If you are reading this article, it likely means that you are interested in getting a second passport. You’re probably trying to find the option that suits you the best from a very short list. One of the top considerations of high net worth individuals looking for a second passport is how it may help them run away from CRS compliance. Here we’ll explain you a bit more about CRS avoidance on second passport.
First, do you know what CRS stands for? – The Common Reporting Standard (CRS), created in light of the G20 demand and affirmed by the OECD Council on 15 July 2014, approaches wards to get data from their money-related business and consequently trade that data with different locales on a yearly premise. It sets out the budgetary record data to be traded, the money-related establishments required to report, the various kinds of records and citizens secured, just as regular due persistence techniques to be trailed by monetary foundations. To explain it in layman terms, those countries who are signed into CRS can and will inform about any bank account under your name.
You may probably think that a second citizenship may help youavoid CRS. Unfortunately, that’s not exactly the case.
As of today, the only non-CRS jurisdiction with a CBI program is Montenegro. The program requires an approximate €400,000 investment in a combination of a real estate investment and a government donation. Nevertheless, the country will join the EU in 2025 and has already taken some steps to become a CRS signee.
Some other jurisdictions with CBI programs are not as stringent in their CRS compliance as, for example, an EU country. That’s the case with Vanuatu, for example.
Thus, a CBI program can hardly help you avoid CRS, so, what can you do?
You can take two pathways.
First, you could move your assets or outright physically move to a solid CRS jurisdiction. The best that comes to mind is Georgia , which is one of the freest economies in the planet and has a solid banking system. Armenia and Paraguay are also two interesting options.
The other option is moving your tax residency to a low-tax, CRS-compliant jurisdiction.
A popular pick is Cyprus because its non-dom regime allows you to become a tax resident by spending 60 days in the country. You will be able to pay a special tax rate in your Cyprus-sourced income alone. Read more about this option here .
An even more radical possibility is, for example, relocating your tax residency to Belize. By proving a monthly income of $2,000 you can live in Belize effectively tax-free if you are 45 years or older thanks to the Qualified Retirement Persons program. You won’t have to pay taxes in Belize and can become a tax resident if you spend 183 days per year in this gorgeous country. Even if Belize is part of the CRS, that is not particularly important as you won’t have to declare worldwide taxes anywhere, so your local tax authority cannot seek to receive tax information from Belize because they are only entitled to get taxes from you as long as you have taxable income in that country.
Read more about the Belize QRP here .
CRS and second passport are concepts that have been related in the past, but the truth is that nowadays the OECD and EU pressure have reduced the legal options for CRS avoidance on second passport grounds. Nevertheless, there are always possibilities you can use, as long as you’re in disposition of running away from the Big Brother. You can protect your assets from high taxation in a perfectly legal way.