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Second PassportsSecond Passports for US Citizens - Biden's Capital Gains Tax Hike

April 27, 2024by ShubhamLGP0

As news of President Biden’s proposed 44.5% capital gains tax increase sends shockwaves through the financial world, Americans are scrambling to safeguard their assets. The potential hike, aimed at ‘funding social programs and infrastructure’, has sparked concerns about wealth preservation and tax efficiency.

Quite remarkably, this rate would exceed all-time highs on federal capital gains taxes since their inception. The hike would apply to individuals with taxable income surpassing $1 million and investment income exceeding $400,000.

The prospect of a significant increase in capital gains tax will inevitably lead to an increase in demand from High Net Worth Americans to explore alternative options for wealth management and asset protection. One such avenue set to increase in demand is the acquisition of second passports for US citizens, offering access to favourable tax regimes and investment opportunities abroad and ultimately a back up plan for when things turn sour.

If you require assistance with such matters then look no further. Contact us through the form below and we can proceed to set up an initial consultation.

In the meantime here’s a look at some popular destinations for obtaining second passports:

Caribbean Citizenship By Investment

The Caribbean nations of St. Lucia, Grenada, St. Kitts and Nevis, Dominica, and Antigua and Barbuda offer Citizenship by Investment (CBI) programs, providing a relatively swift pathway to second citizenship. These programs typically require investment in real estate or a donation to the country’s development fund. Costs vary, with investment amounts starting from around $100,000 for a single applicant, plus additional fees. However, pricing is set to double at the end of June.

European Golden Visas

Several European countries, including Portugal, Malta, and Cyprus, offer residency programs that appeal to Americans seeking European integration and access to the EU market. Portugal’s Golden Visa program which has been particularly popular with Americans in recent years requires investment into local investment funds with a minimum investment threshold of €500,000. Alternatives include donations into scientific research and cultural projects plus investments into businesses that create jobs. The beauty of this program is that Portugal offers a 5 year pathway to citizenship for investors from the moment they submit their residency application.

Vanuatu’s Appeal:

Vanuatu, an island nation in the South Pacific, has re-emerged as a popular destination for those seeking a second passport through its Development Support Program (DSP) as a result of price increases in the Caribbean.

As of June Vanuatu will be the most affordable citizenship by investment program on the market starting from $130,000 USD for a single applicant. With fast processing times and a new investment option for families of 4 at around the $150k mark Vanuatu offers great value for those seeking a second passport.

Conclusion

To summarise, as Americans navigate the potential impact of Biden’s proposed capital gains tax increase, the already profound interest from the US market is likely to explode to new heights.

Whether opting for Caribbean, European, or Pacific options, individuals must carefully consider their financial goals, investment capabilities, and long-term plans when exploring second citizenship opportunities.

Lincoln Global Partner’s is on hand to assist clients throughout the entire process from the initial decision making stage to the entire application procedure.

ShubhamLGP

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