As global uncertainties loom large, affluent Americans are increasingly diversifying their citizenship portfolios as a means of safeguarding their financial and personal interests.
A recent report by CNBC highlights a surge in the number of US families pursuing additional residencies rights in third countries through Citizenship by Investment (CBI) programmes. Industry observers describe this trend as creating “passport portfolios,” a strategy gaining popularity amid the current geopolitical climate.
The United Nations Department of Economic and Social Affairs reports that the global population of millionaires seeking second citizenship rose by 15% in 2024, with North America being the leading region in terms of applicants.
Investment Migration experts highlight the advantages of multiple citizenships, including enhanced travel flexibility, heightened security during international business engagements, and broader avenues for managing cross-border finances. Citizenship programmes in countries such as Portugal, Malta, Greece, and Italy are particularly favoured among wealthy Americans, with Portugal’s Golden Visa scheme, for instance, offering residency and eventual citizenship in exchange for substantial investments in the nation’s economy.
Obtaining a second passport also serves as a contingency plan for retirement, providing the opportunity to reside, work, and study in politically stable and economically robust countries. This strategy acts as a hedge against the unpredictability of US politics and other global risks.
The global movement of millionaires is on the rise, with a record number of affluent individuals relocating globally in 2024 due to factors such as conflicts, stringent governmental wealth policies, and general political instability. Despite being a significant source of citizens seeking alternative residencies, the United States remains a preferred destination, continually attracting a considerable number of affluent individuals.
According to a report by the Financial Times, the number of Americans renouncing their citizenship reached a record high in 2023, with a 260% increase compared to the previous year. Data from the US Treasury Department reveals that in 2024, over 9,000 Americans were expatriated, marking a significant uptick from previous years.
“A study conducted by Wealth-X indicates that approximately 20% of high-net-worth individuals in the United States are actively exploring options for acquiring a second citizenship, up from 12% in the previous year.”
The trend towards “domicile diversification” reflects a broader pattern of high-net-worth individuals preparing for various potential future scenarios, ensuring that they and their families have secure and versatile options regardless of evolving global circumstances.
The United Nations Department of Economic and Social Affairs reports that the global population of millionaires seeking second citizenship rose by 15% in 2024, with North America being the leading region in terms of applicants. A study conducted by Wealth-X indicates that approximately 20% of high-net-worth individuals in the United States are actively exploring options for acquiring a second citizenship, up from 12% in the previous year.
“The global movement of millionaires is on the rise, with a record number of affluent individuals relocating globally in 2024 due to factors such as conflicts, stringent governmental wealth policies, and general political instability.”
While “passport portfolios” offer a financial safety net for affluent Americans against global instability, such options may not be viable for most individuals. However, there are alternative strategies to safeguard financial wellbeing. Diversifying investments across different asset classes and geographical regions can mitigate risks and offset the impact of market downturns. Additionally, building a substantial emergency fund provides a financial cushion that can be utilised during economic uncertainties without incurring losses from liquidating other assets.
The Henley Passport Index shows that the demand for citizenship-by-investment programmes has surged by 30% worldwide, with the Caribbean nations of St. Kitts and Nevis, Antigua and Barbuda, and Dominica witnessing the highest number of applications from US citizens. Research by Investment Migration Insider reveals that over 80% of Americans seeking second citizenship cite political uncertainty and concerns over economic stability as the primary reasons for their decision.
Ensuring adequate insurance coverage, including life, health, and property insurance, offers protection against unforeseen financial burdens resulting from emergencies. Regular contributions to retirement accounts such as 401(k)s or individual retirement accounts (IRAs) offer long-term security, capitalising on tax advantages and compound interest over time.
Seeking guidance from a financial adviser is advisable for individuals looking to secure their financial future. Advisers can offer personalised insights and strategies tailored to individual financial situations and goals, which is particularly beneficial for navigating the complexities of investment diversification and risk management in uncertain economic climates.
As the interest in second citizenship among Americans continues to grow, it reflects a recognition of the changing global landscape and the desire to secure options for a stable and prosperous future. Â