There is likely to be an uptick in the number of affluent U.S citizens seeking second citizenship outside the country over the next several years, as they prepare for the Organization for Economic Co-operation and Development (OECD)’s move to end banking ‘secrecy’ in 2017, one industry expert has told PAM.
Nuri Katz, president of investment advisory boutique Apex Capital Partners, said most countries would have structures in place to prevent tax evasion through international sharing of banking information over the next two years.
Katz said that under the international agreement signed by 40 countries, which would automatically share an account-holder’s information with foreign tax authorities, all foreign bank accounts with be transparent to an account holder’s country of origin and residence.
“It will spell the end of the secrecy and offshore world,” he said. “This is likely to encourage a lot of wealthy citizens to apply for second citizenship in countries which have far more favorable tax laws.”
Katz picked out the Commonwealth of Dominica, St. Kitts, St. Lucia, Grenada and Antigua – all Caribbean-based and tax-friendly domiciles – as the countries most accessible for Americans to gain citizenship by investment, also known as second citizenship.