If you’re interested in investing in cryptocurrencies, read this article. It will provide you with an overview of the Plan B Passport, Vanuatu’s citizenship by investment program, and El Salvador’s residency by investment program at this link. You’ll also learn about the tax implications of using cryptocurrencies for passports. You’ll want to invest in cryptocurrencies responsibly and make sure you understand how the rules work.
Plan B Passport
One Plan B Passport customer has spent the last decade traveling southeast Asia and central Asia. Now, he’s considering ditching his U.S. passport for a Saint Kitts-based citizenship. The $180,000 cost, he says, is worth it for his visa-free travel. It’s also worth noting that he avoided significant Bitcoin taxes, amounting to millions of dollars. It’s also available to anyone who wants to become a country citizen.
The company’s founder, Katie Ananina, is a Russian ex-pat who founded Plan B Passport, a service that helps bitcoiners choose a jurisdiction that will avoid capital gains taxes. Bitcoin holders who use the Plan B Passport can choose from seven countries, including the U.S. and Spain. With the bitcoin price up 50% since then, it’s not hard to see why Plan B passports could attract foreign investment to these countries.
Vanuatu’s citizenship-by-investment program
Citizenship by investment in Vanuatu is available to foreigners who wish to obtain a dual passport and become permanent residents of the country. The program was launched in January 2017 and is administered by government-approved agents. Applicants who want to acquire Vanuatu citizenship must have net assets of $500000, of which $250,000 must be in banking assets.
They must also have a clean criminal history and be well-known in their community. In addition, they must have lived outside of Iran for the last five years and must not be listed on any international sanctions lists.
Citizenship by investment in Vanuatu is easy and quick. All applicants must invest in the country’s development support program, and you must submit proof of their investment. Upon approval, applicants must attend an Oath Swearing Ceremony. The ceremony can be held in many convenient locations worldwide, and processing times range from 30 to 60 days. The application fee is $130,000 for a single applicant or $150,000 for a couple.
El Salvador’s residency-by-investment program
With the recent adoption of Bitcoin as its official currency, El Salvador has opened up dual citizenship for foreigners. Investment programs may also apply citizenship to foreign workers who get a permanent job in another country and wish to obtain a second citizenship. Similarly, a foreign spouse can apply for citizenship after two years of residency in a Salvadoran country. The good news is that this program is currently in development and may soon be launched.
The program’s details aren’t known, but some notable features are. In March, volcano bonds will need to be issued to change the country’s financial system. A Salvadorian passport enables visa-free travel to 137 countries. It could be viable competition for Caribbean citizenship through investment programs. The final version of El Salvador’s residency-by-investment program will involve input from industry representatives and include the requirements for obtaining citizenship.
Tax implications of investing in cryptocurrencies for passports
There are many tax implications when investing in cryptocurrencies. Firstly, if you’re a U.S. citizen, you’ll owe tax on any gains from crypto. But dual citizenship will not prevent you from paying taxes on any crypto income. Secondly, you can benefit from a lower tax jurisdiction by acquiring a foreign passport.
Above, we have told you about how you can get a passport by using cryptocurrency. Read the post carefully for getting a passport with crypto. One of the biggest pitfalls when investing in cryptocurrency is double taxation. Although you may not realise it, if you invest in cryptocurrencies and use them to purchase a passport, you will pay taxes on both gains and losses. Using accounting solutions to keep track of your crypto transactions will help you avoid double taxation. You can also recoup your losses in the future.