RENOUNCE CITIZENSHIP

The Commonwealth of Dominica has just celebrated its thirty-fourth year of independence amid much revelry.  The highlight of the celebrations, one may argue, was perhaps not the usual Independence Day Military Parade but rather the World Creole Music Festival.

Still in the spirit of festivity, North Americans and well wishers taper their rejoicing of the Obama's re-election. Somehow this win, although historic like the first, did not seem to reverberate as the previous. Perhaps its is due to the fact that everyone is cognizant of the daunting task which lay before him in terms of the economy, un-employment and a Republican Senate.

Interestingly, the both leaders of Dominica and North America in their recent speech to commemorate Independence and Re-election respectively emphasized the importance of upholding the nation's core values of independence, the need to pause and reflect on the blessings of the nations and the value of working together to build the nations irrespective of diverging ideologies.

Unlike Dominicans, North Americans somewhat do not believe Obama's promise that there are better things to come. Since Election scores of North Americans  have been inquiring about how to renounce citizenship.  Renouncing citizenship should not be a heady decision. There are number of issues to consider when renouncing US Citizenship.  The first questions would no doubt be :

• Do I really need to renounce my citizenship?
• What are the advantages/disadvantages of surrendering one's citizenship?
• Which citizenship should I opt for?
• Is the country reputable?
• Is my contact person an authorized Government Agent?
• What is the price?
• What are the comparative costs?
• What are the benefits?
• How do I claim my citizenship?

The Government of Dominica Economic Citizenship Programme ranks highly in the choice of countries offering second passports. Moreover, the competitive edge that the St. Kitts & Nevis Citizenship by Investment Programme enjoys in terms of visa free travel to Europe will soon end.  On November 7, 2012, the EU announced that holders of Dominica Passports will be allowed visa free entry into the Schengen area and travel within the area for three months. More visa free entry to other EU countries will follow as Dominica negotiates with the Union.

Alick C. Lawrence Chambers is one of the approved Government Agents for Dominica's Economic Citizenship Programme. The chambers has an experienced staff and a high success rate of applications.  This capable team makes renouncing one citizenship easy!

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WHICH PASSPORT- ST.KITTS & NEVIS OR DOMINICA? - A COMPARATIVE STUDY

                                                                                         

                          OR

The islands of St.Kitts & Nevis and Dominica still remain the only two Caribbean nations where one can buy citizenship.  Individuals contemplating applying for dual citizenship or obtaining a passport from St. Kitts & Nevis or Dominica often ponder over which is the best option in terms of costs and opportunities.  To assist with that decision we have collated information on the Economic Citizenship Programmes offered by both islands and present a comparative cost study of the two.

Cost of Citizenship

In the case of St. Kitts & Nevis, if one selects SIDF there is a security fee (see table). If one chooses the Real Estate option there is the purchase cost (minimum purchase) plus the registration fee and there is also a security fee payable to the Government (see table).

ECONOMIC CITIZENSHIP - COMPARATIVE ESTIMATED COSTS (USD)                                                                                      ST. KITTS - NEVIS                               DOMINICA                                      SIDF                            REAL ESTATE                     DIRECT INVESTMENT       AP, SP &  AP SP & 1      AP, SP &   AP, SP & 1       AP, SP &  AP, SP &  FEES SINGLE AP & SP    2 < 18 18-25 yrs SINGLE AP & SP  2 < 18 18-25 yrs SINGLE AP, & SP  2 < 18 3 < 18**                           *Application fee (1) 293 585 1170 878 293 585 1170 878 1000 1000 1000 1000 Processing fee  0 0 0 0 0 0 0 0 200 400 800 600 Courier fee  120 120 120 120 120 120 120 120 0 0 0 0 Legal fee (2) 0 0 0 0 0 0 0 0 0 0 0 0 Security fee 7500 11500 19500 15500 7500 11500 19500 15500         Naturalization Fee 0 0 0 0 0 0 0 0 550 1100 2200 1650 Passport fee 250 500 1000 750 250 500 1000 750 0 0 0 0 Stamp fee 0 0 0 0 0 0 0 0 6 12 24 18 Gov't Interview Fee 0 0 0 0 0 0 0 0 3000 3000 3000 3000 Contribution (3) 250000 300000 300000 350000 0 0 0 0 100000 175000 200000 250000 Minimum Purchase  0 0 0 0 400000 400000 400000 400000 0 0 0 0 Due Diligence (4) 7500 11500 19500 19500 7500 11500 19500 19500 4000 5000 7000 7000 Registration fee  0 0 0 0 50000 75000 125000 125000 0 0 0 0 Total 265663 324205 341290 386748 465663 499205 566290 561748 107756 184512 213024 262268 Source: Adapted from: A Second Passport from St. Kitts & Nevis unlocks a New World of Opportunities, May 17, 2012, by Mark Nestmann (nestmann.com)

* VAT Included 17% AP - Applicant SP - Spouse (1) Dominica per investor (non-refundable)        Dominica's Programme is VAT exempt (2) Variariable with Solicitor (3) St.Kitts -payable upon approval of application.         Dominica - payable before interview       In the case of Real Estate - Government fees (4) Due diligence mandatory from 16 years       Depends on the number of place one has resided in **Three dependants under 18 yrs

There are other fees related to the purchase of property in St.Kitts-Nevis which were not factored in this comparative study for obvious reasons.  These fees include:

·         Alien Landholding License Application   ……………………. US$1,500.00 per applicant

·         Assurance Fund                                     ……………………. Purchase price divided by 500

·         Purchase & Sale Agreement                   ……………………..1% of the Purchase Price

·         Memorandum of Transfer                       .…………………….1% of the Purchase Price

·         Government Registration Fee                  ......…………………US$2.70 (approx.)

·         Surveyor’s Fee                                       ...…………………...US$327.00 per acre (approx.)

·         Stamp Duty (on some properties)            ……………………..2.5% - 6% of the Purchase Price

Naturally, after the property has been purchased there are the costs that go with owning and maintaining the property.

On comparing the three investment-type-options (SIDF, Real Estate, Direct Investment), the most expensive is the Real Estate option (for example single, $465, 663 and a family of four  with two children less than eighteen (18) years, $566,290) followed closely by SIDF (for example single, $265,663 and a family of four with two children under eighteen (18) years, $341,290).  The least expensive is Dominica’s Direct Investment option (single, $107,756 and a family of four with two children less that eighteen (18) years $213, 024).

However, if the individual is interested in owning property in the Caribbean and is willing to dispense with that sum of money, then the Real Estate seems reasonable.  This is because the purchaser may resell the property after five years and hopefully make a profit on that asset.  If however, the individual wants a second passport with little or no strings attached, then the Real Estate might not be the best option. The individual can also become a citizen of Dominica at a cheaper rate and purchase property in Dominica at a fairly reasonable price.

Opportunities

The next step after analyzing the costs of the dual citizenship is to determine your travel possibilities or your visa free travel options with the Caribbean passports. A St. Kitts & Nevis passport allows the holder visa free travel to numerous countries including the Schengen countries, their neighbours, the UK, and Canada for ninety (90) days. Whereas a Dominica passport holder can enter one hundred and forty countries visa-free or with visa upon arrival among these are the UK, Isle of Man, the fifteen (15) Caricom Member States and the five (5) Associated Member States among others. A Dominica Passport holder can obtain hassle-free visa to Canada and the USA and the Schengen countries.

Not all dual nationality seekers will be as fortunate as the young Liam Cocoran! Notwithstanding, young and old will be affected as the more developed countries namely the EU countries, UK, and the Netherlands follow in the footsteps of the USA to tighten their grip on the finances of their citizens. A second passport from Dominica or St.  Kitts & Nevis might just be the answer!

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