By Joe B. Gonzalez

Many globetrotters, business people and retirees seek the benefits of a second nationality, also known as dual citizenship. Carrying another passport opens up a world of opportunities, particularly if your existing passport limits your right to travel or do business because of government restrictions, visa requirements and so on, or - worse still - makes you a target of discrimination or even hatred abroad.

Your new passport can be a route to business in other countries, a way of improving banking secrecy... or simply an 'insurance policy' that helps you sleep better at night, knowing that the documentation is in place if you should ever need to make a move.

So-called economic citizenship programs are few and far between these days. There are only two countries in the world that still offer the chance to 'buy' a passport legally. They are St Kitts and Nevis, and the Commonwealth of Dominica. You will find an article about these programs here.

For those who don't want to spend so much money but have time on their side, there is a way to obtain a similar result for just a fraction of the cost. That is through conventional naturalization - acquiring citizenship of a foreign country by developing lasting ties with that country, usually through residence or family connections. Many would argue that obtaining a second passport by naturalization is really much better than holding a passport from one of those two small nations that are known worldwide for 'selling' passports.

The logical solution is to look for countries which have the most attractive conditions for residency, and liberal naturalization/citizenship requirements. I can suggest two to start with: the Dominican Republic, and the Republic of Paraguay. These two nations share three major advantages if you are seeking naturalization, or even just tax advantages:

• Both of these countries allow foreigners to qualify for residence relatively easily. One or two visits to the country, common documents like your existing passport and birth certificates, a simple medical test and a fee usually suffice.
  
  Note that here, I'm talking about residence on paper. Once you have qualified as a resident in one of these two countries, it gives you the right to live there but not the obligation to do so. This is very important to many of my clients. After all, the whole name of the game is increasing freedom, not being tied down to spending a certain number of days in a particular place. A Paraguay residence permit, once issued, is valid for life, automatically, by default.
   

• Many countries also seek to tax you on your worldwide income, from the day you obtain your resident card. Not so with Dominican Republic or Paraguay. Dominican Republic does not tax any income earned outside the country, while Paraguay simply has no income taxes at all, period. If your original citizenship does not tax non-residents (the USA is the only country in the world that taxes its non-resident citizens) then the moment you can flash your residence card from Dominican Republic or Paraguay, you might well benefit from substantial tax advantages! Even Americans, when non-resident, qualify for a complete exemption from income taxes on their first $80,000 of earned income each year.
   

• Both countries allow you to apply for citizenship after as little as two years. Whilst in practice Latin American bureaucracy may well drag this out to three, four or even five years, it's still a good deal. If you get your foot in the door now, those years will speed by and before you know it, you could be a citizen of Paraguay or the Dominican Republic.

Of course, there is a little more to it than that. There is some work involved. You are expected to speak a minimum of Spanish, and learn something about the history, culture and civics of the new homeland. However, in my experience the naturalization process in these two countries is significantly easier than in others, and learning a modicum of Spanish can help you in many other ways too!

Beyond that, each country has its plus and minus points that you may wish to consider, depending on your individual circumstances, interests and requirements. Paraguay benefits from visa-free travel to more countries than the Dominican Republic. The Dominican Republic is just an hour or two from the major east coast cities of the US - some clients will consider this a benefit, while for others it is a disadvantage. Remote farmland in Paraguay, and Caribbean beachfront lots in the Dominican Republic are both good investments, but will appeal to different tastes.

There are other countries in South America you may wish to consider, too. Brazil, Uruguay and Argentina are all attractive options, as are Peru and Ecuador. All these are slightly more complicated in terms of the actual process of acquiring a second citizenship, but are by no means impossible.

I regularly travel throughout this region. One thing you should be aware of are the number of unwritten rules. You will need to prepare for a certain amount of uncertainty. What you read on the internet may well not always be true. You will find you get different answers depending who you ask, and indeed depending how you ask. You will need a reputable and reliable guide, who speaks your language, to help you through the maze and teach you the ropes.

Fortunately, that's my job, and something I really enjoy doing. In my contributions to the Q Wealth Report, I regularly focus not just on residency and citizenship matters, but generally on doing business in Latin America - a region that is full of opportunity right now, if you know how to tackle it!

I recommend you join The Q Wealth Report today to benefit from regularly updated information on tax free residencies, second citizenships and passports. You will find more information like the above, which is far more specific. Best of all, you will have direct access to the entire panel of Q Wealth Experts, and the opportunity to attend events at which you will learn more about the whole field of offshore retirement, investing and doing business abroad. I'm sure you won't regret signing up, but if you do, you can be reassured that by the Q Wealth no-quibble money back guarantee. To sign up right now, all you need to do is click here!