Summary:
A Financial Times article published in June 2024 examines the growing trend of wealthy Americans relocating overseas. Motivated by political polarization, concerns over taxation, and a desire for lifestyle flexibility, a rising number of high-net-worth U.S. citizens are exploring expatriation and alternative residency or citizenship options.

The article focuses on a demographic shift within U.S. emigration patterns, where not only retirees and remote workers, but also ultra-high-net-worth individuals (UHNWIs) are now seeking homes outside the United States. Many of these individuals are pursuing citizenship- or residency-by-investment programs in countries such as Portugal, Italy, Spain, New Zealand, and the Caribbean.

Wealth managers, tax consultants, and immigration lawyers cited in the article report a notable increase in inquiries and applications since 2021, with further acceleration in 2024 amid growing political uncertainty in the lead-up to the U.S. presidential election. Some clients are motivated by concerns over potential wealth taxes or capital gains reforms, while others seek physical and financial diversification in response to the global volatility of recent years.

The article mentions that more Americans are exploring or obtaining dual citizenship as a form of “global insurance,” providing both mobility and legal flexibility. Some families are securing second passports to provide future options for children, or to access healthcare, education, or business opportunities in Europe and beyond.

While specific numbers are difficult to quantify, industry professionals describe a surge in interest in citizenship-by-investment programs, including:

• Portugal’s golden visa (which recently underwent policy changes)
• Italy’s investor visa and digital nomad options
• Caribbean programs in St. Kitts and Dominica
• Economic residency routes in countries like Greece and Malta

The article also notes that Americans remain relatively unique among wealthy global citizens due to the U.S. taxation of worldwide income, even when residing abroad. As a result, some UHNWIs have taken the step of renouncing U.S. citizenship, although the process is complex and carries significant tax implications.

Despite these challenges, experts report a shift in how American wealth is becoming increasingly internationalized, both in terms of residence and asset management.

Original Article Link: https://www.ft.com/content/3a2d22a1-c7c1-46bc-abbf-7b9283fb2ce8
Source: Financial Times
Date: Feb 22, 2024