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.
“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.
Chile is reportedly where America was back in the 50s - with more freedom than we now have.
And some countries have a reciprocal agreement to where you just pay taxes in one country.
Nice
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).
Amen Brother.
If he likes it there—stay there.
STFU and stop bad-mouthing America.
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.
Thats because we live under an illusion of freedom in many respects.
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.
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.
freezers=freepers
The more passports you have the better!
Same here - but they came for liberty, and that is disappearing year by year...
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.
Best you leave.
“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.
Please don’t confuse folks here with facts.
Not really. Many Chileans learn English in school and are happy to practice it with you.
“if you don’t mind living in an earthquake belt and don’t mind learning Spanish: California”
lol! I was thinking the same thing!
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