The Rise of ‘Passport Portfolios’ Among the Wealthy: A Look at Second Citizenship Trends

Explore the growing trend of wealthy individuals building 'passport portfolios' with multiple citizenships in case they need to flee their home country. Learn about top destinations and high-profile examples.

Wealthy U.S. families are increasingly seeking second citizenships and national residences as a means of diversifying their financial risk, according to a prominent law firm. Henley & Partners, a firm specializing in high-net-worth citizenships, has noted a growing trend among Americans in particular to acquire additional citizenships or residency options. This practice of building "passport portfolios" is seen as a precautionary measure in case individuals need to leave their home country for various reasons.

The Rise of ‘Passport Portfolios’ Among the Wealthy: A Look at Second Citizenship Trends
While the number of Americans renouncing their citizenship each year remains relatively small, mainly due to tax considerations, many affluent individuals are exploring alternative residency or citizenship programs to complement their U.S. passport. Portugal, Malta, Greece, and Italy are among the top choices for Americans seeking supplemental passports, with programs like Portugal's "Golden Visa" offering residency and citizenship opportunities in exchange for investments in the country.

The rise of American passport portfolios can be attributed to several factors, including the desire for easier travel to regions less welcoming to U.S. citizens, enhanced safety and discretion during business trips, and the appeal of a secondary residency for retirement or lifestyle reasons. Additionally, geopolitical instability and political considerations play a role in driving wealthy individuals to seek additional citizenships as a form of insurance against uncertainty.

On a global scale, millionaire migration is expected to reach record levels in the coming years, with an increasing number of affluent individuals relocating to other countries due to conflicts, wealth-related regulations, and political instability. The United States remains a popular destination for millionaires from around the world, with a significant influx of wealthy residents projected for the coming years.

The trend of wealthy individuals acquiring second citizenships and national residences reflects a growing need for financial security and flexibility in an uncertain world. As geopolitical dynamics continue to evolve, the practice of domicile diversification is likely to become more prevalent among affluent individuals seeking to safeguard their assets and interests.