VANCOUVER, B.C. – As global uncertainty and financial volatility continue to rise, more Americans are turning to second citizenship options—commonly referred to as “Plan B” passports—for protection, relocation, or new identity creation. However, Amicus International Consulting, a leading authority in identity and privacy solutions, has issued a critical warning: obtaining a second passport without proper tax planning may lead to a heavier tax burden, not less.
In a comprehensive report titled “The Tax Implications of a Second ‘Plan B’ Passport in the United States,” Amicus outlines how the U.S. global taxation system complicates what many believe is a straightforward path to financial or legal freedom.
The U.S. Taxes Its Citizens—No Matter Where They Live
Unlike most countries, the United States operates under a global income tax model. This means that U.S. citizens and lawful permanent residents must pay taxes on their worldwide income, regardless of their location or dual citizenship status.
Case Example: David’s Tax Dilemma
David, a U.S. citizen living abroad with a second passport, earns all his income in a third country. Despite not residing in the U.S., he remains fully liable to the IRS for taxes on all earnings. Unless David formally expatriates, the second passport adds complexity, not tax relief.
The Tax Traps of Plan B Passports
1. Dual Taxation: Two Countries, Twice the Burden
While some foreign jurisdictions have low or no income taxes, many do not. Purchasing a passport from such a nation may result in dual taxation if no treaty protects the individual from double taxation.
Case Study: John’s Portugal Misstep John acquired a Portuguese Golden Visa but failed to renounce his U.S. citizenship. He paid taxes in Portugal and the U.S.—a costly lesson in global tax coordination.
2. Foreign Wealth Taxes
Countries like Spain, France, and Switzerland impose wealth taxes on high-net-worth individuals, even if their global wealth is not locally earned.
Case Study: Maria in Madrid Maria bought a passport from Spain and faced a surprise wealth tax assessed on her entire net worth, even though her Spanish investment was relatively modest. The U.S. also taxed her, leading to unexpected double liability.
3. PFIC Rules and Foreign Investments
The IRS penalizes investments in Passive Foreign Investment Companies (PFICS), including many popular foreign mutual funds.
Case Study: David’s Swiss Investment Trouble. After obtaining Swiss residency, David invested in SICAVS. Under U.S. law, these were classified as PFICS, triggering punitive taxation, far more than if he’d stayed with U.S.-based assets.
4. Misunderstanding Expatriation Rules
Only by officially expatriating and filing the appropriate IRS forms (including Form 8854) can U.S. citizens eliminate their U.S. tax obligations. Simply acquiring another passport or moving abroad does not end IRS oversight.
Case Study: Sarah’s Strategic Exit Sarah obtained citizenship in Malta. Unlike others, she carefully planned her renunciation of U.S. citizenship, successfully avoiding further U.S. taxation while embracing Malta’s favourable tax regime.
The Criminal Element: Second Passports Used to Launder Money
Second passports also attract criminal misuse, often by individuals seeking to launder money or evade justice. While Amicus strongly advocates legal identity change, understanding the industry’s dark side underscores the need for transparency and due diligence.
Case Study: Viktor Kozeny
Nicknamed the “Pirate of Prague,” Kozeny obtained citizenship in Antigua and Barbuda through a CBI program to avoid extradition after defrauding investors. His second passport allowed him to bank and invest under new aliases, complicating law enforcement efforts.
Case Study: Jho Low and the 1mdb Scandal
Low used multiple passports from CBI programs to mask global financial movements. His ability to open bank accounts and cross borders undetected delayed his exposure for years, despite orchestrating one of the biggest frauds in Southeast Asian history.
Case Study: Sergei Pugachev
The former Russian banker obtained passports from several nations to shift billions across borders and avoid asset freezes. His use of second identities demonstrates how easily legal tools can be weaponized without oversight.
Legal Identity Change: Safer, Smarter Alternatives
Amicus International specializes in legally sound identity restructuring, helping clients:
- Secure second citizenship via recognized investment programs
- Renounce U.S. citizenship with IRS compliance
- Avoid PFIC pitfalls with carefully vetted foreign investment structures
- Minimize wealth tax exposure through asset repositioning
- Maintain digital and financial privacy with Crypto-ID solutions
Case Study: Michael’s Tax Shock in Cyprus
Michael bought into Cyprus’s passport program expecting tax freedom. Instead, he encountered capital gains taxes and U.S. tax obligations. With Amicus’s help, he restructured his finances, moved to a tax-friendly jurisdiction, and began a formal expatriation process.
New Identity ≠ New Tax Freedom (Unless Done Right)
Common Misconceptions:
- “A second passport automatically reduces my taxes.” ❌
- “I don’t have to tell the IRS about my foreign income.” ❌
- “Offshore bank accounts hide my assets from the U.S..” ❌
The truth: unless you formally expatriate and follow IRS rules, you’re still under U.S. tax jurisdiction—even if you never set foot in the States again.
The Role of a Crypto-ID in Privacy and Planning
When paired with anonymous cryptocurrency tools, a new identity can enhance financial privacy. Amicus helps clients:
- Create new Crypto-IDS
- Use non-custodial wallets
- Avoid centralized exchanges with Know Your Customer (KYC) mandates
- Store wealth in decentralized digital formats protected from traditional oversight
However, these tools must be combined with legal identity strategies to be effective in the long term.
📞 Contact Information
Amicus International Consulting
Phone: +1 (604) 200-5402
Email: info@amicusint.ca
Website: www.amicusint.ca
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Conclusion: Second Passports Are Not a Shortcut—They’re a Strategy
Whether seeking a new identity, digital freedom, or asset protection, a Plan B passport must be part of a broader legal and financial plan. Without proper guidance, second citizenship can do more harm than good.
Amicus International Consulting offers fully legal, expertly structured pathways for identity change and tax optimization—protecting clients from unexpected liabilities and setting the foundation for a safer, freer future.
To speak with an expert about how to create your new legal identity, reduce your tax risk, and build a second life on solid legal ground, contact Amicus International Consulting today.
