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Basil Mohr-Elzeki is Head of the Americas for Henley & Partners, where he holds the dual roles of Managing Director and Head of Private Clients, based in Miami, USA.
In an era of unprecedented uncertainty, the importance of building a strategic portfolio of complementary residence permits and citizenships that provide you with personal access rights to a wide range of different jurisdictions has never been more evident for centi-millionaires. This approach is not merely about enhancing global mobility through seamless visa-free travel but about creating a robust safeguard that protects wealth, lifestyle, and legacy. By acquiring a diversified combination of residences and citizenships, the ultra-wealthy can effectively mitigate a wide array of geopolitical and other risks, while accessing new opportunities for themselves and their families.
This level of optionality enables them to live, study, conduct business, and even retire in virtually any part of the world. In today’s interconnected global landscape, citizenship diversification has evolved into a crucial strategy for those seeking to future-proof their wealth, secure their legacy, and ensure their family’s prosperity across generations. The practice, once a niche consideration, has now become an essential element of wealth management, particularly among centi-millionaires who recognize the profound advantages of holding multiple citizenships and residency options.
Acquiring additional citizenships or residencies beyond one's home country allows individuals to spread their geopolitical risk, expand their global mobility, and create a robust plan for their family’s future. Essentially, it’s about having a Plan B that provides access to new opportunities, protection from political or economic instability, and the freedom to live, work, and travel across multiple jurisdictions.
Investment migration programs are the primary means through which wealthy individuals can acquire additional passports or residence permits. These programs, offered by various countries, allow individuals to invest in a nation’s economy — whether through business ventures, government bonds, or real estate — in exchange for residence rights or citizenship. Designed to attract foreign capital and stimulate economic growth, residence and citizenship by investment programs are mutually beneficial for both the investor and the host country.
Countries offering investment migration programs often do so to bolster their economies. For many small nations, particularly in the Caribbean and Europe, these programs are a critical source of revenue. The funds generated through investment migration are typically allocated towards infrastructure development, public services, and other essential socio-economic activities.
In the European Union, for example, countries such as Greece, Italy, Malta, Portugal, and Spain have used residence and/or citizenship programs to attract foreign investment, boost real estate markets, and create jobs. The influx of capital from the programs can have a profound impact, particularly in regions that may otherwise struggle to attract investment.
Over the last decade, the USA has become Henley & Partners’ number one client market, reflecting a significant shift in the mindset of American ultra-high-net-worth individuals. After an astonishing spike — of over 200% — in enquiries from US citizens in 2020, the years since have been characterized by even further growth. Traditionally, Americans have been less inclined to seek citizenship or residence outside their home country. However, recent trends indicate a growing recognition of the benefits of diversification, driven by several key factors.
One of the primary drivers is the desire to hedge against geopolitical risk. The past decade has seen significant political and social upheaval in various parts of the world, including the USA. From economic uncertainty to political polarization and global health crises, the need for a backup plan has never been more apparent.
Another crucial factor is mobility. With a second passport or residence, ultra-high-net-worth individuals can move freely across borders, even in times of crisis. This mobility is not just about ease of travel; it’s about having a secure place to relocate to if needed. For many American centi-millionaires, this means ensuring they have a safe haven for themselves and their families.
Legacy planning is also a significant consideration. Parents and grandparents are increasingly seeking to provide their children and grandchildren with access to opportunities that may not be available in the USA. For instance, a European Union passport grants the holder the right to live, work, and study in any of the 27 EU countries, where there is high quality education, comprehensive healthcare, and favorable retirement options. This access is viewed as an invaluable asset, particularly as ultra-high-net-worth individuals consider the long-term well-being of their descendants.
There are several misconceptions surrounding the holding multiple passports, particularly among US citizens. One of the most common is the belief that the USA does not permit dual citizenship. In reality, US law does allow citizens to hold multiple passports, and many ultra-high-net-worth individuals take advantage of this by acquiring additional citizenships through investment migration programs.
Another misconception is that obtaining a second passport or residence automatically comes with onerous tax obligations. While it is true that US citizens are taxed on their worldwide income, regardless of where they reside, many investment migration programs do not impose additional tax burdens on new citizens or residents. For example, many countries offering citizenship by investment have no residence requirements, meaning that investors are not obligated to live in the country or pay local taxes unless they choose to establish tax residence there.
Moreover, the tax benefits of certain jurisdictions can be appealing. For instance, some Caribbean nations offer citizenship programs that provide tax-neutral environments, making them attractive for those looking to minimize their tax exposure.
An increasing number of American ultra-high-net-worth individuals are incorporating citizenship and residency diversification into their overall wealth management strategy. Popular investment migration programs include those offered by Greece, Italy, Portugal, and Spain — each providing a gateway to the European Union, with all the associated benefits of EU citizenship.
In addition to European options, many ultra-high-net-worth individuals are also looking to the Caribbean, where island nations such as Antigua and Barbuda, Grenada, and St. Kitts and Nevis offer attractive citizenship by investment programs. These Caribbean passports not only offer visa-free travel to a wide range of countries but also provide a favorable tax regime.
For those seeking options slightly closer to home, Costa Rica and Panama have emerged as popular choices for alternative residence, offering a blend of favorable tax conditions, strategic location, and a good quality of life. Additionally, thanks to its robust economy and high standard of living Australia remains an appealing destination for talented individuals, particularly those in tech or finance.
The Henley Ultimate Portfolio has been meticulously crafted to help affluent investors identify the most optimal combination of investment migration programs, enabling them to maximize their global access. This innovative tool leverages 33 indicators, organized under seven key country benefit parameters: business opportunities, climate resilience, economic mobility, premium education, quality of life, private healthcare, and safety and security.
The interactive interface allows you to compare the benefits of up to two existing citizenships or passports with up to four additional residence and citizenship by investment programs. It also helps you determine the minimum investment threshold, and the maximum number of visa-free destinations based on your selected portfolio.
As the world becomes a more unpredictable place, the ability to secure additional citizenships or residencies will continue to grow in popularity, shaping the future of global wealth management and redefining the concept of citizenship in the 21st century.
Henley & Partners assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
