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Are There Any Disadvantages To Owning A Second Passport?
Sovereign Man via Zero Hedge ^ | 11/26/2011 | Simon Black

Posted on 11/26/2011 1:42:53 PM PST by SeekAndFind

Are There Any Disadvantages To A Second Passport?

I can’t even begin to describe how happy I am to be back in the land of the free… and yes, I’m talking about Chile.

I arrived a few days ago to beautiful summertime weather (remember, the seasons are flipped down here in the southern hemisphere). As usual, the customs officials at the airport were speedy, courteous, and efficient. From plane to cab I was out of there in 20-minutes– with luggage. This is par for the course in Chile.

It’s so nice to be in a place where you’re treated like a human being and agents of the government don’t go around robbing, molesting, and pepper-spraying peaceful citizens.

This is one of the many, many reasons why we’ve selected Chile as the home for our resilient community, and I’m happy to be back in-country so that I can dedicate myself to furthering this effort over the next several months.

When you step back and think about it, it’s extraordinary that we’re even talking about such a thing. Just five years ago, anyone who talked about a global economic slowdown was laughed out of the room. Today we are facing an all-out collapse of the fiat system. How quickly things change.

One of the best books on the subject that I’ve read lately is John Mauldin’s appropriately titled Endgame; John is one of the most accomplished and knowledgable financial writers on the planet, and he clearly explains why the end of the global debt supercycle is a foregone conclusion.

(FYI, the book is an easy read and I highly recommend picking up a few copies to give as gifts to all of your friends who still don’t get it…)

Last weekend, John and I had the chance to share a bowl of chips and salsa in an uptown Dallas bar and trade views about which governments might collapse and which have a shot at survival.

It was simultaneously depressing and hilarious… and I was certainly glad to be heading off to our farm in Chile afterwards. More on that next week– first, a few questions:

Trisha asks, “Simon- you probably heard that the Anonymous group posted the pepper-spraying policeman’s personal contact information on their website. What do you think of that approach?”

Hey, you know what they tell criminals– if you do the crime, you do the time. In this case, if you spray a peaceful crowd with a ‘less-than-lethal’ lachrymatory agent at point blank range, you get publicly shamed.

Police generally go unpunished for such actions. Whenever a cop is caught on tape tormenting peaceful protestors, the politicians and administrative officials always say that they’ll conduct a ‘full investigation’.

And then nothing happens. Months go by and the incident is forgotten. This is the unwritten rule between police thugs and the state– you protect my interests, and I’ll let you get away with brutalizing citizens to your heart’s content.

Assault is assault. We go to jail. They go on paid administrative leave. It’s a broken system, and Anonymous simply circumvented it. Outing the guy online to billions of people isn’t exactly Hammurabi’s code, but it’s a good start.

Next, Doug asks, “Simon, what’s the downside to obtaining a second citizenship? Obviously there’s some cost and time involved, but what else should I be concerned about?”

The advantages of having a second passport are extraordinary– more freedom, more opportunity, more options; most of all, it’s a great insurance policy against sovereign calamity.

Most North Americans and Western Europeans are blind to these advantages. They don’t understand why they’d ever need another passport because they already live in the pinnacle of civilization… or so they think.

Russians, Chinese, Argentines… these sorts of folks have personally experienced the ramrod fist of government. And they’re not taking chances.

Slowly, the developed West will begin to understand that their home government is their greatest threat. Unfortunately most of the second passport opportunities will be closed by then.

To address ‘disadvantages’, there may be some depending on the country. For example, if you obtain US citizenship as your second passport, you’re signing up for taxation on your worldwide income. Congratulations.

If you obtain Israeli citizenship, you (and/or your kids) may be obligated to military service. If you obtain Dutch citizenship, you may have to renounce your other one.

Taxes, conscription, and dual nationality limitations are generally the three big categories to watch out for, though most issues can be sidestepped with some planning.

Last, Neil asks, “Hello Simon, since you travel everywhere, I thought you could help me with this question: where in Latin America has the most potential to support an upscale (U.S. quality) veterinary hospital / dog kennel? I’d like to start such a business abroad.”

Candidly, the best market right now for upscale pet care is in Asia, specifically mainland China and Taiwan. I was just recently in both Shanghai and Taipei, and the streets are lined with luxury stores selling high priced pet accessories, poodle perms, and gourmet doggy biscuits.

The level to which the Chinese and Taiwanese are spoiling their pets is mind-boggling… so there’s serious opportunity there.

If Latin America is where you’d like to end up, though, I’d focus on Panama, Brazil, and Chile. The pet culture is not as extreme in these countries, however the growing middle class and disposable income levels certainly warrant higher quality services.


TOPICS: Business/Economy; Government; Society
KEYWORDS: passport

1 posted on 11/26/2011 1:42:54 PM PST by SeekAndFind
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To: SeekAndFind

RE: Chile

That is, if you don’t mind living in an earthquake belt and don’t mind learning Spanish.


2 posted on 11/26/2011 1:44:07 PM PST by SeekAndFind (u)
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To: SeekAndFind

America first.

You want to be Chilean, then be Chilean. Just don’t complain later.

Pick a lane.


3 posted on 11/26/2011 1:45:32 PM PST by Cringing Negativism Network ("Galts Gulch" <> Communist China)
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To: SeekAndFind

I speak Spanish, but the earthquake thing is a big negative about Chile. Too bad, it seems like a nice place in a lot of ways.


4 posted on 11/26/2011 1:46:43 PM PST by Tax-chick (Thomas Sowell. Accept no substitutes!)
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To: SeekAndFind

One potential problem is that if you get in trouble in Chile, you may not be able to ask the US consulate for help.

Another is that the IRS for instance considers Americans abroad fair game, and if America gets worse, I see no reason why this wont extend to other agencies as well.


5 posted on 11/26/2011 1:47:38 PM PST by MetaThought
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To: SeekAndFind

And living with uninformed cop-hating OWS supporters like the author.


6 posted on 11/26/2011 1:47:56 PM PST by buccaneer81 (ECOMCON)
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To: SeekAndFind

I carry two passports out of necessity and have found great benefits and advantages of holding two passports.


7 posted on 11/26/2011 1:48:57 PM PST by trumandogz (In Rick Perry's Nanny State, the state will drive your kids to the dentist at tax payer expense)
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To: SeekAndFind

Goodbye, Simon. Don’t let the door hit you in the ass on your way out.

Frankly, we can do without people like him. It is just a matter of time before Chileans get tired of foreigners moving in and do something onerous to curtail their entry.


8 posted on 11/26/2011 1:50:38 PM PST by SatinDoll (NO FOREIGN NATIONALS AS U.S.A. PRESIDENT)
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To: SeekAndFind
RE: Chile That is, if you don’t mind living in an earthquake belt and don’t mind learning Spanish. Sounds pretty much like living in Kaleefourneeuh.
9 posted on 11/26/2011 1:52:47 PM PST by MIchaelTArchangel
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To: trumandogz

RE: I carry two passports out of necessity and have found great benefits and advantages of holding two passports.

Do each of these countries TAX you on your income earned in the other country? If so, you are being doubly taxed and if you did not pay in one, you’d be considered a tax evader ( i.e. a criminal ).

Take the USA for instance, if you are a German living and working in the USA, you are only taxed in the USA, not Germany. But if you are an American living and working in Germany, you MUST pay taxes in BOTH the USA and Germany.

America is the only country I know that taxes you based on citizenship, not where you earn your income. Go Figure.


10 posted on 11/26/2011 1:52:57 PM PST by SeekAndFind (u)
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To: SeekAndFind
if you don’t mind living in an earthquake belt and don’t mind learning Spanish


11 posted on 11/26/2011 1:53:53 PM PST by ErnBatavia (Obama Voters: Jose Baez wants YOU for his next jury pool.......)
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To: SeekAndFind

Chile had their own OWS experience. It wound up with several thousand people being killed and dumped in the ocean. Apparently the Chilean cops use more than tear gas in those situations, so he better behave there.


12 posted on 11/26/2011 1:57:18 PM PST by BobL (Send Rove a Message, VOTE CAIN, no matter what)
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To: Cuttnhorse

FYI


13 posted on 11/26/2011 1:58:51 PM PST by null and void (This is day 1040 of America's Obamavacation from reality.)
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To: SeekAndFind

A US couple living overseas in exempted on approximately the first 200k of income and after several years of actually living overseas, there is no tax liability.

Furthermore, the tax liability is factored into your salary by the company you work for.


14 posted on 11/26/2011 2:06:57 PM PST by trumandogz (In Rick Perry's Nanny State, the state will drive your kids to the dentist at tax payer expense)
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To: SeekAndFind

I am sick of these cops being blamed for tear-gassing “innocent” protesters.

THE PROTESTERS HAD SURROUNDED THE POLICE

The police warned them several times that they would use pepper spray and a group of them sat down and ‘assumed the position’ in order to get sprayed.


15 posted on 11/26/2011 2:22:38 PM PST by Mr. K (Physically unable to proofreed <--- oops, see?)
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To: trumandogz; SeekAndFind

Thanks for posting first-hand FReeper knowledge. Interesting (a bit of America bashing from Simon Black IMO) post and 244 comments at zh (thanks to the great posters there).


16 posted on 11/26/2011 2:25:04 PM PST by PGalt
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To: BobL

That was a good start!


17 posted on 11/26/2011 2:31:24 PM PST by WellyP (REAL)
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To: SeekAndFind

“That is, if you don’t mind living in an earthquake belt and don’t mind learning Spanish.”
______________________________________

I would not mind improving my Spanish, but after watching an Earthquake program a few days ago (I think it was on Natl. Geo channel) living in Chile would scare the H out of me. The last big quake looked like Armageddon, but they predict another one that would about end all life there.

Of course the same could happen with the New Madrid fault
in the US.

asdfgkl


18 posted on 11/26/2011 2:33:35 PM PST by AlexW
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To: SeekAndFind
...America is the only country I know that taxes you based on citizenship, not where you earn your income. Go Figure...

But it's the land of the free, doncha know.

19 posted on 11/26/2011 2:34:43 PM PST by FReepaholic (Stupidity is not a crime, so you're free to go.)
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To: WellyP

I spend a lot of time in Chile. It’s a good place with mostly nice people. The cops are straight and don’t put up with much BS.

Chile is depopulating slightly. Chile will get more selective with respect to immigration in coming years but they need good skilled people.


20 posted on 11/26/2011 2:39:19 PM PST by WellyP (REAL)
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To: trumandogz

“A US couple living overseas in exempted on approximately the first 200k of income and after several years of actually living overseas, there is no tax liability.

Furthermore, the tax liability is factored into your salary by the company you work for.”

Further, taxes paid overseas ar either a credit, or a deduction, against your US tax obligation.

Most Americans working overseas are “tax equalized,” such that after tax, they net their salaries PLUS overseas incentive pay.

My coworkers used to see overeas work as an opportunity to see the world, and earn/save more money than they would in the US.


21 posted on 11/26/2011 2:40:16 PM PST by truth_seeker
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To: SeekAndFind

Chile is reportedly where America was back in the 50s - with more freedom than we now have.


22 posted on 11/26/2011 2:41:32 PM PST by aMorePerfectUnion (You know, 99.99999965% of the lawyers give all of them a bad name)
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To: truth_seeker

And some countries have a reciprocal agreement to where you just pay taxes in one country.


23 posted on 11/26/2011 2:43:18 PM PST by trumandogz (In Rick Perry's Nanny State, the state will drive your kids to the dentist at tax payer expense)
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To: ErnBatavia

Nice


24 posted on 11/26/2011 2:44:42 PM PST by therightliveswithus
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To: trumandogz
"I carry two passports out of necessity...."

One if I'm working in Israel and a seperate one if I need to travel to Saudi Arabia (or any Muslim country, for that matter).

25 posted on 11/26/2011 2:48:19 PM PST by Psalm 73 ("Gentlemen, you can't fight in here - this is the War Room".)
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To: SatinDoll

Amen Brother.

If he likes it there—stay there.

STFU and stop bad-mouthing America.


26 posted on 11/26/2011 2:48:34 PM PST by Venturer
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To: trumandogz

Having almost 40 years experience working abroad (in quite a few different countries along the way) for an American company, I can tell you that you are waaay off the mark with your sunny assessment.

Where do you come up with a $200k income exclusion? IN truth, a US couple is exempted on only the first approximately $91,500, plus (under certain circumstances) a modest housing allowance.

BUT, you must be aware that the US government considers many elements of employer deployment cost to be income to the employee. For example, if you get a trip home annually paid by the company, that’s income. If you have to have your kids in an english language school because they can’t speak the local language or because they aren’t legally eligible to attend local government schools, and the company picks up the tuition (usually about $10,000 to $15,000 per year per kid) that’s income. The list goes on. In the last 10 years of working abroad, I never had ANY part of the exclusion actually applied against real, disposable income. It was all used up on employer costs of deployment, attributable to me as income by the IRS, but not available to me to save or spend.

And, here is another error: You NEVER see sunset on these taxes, not after “several years”: not EVER.

It is true, as you say, that at least to some extent “the tax liability is factored into your salary by the company your work for”. But, you have to know, that since Brits and Aussies, just to name two nationalities among many, don’t require as much to be factored in because their countries don’t hound them for taxes, they are MUCH cheaper to hire and deploy. The benefits that Americans can expect from their employers have steadily declined for years.
Competition, you see.

And a few years ago, when US tax laws were changed to take the income exclusion off the bottom rather than the top, Americans became about $10,000 a year even more expensive as compared to other nationalities.

In my company, that US tax law change became known as the Australian Full Employment Act as American after American was replaced by Australian new hires.


27 posted on 11/26/2011 2:55:19 PM PST by John Valentine
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To: SeekAndFind
America is the only country I know that taxes you based on citizenship, not where you earn your income. Go Figure.

Thats because we live under an illusion of freedom in many respects.

28 posted on 11/26/2011 3:05:03 PM PST by ColdSteelTalon (Light is fading to shadow, and casting its shroud over all we have known...)
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To: SatinDoll

If your husband (the govt) begins abusing you, beating you, taking away your rights little by little, would you make a plan B? This is not un-American, it is very much in the spirit of the early colonists. I for one love this land, love the people, but HATE the government, the political system, parties and the corruption and sloth of nearly 50% of the people. If I could afford to move, I would find another state at the minimum. Another country if I thought it had more Liberty.


29 posted on 11/26/2011 3:17:03 PM PST by runninglips (Republicans = 99 lb weaklings of politics. ProgressiveRepublicansInConservativeCostume)
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To: John Valentine
I agree with everything you posted. The foreign exemption was good back in the early to mid 80"s (worked in the middle east and Latin America for eight years). Congress destroyed US worker foreign competitiveness by mucking around with Reagan's reforms. There is no greater greed than a congressman eyeing taxes.

It is disappointing that so many freezers are exhibiting the sin of envy lately. A very OWS evil.
30 posted on 11/26/2011 3:19:01 PM PST by PA Engineer (Time to beat the swords of government tyranny into the plowshares of freedom.)
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To: runninglips

My ancestors came here in the 1600s.

We have had family members fight in every war; during the Civil War, members fought on both sides.

I’m not going anywhere. It is OUR government, no one else’s.


31 posted on 11/26/2011 3:22:19 PM PST by SatinDoll (NO FOREIGN NATIONALS AS U.S.A. PRESIDENT)
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To: PA Engineer

freezers=freepers


32 posted on 11/26/2011 3:23:43 PM PST by PA Engineer (Time to beat the swords of government tyranny into the plowshares of freedom.)
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To: SeekAndFind

The more passports you have the better!


33 posted on 11/26/2011 3:25:03 PM PST by sand lake bar (You have not converted a man because you have silenced him.)
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To: SatinDoll

Same here - but they came for liberty, and that is disappearing year by year...


34 posted on 11/26/2011 3:38:34 PM PST by aMorePerfectUnion (You know, 99.99999965% of the lawyers give all of them a bad name)
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To: SatinDoll

It is not OUR government. The contract, the Constitution has been abrogated by “OUR” government. We are ruled by an elite far away regime, that does not listen to us, or follow the limits of it. The Executive branch does not even answer to the Legislative branch. To stay and fight is noble and correct. Some would not, but it is not a shame to move on. It is better than choosing the Rat side. Make no mistake about it. There will be bloodshed, initiated by someone. The purpose, to give the Federal govt the reason it wants. Why do you think that 0 is forcing the U.S. to have to join Mexico in a lawsuit against States? To bring it to a World Court. This is a well planned operation, and when the SHTF, after the fiat money scam collapses world wide, the “backup plan” will be rolled out.


35 posted on 11/26/2011 4:01:11 PM PST by runninglips (Republicans = 99 lb weaklings of politics. ProgressiveRepublicansInConservativeCostume)
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To: runninglips

Best you leave.


36 posted on 11/26/2011 4:22:07 PM PST by SatinDoll (NO FOREIGN NATIONALS AS U.S.A. PRESIDENT)
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To: Mr. K

“THE PROTESTERS HAD SURROUNDED THE POLICE”


The protestors were THRILLED when pepper spray was used.

It gave them one more thing to whine about.

Police brutality blah,blah,blah.


37 posted on 11/26/2011 4:33:40 PM PST by Mears (WHEN THEY)
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To: truth_seeker

Please don’t confuse folks here with facts.


38 posted on 11/26/2011 5:13:05 PM PST by conservaterian (Sarah/DeMint '12-XXX= Now what? Cain?XX Guess not.)
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To: MIchaelTArchangel
Sounds pretty much like living in Kaleefourneeuh

Not really. Many Chileans learn English in school and are happy to practice it with you.

39 posted on 11/26/2011 5:47:14 PM PST by magslinger (Who cares if they are"electable" if they are going to govern like Democrats? -noprogs)
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To: ErnBatavia

“if you don’t mind living in an earthquake belt and don’t mind learning Spanish: California”

lol! I was thinking the same thing!


40 posted on 11/26/2011 6:02:17 PM PST by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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