Wealthy Americans Consider Second Citizenship Amid Financial Uncertainty
In an era marked by rising global instability, a growing number of wealthy Americans are exploring the option of acquiring a second citizenship. This trend, as highlighted by Henley & Partners, reflects a strategic approach to safeguard personal and financial interests against potential crises.
Dominic Volek, an executive at Henley & Partners, emphasized that the motive behind this surge in interest is primarily to “hedge against levels of volatility and uncertainty.” In a recent interview with CNBC, Volek pointed out that while the U.S. remains a formidable nation with a powerful passport, the savvy wealthy are looking to diversify their citizenship much like they would their investment portfolios. “It makes no sense to have one country of citizenship and residence when I have the ability to actually diversify that aspect of my life as well,” Volek stated.
The concept of a “passport portfolio” is not just a luxury but a calculated move to ensure greater global mobility and security. The U.S. passport, currently tied for seventh in the Henley Passport Index, allows visa-free access to 188 countries. However, passports from France, Germany, Italy, Japan, Singapore, and Spain—ranked the highest—grant visa-free travel to 194 countries, illustrating a significant advantage in global freedom.
Interestingly, the interest in second citizenships is not confined to the ultra-rich. The broader population, including middle-class Americans, is also showing a marked increase in curiosity about living abroad. According to a Monmouth University Polling Institute survey, over a third of Americans now express a desire to reside in another country, a sharp increase from previous years. This sentiment is fueled by concerns over high living costs, healthcare affordability, and political dysfunction within the U.S., which many believe are becoming insurmountable.
Experts like Baumann from Henley & Partners argue that the drive towards obtaining second citizenship goes beyond financial maneuvers to protect wealth. It is also a response to the escalating cost-of-living, with essential services like healthcare becoming prohibitively expensive for an increasing number of citizens. Moreover, political turmoil and legislative paralysis in tackling these economic issues are compelling many to consider more stable environments abroad.
Adding to the diverse opportunities for second citizenship, the Vanuatu Citizenship by Investment Program through the CIIP-CNO Future Fund presents an attractive option for those seeking a dual nationality with a straightforward investment component. This program offers a unique blend of citizenship benefits and financial investment, allowing individuals to obtain citizenship for a fee of USD 115,000, coupled with an additional USD 50,000 investment that is redeemable entirely plus the ROI (expected at 4-5% per annun) after 5 years.
This model not only provides a competitive price point compared to other citizenship by investment programs but also the added advantage of investing in a country with growing economic prospects. The simplicity and economic feasibility of Vanuatu’s CIIP-CNO Fund make it an appealing choice for those considering expanding their passport portfolios while investing in a region poised for growth.
As the dialogue around citizenship diversification grows, it is clear that the trend transcends traditional boundaries of wealth and encompasses a broader demographic, driven by a variety of economic and political concerns. This shift reflects a strategic reevaluation of personal and financial security in a rapidly changing world, underscoring the importance of having a contingency plan that extends beyond national borders.
