US Investors Seeking Golden Visas and Second Passports Surge

The Rising Interest of US Investors in Golden Visas and Citizenship by Investment (CBI)

In recent years, demand has surged from US investors looking for Golden Visas and Citizenship by Investment (CBI) programmes. Rising costs of living and healthcare, coupled with growing political and global uncertainty, are driving affluent Americans to prioritize securing their investment migration goals. According to La Vida’s latest survey, interest from US clients has doubled in 2024, as more individuals and families seek to secure their futures ahead of the upcoming US elections.

A recent industry survey conducted by La Vida found that 59% of US investors cited “Plan B” security and contingency planning as their top motivation for pursuing Golden Visas. Relocation, at 26.40%, was another major factor, while 11.70% highlighted enhanced travel mobility as a key benefit. While tax advantages were less frequently cited at 2.90%, they still play an important role in decision-making, particularly for those considering relinquishing their US citizenship for more tax-friendly locations such as St. Kitts or residency in tax-free countries like the UAE.

La Vida’s Success in the US Market

La Vida has seen significant success in the US market, becoming a trusted partner for many American investors looking to diversify their citizenship portfolios. Our deep understanding of the unique needs of US clients stems from the close ties between the UK and the US, both culturally and as long-standing allies. We understand the American way of doing business and are well-equipped to support our friends from across the pond in achieving their goals. Our reputation within the US community is strong, with word-of-mouth referrals driving our continued growth. Clients consistently recommend us for our tailored approach and exceptional service.

As one of the Financial Times’ Fastest Growing Companies in Europe, La Vida operates under UK law, ensuring the highest standards of service and compliance. This reputation has made us a preferred choice for those looking to invest in second passports. While the US passport remains one of the most powerful globally, offering extensive visa-free access, there are still compelling reasons why American investors are increasingly interested in securing a second citizenship. This surge in interest reflects broader concerns about global mobility, financial security, and the desire for a “Plan B” in an increasingly uncertain world.

WHY US INVESTORS ARE SEEKING SECOND CITIZENSHIPS

Lifestyle and Security

• Political and Economic Stability: With increasing polarization and economic uncertainty in the US, many high-net-worth individuals are seeking the security of a second citizenship. A European passport can provide a stable environment for families, with access to superior healthcare, education, and a higher quality of life. A Caribbean passport is also a great Plan B, given the geographical proximity to the USA.
• Lower Cost of Living, and Cheaper Education: European countries often offer a more relaxed and peaceful lifestyle, with a lower cost of living, excellent public services, and a strong sense of community. Education is also significantly more affordable compared to the US, where tuition can be extremely high. In Portugal, for example, public university fees are just a fraction of what US students pay, and with an EU passport, you also gain access to a broad choice of universities across other EU countries. This not only provides a high-quality education at a lower cost but also opens doors to a diverse range of educational and cultural opportunities throughout Europe.

Business Opportunities and Global Market Access

• Enhanced Global Access: A second passport can open doors to markets that may be challenging for US citizens to enter. For example, countries like Russia and China have stringent visa requirements for Americans, but a passport from a more neutral country such as Grenada, can facilitate easier business operations and travel.
• Business-Friendly Environments: Many countries offering CBI programs provide attractive conditions for business, including lower taxes, fewer regulations, and robust legal protections. This can be particularly beneficial for US entrepreneurs seeking to expand their global business interests. The UAE is a popular choice for simple company formation in return for residency.

Tax Planning and Financial Flexibility

• Tax Optimization: US citizens are subject to taxation on their worldwide income, regardless of where they reside, a practice known as “citizenship-based taxation.” This means that US citizens must report and pay taxes on income earned both within the United States and abroad, making them liable for taxes on their global income. While this system is relatively unique to the US, it can lead to significant tax burdens. By obtaining a second citizenship or residency, investors can access jurisdictions with more favourable tax regimes, allowing for strategic tax planning and potentially reducing the overall tax burden. In fact, we are seeing some US citizens take the drastic step of renouncing their US citizenship in favour of more tax-friendly locations such as St. Kitts. Often, they pair this with residency in a country like the UAE, which imposes 0% income tax, offering a powerful combination of financial freedom and tax optimization.
• Asset Protection: Diversifying assets across multiple jurisdictions can help protect wealth from potential legal and political risks. A second citizenship can provide the legal framework necessary to secure assets and investments in a more stable environment, further enhancing financial security.

Cost of Living Relief

• Escalating Costs in the US: The cost of living in the US has reached unprecedented levels, with significant increases in essential areas like healthcare, education and housing. For instance, the average annual cost of healthcare for an individual in the US is over $12,500, and college tuition fees at private universities can exceed $35,000 per year.
• Lower Living Costs in Europe: By obtaining a European passport, US investors can gain access to countries where the cost of living is significantly lower. European nations like Portugal, Spain, and Greece offer high-quality healthcare at a fraction of the cost, affordable housing, and lower tuition fees, with some countries even offering free education for EU citizens. Additionally, holding an EU passport allows access to universities across the entire EU, providing a broader choice of affordable, world-class education.

Enhanced Travel Freedom

• Visa-Free Travel: Although the US passport is strong, it does not provide visa-free access to all countries. A second passport can significantly enhance travel freedom, providing visa-free or visa-on-arrival access to additional destinations, reducing the hassle and time associated with obtaining visas.
• Emergency Flexibility: In emergencies or unexpected situations, a second passport offers the flexibility to travel immediately without the delays of visa processing, providing peace of mind in uncertain times.

BEST SECOND PASSPORTS FOR US INVESTORS

Portugal

• Advantages: A Portuguese passport offers visa-free access to 198 destinations, similar to the strength of a US passport. However, US investors are particularly drawn to it as an EU option, providing an excellent “Plan B” for enhanced stability and flexibility if needed. Beyond its passport strength, Portugal is attractive due to its stable economy, favourable tax regime, high quality of life, and lower cost of living, making it an ideal choice for long-term security and lifestyle benefits
• Investment Options: The Portugal Golden Visa programme allows investors to obtain residency through investments in an array of venture capital funds starting from €500,000.
• Processing Time: Residency can be obtained in approximately 6-12 months, with full citizenship eligibility after five years of residency with only a 7-day minimum stay requirement per year.

Grenada 

• Advantages: Grenada’s Citizenship by Investment programme is one of the most cost-effective options, starting at $235,000 for a family of up to 4, plus fees. Grenada’s close proximity to the US (just under 5 hours from New York and 4 hours from Miami) adds convenience for American investors and provides a quick escape route if ever needed. Additionally, the presence of St. George’s University, a leading medical school affiliated with the US, makes it an attractive destination for families seeking education opportunities.