The US rich are getting second passports, citing risk of instability

Original Article ↗ Hacker News Discussion ↗

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.