Wealthy Americans Look to Change Citizenship to Reduce Tax
The Californer/10305936

UXBRIDGE, U.K. - Californer -- Wealthy Americans are increasingly seeking to escape U.S. taxation through second citizenship and international relocation, according to La Vida Golden Visas, a leading global investment migration consultancy. This trend reflects growing concerns about the unique U.S. practice of citizenship-based taxation, which requires Americans to pay U.S. taxes regardless of where they live.

Following the anticipated surge in investors exploring alternative residency options ahead of the 2024 U.S. elections, La Vida has observed a notable shift in client intentions toward permanent citizenship solutions rather than temporary residency.

More on The Californer

• Freedom Seder LA Brings Together Black, Jewish, and Black-Jewish Leaders for an Evening of Unity and Liberation
• Actor Arif Ali Khan from Documentary Toronto Wonderland, featured in Sundance, in recovery status
• Winners Announced For The 3rd Annual AHS Awards
• Damian Redd's "Caught in a Fantasy" Surpasses 100,000 Views on VEVO/YouTube Following Album Reissue
• California: Governor Newsom responds to DOGE's dismantling of AmeriCorps: 'Middle finger to volunteers. We will sue'

"The evolution in U.S. investor confidence has been remarkable," notes Paul Williams, CEO of La Vida. "In 2016, American interest in citizenship or residency by investment was minimal. Today, it represents our largest market globally, with many high-net-worth individuals seeking legitimate paths to tax efficiency."

The shift from cautious exploration of European residency programs, particularly Portugal's Golden Visa, to more decisive pursuit of full citizenship in nations like Antigua and Grenada demonstrates Americans' growing sophistication in global mobility planning.

Under current U.S. tax law, American citizens must report and pay taxes on their worldwide income, regardless of where they reside. This includes salary, investment income, and business profits earned abroad. Even Americans living permanently overseas must file annual tax returns and potentially pay U.S. taxes in addition to taxes in their country of residence.

More on The Californer

• 100 days after the fires: California and Los Angeles rebuild, recover, and rise together
• Retirement Community hosts Los Angeles Fashion Show
• California: Governor Newsom proclaims Arab American Heritage Month
• Long Beach Public Library Celebrates Asian American and Pacific Islander Heritage Month with Community Programs
• Ten Acres Pharmacy Leads Way in Sustainable Packaging with Pillumina's 100% Recyclable Pill Bottle

However, a carefully planned exit strategy involving obtaining second citizenship before renouncing U.S. citizenship can provide a legal path to ending U.S. tax obligations. This process requires careful consideration of the expatriation tax (exit tax) and compliance with IRS and State Department procedures.

"Many of our clients are successful entrepreneurs and digital professionals whose businesses operate globally," explains Williams. "While their location-independent income streams offer flexibility, U.S. citizenship creates an ongoing tax burden that impacts their international competitiveness."

The growing interest in citizenship-by-investment programs reflects a broader trend among high-net-worth Americans seeking to optimize their global tax position while maintaining access to international business and lifestyle opportunities. These programs offer a structured path to acquiring citizenship first and then residency in jurisdictions with more favorable tax treatment. It provides a legitimate solution for those looking to reduce their global tax exposure while ensuring compliance with all relevant regulations.