Asset Protection BLOG - Mark Nestmann

Dominica Airport Certified for Night Landings

By P. T. Freeman

The Commonwealth of Dominica isn't easy to reach from most parts of North America.  Unless you book a red-eye flight into the Caribbean, or live near the east coast, you must overnight in Barbados, Antigua, St. Maarten or San Juan.  Melville Hall, the main airport, and also tiny Canefield airport, close at evening civil twilight.

That's about to change, thanks to a recently completed upgrade to Melville Hall. Renovations included lengthening the runway, and installing landing lights, an instrument approach, along with other navigational facilities.  The immigration/customs hall and departure lounge were also refurbished.  

International air regulatory agencies have certified the renovations, and the carrier responsible for most flights into Melville Hill, LIAT, recently completed a successful landing at night.  LIAT and other Caribbean carriers can now offer arrivals and departures to and from Dominica after nightfall.  This ends the need for an overnight stay to reach Dominica from many parts of North America.  

It's hard to overstate the importance of this development to the development of Dominica's eco-tourism industry, a major source of foreign exchange. Keep an eye on the coming few months for the schedule changes on LIAT: http://www.liatairline.com/.

U.S. and Canadian visitors to Dominica enter visa free on their respective passports.  Visitors with Dominica passports—such as those who have acquired "economic citizenship" there—should present their Dominican passports upon entry.  

(The Commonwealth of Dominica is one of a handful of countries that offer citizenship and passport in exchange for an economic contribution.  It has the most affordable program, with total costs for a single applicant around US$100,000.  The government of Dominica lists The Nestmann Group, Ltd. as an officially recognized consultant for economic citizenship in Dominica.  For more information on how you can obtain economic citizenship in Dominica, contact info@nestmann.com.)

Traveling to Myanmar on a Dominican Passport

By P. T. Freeman

I'm in Yangon, Myanmar after a long airplane ride across the Pacific from Canada and an overnight layover in Thailand. 

Entering Myanmar on my Commonwealth of Dominica passport was uneventful, as it has been for most other countries I have entered using it.  Since Dominica is a small, peaceful country, it doesn't draw undue attention—or hostility—as the U.S. passport I once carried does.  I find I'm much more free and inconspicuous while traveling on a Dominica passport. 

I landed at the Yangon airport, went down the escalator at the new terminal and went to the desk marked "Visa on Arrival".  The uniformed officer behind the desk gave me a one-page application to complete.  I also needed to provide a passport-size photograph.  I've learned to carry several of these with me when I travel internationally.

A few minutes after I submitted the form with my passport and photo, the officer instructed me to pay $30.  When I did so, he returned the passport to me with a Myanmar visa stamp.  Once I gave him my Disembarkation Card, I was admitted to Myanmar.  Next, I went to Passport Control where my particulars were entered into a computer and another photo taken.  Finally, I reclaimed my luggage at Baggage Claim, cleared Customs, and finally exited the terminal.

Many countries have a visa on arrival system.  While you will have a short wait at the visa desk, the system is convenient and relatively hassle-free.  Since border authorities now have the ability to check computer databases within seconds, look for this system to expand. 

Since I obtained citizenship-for-life in Dominica 11 years ago, I have traveled around the world on my Dominican passport.  I've only been questioned about it once, at London's Gatwick Airport, where the immigration officer asked if I still carried my U.S. passport.  After telling him "no," I was admitted into the UK without further delay. Also, on a trip to Switzerland, when I arrived in Geneva, the immigration officer had never heard of Dominica before!  He consulted a manual, verified that Dominica is a sovereign nation, and admitted me immediately.

And Myanmar?  While Thailand calls itself the "Land of Smiles," I find it applies more in Myanmar than in Thailand.  Most people are poor and obedient, but that doesn't take from the friendliness that I encountered.  Very few tourists visit Myanmar, so the people are very solicitous to those who come.  

Until my next post, I wish you pleasant journeys on your Dominican passport!

(P.T. Freeman is a pseudonym for a friend and business associate.  A former U.S. citizen, P.T. now travels on a Dominican passport.  To learn how you can obtain a Dominican passport, contact info@nestmann.com.)

Six Top Expatriation Myths

If you're a U.S. citizen or permanent resident, the U.S. government has assigned itself the right to tax your income, no matter where you live.  I sometimes tell U.S. clients that even if they jumped in the Starship Enterprise and traveled to the Delta Quadrant (30,000 light years away from earth at its closest point), they would still be subject to U.S. tax!

In response to the ridiculous—but unfortunately very real—presumption that U.S. citizens must pay income tax wherever they live, an increasing number of U.S. citizens are giving up their U.S. nationality.  Yes, it's a big step, and it means you no longer have the legal rights and privileges of a U.S. citizen.  You can't vote, for instance, and you no longer have the automatic right to live in the United States.  But this process of expatriation is the only way U.S. citizens can permanently sever the obligation to pay tax on non-U.S. income.

However, there are also a number of myths—many of them propagated over the Internet—about expatriation.  I'll be discussing these myths—and debunking them—in one of my presentations at The Sovereign Society's upcoming Offshore Advantage Academy event in Cabo San Lucas, Nov. 3-6, 2010. 

Here's a preview:

Myth #1: "Only a tiny number of people expatriate each year." 

It's true: the "official" number of people who take this admittedly radical step is tiny—only a few hundred annually.  The Treasury Department is supposed to publish their names in the Federal Register each quarter.  But the real numbers are much higher. 

One especially busy U.S. consulate in Switzerland expatriates three people daily with appointments booked a year in advance.  That comes to close to 1,000 expatriations annually—just from a single consulate. 

Another reason the official numbers are so low may be that the law mandating Federal Register reporting by the Treasury Department applies only to "covered expatriates."  These are individuals who have a net worth over $2 million, or who meet other criteria making them potentially subject to an exit tax.  However, none of the covered expatriates my firm has helped expatriate has had their name published in the Federal Register. 

I think the government doesn't want you to know that the number of people expatriating is exploding.  And it's willing to "cook the books" to make sure the information doesn't get out.

Myth #2: "You have to pay an exit tax on your net worth when you expatriate"

I was at a dinner meeting a few months ago where I was introduced to an elderly gentleman who insisted that anyone who expatriated would automatically forfeit 15% of his or her net worth.

When I asked him for a legal citation to this "fact," he simply repeated his assertion.  He also mentioned that he was a major contributor to the organization sponsoring the event we were attending.  That no doubt earned him some brownie points at this organization, but it doesn't make his assertion correct.

The fact is that the exit tax now imposed on U.S. expatriates only applies if you're a covered expatriate.  And even if you are, the exit tax only applies to unrealized gains that exceed $627,000. 

There's no exit tax on your net worth simply because you've expatriated.  Of course, that may change in the years ahead if Congress decides to put the screws to expatriates in some future law.

Myth #3: "You can only spend 30 days/year in the USA."
 
Another misconception is that if you expatriate you can only spend 30 days each year in the United States without becoming subject to U.S. tax on your worldwide income. 

This myth actually has some basis in fact, because it was true under an old law that was abolished in 2008.  And it still applies if you expatriated between 2004 and 2008.  But no longer.  Now expatriates are treated the same as any other non-resident alien (NRA).  In general, a non-resident alien can spend an average of 120 days/year in the USA without becoming subject to tax on his or her worldwide income.  This period can be extended in some circumstances.

Myth #4: "If you expatriate you can't come back."

There's another rumor that once you expatriate you can never return to the United States.  That's hogwash, although again there's a small basis in fact to the rumor. 

In 1996, Congress enacted the so-called Reed amendment to the Immigration and Nationality Act.  The amendment gives the Attorney General the discretion to deny entry into the United States to a former U.S. citizen who renounced U.S. citizenship in order to avoid U.S. taxation.  

Other categories of "excluded persons" are those with communicable diseases or other health conditions; those convicted of crimes involving moral turpitude or illegal drugs or with multiple criminal convictions; prostitutes; spies; terrorists; and draft evaders.

After Congress enacted the Reed Amendment, commentators criticized it for violating US treaties and possibly the US Constitution as well.   And nearly 15 years after its original enactment, regulations under this provision have not been issued, and its power has never officially been invoked. 

"Tax motivation" is no longer a factor in determining the status of a covered expatriate.  For this reason, the Reed Amendment may no longer be relevant, particularly since it has been so long since its enactment, with no regulations in place to enforce it. 

Given this history, it may be safe to assume that one can safely give up U.S. citizenship with no fear of future exclusion, particularly if you choose an expatriation option other than formal renunciation. 

Myth #5: "Expatriates lose Social Security benefits"

Again…not true!  No restrictions exist on Social Security payments sent to non-citizens in most cases.  The only significant restrictions are if you live in a country upon which the U.S. government has imposed trade or financial restrictions; e.g., Cuba, North Korea, or Iran. 

However, if you're not a U.S. citizen, depending on where you live, there may be a withholding tax of as much as 30% on the first 85% of your monthly payment.  This percentage may be reduced or eliminated if there's a tax treaty between the United States and your residence country. 

Myth #6: "Expatriates are automatically targeted for reprisals by the IRS"

Thank goodness this myth is false.  There is no IRS vendetta against expatriates.  Quite the opposite!  The IRS has much easier pickings going after people still living in the United States, with substantial U.S. assets.  It can use its resources more efficiently than to harass former U.S. citizens not living in the United States and with minimal or no U.S. assets or activities. 

Indeed the act of expatriation stops the clock on all future IRS obligations.  You still have obligations to pay past taxes, but the statute of limitations for collections eventually runs out assuming you've filed all relevant returns for tax years prior to expatriation.

Is Expatriation for You?

Exploding expatriation myths is just one part of the presentation I'll be making on this topic in Cabo San Lucas.I'll also be discussing:

• The best options for second citizenship and passport for prospective expatriates
• How to size up an offshore jurisdiction as a prospective low-tax residential haven.
• Tax planning for prospective expatriates with family members remaining in the United States…

…And much more. 

You won't want to miss it.  For more information on this event, click here:

See you in Cabo!

Copyright © 2010 by Mark Nestmann

P.S. To learn more about expatriation, check out my BILLIONAIRE'S LOOPHOLE report in the bookstore on my Web site, http://www.nestmann.com.

Buying Property and Casualty Insurance Abroad

Those of us living in the United States take property and casualty insurance for granted.

But if you move abroad, you’ll quickly discover that coverage on your property may not be available.  If it is available, it may be more expensive and contain more exclusions than a U.S. policy.

For instance, friends of mine who live part of each year in Spain told me a few years ago that they couldn’t purchase any property insurance on their beachfront condo near Barcelona.  They’ve now found a policy, but at a cost well above what they pay for comparable property in Scottsdale.

I asked my friend and business partner “P. T. Freeman,” how difficult it was to obtain property insurance for a single-family home he and his family live in on a Caribbean island.  Here’s what he told me:

In preparation for a vacation, and as well as for the onset of hurricane season, I recently paid up my insurance premiums on my residence and reread my insurance policies.  I noticed a clause in my homeowners insurance that reads:

"Notwithstanding anything herein contained to the contrary, it is hereby declared and agreed that if the premises described in the Schedule hereto shall be left uninhabited for seven or more consecutive days or night, this policy shall cease to apply to Jewellery, Watches, Trinkets, Personal Ornaments, Furs, Gold & Silver, and electrical fixtures/electronic items therein, but if any such property is removed to a Safe Deposit Bank, or other inhabited place .... it shall be covered while there for not more than thirty days in any one period of insurance within twelve calendar months."

Despite these exclusions, I pay a hefty premium for these policies over comparable coverage in the United States.  For instance, my friend and colleague Mark Nestmann pays only about 50% of this premium for his residence in Phoenix with similar coverage. 

With this issue in mind, I contacted the claims manager of the insurance company and he invited me to his office to discuss this matter.  During the discussion, he noted that there has never been a claim filed against this policy, but that as a policyholder, I should act as a prudent insured taking all necessary precautions.  Apparently, the “necessary precautions” include removing most valuable items from the home upon any period of prolonged absence. 

The manager also hinted that the exclusion clause could be interpreted in different ways.  At the end of our discussion, we agreed that I would remove all jewelry; however the electric/electronic and the other items could remain behind, provided I set my alarm and asked somebody to come and check on the house every three days or so.

The moral of the story is when you resettle abroad, different laws and jurisprudence come into play.  If your policy is written in a foreign language, pay to have a competent translator translate it into English.  If you have questions, talk them over with the company that sold you the policy. That way you can avoid unpleasant surprises if you ever need to make a claim.

Copyright © 2010 by Mark Nestmann

The Tax Hazards of a U.S. Passport

By P. T. Freeman

(P.T. Freeman is a pseudonym for a friend and business associate who is a former U.S. citizen.)

Recently, I was having a conversation with a friend of mine who is a journalist here in the Caribbean.  While she grew up in the islands, she was born in Florida. During my friend’s early childhood, her mother divorced and relocated to the Caribbean.  Subsequently, her mother remarried and the husband formally adopted my friend as his legal daughter.

In the course of our conversation, my friend mentioned that she had just re-discovered her long-lost U.S. passport in a drawer at her mother's home.  It had expired a few years ago.  In the intervening years, she had visited the United States several times, but using another passport.  This is a serious violation of U.S. law, because U.S. citizens must always use their U.S. passport to cross U.S. borders.  However, because her stepfather’s last name appears on my friend’s Caribbean passport, no "alarm bells" were ever triggered when she crossed a U.S. border.

But, this was just the beginning of my friend’s problems. I asked her is she was still filing U.S. tax returns.  “No,” she replied. “I left the United States when I was a child.  Why would I have to file tax returns there when I’ve never worked there or even lived there since childhood?”

I patiently explained that the United States requires its citizens to pay tax on their worldwide income, no matter where they live.  I also told her that she possibly faced a long prison sentence for not disclosing each year the existence of all bank accounts she held outside the United States with an aggregate value exceeding $10,000. And I mentioned that while she could make an appointment to give up her U.S. passport at a local U.S. consulate, she would continue to be subject to these taxes and criminal sanctions for all past years.  She could be arrested and taken into custody anytime she visits the United States!

Her response was a mixture of horror and disbelief.  After a few minutes, she replied "well, screw 'em!  They can keep their damn passport." 

I doubt that the Department of State will collect any passport renewal fees from this young lady!  But even if she formally gives up U.S. citizenship and “expatriates,” that still won’t eliminate her past tax or reporting obligations.  She needs legal representation in the United States to deal with these obligations, and it won’t come cheaply.

The moral of this story is that if you are a U.S. citizen, no matter where you live, you must file a U.S. tax return each year. You must also disclose details of every “bank, securities or ‘other’ financial account” to the U.S. Treasury each year, if their aggregate value exceeds $10,000 on Form TD F 90-22.1.  Incidentally, the information on the TD F form may be shared with virtually any government or police agency anywhere in the world!

Being a former U.S. citizen, I am no longer subject to these unreasonable and frankly dictatorial requirements.  Nor am I subject to U.S. jurisdiction, except to the extent of my U.S. investments, or when I visit the United States. 

That’s true freedom, and the essence of being a “sovereign individual.”

Living in the Caribbean as an Expat

What's it like living on a small island as an expat?  You're an outsider; you may have different colored skin from the natives; and you may not even speak the same language.  My friend and colleague P.T. Freeman gives you the benefit of his 10 years of experience living as a former U.S. citizen in the Caribbean.

After I acquired a second citizenship, gave up U.S. citizenship, and settled in the islands, I found some aspects of life were easier there than in the United States.  Others were more difficult.

One key difference is in the simple act of shopping for clothing, household goods, and groceries—almost everything.  You'll find fewer brands to select from.  For instance, since most food items are imported, you may be able to find Lays potato chips in the grocery store, but perhaps not Tostitos.  Don’t expect stores to be open 24 hours a day, either.  Very few are, and some islands restrict the hours stores can operate.

Nor can you expect to live anonymously on a small island, the way you can in a big city like New York or Los Angeles.  First of all, as a foreigner you will stick out like a sore thumb!  Second, you will have to register your residential address with the police and other government agencies.  Only after you have registration documents in hand will you be able to sign up for utilities and open a bank account.  You may also need to demonstrate that your immigration status gives you the right to live on the island.

Lastly, don't expect that the people you deal with—especially in the government—to do things promptly.  As in many countries, Caribbean people—and especially bureaucrats—don't like confrontation.  They may make promises they can't keep, provide deadlines they have no intention of honoring, etc.  A small example is if someone from the phone company promises to let you know when you can expect to have your phone installed.  You won't ever hear back from anyone.  You have to contact them every day and ask when the phone will be installed.  In my case it took eight months until I received telephone service!

If this sounds like "sour grapes," it's not.  I don't regret for one moment my decision to leave the United States.  I don't miss the everyday indignities and privacy invasions I suffered living in my native land.  Except for banks, hotels and some government offices, there is no 24-hour camera surveillance where I now live.  The police don't dress up in Ninja costumes and invade people's homes with guns drawn.  The concept of "civil asset forfeiture" where the government can seize everything you own without even accusing you of a crime is unknown.  Indeed, unless you're suspected of committing a serious criminal offense, you're unlikely to come into personal contact with the police at all. 

Most of all, I really feel free.  I can express my opinion, travel without being questioned as to where I was or where I'm going, and invest anywhere in the world without being told, "Sorry, we don't accept U.S. clients." 

And, if I want to return to visit family and friends in the United States, I simply show the friendly customs agent at the U.S. border my Dominica passport with the U.S. visa sticker.  But it's always nice going home…to the islands.

Copyright © 2010 by Mark Nestmann

Island Politics

One reason people tell me for leaving the United States to live overseas is because they’re tired of politics.

But when you relocate to another country, you’re don’t leave politics behind.  Indeed, according to my friend and colleague P.T. Freeman, who lives on an island in the Caribbean, if you move to a smaller jurisdiction, you’ll find local politics are taken very passionately and seriously. 

What's more, says P.T., politics are very personal, not unlike "small town America".  Local residents vote for the person who will grant them access to opportunities: a government job, a permit, or a contract. 

Voters don’t really care how candidates stand on the issues.  The candidate can be a communist, a socialist, a fascist, or anything in-between.  What matters is access.
In the islands, most civil servants are political appointees.  If they campaign for the winning candidate and party, they’re rewarded with a government job.  This is extremely important in poorer island jurisdictions with high unemployment rates. 

What happens if the candidate and party that you supported doesn't win?  Expect to be punished.  The permit, job or contract that you seek will be denied.

As an outsider, the best advice I can give to Americans or anyone else from larger and more cosmopolitan countries that choose to settle in small jurisdictions is to maintain friendly relations with all political parties.  Don’t get too close to any particular candidate whether or not they’re part of the government.  If you do, you’ll eventually be punished by the opposition.

Finally—don’t take anything a candidate says seriously.  Promises of economic development, socialistic solidarity, or jobs for the unemployed are just that—promises.  All that really matters is access.

Dealing with island politics—just another strategy to becoming a sovereign individual!

Copyright (c) 2010 by Mark Nestmann

No Visa? With "Visa on Arrival," There's No Problem

For the last few years our clients have traveled to dozens of countries with passports issued by the Commonwealth of Dominica.  And while you can't travel to as many countries without a visa with a Dominica passport as you can with, say, a U.S. passport, in many cases that poses no impediment to international travel.  The secret is a little-known system (at least to U.S. travelers) called "visa on arrival."

Here's how the system works in many countries, especially in Asia.  Upon arrival of your international flight, all passengers are directed to passport control.  Just before you arrive, you will see an office or desk marked "Visas."  If you haven't already obtained a visa at a consulate or embassy, this is where you can obtain one. 

To obtain your visa on arrival, all you need to do is to complete a form, present one or two passport-sized photos, and pay a nominal fee—generally $50 or less.  (If you travel to other countries extensively, you'll learn to carry a dozen or so spare passport-sized photos with you.)  This entire process takes only a few minutes, although if you're at the back of the line, you may need to wait a little longer. When completed, the visa clerk will affix a sticker to one of the visa pages in your passport.  You then proceed to passport control.

Our clients have used the visa-on-arrival system in many countries with their Dominican passport, including Vietnam, Laos, Jordan, Myanmar, Bangladesh, Timor Leste, and other countries too numerous to name.  Other countries, such as Panama and the Dominican Republic require a tourist card.  Again, you can purchase this card at the visa desk or even from your airline carrier. 

All you need to do to use this system is to find out in advance what the visa requirements are for the country or countries you plan to visit a few weeks in advance of your visit.  Often, you can find this information on an airline Web site.

The easy availability of visa-on-arrival or tourist cards greatly increases the number of countries you can travel to on your Dominica passport without needing to make advance arrangements with consulates.  And all that's required to use this system is a few minutes time on the Internet—and of course, a valid passport, such as one from the Commonwealth of Dominica.

(To learn more about the how you can obtain "economic citizenship" and a passport from the Commonwealth of Dominica, send an email to me at info@nestmann.com).

Why I Gave Up My U.S. Citizenship [Part III]

By P. T. Freeman

(P.T. Freeman is a pseudonym for a friend and business associate who is a former U.S. citizen. This is his story of how he reached the breaking point of giving up U.S. citizenship.  In Parts I and II, P.T. described the events that led him to consider giving up U.S. citizenship and the mechanics of doing so.  Here, in this concluding segment, he discusses his experiences during and after expatriation.) 

As I entered the U.S. consulate to give up my U.S. citizenship, my mind was whirling.  Was I doing the right thing?  Would the momentous step of expatriating come back to haunt me in some way later in my life?  Despite these misgivings, I was determined to see this process through to the end.

However, I was surprised how smoothly the process went.  The U.S. consular officer I met with was completely non-judgmental.  He gave me some official government forms to complete and asked me if I understood the consequences of giving up U.S. citizenship.  The forms required me to state that I wasn't expatriating under compulsion, that I was of sound mind, and that that expatriation was, in fact, irrevocable. 

After I completed the forms, the official took my U.S. passport, as well as the forms. He also made a copy my new passport to demonstrate to the State Department that I would not be a "stateless person" upon giving up U.S. citizenship. While the United States (unlike most nations) doesn't prohibit its citizens from becoming "stateless," State Department policy is to discourage them from doing so. He also informed me that in a few weeks, I would receive an official document called a "Certificate of Loss of Nationality" or CLN.  The entire process took less than 30 minutes, most of which were waiting for copies to be made and other administrative processes.

About two months later, I received my CLN.  This was my official notification that I was no longer a U.S. citizen.  Attached was a letter explaining that I could appeal my loss of nationality, if I chose to do so, directly to the Attorney General. Occasionally, I'm asked to show a copy of the CLN to prove my ex-citizen status when doing business or banking internationally.  This is due to the many restrictions offshore institutions place on doing business with U.S. citizens.

Since I still have family and business interests in the United States, my next step was to take my Dominica passport and CLN back to the U.S. consulate and apply for a multiple-entry visa to visit the United States.  In a short meeting with a consular officer, I was asked whether I intended to permanently settle in the United States.  Of course, I had no intention of once again becoming subject to the jurisdiction of OFAC and the IRS!  Once I assured the officer I had no such intention, the visa was issued within a few hours.  This visa gives me the right to visit the United States for up to 90 days at a time, although not to reside there. 

While I completed these steps only a few years ago, I have already experienced enormous benefits both personally and in business. I can travel anywhere in the world with my new passport. And I now have extensive business interests in Cuba and other countries subject to U.S. sanctions.

I started this series of articles at the marker in Key West, looking over the Straits of Florida.  I will end there as well.  In a recent visit to Key West, I turned around and saw a group of tourists who had disembarked from a trolley tour and were snapping pictures of the marker. None of those tourists who are U.S. citizens or residents can visit Cuba. I can. Those who are U.S. citizens or residents also have to file an annual tax return with the IRS. I don't.

That's what you call true liberation—or if you prefer, being a "sovereign individual."

(Editor's Note: For more information on expatriation, please see my report THE BILLIONAIRE'S LOOPHOLE in the bookstore at http://www.nestmann.com.  And, stay tuned for future contributions from P.T. Freeman.)

Why I Gave Up My U.S. Citizenship [Part II]

By P. T. Freeman

(P.T. Freeman is a pseudonym for a friend and business associate who is a former U.S. citizen. This is his story of how he reached the breaking point of giving up U.S. citizenship.  In Part I, P.T. described the events that led him to consider giving up U.S. citizenship.  In this segment, he describes the mechanics of doing so.) 

After making the decision to give up my U.S. citizenship, I began looking into ways of obtaining an alternative citizenship and passport. I conducted some research on the Internet, but then, as now, many of the companies offering passports were thinly disguised scams offering unofficial or even stolen documents.

However, there were, at that time, a few Caribbean countries that offered legitimate "economic citizenship" programs. With the aid of an attorney, I began to conduct research into which program would best suit me. I looked at cost, the availability of visa free travel, credibility, and the desirability of that country as a residence.

After considerable research, I chose the Commonwealth of Dominica and visited it. While Dominica lacks some of the amenities of the United States, I liked the country and decided to possibly settle there, or at least maintain a residence or business presence. I paid the necessary fees to obtain economic citizenship and met with some government officials. Several weeks later, after an extensive background check, I swore an oath of allegiance to this country, was granted citizenship and subsequently obtained my passport.

A major concern was whether persons who had obtained economic citizenship from this country would be subject to discrimination, either from its residents or at border crossings. I found that there were no real problems in either case. Indeed, my passport was identical to those issued native-born Dominica citizens. While I ultimately made the decision to settle elsewhere, I lived in Dominica for several months and still invest there.

After obtaining this second passport, at the advice of my attorney, I decided to take the biggest step of all: giving up my U.S. citizenship. Walking up to the U.S. embassy, my heart was pounding. I feared that I was going to be called a traitor. I had also been advised that individuals who gave up their U.S. citizenship for tax reasons could be permanently excluded from ever returning to the United States. (Note: This provision is part of the 1996 immigration bill, but has never been enforced due to questions about its constitutionality. See my report THE BILLIONAIRE'S LOOPHOLE for more information.)

(In Part III of this article, P.T. describes his encounter at the U.S. consulate and his experiences as a former U.S. citizen.)