Why Would You Want A Second Passport?

Sept. 9, 2008
Panama City, Panama

PLUS:

n How To Get An Irish Passport...
n The Benefits Of Dual Nationality…
n Live, Work, Study Wherever You Like…Plus, No Visa Required…
n Why A Panama Passport Is An Increasingly Appealing Idea…
n The Secret To Getting A Cell Phone In Costa Rica…
n “’Columbia?’ Are You Talking About The University?”…

AND:

n  Yes, You Can Take Your Social Security With You Overseas…

Dear Overseas Opportunity Letter Reader,

Way back when, nearly 25 years ago, when I was starting out covering this beat, I encountered a headline that has stuck with me:

“Why Would You Want A Second Passport?”

At the time, I couldn’t answer the question and wondered myself. Today, I think I understand.

Six months ago, after more than four years of back and forth with the Irish immigration authorities, I received my Irish passport in the mail. I was finally, officially, a dual citizen.

Until three-and-a-half years ago, Ireland was the easiest and best place for a foreigner to obtain an EU passport. You could apply for an Irish passport if your mother or your grandmother had been Irish (and you had the birth certificate to prove it). You could apply to become Irish after having resided in the country for five years or longer. Or you could be born Irish. Until January 2005, Ireland was one of about three-dozen countries in the world…and the only country in the EU…offering jus soli—that is, rights-of-the-soil citizenship.

Alas, over-immigration caused the Irish to rethink their policies on the matter. Today, it is still possible to apply for an Irish passport based on your Irish maternal lineage…possible, but not as easy as it once was.

It’s also possible still to obtain Irish nationality by residing full-time in the country for five years or longer. Again, though…possible but not so easy anymore. The process is time-consuming and hassle-filled. As I said, it took four years for me to wade through it.

However, it’s no longer possible to become Irish simply because your mother happened to be on Irish soil when she gave birth to you.

That’s how my son Jackson earned his rights to an Irish passport. When he was born, we were living in Waterford.

We didn’t move to Ireland so that I could bear a child who would be eligible for Irish citizenship. We didn’t even move to Ireland so that we could earn Irish citizenship ourselves. And we didn’t move to Ireland with the definite intention of remaining in the country long enough to quality for a second passport.

Frankly, we moved with trepidation, not so sure this Irish living adventure was such a good idea. We’ll try living and doing business in Ireland on for size, we told ourselves. If it doesn’t work out, we can always go back home…

In the end, we resided full-time in Ireland for seven years. We made a home, expanded our family, built a business, and thoroughly enjoyed ourselves.

And, as an added bonus, we earned Irish citizenship. We didn’t set out after it, for, again, I didn’t appreciate the value of a second passport 10 years ago. Today, I do.

Planning a trip to Brazil? Americans need a visa…Irish nationals do not.

Want to open a bank account in Europe? An EU passport will open the doors of many bankers who otherwise might ignore your knocks.

Thinking you’d like to live or work in the EU? Good luck, my fellow American. No problem, though, dear fellow citizen of the Emerald Isle.

Interested in traveling in the Middle East? In some countries, your blue passport with the eagle on the cover might seem a liability…but your red one with the harp on front won’t raise anybody’s eyebrows.

A second passport expands horizons and fosters opportunity. A passport for an EU member country brings special advantages but is also perhaps the hardest to come by these days (with particular exceptions all related to genealogy).

A good alternative option right now is Panama.

Yes, Panama. It’s one of the world’s top retirement, tax, business, banking, and real estate investment havens…and it’s also one of the best places today to think about acquiring a second passport. You’re eligible to apply after you’ve been a full-time permanent resident of the country for five years. Our local legal eagle Rainelda Mata-Kelly can tell you more.

The other citizenship to consider in the Americas is that of Uruguay. Full report to follow.

Kathleen Peddicord

P.S. May 23, 2008, the Constitutive Treaty of the Union of South American Nations was signed, the first step toward an EU-like union in this part of the world. Central America, too, is talking of trying to ally the nations in that region in a pro-business, no-tariff, free-trade, open-borders kind of way. If these ideas of union are realized…wouldn’t it be nice to hold a passport to a member state, like, say, Uruguay…or Panama?

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TODAY:

New correspondent Lucy Culpepper, traveling with her family in Costa Rica, writes this morning:

“We had not done our homework and were surprised, and a little frustrated, to discover the effect of the Costa Rican government’s cell phone monopoly on the availability of phones in this country.
 
“When we arrived in Mexico, we bought a pay-as-you-go basic cell phone for US$25. When we arrived in Panama, we did the same. No problem.

“When we got to Costa Rica, we were told there were 4,000 people waiting in line for cell phones ahead of us! The country’s one provider (ICE) releases a given number of new lines a year, though obviously not enough to meet the demand.
 
“As a temporary/vacation visitor, the best (but most expensive) thing to do is to rent a phone. Some U.S. cell phones may work here, but you’d probably have high roaming fees.
 
“Many car rental companies include a cell phone with the car contract. Check to be sure the phone is fully functioning before driving off. We didn't and had to go back to get a new one.

“If you’re not renting a car, look for rental companies online. Nearly all will deliver a phone to your hotel/B&B/house. Be careful to check the minimum call times per day, the daily rental charges, and the incoming/outgoing charges. You’ll also be required to leave a deposit, usually in cash.

“Negotiate! There are lots of cell phone rental companies operating in Costa Rica now.”

FROM THE MAILBAG:

“I am planning to move at least for three to six months to Sousse, Tunisia. I am on Social Security and need information on how I can receive this money overseas?”

-- Dianne D., United States

Have your Social Security income direct deposited into a U.S. bank account, then access that money abroad using ATMs and your debit card. This is generally the most cost-effective way of getting access to cash anywhere in the world.

Your other option would be to open a local bank account (which is not so easy in some countries) and then to wire funds from your U.S. account to your local account, say, every quarter. This strategy can be more efficient, depending on the ATM fees you’re liable for with your U.S. bank.

Open an account with an online bank such as Everbank or a brokerage account with Schwab, and you’re reimbursed for ATM charges.

***

“Kathleen, you spelled ‘Columbia’ wrong…unless you were referring to the university. The country is ‘Colombia.’”

-- Emil M., United States

“The nation in South America whose capital is Bogota is spelled ‘Colombia.’ Eek! I’ve made that mistake myself…”

-- Roger K., United States

I’d blame the jet lag, but D.C. and Annapolis, from whence I returned yesterday morning, are only one hour ahead of Panama City. The truth is, I’ve been making this mistake my entire career. Thank you, dear readers, for setting me straight so politely.