The US rich are getting second passports, citing risk of instability
Growing numbers of wealthy Americans are seeking second passports, often through ancestry claims or investment schemes in the EU and Caribbean, as a hedge against perceived U.S. political and social instability. Commenters note that extra passports offer mobility, residency rights, and an option to eventually renounce U.S. citizenship, but provide little immediate tax relief due to U.S. citizenship-based taxation and harsh “exit tax” rules. The trend raises broader questions about what counts as “rich,” whether any country is truly safer than the U.S., and how much of this movement is driven by genuine risk versus marketing and status-seeking.
Who counts as “rich” and how common are second passports?
- “Rich” is debated: some think article targets ultra–high-net-worth individuals ($10M–$30M+), not mere millionaires or top 5–10% earners.
- Several commenters doubt that “most” rich Americans have second passports, especially outside people with easy ancestry claims.
Taxation and the US passport
- Multiple comments stress: a second passport does not reduce US taxes unless you also renounce US citizenship.
- US citizens are taxed on worldwide income; double-tax treaties mostly just prevent double payment, not high US-level tax.
- Expatriation can trigger a substantial “exit tax” on unrealized gains above certain thresholds.
- Some note the US can treat ex‑citizens harshly (visa hassles, suspicion at the border).
Motivations: instability vs. optics
- Many see “instability” as PR cover; the real motives include tax options, mobility, and hedge against political authoritarianism or loss of rights.
- Anxiety focuses more on political polarization, culture war, and potential authoritarianism than on pure economic collapse.
- Others argue the US remains relatively stable and fears are exaggerated.
Ways to get a second passport
- Common routes:
- Ancestry/descent (especially various EU states, Ireland, Germany, Italy, Poland, etc.).
- Citizenship-by-investment programs in Caribbean and some Mediterranean/Latin American countries; typical costs cited around $100–250k+, rising.
- Residency or fast-track schemes (e.g., Portugal, Spain, Turkey real estate programs, special rules for certain nationalities).
EU and “where to go”
- EU citizenship is prized for freedom of movement across 27 states; specific countries (Portugal, Malta, Greece, Italy) often used as gateways.
- Some note those states’ own instability but others say correlation with US risk is what matters, not perfection.
Moral and political reactions
- Some frame rich Americans as responsible for US problems (tax policy, funding polarizing movements) and see their exit plans as cowardly or hypocritical.
- Others view second passports as rational self‑insurance, similar to preparing for natural disasters.