An increasing number of US citizens are considering acquiring second citizenship or a European residency viewing it as a strategic move to enhance their financial flexibility, secure travel benefits, and safeguard themselves from political or economic uncertainties. In 2022, approximately 4.4 million US citizens resided abroad[1] (2.8 million were 18 years or older).
With the complexities of global taxation, visa limitations, and the desire for more lifestyle options, a second passport can offer valuable opportunities. Popular programs such as Portugal’s Golden Visa, Malta’s Citizenship by Investment, and the Caribbean’s fast-track schemes provide a seamless route to better tax regimes, visa-free travel, and a more secure future. The allure of these programs is undeniable, offering both peace of mind and a diversified global presence.
This article will explore the financial, political, and personal factors that motivate US citizens to seek a second citizenship or residency permit. It will also highlight some of the most attractive residency and citizenship programs available, and the potential benefits in a world filled with unpredictability.
9 Key Factors Driving Americans Choices
Many Americans from diverse backgrounds plan to leave the US or get a second citizenship to pursue greater security and an improved quality of life abroad. Below are the top reasons:
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Tax Optimization
The US imposes taxes on its citizens based on their worldwide income, regardless of their place of residence. However, obtaining a second citizenship can present opportunities for tax optimization, particularly in nations that maintain more advantageous tax regimes.
US citizens encounter restrictions concerning offshore banking and financial services due to the FATCA (Foreign Account Tax Compliance Act). This means that renouncing US citizenship may be a viable option for individuals seeking to evade future tax liabilities. However, for high-net-worth individuals, such a decision activates the expatriation tax[2]—often referred to as the exit tax. The latter applies to US citizens who choose to relinquish their citizenship and who meet any of the following conditions: possessing a net worth of $2 million, having an average annual net income tax liability that exceeds a particular threshold, or failing to certify compliance with all US federal tax obligations for the five years preceding the date of expatriation.
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Affordable cost of living
One of the primary reasons that many Americans pursue residency or citizenship overseas is the exorbitant cost of living in the US. Numerous individuals, mainly retirees, are attracted to nations that provide more economical healthcare, diminished housing costs, and lower daily expenses. Their objective is to extend the longevity of their pensions; however, this often leads them to countries such as Portugal, Greece, and Malta. These destinations are especially alluring because they offer a similar quality of life at a significantly reduced cost when compared with that of the US.
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Greater Travel Freedom
Passports like the Portuguese and Maltese offer a wider range of visa-free or visa-on-arrival access to countries that are not easily accessible with a US passport, and this can be particularly advantageous. In regions where Americans may encounter restrictions or scrutiny, a second passport can facilitate smoother travel experiences. Although the process for obtaining such a passport may be cumbersome, the benefits often outweigh the drawbacks because of the increased flexibility it provides.
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Political and Economic Uncertainty
Political polarization, economic uncertainty, or worries about civil liberties in the US motivate some citizens to pursue second citizenship or residency in other countries. The primary motivation for affluent Americans is the desire for long-term stability, a better quality of life, and financial security. Interest in second passports often spikes during times of heightened societal uncertainty because of economic instability, such as interest rate hikes and rising inflations, financial sector disruptions, or significant judicial decisions. Dual citizenship serves as a backup option during political or economic crises; however, it can complicate one’s legal status and obligations.
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Broader Business Opportunities
Another reason why Americans are looking for a Plan B is their desire to diversify investment interests. Some regions provide greater access to trade agreements, investment incentives, or favorable business environments for citizens. A second citizenship can facilitate business setups in specific jurisdictions; however, individuals must carefully assess their options, and consider various factors before proceeding.
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Family and Lifestyle
Many countries offer top-notch educational services and robust healthcare systems that are affordable and of high quality for individuals seeking better services. Retirees also seek citizenship in countries with lower living costs, better climates, or relaxed lifestyles.
Most Popular Plan B Options for US Citizens
The perfect Plan B for US citizens depends on the investor’s personal preferences, financial situation, and how much he is willing to invest.
The Five Caribbean Programs
One of the world’s most sought-after and cost-effective citizenship-by-investment programs is the Caribbean Five, located just off Florida’s coast. Dominica, St. Kitts and Nevis, Grenada, Antigua and Barbuda, and St. Lucia offer citizenship in exchange for an investment into the nation’s community and economy.
As U.S. citizens grapple with complex tax laws, Caribbean Citizenship by Investment (CBI) programs have emerged as a compelling solution. They offer a plethora of advantages, including financial, travel, and lifestyle benefits. Countries such as St. Kitts and Nevis, Antigua and Barbuda, and Grenada present tax-friendly environments (notably lacking taxes on foreign income, capital gains, or inheritance), thus facilitating strategic financial planning.
Caribbean passports also enable visa-free entry to key global destinations, including the UK, China, the Schengen Zone, and Singapore. This enhances mobility for frequent travelers and international professionals. Furthermore, these programs feature minimal residency requirements, allowing Americans to preserve their ties to the US without any need for relocation. Although there are fewer financial reporting obligations in comparison to FATCA regulations, Caribbean CBI programs provide enhanced privacy and security for global investments.
Each Caribbean CBI program offers distinct advantages tailored to different priorities. For instance, Grenada’s program is Ideal for US citizens with business ties to China. St. Kitts and Nevis, one of the oldest and most reliable CBI programs, offers visa-free access to over 150 countries. Antigua and Barbuda is a cost-effective, family-friendly option that allows dependents to be included in applications at a very affordable cost. Dominica is considered the most affordable option for single applicants, and St. Lucia provides diverse investment opportunities for Americans looking to expand their business portfolio.
European Programs: The Ultimate Plan B
Europe remains the best, most effective, ultimate in lifestyle security and Plan B strategies for US citizens. European residency programs provide real estate ownership, financial ROI element, and offer rights of access, residency, and retirement strategies. These programs provide everything an HNWI wants in lifestyle security as well as providing everything a real-world Plan B must contain.
Greece, Cyprus, and Malta all provide real estate investment options, whereas Portugal offers an equity fund investment.
Portugal: A High-Quality Lifestyle at an Affordable Cost
Portugal has become a top choice for Americans seeking a new home abroad, thanks to its mild climate, welcoming environment, affordable cost of living, and high safety standards. According to the Migration and Asylum (AIMA) report[3], the number of foreigners living in Portugal increased by 33.6% in 2023 compared to the previous year, totaling 1,044,606 citizens with a residence permit. The country’s rich cultural heritage and its friendly, welcoming communities create an inviting atmosphere, serving as an ideal destination for individuals seeking to embark on a new chapter in a vibrant and comfortable environment. Portugal, ranked 7th on the Global Peace Index[4] (2024), ensures a secure family setting. High English proficiency and a reputation for hospitality facilitate smooth integration for newcomers. The education system includes reputable American international schools, while the healthcare system is both accessible and well-regarded. Moreover, the Portuguese Golden Visa provides US citizens with residency, as well as visa-free travel to 172 countries. This offers families the flexibility and mobility to explore and assess European nations that align with their lifestyles and long-term aspirations.
Investors opting for Portugal Golden Visa have various investment options, including investments in funds and job creation initiatives. From vibrant cities like Lisbon and Porto to scenic coastal towns such as Cascais and Costa da Caparica, Portugal merges urban excitement with coastal serenity, thereby creating an ideal home for expatriates who are in search of a balanced, fulfilling life. There are many benefits of living in Portugal because it embraces diversity and fosters a sense of belonging.
Greece: Growing Real Estate Market
As travel restrictions and visa requirements, including the upcoming ETIAS Authorization[5] in Europe, become more complex for US citizens, the Greece Golden Visa provides a reliable, long-term solution for visa-free European access. Beyond its practical benefits, Greece offers an affordable cost of living, stunning landscapes, rich cultural heritage, and easy access to main European destinations, making it an attractive choice for US investors and expatriates.
Greece’s real estate market is growing, particularly in major cities like Athens and Thessaloniki, as well as in tourist hubs such as Crete and Santorini. Compared to other European Golden Visa programs, Greece’s minimum investment requirement of €250,000 for real estate renovations makes it one of the most accessible options for American investors. After 7 years of holding a Golden Visa, US citizens can apply for Greek citizenship, which grants them full EU rights.
Malta: Recognizes Dual Citizenship
While most of the available options in Europe are Golden Visas, Malta exists as a significant citizenship-by-investment program that US citizens can consider. It is one of the best Plan B options, providing EU citizenship and a passport. Maltese citizenship offers an alternative legal identity, granting investors the right to live, work, bank, and do business in Malta with full citizenship protections. As Malta is an EU member, this citizenship also provides the same rights across all European Union countries. The nation also recognizes dual citizenship, so there is no need to renounce US citizenship to qualify for Maltese citizenship.
For investors seeking business opportunities, Malta offers a range of booming sectors that present significant investment opportunities. These thriving industries, such as fintech, tourism, maritime, and gaming, have positioned Malta as a dynamic hub for innovation and growth.
For more information about the Caribbean CBI programs, and European Residency programs, and their advantages, please contact us here.
[1] https://www.fvap.gov/info/interactive-data-center/overseas
[2] https://www.irs.gov/individuals/international-taxpayers/expatriation-tax#:~:text=The%20expatriation%20tax%20provisions%20under,status%20for%20federal%20tax%20purposes.
[3] https://www.portugalresident.com/over-1-million-foreigners-officially-resident-in-portugal-as-figure-jumps-34/
[4] https://www.portugalglobal.pt/en/news/2024/may/portugal-ranks-7th-in-global-peace-index-2024/#:~:text=Portugal%20ranks%207th%20globally%20in,Ireland%2C%20Austria%2C%20and%20Switzerland.