Why Are Wealthy Americans Seeking Second Citizenship?

The United States remains the world’s largest private-wealth hub, home to over six million high-net-worth individuals (HNWIs) and controlling 34% of global liquid wealth. Yet an intriguing trend is emerging: affluent Americans are increasingly applying for alternative residence and citizenship programmes.

Henley & Partners’ USA Wealth Report 2025 revealed a 183% year-over-year increase in enquiries from U.S. nationals seeking residence or citizenship abroad. For many, dual citizenship has evolved from a luxury into a strategic safeguard.

This article examines why wealthy Americans are pursuing second citizenships, outlines popular programmes and destinations, and provides guidance on crafting a global mobility strategy that aligns with your family’s legacy and tax goals.

A New Era of Sovereign Portfolios

The rise in second-citizenship enquiries reflects a shift toward diversified “sovereign portfolios”—combinations of residency and citizenship options that maximise mobility, asset protection, and global reach.

From Q1 2024 to Q1 2025, inquiries from U.S. nationals increased by 183%, and those from U.S. investors rose 39%, demonstrating momentum beyond election cycles. As Basil Mohr-Elzeki of Henley & Partners notes, wealthy Americans are “moving beyond traditional second passport plans” and adopting sovereign portfolios designed to hedge against geopolitical risks.

Motivations: Beyond Politics

Citizens International, an advisory firm for investment migration, observes that dual citizenship is becoming mainstream in the U.S. The motivations are varied:

• Political and economic uncertainty: Americans worry about political instability, civil unrest, economic shocks and potential erosion of freedoms. Holding another passport provides an escape route should domestic conditions deteriorate.

• Enhanced mobility and lifestyle options: A second citizenship improves travel freedom and offers access to different healthcare and education systems. Families seek better schooling or specialised medical care abroad.

• Tax and regulatory mitigation: A Plan B can reduce exposure to shifting U.S. tax and regulatory environments. For instance, many Caribbean programmes offer zero inheritance, wealth and capital-gains tax.

• Legacy and estate planning: Dual citizenship can facilitate succession planning and protect assets across jurisdictions.

• Ancestral or cultural ties: Some Americans qualify for citizenship through ancestry (e.g., Ireland or Italy), though these pathways are tightening.

Popular Destinations and Programmes

While Europe remains a key destination—with residence programmes in Greece, Italy, Malta, and Portugal offering lifestyle and business advantages—many Americans opt for Caribbean citizenship-by-investment (CBI). These programmes provide rapid processing, family-inclusive applications, and favourable tax environments.

Countries like Antigua & Barbuda, Dominica, Grenada, St Kitts & Nevis, and St Lucia allow investors to secure citizenship within six to twelve months with a minimum investment starting at US$200,000. Benefits include:

• Visa-free travel to over 140 destinations

• No residency requirement

• Eligibility for dependent family members

• Real estate investments that can be resold after 3 to 7 years

Beyond the Caribbean, demand is growing for “Golden Visa” residency programmes in the UAE, Portugal, and Greece. These schemes grant long-term residence rights for investments in real estate or business ventures and can be a stepping-stone to citizenship.

Considerations and Risks

While second citizenship offers many advantages, it requires careful planning:

1. Tax obligations
   U.S. citizens remain subject to worldwide taxation even if they acquire another passport. Dual citizens must understand both countries’ tax residency rules and make use of tax treaties and credits to avoid double taxation.

2. Due diligence
   Reputable programmes perform rigorous background checks. Applicants must provide source-of-funds documentation and meet character requirements.

3. Program choice
   Each country has different costs, processing times, and benefits. Investors should consider factors such as donation versus real estate options, family eligibility, passport strength, and long-term economic stability.

4. Exit restrictions
   Some countries require new citizens to renounce previous nationalities or maintain ties. Most Caribbean and European CBI programmes allow dual citizenship, but it is important to verify your home country’s stance.

Summary

Affluent Americans are increasingly embracing second citizenship as a strategic hedge. The USA Wealth Report 2025 notes a 183% surge in enquiries from U.S. nationals, while experts describe dual citizenship as the new American Dream. Motivations include geopolitical risk management, enhanced mobility, tax mitigation, and legacy planning.

Caribbean and European programmes are particularly popular, offering quick processing and attractive tax benefits.

Paulson & Partners specialises in global mobility planning for high-net-worth clients. Our advisors assess your goals, evaluate citizenship and residency options worldwide, and design a customised strategy that balances mobility, tax efficiency, and legacy preservation.

Contact us today to explore how a second citizenship could enhance your family’s future.