An IMGW News Report
Interest among the ultra-wealthy in acquiring second passports—through Investment Migration (IM), Citizenship by Investment (CBI), and ‘Residency by Investment’ (RBI) programmes—has surged to unprecedented levels amid escalating political uncertainty. Michael Sonnenfeldt, founder and chair of Tiger 21, a global network of investors with ultra-high net worths, reported to Bloomberg that interest in second-country passports “has reached an all-time high” among Tiger 21’s over 1,200 members, who include current and former entrepreneurs, investors, and top executives with at least $20 million in investable assets. Major Investment by Migration (IM) firms have reported similar trends.
Moreover, as political landscapes in the US, UK, and Europe increasingly shift towards conservatism, concerns over potential anti-immigration policies have spurred Europeans to consider acquiring second passports. The prospect of safeguarding multicultural values amidst evolving political climates has prompted many to pursue alternative citizenship.
This trend reflects a broader movement where affluent individuals are assembling ‘passport portfolios’ consisting of multiple citizenships—sometimes three or four—ensuring they have options should the need arise to leave their home country. Recent high-profile instances include billionaire tech investor Peter Thiel, who acquired citizenship in New Zealand, and former Google CEO Eric Schmidt, who sought citizenship in Cyprus (which, following pressure from the EU and anticipating domestic potential fallout, scrapped its lucrative Citizenship-by-Investment Program in late 2020).
“Having a contingency plan is prudent for those who can afford it, offering families and businesses a secure refuge in times of uncertainty.”
Key destinations for acquiring second passports include Malta, known for its Citizenship by Investment (CBI) program offering European Union citizenship in exchange for investment in real estate or business. Despite reservations and an ongoing court case instituted against the Mediterranean Island by the European Commission, Malta’s appeal lies in its strategic location within the EU, providing visa-free travel and business opportunities across the continent.
The strategic value of diversifying citizenships as a hedge against political volatility and economic instability is underscored by these factors. Additionally, recent regulatory changes in the European Union, such as the inclusion of Investment Migration Operators as obliged entities under the Sixth Anti-Money Laundering Directive (6AMLD), highlight the tightening scrutiny on these programs. This regulatory shift aims to enhance transparency, combat money laundering, and ensure that investments are legitimate and beneficial to host countries.
Having a contingency plan is prudent for those who can afford it, offering families and businesses a secure refuge in times of uncertainty. This strategic ‘Plan B’ approach not only provides peace of mind but also ensures resilience against geopolitical upheavals and economic downturns.
In conclusion, the growing preference among the ultra-wealthy for multiple citizenships underscores a proactive response to global uncertainties. This trend highlights the importance of flexibility and preparedness in navigating today’s volatile geopolitical landscape, where securing alternative citizenships serves as a vital strategy for protecting personal and business interests while adhering to stringent regulatory standards.
If you enjoyed this IMGW News Report, we suggest you read the following:
- Wealthy Foreigners Plan to Leave UK as London Drops to Fifth Wealthiest City Globally: Read more
- Investment Migration: Balancing Sovereignty, Economic Growth, and Global Mobility: Read more
- Unpacking the Intricacies of Investment Migration with Kristin Surak: Read more
- Navigating Wealth Management Dilemmas: Understanding UK, EU, and US Laws: Read more
- Executive Interview: IMGW News meets Dr Sirous Motevassel: Read more