:29):
understanding of what you want.
Is your goal visa-free travel?
Do you want to live in anothercountry full-time?
Are you planning to eventuallyrenounce US citizenship?
Is this for your kids, forretirement?
For business leverage?
Basil Elzecki describes thethings he asks clients in trying
to determine which option mightbe best for them.
Basil Mohr-Elzeki (37:56):
So what we would do is we would ask them
quite open questions.
You know what is your timeline?
What areas of the world do youhave an affinity to?
Where would you like to live?
Name the top three places thatwould interest you, and then
that would help us hone down,because we offer over 50
programs.
You know, have you consideredthe tax environment, the safety?
Have you considered theeducation system in that country
(38:18):
?
Because we do also help witheducational placement services
and then we kind of filter downto see where which destinations
would make the most sense forthem and their family, where
they'd like to relocate.
Most of the time we haveAmericans that are looking for
at least one of the options is aplace with an English
proficiency, stability of thegovernment, a good education
(38:40):
system, good healthcare system,low crime rates.
Then again, climate change canbe one of the considerations
that they're looking at.
And then we kind of filter downthe 50 programs into a select
few and we send proposals and wehelp them with the processes.
They don't just do one, oftenthey do two or three to keep
their options open, depending ontheir objectives and wealth
levels.
Shawn (39:03):
If you can't answer these questions with confidence,
you're not ready for CBI yet.
And let's be blunt If you'retrying to hide from taxes, child
support, court orders or lawenforcement, cbi programs are
not your ticket out.
Reputable CBI programs conductthorough background checks.
They work with global duediligence firms and will reject
(39:26):
your application if there aresigns of money laundering,
criminal activity or tax evasion.
In fact, applying might makeyour situation worse by drawing
attention to your financialactivity across borders.
Golden passports are notinvisibility cloaks.
They're paper trails expensiveones.
So, to sum all of that up, ifyou're a well-off,
(39:49):
internationally-mindedindividual or family who wants
mobility, stability andlong-term options, and you're
ready to play the long game, cbican be a smart, strategic tool.
If you're just passport curiousor looking for a shortcut, this
probably isn't the answer foryou.
Let's say, the idea of paying$150,000 for a passport makes
(40:12):
your stomach churn, as it should.
If you're not sitting on amountain of crypto or a Cayman
Trust fund, here's some goodnews you might not need to buy a
second citizenship at all.
You might have alreadyinherited one without even
realizing it.
This is where citizenship bydescent or lineage, also known
as right of blood, comes intoplay.
Many countries offercitizenship to people who can
(40:35):
prove they have parents,grandparents or even
great-grandparents who werenationals.
In some cases, it doesn'tmatter that you were born abroad
or that no one in your familyhas ever lived in that country
for decades.
If your bloodline meets thecriteria and if you're willing
to dive into some genealogicaldetective work, you could be
eligible for a free secondpassport.
(40:57):
Here's David Lesperanceoutlining the general idea.
David Lesperance (41:05):
Traditionally, the more money you have
available to buy fire insurance,the more options you have
available.
But there are a number ofoptions available to many people
of all classes.
One would be, for example,lineage citizenship.
(41:26):
If they have the right familyhistory, they may have a claim
to citizenship in a Canada orAustralia or European country
and if they have access toEuropean country, it doesn't
mean that they need to go backto the old country.
They actually, as a European,as a citizen of an EU member
state, they have 27 differentchoices of places that they can
(41:47):
go to and if that's Irish,they've actually got 28 choices
because they also have access tothe UK.
Okay, On the very quick option,for example, Shawn recently
with the executive orders ontrans children, clients need to
move very fast and the problemwith lineage assistantships,
(42:14):
even if they have the rightfamily history, is it takes some
time.
I mean, if you've got an Irishgrandmother, it doesn't mean you
dial 1-800-I-am-Irish and aleprechaun delivers the passport
to you.
There's a paperwork and aprocess.
Shawn (42:26):
So let's take a look at some standout examples.
Ireland is the gold standard ofancestral citizenship.
If you have a parent orgrandparent born in Ireland,
congratulations.
You're likely eligible tobecome an Irish citizen, and
that means you also become an EUcitizen, with the right to live
and work in 27 member states.
(42:47):
Here's how it works If yourparent was born in Ireland,
you're automatically an Irishcitizen.
If your grandparent was born inIreland and your parent
registered in the foreign birthsregister before you were born,
you're also automatically acitizen.
If your parent was notregistered, don't panic.
You can still apply to beentered in the foreign births
(43:07):
register yourself and, onceapproved, you become a full
Irish citizen and can apply foran Irish passport.
Irish passport You'll needbirth certificates, yours and
your ancestors, marriagecertificates, if applicable,
proof of identity and residenceand some patience.
Processing times have grownsignificantly, often 12 to 18
(43:28):
months.
Ireland is popular because it'san EU member state.
The passport is highly rankedfor visa-free access.
There's no requirement to livein Ireland and there's no
language test or integrationprocess.
Over 30 million Americans haveIrish ancestry.
Not all qualify for citizenship, but the pool is massive.
(43:50):
Italy is another great option.
It had one of the most generousright-of-blo blood policies in
the world.
Until recently, you used to beable to obtain Italian
citizenship if you had anItalian ancestor who was alive
after Italy's unification in1861.
But as of March 25th of thisyear, you can only pursue
(44:12):
Italian citizenship by descent,if at least one of your parents
or grandparents was born insideItaly.
You must prove thisgenerational link through birth
and marriage certificates.
A caveat here is that if youdescend from an Italian woman
who gave birth before 1948, youmay have to pursue your claim
through an Italian court, andthat's because Italian
(44:34):
citizenship passed only throughthe male line until a legal
ruling changed that.
If you feel like this programfits your situation, you can
apply at your local Italianconsulate.
But beware, there's usually aone to three year wait just to
get an appointment.
You can also apply throughlegal representation in Italy or
(44:55):
, increasingly popular, bymoving to Italy and applying
through residency.
It's faster processing but itrequires physically being there.
Italian citizenship, like Irish, provides full EU citizenship.
It also provides access toItaly's healthcare and education
systems, cultural, travel andproperty benefits, and there's
(45:17):
no requirement to renounce yourUS citizenship.
Germany's citizenship laws aremore restrictive than Italy or
Ireland, but recent legalreforms have opened new pathways
for people whose ancestors werepersecuted by the Nazi regime.
If your ancestor lost Germancitizenship due to Nazi-era
persecution so Jewish Germanswho fled or were stripped of
(45:41):
citizenship or your ancestor waspolitically persecuted during
the Third Reich, you may beeligible to reclaim German
citizenship.
Recent updates to the GermanNationality Act have removed
some of the previous barriers,allowing claims through both
maternal and paternal lines andextending eligibility to
(46:01):
descendants who were previouslyexcluded.
This is about more thanpaperwork.
It's a moral reparation, andGermany has leaned into that
framework.
German citizenship alsoprovides EU citizenship, social
and economic benefits and adeeply symbolic act of
historical justice.
If your roots trace back toCentral or Eastern Europe, you
(46:23):
may also be eligible, especiallyif your ancestors emigrated due
to war, shifting borders orpersecution.
Poland grants citizenship todescendants of Polish citizens
who left during World War II orunder communist rule.
If you can prove continuouslineage and that your ancestors
didn't renounce theircitizenship, you may be eligible
(46:44):
for Polish citizenship.
Hungary allows for ethnicHungarians, particularly from
border regions like Slovakia,ukraine or Serbia, to reclaim
citizenship, even if theirfamily hasn't lived in Hungary
for generations.
Each country has its own quirks, so you'll need documented
proof of ancestry, certifiedtranslations of documents and a
(47:07):
high tolerance for paperwork andlong waits.
Israel's program is not strictlycitizenship by descent, but
it's worth mentioning.
Israel grants citizenship toanyone of Jewish ancestry, even
if the connection is through onegrandparent.
This is enshrined in the Law ofReturn passed in 1950, and has
(47:29):
been used by hundreds ofthousands of Jews worldwide.
You do not need to bereligiously observant or
connected to the community.
A documented Jewish grandparentis usually enough.
If you can show this, you getfast-track citizenship.
There's no Hebrew languagerequirement to begin, and it's a
political statement, a lifelinefor many Jews in rising
(47:51):
authoritarian or anti-Semiticenvironments.
But and this is importantIsrael's security situation, its
complex political landscape andwhat's happening in Gaza make
it a very specific kind ofchoice, not a generic plan B.
So, in sum, if you're sittingon a family tree that includes
European or Jewish roots, go digit up.
(48:19):
You may already be eligible fora passport that opens doors
across continents.
Unlike CBI, citizenship bydescent is typically low cost,
emotionally meaningful andincredibly powerful, but it
requires diligence, paperworkand often professional help to
gather and authenticate thenecessary records.
If you're serious about leavingAmerica or just expanding your
options, this is the path withthe highest return on investment
(48:42):
.
It's not fast and it's notsimple, but it's yours if you
can prove it.
And in a world wherenationality is increasingly
weaponized, inheritedcitizenship is one of the most
elegant workarounds, a quietloophole with life-altering
consequences.
So at this point, you might beasking what does it actually
(49:02):
mean to have a secondcitizenship, beyond the passport
, beyond the headlines?
What does it represent?
So let's talk about that.
Here's the thing In a worldwhere political instability,
climate disruption, economicvolatility and polarization are
on the rise, mobility is power.
A second passport is a tool.
(49:24):
It's an option when your firstone becomes a liability.
It's access when your originalnationality begins to close
doors.
It's a future-proofingmechanism for those who see the
writing on the wall and don'twant to wait until the flames
are licking the doorframe.
Americans, for most of modernhistory, didn't think this way.
(49:44):
We were the passport peopleenvied.
We didn't need backups, we werethe backup.
But that's changing.
The COVID pandemic laid barehow quickly global privilege can
erode.
American passports, once amongthe most powerful in the world,
were suddenly unwelcome inEurope, asia and even Canada.
(50:05):
And in post-Roe, post-blm,post-january 6th, post-2024
election, more people are askingwhat happens if the country I
grew up in stops functioning.
David Lesperance describes howthis could play out politically
and what that might mean forAmericans looking to start over
(50:25):
abroad.
David Lesperance (50:33):
The disquiet, uncomfortableness will continue
on throughout the entire term ofthe current administration.
I see anger, politicalpolarization and, unfortunately,
political violence increasing.
I'm not sure if we're going tosee kind of another January 6th.
(50:57):
I think we're going to see moresmall groups or lone wolves
think Oklahoma bombing types andthat's what we've seen.
The issue with that we're goingto see.
We look at mass shootings.
Those are generally done bylone wolves or small one or two
people, but they have a hugekind of ramification by lone
(51:19):
wolves or small one or twopeople, but they have a huge
kind of ramification and it'snot just the victims that day,
it's the fear and concern thatare going in.
So Scott Galloway, who does apodcast with Kara Swisher called
(51:40):
Pivot, talked about how he hadmoved to the UK with his young
children or I guess they're notthat young in high school
children and he was saying itwasn't until I moved from
Florida to there.
And he says it wasn't until I,for for a while I realized why I
(52:00):
wasn't so anxious.
He said well, and then Irealized I used to every time I
dropped the kids off at school.
I'd think is today going to bethe day Every time I saw some
helicopter circling a building,I'd focus to see whether it was
my children's school.
He said, once or twice a monthI'd have talk my children down
(52:21):
because they saw somebody on theinternet or on TV that was
killed.
That looked like one of theirfriends and he said and in most
of the world you just don'tworry about this.
Yes, there is crime and youknow, shootings et cetera, but
one or two a year.
If you think of theChristchurch events, that was an
(52:46):
extreme rarity.
Well, how many other events ofthat number or more have
occurred in the US since then?
A hundred occurred in the USsince then.
A hundred.
So it's the reality of politicalviolence, I think, is going to
increase and the fear of thepotential of political violence
(53:09):
will increase and that will beenough of a force to drive more
and more people to overcometheir life inertia, I mean the.
I've been dealing with Americansboth inbound and outbound, for,
you know, three and a halfdecades, but I have never been
as busy as I have, uh, in thelast five years and in the last
(53:30):
year and since the election,it's been extraordinary and I
can just see that continuing.
Um, you know're now when we'retaping this, we're less than a
week away from the Oval Office,meeting with Zelensky and Trump
and JD Vance, and I can tell youthat the world is in a shift
(53:56):
and that's going to continue.
So there is the old Chinesecurse may you live in
interesting times.
I think nobody anywhere on thepolitical spectrum will argue
with the fact that we are livingin interesting times and there
(54:18):
are other groups that areworried about the second Chinese
curse, which is, you know, mayyou come to the attention of the
emperor.
So I have clients whoparticularly feel they're on
this or are at higher risk, andthey have a greater fear of the
wildfire coming.
They could smell the smoke andthat will continue, I think, to
accelerate, unfortunately.
Shawn (54:42):
Golden passports are not just for oligarchs and tech bros
anymore.
They're for families,freelancers, parents who want
their kids to go to universityin Europe or just go to school
without getting shot, lgbtq plusfolks who no longer feel safe
in red states or maybe anywherein America, retirees who don't
want to risk healthcare roulette.
(55:03):
They're for people who loveAmerica, or used to, but no
longer trusted to protect them.
At the same time, it'simportant to stay grounded.
A second passport won't saveyou from existential despair.
It won't make your marriagebetter or solve your midlife
crisis.
It's not a moral upgrade or apolitical statement.
(55:24):
It's a legal tool, atransactional decision, a key,
but not a roadmap, and it comeswith its own baggage.
Depending on where you go, yournew passport might carry stigma
.
You might get hassled atborders.
You might find that the realestate you were required to buy
was overvalued and hard toresell.
(55:45):
You might be affected bydiplomatic shifts that reduce
your passport's value overnight.
You might also discover that,even with a new passport, you're
still a foreigner.
Integration doesn't comeautomatically.
Citizenship is a beginning, nota conclusion.
So be honest with yourself.
Do this for the right reasons,not to run away, but to move
(56:08):
forward.
There's something else here too, something more meta
Citizenship by investmentprograms reveal a truth that
most people never confrontFreedom is not equally
distributed and increasinglyit's for sale.
We're entering an age wherenationality is no longer a fixed
identity, it's a negotiableasset, where the world is split
(56:31):
not just by borders, but byaccess Visa access, health
access, economic access, safetyaccess.
If you have money, you can move, if you don't, you stay.
This is the unfortunate realityof global inequality in the
21st century, and goldenpassports are just the latest
(56:52):
expression of that divide.
But recognizing that doesn'tmean rejecting the opportunity
if or when it presents itself.
It means engaging with itethically.
It means understanding thatprivilege can be a platform, not
just a shield.
It means realizing thatmobility is both a right and a
responsibility.
(57:13):
If you choose this path, chooseit with eyes open and never
forget that this path is onlyavailable to a lucky few.
(57:37):
If you've made it this far inthe episode and the series, it's
likely you're not just curious,you're considering.
You've felt the anxiety creepin.
You've watched the news with asense of detachment and dread.
You've wondered, maybe evenaloud, what if I just left?
You're not alone.
The fact that you're listeningand maybe planning already makes
(57:59):
you different.
You're not just doom-scrolling,you're doing something.
Maybe your second citizenshipwill come through a family
connection or naturalizationafter years of residency, or
maybe it will come through CBI atransaction, yes, but also a
declaration that you believe inchoices, that you're not
tethered to decline, that yourfuture doesn't have to be
(58:22):
written in red, white and blue.
In next week's episode, we'regoing to spotlight South Africa,
a country that doesn't get alot of attention from potential
American expats but has quite abit to offer.
Until then, keep one footgrounded and the other pointed
somewhere intriguing.
If this episode resonated ormade the idea of a second
(58:44):
passport feel a little lessabstract, share it with someone
plotting their own next chapter.
And remember this isn't aboutgiving up on America.
It's about not waiting for itto change first.
This is leaving America,because sometimes home isn't
where you started.
Thank you.
Hello, my name is David Westfrance and in the
over 35 years since I was calledto the bar in 1990, I've been
advising American and globalfamilies on the tax and
immigration issues involved indesigning and executing
international backup plans.
Along with my legal expertise,I also draw on my experience as
a border official while in lawschool, acquiring lineage
(00:30):
citizenships in severalcountries for myself and
numerous family members andmoving my own family overseas
three times.
Unlike most advisors in thisarea, I do not take commissions
from third parties such asgovernments, fund managers or
real estate developers.
This allows my clients to haveconfidence that my advice is
unconflicted and agnostic andalways in their own best
(00:53):
interest.
Shawn (01:03):
Welcome back to Leaving America, the podcast where we
don't just ask what if I left.
We ask how, where and what doesit cost?
In today's episode, we're goingto talk about golden passports,
citizenship by investment andcitizenship by lineage.
You may have heard of theseprograms before, maybe in a news
(01:24):
article featuring a shadyoligarch or in a whispered
conversation between hedge fundmanagers at an airport lounge.
But citizenship by investmentisn't just for the ultra-rich,
the Peter Thiels or the ElonMusks.
It's a legitimate, legal andincreasingly common path for
people looking to hedge againstpolitical instability, diversify
(01:44):
their options or, let's behonest, gain a little more
global freedom.
Some countries will grant youfull citizenship passport, and
all in exchange for a financialinvestment, not residency, not a
visa citizenship.
Citizenship by investment, orCBI, is as wild and interesting
as it sounds.
Citizenship by Investment orCBI, is as wild and interesting
as it sounds.
(02:04):
So today we're going to breakit all down.
We'll start by explaining whatCBI is and why it exists.
Then we'll focus on someCaribbean locations, looking at
some of the most popular andsurprisingly affordable programs
on the planet, and we'll alsotalk about the risks, because
these programs don't exist in avacuum and we're doing all of
(02:25):
this to help you answer thequestions is this option for you
, who should consider it and whoabsolutely should not?
Spoiler alert if you're checkingyour bank account before paying
your car insurance this month,this probably isn't your path.
But if you're planning for thelong term and can think
strategically, even if you'renot mega wealthy, there might be
(02:45):
a backdoor you've neverconsidered.
I'm your host, Shawn C Fettig,and if you've ever wondered
whether a strategic real estatepurchase in the Caribbean could
double as your escape plan,you're absolutely in the right
place To stay updated on thelatest episodes.
Follow, like and share LeavingAmerica on the Deep Dive with
(03:06):
Shawn podcast feed wherever youget your podcasts, and if you've
already realized that securinga second passport might provide
more stability than trustingCongress with your future, or
you need help choosing betweenEU mobility and actual democracy
, email us at deepdivewithsehawnat gmailcom.
All right, pack your bags.
(03:28):
This is Leaving America.
David Lesperance (03:39):
I've been using this analogy, which is a
little dangerous for a Canadianto use to an American audience,
or a little cheeky, which is Itell my Americans, you live in a
political wildfire zone.
So what is that wildfireconcern?
Well, it may be politicalpolarization or political
violence.
It may be that you feel you'rea part of a particular targeted
(04:01):
group and you're worried aboutracism or anti-Semitism or
Islamophobia or LGBTQ, or if youare very politically active,
that means the other half of thecountry hates you, and so
clients are really looking atwhat those levels of concern are
(04:22):
.
And in a wildfire, people say,well, I'm going to fight the
fire, and that's a very nobleand good thing to do.
I'm going to vote, I'm going toregister, I'm going to drive my
neighbors to the polls, etcetera.
But no chief drops a crew intoa hot zone without having an
exit strategy, because it'scalled a wildfire for a reason.
(04:43):
So what happens if, despiteyour most noble and earnest
attempts, you fail to put outyour wildfire?
Well, you better have the fireinsurance of an alternative
residence or citizenship and afire escape plan.
And the fire escape plan tendsto come into three types.
One is what I'll call thego-bag option oh, there's been a
(05:04):
hurricane or an earthquake or aliteral wildfire.
I need to go somewhere,probably longer than two weeks,
but not so long.
I'm going to become taxresident in another country.
Then the next is, you know, I'mgoing to leave for maybe the
next four years, or maybe longer, for maybe the next four years
or maybe longer.
Shawn (05:26):
That was David Lesperance , founder of Lesperance
Associates, which is a team ofexpert immigration and tax
advisors, explaining how asecond passport can act as
insurance against a failingUnited States.
Citizenship by Investment is aprogram offered by a growing
number of countries whereforeign nationals can obtain
full citizenship, not justpermanent residency, in exchange
(05:50):
for a significant financialinvestment.
These investments can take theform of donations to a national
development fund, real estatepurchases, business investments
or, in rarer cases, purchases ofgovernment bonds.
Investments or, in rarer cases,purchases of government bonds.
At first glance, this mightsound like a shady loophole for
rich people to buy their way outof accountability, and in some
(06:12):
cases that critique has merit.
But it's also more complex thanthat.
For many countries, especiallysmall island nations or
developing economies, cbiprograms serve as a critical
economic development strategy.
These programs bring inhundreds of millions of dollars
in foreign capital that can beused to build roads, schools,
(06:34):
hospitals and infrastructurethat might otherwise be
impossible to fund.
These are real programs,approved by national parliaments
and overseen by immigrationagencies.
You're not buying your way intoa bribe.
You're contributing to nationaldevelopment and being rewarded
with a passport.
Citizenship offers a hugeadvantage over mere residency.
(06:57):
Citizenship gives you a newpassport, which can mean
dramatically better visa-freetravel options.
It also gives you voting rightsand access to services in your
new country, a legal right tolive, work and do business there
, generational benefits yourchildren can often inherit your
new citizenship and maybe mostimportantly for some, a plan B
(07:20):
if things go sideways in yourhome country.
Let's say you're concernedabout I don't know the direction
of US politics and society orfuture political violence.
If you have a secondcitizenship, you're not trapped.
You have options.
You can move, you can stay, youcan protect your family and,
(07:40):
let's not kid ourselves,americans are starting to think
like this more and more.
There was a 300% increase inGoogle searches for how to move
to Canada the day after the 2016election.
Imagine what that looks likenow.
Wealthy Americans, especiallythose with international
business, dual national familiesor future-focused advisors, are
(08:02):
taking second citizenship veryseriously.
Here's David Lesperance onceagain explaining why this moment
in history makes this optionespecially relevant.
David Lesperance (08:18):
I think it's one of the things is people
understood kind of theoreticallythat this was an important
thing to do but it wasn't urgent.
And with the currentadministration it has
dramatically increased the senseof urgency.
(08:39):
So it's kind of like I shouldreally stop smoking, I should
really lose 10 pounds, but it'swhen you have the heart attack
and you survive it, you go.
No, today I'm stopping smokingand today I'm going to go lose
those 10 pounds, and so thiskind of external triggering
event is happening, is ishappening, and so a lot of
(09:09):
people who are reallyre-evaluating their options and
hoping, you know, in in the bestcase scenario is that they,
they come up with with asolution, they get fire
insurance and a fire escape plan.
Even if they don't trigger it,they've got the comfort of
knowing that that's that's there, them triggering it and, you
know, setting up a better lifefor themselves and future
(09:31):
generations.
It's just one of those periodsof the morning of September 1st
1939.
There's a little island in themiddle of the Gdansk harbor
(09:53):
called Vestoplata or Westplat,which is kind of Poland's Alamo,
and this area was known, as forthose who are history-minded,
the Danzig Corridor, was known,as for those who are
history-minded, the DanzigCorridor.
And so the Second World Warstarted.
One morning, september 1st 1939, when a German warship opened
up on this military installationon Westerplatte and the Polish
(10:19):
regiment there survived for ninedays.
There was all kinds of Marineset cetera, etc.
And I was visiting thispre-covid and, as you get at
every historical site around theworld, a very earnest history
major is your tour guide andtalk about the brave poles.
Now, they lasted for nine daysnow the, the, the ship's captain
(10:42):
, was so impressed that he letthe remaining commander, co,
hold his sword as a thing ofhonor.
And there was a group of Polesthat were there, but there was
also a Polish-American guy fromChicago who of course gravitated
towards me because I spokeEnglish, and somebody asked so
what happened to the survivors?
(11:02):
And they said well, they turnedthem over to the SS and shot
them all.
Whereupon the American guyturned to me and said yes, my
family left in 1938.
And our family motto was thepessimist left and lived, the
optimist stayed and died.
So getting the comfort ofoptions should, whatever you
(11:31):
know the trigger is for for yourparticular family, is the
comfort, and then, if that eventhappens, being able to move
your family out of out of fire.
And again, there is no loss ofnobility in um.
You know, if you can't put outthe wildfire, of using your exit
(11:51):
to stay alive, to continue tofight the wildfire in a
different way.
Shawn (12:03):
So how does it work?
Most CBI programs offer atleast two or three pathways.
There's the donation route,where you make a non-refundable
payment to a nationaldevelopment fund.
Think of it as a membership feeto a very exclusive country
club that also gives you apassport.
There's the real estateinvestment, where you buy
pre-approved property in thecountry, typically with a
(12:26):
minimum value and a requiredholding period of five to seven
years.
Some people resell after thatand recover much of the cost.
And then there's bonds orbusiness investment.
Some countries allow you toinvest in local businesses or
government bonds.
These tend to be more complexand riskier, but also more
rewarding in certain cases.
(12:46):
So you send in your application, submit your documents, pay
your fees and, after a seriousdue diligence process, you might
be granted citizenship.
Some countries will do this in60 days, Others take a year or
two, but it's real.
You'll get a passport you cantravel with, potentially live
under and even use to renounceyour American citizenship, if
(13:09):
that's something you'reconsidering down the road.
So let's take a look at some ofthe countries that offer the
best CBI programs, and we'llfocus on the Caribbean.
This is a region that mightconjure images of rum, reggae
and retirement fantasies, butit's also home to some of the
most robust, well-known andaccessible CBI programs in the
(13:30):
world.
This is Basil Moral-Zecchi,managing partner at Henley
Partners North America, a globalleader in residence and
citizenship by investment,explaining why the Caribbean is
such an attractive option forAmericans looking for a second
passport.
Basil Mohr-Elzeki (13:49):
So in the Caribbean it's often attractive
for Americans as well becauseclose proximity, easy flights in
and out.
Many of the Americans havetaken vacations within those
regions.
But what makes it so attractiveis you do not have to relocate
to.
Two of the countries would beAntigua and Barbuda or St Kitts
and Nevis.
You don't have to relocate tothose countries to become a
(14:11):
national or a citizen.
In fact, it's one of thefastest ways to become a citizen
in the world.
So you're looking at aroundeight months and under eight
months with a contribution,again a donation route.
Usually that would start at$230,000 in Antigua, and this is
in US dollars.
Or you can invest in realestate in Antigua and then you
(14:31):
can also obtain a citizenship,generally starting at the
$300,000 range.
So by making that investment ordonation in Antigua and Barbuda
, that will get you acitizenship in under eight
months without relocating to thecountry or being deemed a tax
resident.
Shawn (14:49):
So here's why the Caribbean is such a hotspot for
CBI.
These nations are small, oftenvulnerable to external shocks
like hurricanes and tourismdownturns.
They've turned CBI into arevenue stream, not just a niche
offer but a national strategy.
The process is fast, affordable, relatively speaking, and low
(15:09):
hassle.
Speaking and low hassle, andtheir passports are powerful,
offering visa-free orvisa-on-arrival access to about
140 to 150 countries, includingthe Schengen area, the UK, hong
Kong and Singapore.
There are five major players inthe Caribbean CBI market St
Kitts and Nevis, antigua andBarbuda.
(15:31):
St Kitts and Nevis, antigua andBarbuda, dominica, granada and
St Lucia.
Each country has its own set ofrules, costs and reputational
strengths, but all of themoperate under a similar basic
model you apply, you passbackground checks, you invest
and you receive citizenship.
We're going to take a look atthree of the most popular St
(15:52):
Kitts and Nevis, antigua andBarbuda and Dominica.
So let's start with thetrailblazer.
St Kitts and Nevis launched theworld's very first citizenship
by investment program in 1984.
So this program has beenrunning for over 40 years.
It was originally designed toattract investment and stimulate
development in the wake ofindependence from the UK.
(16:13):
Today, it's one of the mostprestigious programs on offer,
often considered the goldstandard.
The donation route requires aminimum of $250,000 as of 2023
to the Sustainable Island StateContribution Fund for a single
applicant.
For a family of four expect topay $350,000 US dollars plus.
(16:36):
The real estate option requirespurchase of pre-approved real
estate worth at least $400,000,with a mandatory hold period of
seven years, and the processingtime is around four to six
months, or just 60 days if youuse their accelerated
application process and pay apremium.
The perks here are visa-freetravel to 155 countries,
(17:01):
including the UK Schengen area,hong Kong and Singapore.
There's no personal income tax,no inheritance tax and no
capital gains tax.
But there are downsides.
The cost is high, one of themost expensive in the region.
The real estate route mayinvolve overpriced developments
you never actually want to stayin, and some banks and countries
(17:24):
are starting to scrutinize StKitts passports more closely due
to concerns over past lax duediligence.
Still, if prestige andlongevity matter to you and you
want a passport with seriousinternational respect, st Kitts
remains a top-tier choice.
Antigua and Barbuda is a twinisland nation and it's a rising
(17:45):
star in the CBI world,especially for families, because
they've made it exceptionallyaffordable to bring your entire
household along.
The donation route requires$100,000 for a family of up to
four through the NationalDevelopment Fund, and that's not
each, that's total.
The real estate option requires$200,000 minimum investment in
(18:05):
government-approved developmentsand processing time is about
four to six months on average.
You do have to spend at leastfive days in Antigua within the
first five years of citizenship.
It's not a big lift, but it isa requirement.
Antigua is appealing because ofthe value.
If you've got a spouse and twokids, antigua is almost
certainly the cheapestlegitimate CBI option in the
(18:28):
world.
The passport also offers accessto over 150 visa-free countries
and the lifestyle, beaches,sailing, reggae festivals and a
laid-back Caribbean vibe.
But be aware infrastructure onthe islands can be inconsistent
and you do have to show up,albeit briefly, to maintain your
(18:49):
citizenship, and some US banksmay not accept Caribbean CBI
passports for identityverification purposes.
It's not a deal-breaker, butit's something to be aware of.
Dominica, not to be confusedwith.
The Dominican Republic, offersone of the cheapest and most
efficient programs in theCaribbean and, arguably, the
world.
The donation route requires$100,000 for a single applicant
(19:14):
and $175,000 for a family offour.
The real estate option requires$200,000 minimum investment
with a three-year holdingrequirement.
The processing time is aboutthree to five months.
Dominica is known for itsrigorous due diligence process.
It's not just a pay-and-goscheme Applicants must pass
(19:35):
background checks anddemonstrate a clean source of
funds.
Dominica is especiallyattractive because it's one of
the least expensive programsavailable period and its
passport is stronger than youmight think, with visa-free
access to over 140 countries,including the Schengen Zone, uk
and many Commonwealth nations.
And the country is stunning hotsprings, volcanoes, lush
(19:59):
rainforests and waterfalls.
In fact, it markets itself asthe nature island.
But do be cautious because,while it is beautiful, dominica
is remote and lacks majorinternational infrastructure and
, like other Caribbean nations,its CBI program has drawn
occasional criticism from EUauthorities, mostly related to
(20:19):
transparency concerns.
But overall, for a relativelymodest outlay, you can gain a
second citizenship that unlocksa world of opportunity or at
least a very handy plan B.
This is Basil Elzecki, againexplaining how and why a second
passport might be useful.
Basil Mohr-Elzeki (20:41):
Now you might be asking well, why would
somebody want a citizenship ofAntigua and Barbuda, right?
Well, first and foremost, theUS citizenship is stronger, so
why would I need it?
In fact, it's more along thelines of hedging your bets,
hedging geopolitical risk.
So if you were to get anAntiguan Barbuda passport God
forbid, there's travelrestrictions on the United
States passport at least youhave an option to travel, you
(21:03):
can travel.
Covid was a perfect example oftravel restrictions throughout
the United States.
I mean throughout the world, infact.
So when you're looking at COVIDthroughout the world, in fact.
So when you're looking at COVID, particularly the US passport
had at the time.
Now it has less but 187countries that we can travel to
visa-free.
That dropped down to around 61countries due to the travel
(21:23):
restrictions.
Now many US citizens feltlimited, felt restricted, and
they said, well, we're nevergoing to let that happen again
to us.
So they started to look atquick and easy routes to
citizenship, and Antiguan,barbuda and St Kitts and Nevis
were perfect examples of that.
So that's one of the benefits.
It's usually not to live in theCaribbean.
It's usually to have analternative travel document.
(21:44):
In case of geopoliticaltensions, travel restrictions,
sometimes reputational risks, inthe event there's God forbid a
war with the United States, youcan travel on an alternative
passport.
Shawn (21:57):
Okay.
So you've got the basics down.
You invest money, you can get ashiny new passport and suddenly
you're a global citizen, with abeach house in Dominica and an
apartment lease in Valletta.
Sounds like a dream, but tapthe brakes, because while
citizenship by investment can bea legitimate and even
life-changing path for many,it's not all velvet ropes and
(22:18):
private jets.
There are real risks,reputational issues, legal gray
zones and geopolitical tensionsthat can make this global
opportunity feel more like agilded trap, especially if you
don't go in with your eyes wideopen.
There are risks andcontroversies surrounding CBI
programs feel more like a gildedtrap, especially if you don't
go in with your eyes wide open.
There are risks andcontroversies surrounding CBI
(22:39):
programs, so here's what youshould be looking out for.
The first and arguably biggestrisk is reputation.
Cbi programs have long been amagnet for criticism.
They've been called passportsfor sale, citizenship laundering
and even tools for globalcorruption, and while these
criticisms aren't always fair,especially given the legitimate
economic function these programsserve, they've still stuck.
(23:03):
You might be a tax-abiding,freedom-seeking American looking
to diversify your options, butto a border agent in Paris or a
bank in London, your St Kittspassport may raise red flags,
because for years, theseprograms were notoriously lax.
Some countries handed outpassports like candy no real
vetting, no transparency.
(23:24):
That has changed, however.
Today, many CBI programs useTier 1 due diligence firms like
SRM, thomson Reuters or Exegerto conduct deep background
checks.
Applicants are vetted forcriminal activity, sanctions,
source of funds and politicalexposure.
Still, some jurisdictions, andparticularly some banks, remain
(23:48):
wary.
You may find your Caribbeanpassport treated with more
suspicion than your old blue USone.
Some US banks won't accept CBIdocuments for Know your Customer
processes.
You might even be required toshow both passports when
traveling.
In other words, you're notbuying anonymity, you're not
disappearing.
(24:09):
You're just giving yourselfanother door and you should know
how it's labeled.
Here's another thing toconsider Geopolitical risk.
Cbi programs don't exist in avacuum.
They're subject to pressurefrom powerful international
players, especially the EuropeanUnion, united Kingdom and OECD.
In recent years, these bodieshave begun pushing back hard.
(24:33):
In 2023, the UK revokedvisa-free access for citizens of
Dominica, st Lucia and Vanuatu,citing concerns about due
diligence and the potential forabuse.
The OECD regularly reviewsthese programs for abuse related
to tax evasion and bank secrecy, flagging some passports as
(24:54):
high risk in global finance.
So the translation is you mayspend $150,000 or more for
visa-free travel to Europe andfind that benefit gone in a year
or two if diplomaticrelationships shift.
Cbi programs are political.
They can be renegotiated, shutdown or revised.
(25:15):
There are no guarantees whatyou buy today could be
diminished tomorrow, especiallyif you're relying on it as a
travel or mobility strategy.
One example of things gone wronghere is Cyprus.
It once had a highlysought-after citizenship by
investment program.
In 2022, it shut down itsprogram after a bombshell.
(25:40):
Al Jazeera investigationrevealed that passports were
being sold to criminals,sanctioned individuals and shady
business people with no genuineties to the country.
The scandal rocked the EU,forced high-level resignations
and led to a dramatic overhaulof how CBI is viewed in Brussels
.
And it wasn't just Cyprus.
Malta also had an amazingcitizenship by investment option
(26:01):
until recently when theEuropean Court of Justice ruled
it unconstitutional.
As a result, your dream ofbuying your way into European
citizenship is just that a dream.
Bulgaria also ended its program, and Montenegro the list of
former CBI countries is growing.
So here's the takeaway Ifyou're considering CBI act while
(26:25):
programs exist, but do notassume they always will.
It's a game of timing,geopolitics and public relations
.
Something else to consider isactually a common
misunderstanding CPI doesn'tmean you can live anywhere.
So let's say you getcitizenship in St Lucia.
That gives you the right tohold a St Lucian passport, live,
(26:46):
work and vote in St Lucia andtravel visa-free to about 145
countries, but it does notautomatically allow you to live
in France, canada or even the US.
These programs don't come withmagic permanent access to other
countries and don't confusecitizenship by investment with
residency by investment, oftencalled golden visas.
(27:09):
They're not the same.
Countries like Portugal andSpain, and now Malta, have
golden visa programs that offerresidents, not citizenship, in
exchange for investment.
You still have to live thereand apply for naturalization
like everyone else.
Cbi is faster, but the rightsyou acquire are more tightly
limited to the issuing countryand you still owe US taxes.
(27:33):
So let's say you go all in, youbuy a passport from Antigua,
you start a business in Europe,you even open a bank account in
Switzerland.
You're still an American andAmerica has one of the most
aggressive global tax regimes onthe planet.
Unlike most countries which taxbased on residency, the US
taxes its citizens no matterwhere they live.
(27:55):
So even if you earn everydollar abroad, even if you never
set foot in the US again, theIRS still wants its cut, you'll
still need to file annual taxreturns, disclose foreign bank
accounts and possibly pay taxesdepending on your income level
and treaty status.
To escape this and truly enjoytax freedom, you'd need to
(28:18):
renounce your US citizenship,which comes with a whole
different set of complications,emotional considerations and
fees, including the notorious$2,350 renunciation fee and a
potential exit tax.
$2,350 renunciation fee and apotential exit tax.
We'll be covering all of thatin Episode 12s, by the way, so
make sure you're subscribed, butfor now, understand this A
(28:42):
second passport is not a taxloophole.
It's a door.
Whether you walk through it andwhat you leave behind is a
separate question.
The final and most soberingrisk I want to talk about is
fraud.
There are legitimate CBIprograms, and we've talked about
a few of them, and then thereare hundreds of websites and
(29:02):
self-proclaimed passportconsultants offering fake or
unauthorized versions Thinkdiplomatic passports from
obscure African republics, fakeSt Kitts documents or instant EU
citizenship for $15,000 onTelegram.
So here are some red flags.
You should be looking forPrices that seem too low.
(29:24):
I've outlined here the generalballpark.
You should be looking for.
Anything below that besuspicious.
No mention of due diligence orbackground checks.
Guaranteed approval claims,payments in crypto, only zero
transparency about fees ortimelines, and sketchy websites
with no government affiliation.
(29:45):
Always, always, work through anauthorized agent listed on the
government's official websitefor the CBI program, and
preferably also engage anindependent attorney or
immigration consultant with nofinancial stake in your
investment decision.
Two of them are on this episodeBasil Elzecki and David
Lesperance.
(30:06):
This is your legal identitywe're talking about.
Treat it with the seriousnessit deserves.
A citizenship by investmentprogram isn't like opening a
bank account or applying for awork visa.
It's not a side hustle, abucket list item or a casual
move.
It's a deliberate, strategicdecision that involves real
(30:26):
money, real risk and, if doneright, real rewards.
So let's talk about who this isreally for and separate the
daydream from the actual usecase.
This might be obvious, but CBIprograms are good for high net
worth individuals looking for aplan B.
This is the classic audience forgolden passports, entrepreneurs
(30:48):
, investors, tech founders andpeople with international
holdings or global mobilityneeds.
They may not be planning toleave the US permanently, but
they want options now and in thefuture.
Think of it like an insurancepolicy.
You hope you'll never need touse it, but if the US continues
to go through civil unrest,political turmoil or makes
(31:12):
foreign travel harder than italready is.
You'll be glad to have a secondcitizenship in your back pocket
.
Cbi can also appeal to remoteworkers and digital nomads
who've outgrown the typicaltourist visa grind and want
something longer term,especially those with families.
Rather than string together90-day stints in Bali, mexico
(31:34):
and Georgia, they may want tobase themselves somewhere
full-time, while holding asecond passport that gets them
into Europe or across borderswithout a visa maze.
Cbi programs are also good forfamilies planning for
intergenerational benefits.
It doesn't just help you.
In many programs, your childrenautomatically become citizens
(31:54):
too.
That can mean better schoolaccess, better health care and
residency rights.
Think of it as legacy planning.
And CBI programs are good forpolitical dissidents,
marginalized identities andvulnerable populations.
It's easy to think of goldenpassports as a billionaire's
plaything, and often they are,but for members of marginalized
(32:18):
groups, especially LGBTQ, plusindividuals, journalists or
people of color facingpersecution or instability in
their home countries, a secondcitizenship can be a form of
survival.
Basil Elzecki describes why andthe trends he's seeing as a
result.
Basil Mohr-Elzeki (32:40):
In the last 10 years we've seen quite a
shift, not just necessarilyclose to these elections, but
historically this industry wasmainly consumed by second world,
third world countries lookingfor better pastures, better
education, better businessopportunity, stability of the
(33:01):
governments.
So they would be applying toEurope, us, canada.
These are all hotspots and,depending on their budget,
perhaps other countries, anddepending on their budget,
perhaps other countries.
Now, over time, in the last 10years, we've been seeing first
world countries consume thisproduct more and more, and I say
product, which would be theresidence or citizenship
(33:23):
programs.
So how?
First world countries arelooking at this and the US is
now the number one country inthe world that is applying and
inquiring for alternativeresidencies and citizenships,
where it wasn't always the case.
So they're doing it.
As you mentioned, usually, Iwould say hedging against
geopolitical risk.
(33:43):
The United States is quite asophisticated market and they're
very used to having insuranceproducts.
How do we diversify?
We have our trusts, we have ourinternational real estate, we
have our insurance policies.
This actually became almost afinancial product, a component
of their hedging strategyhedging where your family can
(34:03):
live, hedging where you can openbusinesses, avoiding trade risk
, right?
So all these items make it moreattractive because it's simply
a part of the portfolio.
Now the trend is, the UnitedStates has steadily and
consistently moved to the numberone spot in terms of inquiries.
(34:24):
Where you're looking at, almost25 percent of Henley and
Partners business now comes fromthe United States, which is
quite, a quite crazy number.
Compared to many years ago,we've had I don't have the exact
percentage, but unprecedentedgrowth from the United States.
Now, as of recently, anypolitical change, whether an
(34:46):
election, whether a law thatcomes out, whether you know, the
US is quite divided politically.
So no matter which directionthe elections would have went,
we would have had demand.
Where Americans are concernedabout what the future of the
United States look like, andthey're not necessarily thinking
for the next 10 years, they'rethinking well, what about in the
(35:08):
next 50 years, next 100 years,if I'm going to plan a legacy,
so a citizenship passes down, somy kids, my grandkids, my
great-grandkids have a plan Bdown?
Shawn (35:18):
so my kids, my grandkids, my great-grandkids, have a plan
B.
Why wouldn't I do Now?
It's true, most people invulnerable communities don't
have six figures lying aroundfor a passport, but there are
those who do through inheritance, savings or business, and who
might face risks staying inplace, like the US, where civil
rights are being challengedstate by state and at the
(35:40):
federal level.
For them, this isn't about taxplanning, it's about freedom and
safety.
So those are the folks that CBIprograms might be good options
for.
Let's talk about people whoshould probably avoid CBI Anyone
who has to stretch to afford it.
So, to be clear, this is not agood use of your emergency fund.
(36:02):
If you're not alreadyfinancially secure meaning no
high interest debt, acomfortable nest egg and income
stability you should not bespending six figures on a second
passport.
There are other, far moreaffordable paths to
international residency.
We've covered some in earlierepisodes and we'll cover more in
the future.
(36:22):
Cbi is for those with extracapacity, not those looking for
a shortcut out of hardship.
These programs are also notgood for people expecting a tax
escape hatch.
We covered this in detailalready, but it bears repeating.
Unless you're renouncing UScitizenship, you're still a US
taxpayer.
Getting a second passport doesnot exempt you from filing US
(36:45):
tax returns, disclosing foreignbank accounts or complying with
the FATCAP, the Foreign AccountTax Compliance Act.
In fact, getting a secondcitizenship might make your
reporting more complex.
If your sole reason forconsidering CBI is to avoid
taxes full stop, call a CPA.
Then listen to episode 12 in acouple weeks.
(37:08):
Cbi programs are also not goodfor people who aren't sure what
they're trying to achieve.
This might sound obvious, butit's shocking how many people
approach CBI like a menu item.
I think.
Maybe a Caribbean passport,maybe Portugal?
That's not how this works.
Before you shell out $150,000or more, you need a clear
(37:29):
understanding of what you want.
Is your goal visa-free travel?
Do you want to live in anothercountry full-time?
Are you planning to eventuallyrenounce US citizenship?
Is this for your kids, forretirement?
For business leverage?
Basil Elzecki describes thethings he asks clients in trying
to determine which option mightbe best for them.
Basil Mohr-Elzeki (37:56):
So what we would do is we would ask them
quite open questions.
You know what is your timeline?
What areas of the world do youhave an affinity to?
Where would you like to live?
Name the top three places thatwould interest you, and then
that would help us hone down,because we offer over 50
programs.
You know, have you consideredthe tax environment, the safety?
Have you considered theeducation system in that country
(38:18):
?
Because we do also help witheducational placement services
and then we kind of filter downto see where which destinations
would make the most sense forthem and their family, where
they'd like to relocate.
Most of the time we haveAmericans that are looking for
at least one of the options is aplace with an English
proficiency, stability of thegovernment, a good education
(38:40):
system, good healthcare system,low crime rates.
Then again, climate change canbe one of the considerations
that they're looking at.
And then we kind of filter downthe 50 programs into a select
few and we send proposals and wehelp them with the processes.
They don't just do one, oftenthey do two or three to keep
their options open, depending ontheir objectives and wealth
levels.
Shawn (39:03):
If you can't answer these questions with confidence,
you're not ready for CBI yet.
And let's be blunt If you'retrying to hide from taxes, child
support, court orders or lawenforcement, cbi programs are
not your ticket out.
Reputable CBI programs conductthorough background checks.
They work with global duediligence firms and will reject
(39:26):
your application if there aresigns of money laundering,
criminal activity or tax evasion.
In fact, applying might makeyour situation worse by drawing
attention to your financialactivity across borders.
Golden passports are notinvisibility cloaks.
They're paper trails expensiveones.
So, to sum all of that up, ifyou're a well-off,
(39:49):
internationally-mindedindividual or family who wants
mobility, stability andlong-term options, and you're
ready to play the long game, cbican be a smart, strategic tool.
If you're just passport curiousor looking for a shortcut, this
probably isn't the answer foryou.
Let's say, the idea of paying$150,000 for a passport makes
(40:12):
your stomach churn, as it should.
If you're not sitting on amountain of crypto or a Cayman
Trust fund, here's some goodnews you might not need to buy a
second citizenship at all.
You might have alreadyinherited one without even
realizing it.
This is where citizenship bydescent or lineage, also known
as right of blood, comes intoplay.
Many countries offercitizenship to people who can
(40:35):
prove they have parents,grandparents or even
great-grandparents who werenationals.
In some cases, it doesn'tmatter that you were born abroad
or that no one in your familyhas ever lived in that country
for decades.
If your bloodline meets thecriteria and if you're willing
to dive into some genealogicaldetective work, you could be
eligible for a free secondpassport.
(40:57):
Here's David Lesperanceoutlining the general idea.
David Lesperance (41:05):
Traditionally, the more money you have
available to buy fire insurance,the more options you have
available.
But there are a number ofoptions available to many people
of all classes.
One would be, for example,lineage citizenship.
(41:26):
If they have the right familyhistory, they may have a claim
to citizenship in a Canada orAustralia or European country
and if they have access toEuropean country, it doesn't
mean that they need to go backto the old country.
They actually, as a European,as a citizen of an EU member
state, they have 27 differentchoices of places that they can
(41:47):
go to and if that's Irish,they've actually got 28 choices
because they also have access tothe UK.
Okay, On the very quick option,for example, Shawn recently
with the executive orders ontrans children, clients need to
move very fast and the problemwith lineage assistantships,
(42:14):
even if they have the rightfamily history, is it takes some
time.
I mean, if you've got an Irishgrandmother, it doesn't mean you
dial 1-800-I-am-Irish and aleprechaun delivers the passport
to you.
There's a paperwork and aprocess.
Shawn (42:26):
So let's take a look at some standout examples.
Ireland is the gold standard ofancestral citizenship.
If you have a parent orgrandparent born in Ireland,
congratulations.
You're likely eligible tobecome an Irish citizen, and
that means you also become an EUcitizen, with the right to live
and work in 27 member states.
(42:47):
Here's how it works If yourparent was born in Ireland,
you're automatically an Irishcitizen.
If your grandparent was born inIreland and your parent
registered in the foreign birthsregister before you were born,
you're also automatically acitizen.
If your parent was notregistered, don't panic.
You can still apply to beentered in the foreign births
(43:07):
register yourself and, onceapproved, you become a full
Irish citizen and can apply foran Irish passport.
Irish passport You'll needbirth certificates, yours and
your ancestors, marriagecertificates, if applicable,
proof of identity and residenceand some patience.
Processing times have grownsignificantly, often 12 to 18
(43:28):
months.
Ireland is popular because it'san EU member state.
The passport is highly rankedfor visa-free access.
There's no requirement to livein Ireland and there's no
language test or integrationprocess.
Over 30 million Americans haveIrish ancestry.
Not all qualify for citizenship, but the pool is massive.
(43:50):
Italy is another great option.
It had one of the most generousright-of-blo blood policies in
the world.
Until recently, you used to beable to obtain Italian
citizenship if you had anItalian ancestor who was alive
after Italy's unification in1861.
But as of March 25th of thisyear, you can only pursue
(44:12):
Italian citizenship by descent,if at least one of your parents
or grandparents was born insideItaly.
You must prove thisgenerational link through birth
and marriage certificates.
A caveat here is that if youdescend from an Italian woman
who gave birth before 1948, youmay have to pursue your claim
through an Italian court, andthat's because Italian
(44:34):
citizenship passed only throughthe male line until a legal
ruling changed that.
If you feel like this programfits your situation, you can
apply at your local Italianconsulate.
But beware, there's usually aone to three year wait just to
get an appointment.
You can also apply throughlegal representation in Italy or
(44:55):
, increasingly popular, bymoving to Italy and applying
through residency.
It's faster processing but itrequires physically being there.
Italian citizenship, like Irish, provides full EU citizenship.
It also provides access toItaly's healthcare and education
systems, cultural, travel andproperty benefits, and there's
(45:17):
no requirement to renounce yourUS citizenship.
Germany's citizenship laws aremore restrictive than Italy or
Ireland, but recent legalreforms have opened new pathways
for people whose ancestors werepersecuted by the Nazi regime.
If your ancestor lost Germancitizenship due to Nazi-era
persecution so Jewish Germanswho fled or were stripped of
(45:41):
citizenship or your ancestor waspolitically persecuted during
the Third Reich, you may beeligible to reclaim German
citizenship.
Recent updates to the GermanNationality Act have removed
some of the previous barriers,allowing claims through both
maternal and paternal lines andextending eligibility to
(46:01):
descendants who were previouslyexcluded.
This is about more thanpaperwork.
It's a moral reparation, andGermany has leaned into that
framework.
German citizenship alsoprovides EU citizenship, social
and economic benefits and adeeply symbolic act of
historical justice.
If your roots trace back toCentral or Eastern Europe, you
(46:23):
may also be eligible, especiallyif your ancestors emigrated due
to war, shifting borders orpersecution.
Poland grants citizenship todescendants of Polish citizens
who left during World War II orunder communist rule.
If you can prove continuouslineage and that your ancestors
didn't renounce theircitizenship, you may be eligible
(46:44):
for Polish citizenship.
Hungary allows for ethnicHungarians, particularly from
border regions like Slovakia,ukraine or Serbia, to reclaim
citizenship, even if theirfamily hasn't lived in Hungary
for generations.
Each country has its own quirks, so you'll need documented
proof of ancestry, certifiedtranslations of documents and a
(47:07):
high tolerance for paperwork andlong waits.
Israel's program is not strictlycitizenship by descent, but
it's worth mentioning.
Israel grants citizenship toanyone of Jewish ancestry, even
if the connection is through onegrandparent.
This is enshrined in the Law ofReturn passed in 1950, and has
(47:29):
been used by hundreds ofthousands of Jews worldwide.
You do not need to bereligiously observant or
connected to the community.
A documented Jewish grandparentis usually enough.
If you can show this, you getfast-track citizenship.
There's no Hebrew languagerequirement to begin, and it's a
political statement, a lifelinefor many Jews in rising
(47:51):
authoritarian or anti-Semiticenvironments.
But and this is importantIsrael's security situation, its
complex political landscape andwhat's happening in Gaza make
it a very specific kind ofchoice, not a generic plan B.
So, in sum, if you're sittingon a family tree that includes
European or Jewish roots, go digit up.
(48:19):
You may already be eligible fora passport that opens doors
across continents.
Unlike CBI, citizenship bydescent is typically low cost,
emotionally meaningful andincredibly powerful, but it
requires diligence, paperworkand often professional help to
gather and authenticate thenecessary records.
If you're serious about leavingAmerica or just expanding your
options, this is the path withthe highest return on investment
(48:42):
.
It's not fast and it's notsimple, but it's yours if you
can prove it.
And in a world wherenationality is increasingly
weaponized, inheritedcitizenship is one of the most
elegant workarounds, a quietloophole with life-altering
consequences.
So at this point, you might beasking what does it actually
(49:02):
mean to have a secondcitizenship, beyond the passport
, beyond the headlines?
What does it represent?
So let's talk about that.
Here's the thing In a worldwhere political instability,
climate disruption, economicvolatility and polarization are
on the rise, mobility is power.
A second passport is a tool.
(49:24):
It's an option when your firstone becomes a liability.
It's access when your originalnationality begins to close
doors.
It's a future-proofingmechanism for those who see the
writing on the wall and don'twant to wait until the flames
are licking the doorframe.
Americans, for most of modernhistory, didn't think this way.
(49:44):
We were the passport peopleenvied.
We didn't need backups, we werethe backup.
But that's changing.
The COVID pandemic laid barehow quickly global privilege can
erode.
American passports, once amongthe most powerful in the world,
were suddenly unwelcome inEurope, asia and even Canada.
(50:05):
And in post-Roe, post-blm,post-january 6th, post-2024
election, more people are askingwhat happens if the country I
grew up in stops functioning.
David Lesperance describes howthis could play out politically
and what that might mean forAmericans looking to start over
(50:25):
abroad.
David Lesperance (50:33):
The disquiet, uncomfortableness will continue
on throughout the entire term ofthe current administration.
I see anger, politicalpolarization and, unfortunately,
political violence increasing.
I'm not sure if we're going tosee kind of another January 6th.
(50:57):
I think we're going to see moresmall groups or lone wolves
think Oklahoma bombing types andthat's what we've seen.
The issue with that we're goingto see.
We look at mass shootings.
Those are generally done bylone wolves or small one or two
people, but they have a hugekind of ramification by lone
(51:19):
wolves or small one or twopeople, but they have a huge
kind of ramification and it'snot just the victims that day,
it's the fear and concern thatare going in.
So Scott Galloway, who does apodcast with Kara Swisher called
(51:40):
Pivot, talked about how he hadmoved to the UK with his young
children or I guess they're notthat young in high school
children and he was saying itwasn't until I moved from
Florida to there.
And he says it wasn't until I,for for a while I realized why I
(52:00):
wasn't so anxious.
He said well, and then Irealized I used to every time I
dropped the kids off at school.
I'd think is today going to bethe day Every time I saw some
helicopter circling a building,I'd focus to see whether it was
my children's school.
He said, once or twice a monthI'd have talk my children down
(52:21):
because they saw somebody on theinternet or on TV that was
killed.
That looked like one of theirfriends and he said and in most
of the world you just don'tworry about this.
Yes, there is crime and youknow, shootings et cetera, but
one or two a year.
If you think of theChristchurch events, that was an
(52:46):
extreme rarity.
Well, how many other events ofthat number or more have
occurred in the US since then?
A hundred occurred in the USsince then.
A hundred.
So it's the reality of politicalviolence, I think, is going to
increase and the fear of thepotential of political violence
(53:09):
will increase and that will beenough of a force to drive more
and more people to overcometheir life inertia, I mean the.
I've been dealing with Americansboth inbound and outbound, for,
you know, three and a halfdecades, but I have never been
as busy as I have, uh, in thelast five years and in the last
(53:30):
year and since the election,it's been extraordinary and I
can just see that continuing.
Um, you know're now when we'retaping this, we're less than a
week away from the Oval Office,meeting with Zelensky and Trump
and JD Vance, and I can tell youthat the world is in a shift
(53:56):
and that's going to continue.
So there is the old Chinesecurse may you live in
interesting times.
I think nobody anywhere on thepolitical spectrum will argue
with the fact that we are livingin interesting times and there
(54:18):
are other groups that areworried about the second Chinese
curse, which is, you know, mayyou come to the attention of the
emperor.
So I have clients whoparticularly feel they're on
this or are at higher risk, andthey have a greater fear of the
wildfire coming.
They could smell the smoke andthat will continue, I think, to
accelerate, unfortunately.
Shawn (54:42):
Golden passports are not just for oligarchs and tech bros
anymore.
They're for families,freelancers, parents who want
their kids to go to universityin Europe or just go to school
without getting shot, lgbtq plusfolks who no longer feel safe
in red states or maybe anywherein America, retirees who don't
want to risk healthcare roulette.
(55:03):
They're for people who loveAmerica, or used to, but no
longer trusted to protect them.
At the same time, it'simportant to stay grounded.
A second passport won't saveyou from existential despair.
It won't make your marriagebetter or solve your midlife
crisis.
It's not a moral upgrade or apolitical statement.
(55:24):
It's a legal tool, atransactional decision, a key,
but not a roadmap, and it comeswith its own baggage.
Depending on where you go, yournew passport might carry stigma
.
You might get hassled atborders.
You might find that the realestate you were required to buy
was overvalued and hard toresell.
(55:45):
You might be affected bydiplomatic shifts that reduce
your passport's value overnight.
You might also discover that,even with a new passport, you're
still a foreigner.
Integration doesn't comeautomatically.
Citizenship is a beginning, nota conclusion.
So be honest with yourself.
Do this for the right reasons,not to run away, but to move
(56:08):
forward.
There's something else here too, something more meta
Citizenship by investmentprograms reveal a truth that
most people never confrontFreedom is not equally
distributed and increasinglyit's for sale.
We're entering an age wherenationality is no longer a fixed
identity, it's a negotiableasset, where the world is split
(56:31):
not just by borders, but byaccess Visa access, health
access, economic access, safetyaccess.
If you have money, you can move, if you don't, you stay.
This is the unfortunate realityof global inequality in the
21st century, and goldenpassports are just the latest
(56:52):
expression of that divide.
But recognizing that doesn'tmean rejecting the opportunity
if or when it presents itself.
It means engaging with itethically.
It means understanding thatprivilege can be a platform, not
just a shield.
It means realizing thatmobility is both a right and a
responsibility.
(57:13):
If you choose this path, chooseit with eyes open and never
forget that this path is onlyavailable to a lucky few.
(57:37):
If you've made it this far inthe episode and the series, it's
likely you're not just curious,you're considering.
You've felt the anxiety creepin.
You've watched the news with asense of detachment and dread.
You've wondered, maybe evenaloud, what if I just left?
You're not alone.
The fact that you're listeningand maybe planning already makes
(57:59):
you different.
You're not just doom-scrolling,you're doing something.
Maybe your second citizenshipwill come through a family
connection or naturalizationafter years of residency, or
maybe it will come through CBI atransaction, yes, but also a
declaration that you believe inchoices, that you're not
tethered to decline, that yourfuture doesn't have to be
(58:22):
written in red, white and blue.
In next week's episode, we'regoing to spotlight South Africa,
a country that doesn't get alot of attention from potential
American expats but has quite abit to offer.
Until then, keep one footgrounded and the other pointed
somewhere intriguing.
If this episode resonated ormade the idea of a second
(58:44):
passport feel a little lessabstract, share it with someone
plotting their own next chapter.
And remember this isn't aboutgiving up on America.
It's about not waiting for itto change first.
This is leaving America,because sometimes home isn't
where you started.
Thank you.
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