An increasing number of Americans renouncing US citizenship and considering life abroad, according to the US Treasury’s latest “Quarterly Publication of Individuals Who Have Chosen to Expatriate”. Between 2021 and 2025, the number increased by 100%, which means doubling the 2021 level.
In the second quarter of 2026, the number of expatriates reached 3,243, the highest level since the pandemic in 2020. This trend is attributed to Americans’ growing desire to secure a Plan B due to practical burdens, political and social considerations, the high cost of living, retirement, or diversifying global mobility options.
Americans renouncing US Citizenship are turning to other alternatives, such as a second citizenship in the Caribbean or a European residency, to obtain greater flexibility, security, peace of mind, and tax advantages.
Americans Renouncing US Citizenship at a Glance
The number of Americans choosing to expatriate or relinquish their US citizenship has risen in recent years, reflecting a growing interest in establishing lives, business, or even retiring beyond the United States. The figures below demonstrate this trend:
| Year | Number of US Expatriates | Increase in % |
| 2021 | 2,426 | – |
| 2022 | 3,816 | 57% |
| 2023 | 3,260 | 14.6% |
| 2024 | 4,819 | 48% |
| 2025 | 4,892 | 1.5% |
| Q2 2026 | 3,242 | – |
10 Major Reasons Why Americans Renouncing US Citizenship
- Securing Plan B: In an era characterized by geopolitical realignments, sectoral variation, and valuation pressure, Americans are increasingly looking to secure a Plan B by obtaining a second citizenship or residency. This provides them and their families with safety, security, and freedom to access global opportunities.
- Political and Social Consideration: For some Americans, political polarization and dissatisfaction with the political environment have become additional factors for considering an international move.
- High Cost of Living: The rise in the cost of living is one of the key reasons encouraging Americans, especially retirees, to look beyond the US for a more affordable and fulfilling lifestyle. Higher housing, everyday expenses, and healthcare services are prompting some Americans to consider countries where their income may stretch further. Others are looking for a slower pace of life, greater work-life balance, and access to amenities and activities that support their overall well-being, while achieving a better balance between financial security and quality of life.
- Dollar Risk Hedging: Several reasons, including slower growth, rising deficits, political uncertainty, and changing global capital flows, are affecting the dollar’s performance. Moreover, the US 2025 real GDP growth forecast fell from 2.8% in 2024 to 1.4% in 2025 and 1.6% in 2026, according to the World Bank report. In response to these dynamics, US investors are looking for second citizenships or residencies to diversify their exposure and hedge against currency risk.
- Portfolio Diversification: To build a stronger and more balanced portfolio, US investors are considering international diversification to broaden their reach and tap into new growth cycles, income streams, and risk-reduction strategies. They are looking for other countries that provide them with stability and access to large multinational firms to gain exposure to global industries and consistent income.
- Inflation Protection and Income: US investors are struggling with inflationary pressures. In July 2026, inflation rose 3.4%, the highest in two years. Rising inflation levels, especially above the Fed’s 2% target, could complicate the easing of monetary policy. However, global investments can help manage inflation and generate a steady income.
- Retirement: Americans who have already accumulated wealth or retirement assets are sometimes choosing to move to their dream countries that combine cultural attractions, established expatriate communities, a slower pace of life, access to high-quality healthcare services, and a warm climate.
- Investing Through IRAs: Some European Residency programs, such as Portugal, allow Americans to leverage their Individual Retirement Account (IRA) by investing their retirement savings without triggering penalties or tax issues.
- Tax Benefits: Although Americans are taxed on their worldwide income regardless of where they reside, some countries provide attractive regimes that help them reduce tax burdens. For instance, Italy and Greece provide lump-sum taxation models to simplify and cap taxation of foreign-sourced income while residing in the country.
- High ROI Potential: Usually, the US economy and the Eurozone economy don’t move in perfect sync and have a different industrial composition. While the US economy focuses on technology, sectors such as tourism, manufacturing, and SMEs thrive in Europe and the Caribbean, giving US investors a reduced systemic risk if the US economy witnesses a recession or crisis. Therefore, US investors can establish a presence in these regions, creating potential for stronger long-term ROI.
Americans Renouncing US Citizenship and Turning to Europe?
An annual analysis revealed by Citizenship Bay, based on insights collected during 2025, shows an increase in inquiries and applications from US nationals for European residency programs, mainly Portugal, Greece, and Italy. This growing demand was driven by a mix of wealthy investors, retirees, and families attracted by the myriad benefits of these programs, which include access to the Schengen area, promising business opportunities, and a competitive cost of living.
According to the Annual Statistical Supplement to the Social Security Bulletin 2025, there is an established American population in Italy, Portugal, and Greece receiving U.S. Social Security benefits. The majority of beneficiaries in these markets are retirees. Below is a detailed table showing the number of beneficiaries in the three countries:
| Country | Retired Workers | Disabled Workers | Spouses | All beneficiaries |
| Portugal | 11,359 | 271 | 1,340 | 14,813 |
| Italy | 15,462 | 153 | 4,578 | 25,877 |
| Greece | 13,095 | 134 | 3,394 | 21,500 |
The three countries have emerged as attractive destinations for Americans renouncing US Citizenship and looking to combine lifestyle advantages, investment opportunities, and greater mobility.
Greece currently offers the shorter path to citizenship among the three, mandating 7 years of actual residence along with a language test, proof of income, and a clean criminal record. Portugal requires 10 years of legal residency with minimal residency requirements that do not exceed 7 days annually. Italy’s Golden Visa program also allows applicants to apply for citizenship after 10 years of actual residence.
Portugal offers Americans renouncing US citizenship promising business opportunities, especially in tech and digital innovation sectors, as well as tourism and the food industry, lower cost of living, safety, and a robust and affordable healthcare system. By investing in Portugal’s Golden Visa, US investors can leverage their IRA and invest their retirement savings without triggering penalties or tax issues, unless they withdraw their funds before retirement age. A self-directed IRA account enables Americans to invest beyond traditional stocks and bonds, allowing them to leverage alternative assets, including qualified investment funds, without the need to establish a Limited Liability Company in the US or Portugal.
Italy stands out for its large and diversified economy, with opportunities across manufacturing, tourism, SMEs, and innovative startups, along with its relaxing and peaceful lifestyle and stunning nature.
Greece, on the other hand, is attractive for Americans looking to own a real estate property that appreciates over time, while enjoying a Mediterranean lifestyle with well-established American communities.
Together, these countries can offer Americans more than an alternative place to live, serving as ideal destinations to expand their business exposure in the European market, diversify their asset portfolios, access different economic growth drivers, and easily reach world-class healthcare services. For investors pursuing a long-term Plan B, the three countries are suitable for Americans renouncing US citizenship who are seeking a straightforward path to citizenship.
Read also: How Can European Residency Unlock Tax Benefits for Americans ?
Why Are Americans Renouncing US Citizenship and Buying a Caribbean Citizenship?
The Caribbean Citizenship programs have become an increasingly compelling choice for Americans renouncing US Citizenship. Whether Antigua & Barbuda, Grenada, Dominica, St. Kitts and Nevis, or St. Lucia, they all provide a direct route to second citizenship, along with the ability to own real estate property or invest in diverse business opportunities. The minimum investment threshold ($200,000) is considered an accessible entry compared to other countries.
The high cost of living in the US encourages many Americans renouncing US citizenship and pursuing Caribbean citizenship. Retirees, particularly, prefer relocating to nations that provide budget-friendly medical care, affordable housing, and a reduced general cost of living. With their mesmerizing beaches, tropical weather, and luxurious lifestyle, Caribbean countries are an ideal option for retirees to enjoy their golden years.
High healthcare costs are a major reason that pushes Americans renouncing US Citizenship and to seek better and more affordable options in the Caribbean.
A Caribbean passport also simplifies the process of opening an account with European banks, cutting through bureaucratic red tape. This streamlined banking access not only facilitates depositing funds but also enables investors to secure loans and conduct currency transactions with greater ease. For instance, banks in St. Kitts and Nevis provide highly secure accounts for individuals, businesses, and corporations, as the government protects all those who participate in legitimate business transactions. The economic stability in the Caribbean countries helps bank accounts remain protected and stable.
Moreover, Caribbean countries are considered tax havens as they provide low tax rates for individuals and businesses. Residents often pay no taxes on global income, dividends, royalties, and interest. Companies registered in tax havens also benefit from low corporate tax.
The Caribbean’s abundant natural resources and diversified economic sectors, including tourism, agriculture, manufacturing, renewable energy, and financial services, offer dynamic opportunities for growth.
Thanks to its location near major markets in North America and Europe, the region offers excellent connectivity and accessibility, providing businesses with a convenient gateway to international trade, efficient shipping routes, and access to global transportation networks.
Frequently Asked Questions About Americans Renouncing US Citizenship
Why are Americans renouncing US citizenship in 2026?
Americans are considering renouncing US citizenship for several reasons, including securing a Plan B, political and social concerns, the high cost of living, retirement planning, tax considerations, portfolio diversification, inflation protection, and greater global mobility. Some are also seeking opportunities to live, invest, or retire abroad.
How many Americans are renouncing US citizenship in 2026?
In the second quarter of 2026, 3,242 US expatriates were recorded, the highest level since the pandemic in 2020. The number of US expatriates has also increased significantly in recent years, rising from 2,426 in 2021 to 4,892 in 2025.
Why are Americans moving to Europe?
Americans are increasingly considering European countries for their lifestyle, investment opportunities, competitive cost of living, healthcare, business opportunities, and access to the Schengen Area. Portugal, Greece, and Italy are among the European destinations attracting interest from American investors, families, and retirees.
Which European countries are popular with Americans seeking residency?
Portugal, Greece, and Italy are among the European countries attracting Americans seeking residency. Portugal offers opportunities in sectors such as technology, tourism, and food; Italy has a large and diversified economy; and Greece appeals particularly to investors interested in real estate and a Mediterranean lifestyle.
Can Americans get European citizenship through residency?
Yes. The article highlights potential pathways to citizenship through residency in Greece, Portugal, and Italy. Greece offers a path after 7 years of actual residence, subject to additional requirements. Portugal requires 10 years of legal residency, while Italy allows applicants to apply for citizenship after 10 years of actual residence.
Why are Americans choosing Portugal for a Plan B?
Portugal attracts Americans because of its business opportunities, lower cost of living, safety, affordable healthcare, and pathway to citizenship. Portugal’s Golden Visa also has minimal physical-presence requirements, making it attractive to investors who do not want to relocate full time.
Why are Americans interested in Caribbean citizenship?
Caribbean Citizenship by Investment programs provide a direct route to second citizenship and opportunities to invest in real estate or other qualifying options. Americans may also be attracted by the region’s lower cost of living, tropical lifestyle, international connectivity, banking opportunities, and tax environment.
How much does Caribbean citizenship by investment cost?
According to the article, Caribbean Citizenship by Investment programs have a minimum investment threshold starting from $200,000. Programs are available in Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, and St. Lucia.
Is the high cost of living causing Americans to consider living abroad?
Yes. Higher housing costs, everyday expenses, and healthcare costs are among the factors encouraging some Americans, particularly retirees, to consider countries where their income may stretch further while offering a slower pace of life and greater work-life balance.
What alternatives are Americans considering before renouncing US citizenship?
Americans looking for greater international flexibility are considering options such as second citizenship in the Caribbean and European residency programs. These alternatives can provide additional residency or citizenship options, greater global mobility, investment diversification, and a long-term Plan B.
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https://www.ssa.gov/policy/docs/statcomps/supplement/2025/supplement25.pdf