Over the past three years, the number of wealthy Americans buying golden passports has gone up.
Foreigners who invest millions of dollars in the country can get citizenship through the top programs.
According to multiple firms, US applicants are citing climate change and political division.
The number of wealthy Americans applying for citizenship or residency in foreign countries has skyrocketed over the past three years as US billionaires, tech entrepreneurs, and celebrities look to create a "plan B" for their families, multiple investment migration firms told Insider.
More than a dozen countries offergolden passports and visas that allow wealthy foreigners to receive citizenship or residency in exchange for investing in the country. According to Forbes, the most expensive programs are in Austria and Malta.
Ezzedeen Soleiman, a managing partner at Latitude Residency and Citizenship, said that they see the programs as an insurance policy.
US inquiries have increased by 300% since the beginning of the year, according to a company which guides high-net-worth investors around the world. The sales of citizenship to American nationals increased by 32% between the year of 2020 and the year of 2021, according to one of the world's largest citizenship brokers.
According to Dominic Volek, head of private clients at Henley & Partners, there are four Cs that are driving the investor citizenship industry.
He said that the recent increase in American applicants started during the Trump administration.
There was a time when you couldn't enter Europe if you only had an American passport.
The CEO of Dasein Advisors said he has received more American inquiries over the past three years than the previous 20 years combined. He said his US clients are worth between $50 million and $20 billion.
He said that they all have the same fear about the future of American society.
Jafri said wealthy clients across the political spectrum are planning for the worst, from a tech founder concerned about the rise in Asian-American hate crimes to young web3 entrepreneurs looking to avoid tax hikes.
Jafri said that it all reminded them of how vulnerable and frail they are.
The five-year residence permit of Portugal is the most in-demand program among American investors, according to two firms interviewed by Insider.
The golden visa for Portugal requires a minimum investment of $200,000 and an average stay of seven days a year. Residents can apply for full-time citizenship after the permit expires, but it can take three more years.
Portugal is the next California, according to Soleiman.
Ultra-rich Americans want to leave a legacy for their children and grandchildren by moving to Europe.
Many golden passport recipients do not end up moving and some rarely visit, as a Guardian investigation into Malta's citizenship program revealed last year.
Volek said that most of the clients wanted the option to move.
The spike in Americans seeking golden passports comes amid fears that the programs have created loopholes for shady individuals and dirty money to enter the EU.
Peter Spiro, a professor of international law at Temple University and expert in dual-citizenship, told Insider that major companies have a serious interest in vetting their applicants.
They are making a lot of money off it and they want to keep making a lot of money off it. My sense is that they have done a good job.
Volek told Insider that there are some smaller investor migration firms that do not properly vet applicants.
The original article is on Business Insider.
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