The escalating exodus: Affluent Americans seek escape routes
Many wealthy Americans are considering life outside the United States due to political and economic pressures. Factors such as rising political polarization, the high cost of living, and concerns about future stability encourage affluent individuals to invest in second citizenship and residency permits. These options allow them to relocate quickly if necessary. This trend, referred to by some experts as “domicile diversification,” has surged in 2024, with a record 128,000 millionaires expected to migrate globally by the end of the year, according to Henley & Partners.
Political uncertainty and the desire for stability
Political division and unpredictability in the U.S. have created a climate of insecurity for many, especially those with significant financial assets to protect. Economic policies, tax issues, and changing government regulations have made long-term financial planning more challenging. Consequently, wealthy Americans are taking steps to prepare for potential instability by obtaining foreign passports, which can serve as a safeguard against domestic upheaval.
Dominic Volek, head of private clients at Henley & Partners, describes this trend as a logical extension of traditional financial diversification. “It makes no sense to have one country of citizenship and residence when I have the ability to actually diversify that aspect of my life as well,” Volek explains.
Many individuals view second citizenship as a prudent way to ensure they aren’t entirely dependent on U.S. infrastructure and governance.
The impact of rising costs and lifestyle decline
Beyond political factors, the financial strain due to inflation and increased living expenses is prompting high-net-worth Americans to consider relocating to countries with lower living costs or favorable tax regimes. Many individuals who once saw the U.S. as a stable, affluent nation now feel financially squeezed and uncertain about maintaining their standard of living. Real estate costs, healthcare, education, and other essential services have become increasingly expensive in U.S. metropolitan areas, making alternative locations like Portugal and Greece more attractive.
These countries offer attractive “golden visa” programs, where affluent individuals can obtain residency or citizenship through investment. For instance, Portugal’s Golden Visa requires a minimum real estate investment of €500,000, which grants visa-free travel throughout the Schengen area. The ‘Golden Visa program, also known as ‘Investor Visa’ or ‘Residence by Investment, ‘grants residency rights or citizenship to individuals who invest a certain amount in the country’s economy. Malta, Greece, and Italy have similar programs, allowing individuals to live, work, and even retire in these countries while enjoying access to the broader European Union.
Building a ‘passport portfolio’: Where the wealthy are heading
Creating a “passport portfolio” is gaining momentum among America’s upper echelons. For the ultra-wealthy, acquiring multiple citizenships is a way to assert personal freedom and protect business interests. With second passports, wealthy individuals can travel more freely and discreetly, avoiding potential diplomatic tensions that might otherwise limit the reach of a U.S. passport. This sense of empowerment is a crucial driver of the trend.
Popular destinations for affluent Americans seeking second citizenship include:
Portugal: The Golden Visa program grants residency with the potential for citizenship, offering visa-free travel across Europe.
Malta: Offers citizenship after a substantial real estate investment and provides full EU settlement rights.
Greece and Italy: These destinations have residency permits for real estate investments, giving Americans more access to the Mediterranean lifestyle.
Tax benefits and cross-border business flexibility
For many wealthy Americans, holding a second passport isn’t just about lifestyle or politics; it’s also a financial decision. The U.S. tax system’s global reach means that even Americans living abroad face tax obligations, but holding a secondary passport in certain countries can create strategic tax planning opportunities. While renouncing U.S. citizenship involves a hefty exit tax, many find value in a secondary passport that may offer certain tax advantages in the future, particularly if political changes in the U.S. lead to more restrictive tax policies on wealth.
Additionally, secondary passports can simplify business dealings. In some parts of the world, traveling with a non-U.S. passport allows for smoother financial transactions, particularly in countries with heightened sensitivity to American geopolitical influence. Executives in industries such as finance, technology, and natural resources are among those who find alternative passports beneficial for these purposes.
Looking forward: A future of mobility and preparedness
A second passport represents more than an exit strategy for affluent Americans—it is a comprehensive “Plan B” for an unpredictable future. With global trends indicating heightened political unrest, economic fluctuations, and challenges to personal freedoms, securing alternative citizenship has become an important consideration. This phenomenon is especially notable among American millionaires who seek security and the freedom to choose their place in the world. The relief of having a ‘Plan B’ is a significant emotional benefit of this trend.
While the United States still boasts a net inflow of millionaires due to its economic opportunities, the growing trend of domicile diversification signals a potential shift in global wealth dynamics. With the world’s rich increasingly on the move, the demand for “golden visas” and alternative citizenships is unlikely to fade. For the world’s wealthiest, having options, whether in Europe, Oceania, or the Caribbean, is a matter of practical foresight—a way to navigate an era of perpetual uncertainty with a safety net firmly in place. The sense of security that comes with ‘golden visas’ is a significant emotional benefit of this trend.
