While the USA has always been a preferred destination for immigrants, rich as well as poor, there is growing demand for economic citizenship or investment immigration programs among affluent individuals including American citizens seeking opportunities outside the USA.
Investment immigration is becoming popular internationally because it enables wealthy individuals move to a stable political and economic environment. A second passport can guarantee protection from discrimination, access to quality education, a shift to a better lifestyle including medical facilities, and visa free travel privileges.
There are many reasons why a US citizen may wish to opt for global citizenship through investment immigration. Relief from USA tax laws is a primary reason for many ultra high net worth individuals, who have offshore banking facilities.
The easiest way to acquire citizenship of another country is to acquire it from a nation offering a citizenship by investment program. For example a popular option for many US nationals, is St. Kitts and Nevis which offers citizenship to a family of four individuals in lieu of contribution of $300,000 into its Sugar Industry Diversification Fund. Dominica and Grenada offer a cheaper option with a contribution of $200,000. Such nations invariably do not impose any physical residence requirements on their economic citizens.
For those actually planning to reside in the country, nations with investment immigration programs offer real estate purchase as an eligible investment. St. Kitts requires applicants to buy a home worth at least $400,000. Dominica requires a $200,000 purchase while Grenada is slightly more expensive with a minimum requirement of $350,000.
Malta, which offers its citizens easy access to the EU, requires purchase of a home for at least £400,000. Investment immigrants also have the option of leasing homes to qualify for permanent residence in the country.
The number of US citizens choosing to relinquish their citizenship has been rising from around 1,000 per year in 2010 to around 4000 per year in 2014. This figure is expected to rise to more than 10,000 in the coming years.
While FACTA is often stated as a reason for the rise in relinquishments, the annual filing requirement has been in force since the last three decades. However, the US taxation system is the primary reason why citizens choose to obtain the passport of another country.
The relinquishment process involves submission of three forms, DS-4079, 4080, and 4081, payment of an administration fee of $2,350, and a formal oath of renunciation. After completion of the process which can take 2-3 months, individuals will be issued a certified copy of Form DS-4083 that will serve as proof of relinquishment of citizenship.
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