Why Wealthy Individuals are investing in second citizenship

High Net worth individuals are obtaining a second citizenship as a form of “jurisdictional arbitrage.” With political tensions in many countries, wars around the world and strained trade relationships, many investors seek out a second citizenship as a Plan B insurance.  

Many investors, particularly Americans understand that the world is changing and that once powerful nations are on the decline. Many wealthy individuals seek wealth preservation strategies and diversification across asset classes and countries. Obtaining another citizenship can serve as both a form of personal diversification, giving investors and their families more options and opportunities. With a second citizenship, you have the right to live, work, invest and do business in your country of citizenship. If you acquire a second citizenship in a Caribbean country for example, it gives you the right to live, work and travel within a bloc of countries. Having more citizenships can lead to more opportunities. 

In today’s world, you never know when you will need to execute your Plan B. “COVID was definitely a trigger for many Americans realizing that the world is changing and that the United States is not as free as they once thought it was. Many Americans pursue investments in citizenship for more personal freedom, business freedom and as a Plan B.” 

During COVID, United States passport holders were restricted where they could travel with many flights between the US and Europe closed off. Citizens of Saint Kitts and Nevis and Antigua & Barbuda for example you could travel freely to other countries whereas US passport holders could not. 

The numbers of American investors are doubling if not even quadrupling every year. Having a Plan B passport is a wealth planning global strategy. The US is over 30 trillion in debt with no end in sight. Many people see inflation and the decline of the power of the US dollar as a means to pay off debt resulting in an overall decrease in wealth for people. By staying in the US and focusing on the US your risk is concentrated and high. Taking a holistic global approach can be game changer helping to preserve wealth  of wealthy individuals. 

For more information about citizenship by investment: jennifer@jhmarlin.com