Here's how the ultrawealthy are getting citizenship abroad as 'insurance' against wealth taxes
Ultrawealthy Americans are increasingly seeking foreign citizenship or residency as a form of 'insurance' against potential future wealth taxes. Firms report a significant surge in inquiries as high-net-worth individuals look for ways to protect their assets from proposed legislative changes.
Why it matters
This trend highlights the mobility of global capital and the challenges governments face in implementing wealth-based taxation in a globalized economy.
New Zealand has seen a surge in applications for its golden visa from Americans. Supachai Panyaviwat/Getty Images Ultrawealthy Americans are seeking foreign citizenship as wealth taxes gain support in the US. Advisors to the ultrawealthy say second passports are like "insurance" plans. Golden passports and visas, requiring investments of up to millions of dollars, are on the rise. As taxes on extreme wealth gain traction in the US, the ultrawealthy are planning escape routes — even if they never end up using them. Californians are set to vote in November on a measure that would levy a one-time 5% tax on the state's 200-plus billionaires. Google cofounders Sergey Brin and Larry Page moved assets out of the Golden State ahead of the potential tax, while scores of other wealthy Californians have relocated to places like Florida , which has no state income tax. Outgoing Gov.
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