As extreme wealth taxes gain steam in the United States, the ultra-rich are planning escape routes, even if they never end up using them. Californians will vote in November on a measure that would impose a flat 5% tax on the state’s more than 200 billionaires. Google co-founders Sergey Brin and Larry Page moved assets
As extreme wealth taxes gain steam in the United States, the ultra-rich are planning escape routes, even if they never end up using them.
Californians will vote in November on a measure that would impose a flat 5% tax on the state’s more than 200 billionaires. Google co-founders Sergey Brin and Larry Page moved assets out of the Golden State ahead of the potential tax, while dozens of other wealthy Californians have moved to places like Florida, which has no state income tax.
Outgoing Gov. Gavin Newsom, who opposes the measure and is widely seen as a likely presidential contender in 2028, has argued that extreme wealth taxes are better handled nationally because billionaires can move between states to avoid them. Federal billionaire tax legislation proposed by Senator Bernie Sanders and Representative Ro Khanna is unlikely to pass in the near future.
Now ultra-wealthy Americans are increasingly seeking citizenship or residency abroad, even if they have no immediate plans to move abroad. Henley & Partners, a firm that helps international clients obtain residency and citizenship abroad, reported a 183% increase in inquiries from US citizens between the first quarter of 2024 and 2025.
Advisers to the ultra-rich say their clients are getting second or third passports as a form of “insurance.” David Lesperance, a lawyer who advises the ultra-wealthy on tax and citizenship issues, compared preparing for the possibility of estate taxes to preparing for the risk of wildfires.
“There is more than a zero percent chance of a wildfire breaking out,” he said. “So, wouldn’t you spend a little time, effort and money getting fire insurance and a fire escape plan, hoping to never use them?”
lineage citizenship
Lesperance says he typically starts his clients seeking lineage citizenships, which allow people to seek citizenship based on the nationality or ancestry of their parents or grandparents. For example, an American whose grandmother emigrated from Ireland can apply for Irish citizenship.
More than 50 countries around the world offer citizenship based on ancestry, including Greece, Poland, Italy and Germany, although rules and limits vary. Lesparance said the benefit of obtaining lineage citizenship in a European Union country is that you can live in 27 different countries.
Anyone can aspire to citizenship by lineage, not just the ultra-rich. Because the process can take years, Lesparance said his clients could look at faster citizenship options while they wait for their second lineage-based passport to arrive.
Saint Kitts and Nevis is among the Caribbean nations that offer citizenship for investments of up to $250,000. NANCY PAUWELS/Getty Images
Citizenship or residence by investment
“Golden passports,” which allow the wealthy to essentially buy citizenship, are also on the rise.
Also known as investment migration, the practice grants citizenship in exchange for an investment in the country. The investment amount and rules vary depending on the destination, from thousands to millions of dollars. “Golden visas,” which grant residency, are also becoming more popular.
Dominic Jones, managing director of Greener Pastures New Zealand, which helps clients migrate to the South Pacific nation, said more than 120,000 citizenship or investment visas are issued annually around the world, and the number is growing.
“People love them for all kinds of reasons,” he told Business Insider. “Some are looking to protect their wealth or are concerned about the political situation at home.”
New Zealand’s golden visa requires an investment of about $3 million, while several Caribbean countries offer citizenship in exchange for investments of up to $250,000. Since the rules surrounding its golden visa were relaxed last year, New Zealand has seen an increase in applications from Americans.
Lesparance said some of his clients planning a possible exit from the United States are seeking investor citizenship while waiting to be granted their lineage citizenship.
“When they leave, they save a considerable amount of tax,” he said, “but once they get their Irish passport, their St. Kitts and Nevis passport will be collecting dust in some drawer.”
Some ultra-wealthy Americans seeking a second passport or residency abroad do so with no intention of moving. Many already manage assets, businesses and investments in jurisdictions, and advisers say additional citizenship is another way to diversify, a backup option in case the United States becomes more expensive or less stable.
“They manage their investments and focus on things like risk,” Jones said. “They don’t put all their apples in one basket.”