Here's how the ultrawealthy are getting citizenship abroad as 'insurance' against wealth taxes

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.

Gavin Newsom, who opposes the measure and is widely seen as a likely 2028 presidential contender, has argued that taxes on extreme wealth are better handled nationally because billionaires can move between states to avoid them.

Federal billionaire-tax legislation proposed by Sen.

Ro Khanna is unlikely to pass in the near future.

Now ultrawealthy Americans are increasingly seeking citizenship or residency abroad, even if they don’t have immediate plans to actually decamp overseas.

Henley & Partners, a firm that helps international clients obtain residency and citizenship abroad, reported a 183% increase in inquiries from US nationals between the first quarter of 2024 and 2025.

Advisors to the ultrawealthy say their clients are getting second or third passports as a form of “insurance.” David Lesperance, a lawyer who advises the ultrawealthy on tax and citizenship issues, compared preparing for the possibility of wealth taxes to preparing for the risk of wildfires. “There’s a more than zero percent chance that a wildfire will hit,” he said. “So wouldn’t you spend a little bit of time, effort, and money getting fire insurance and a fire escape plan, hoping you never use it?” Lesperance says he typically starts his clients off looking for lineage citizenships, which allow people to seek citizenship based on the nationality or descent of their parents or grandparents.

For instance, an American whose grandmother immigrated from Ireland can apply for Irish citizenship.

Over 50 countries around the world offer citizenship based on descent, including Greece, Poland, Italy, and Germany, though the 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.

Lineage citizenship can be pursued by anyone, not just the ultrawealthy.

Because the process can take years, Lesparance said his clients might pursue faster citizenship options while waiting for their lineage-based second passport to come through. “Golden passports,” which allow the wealthy to essentially buy citizenship, are also on the rise.

Also referred to as investment migration, the practice grants citizenship in exchange for an investment in the country.

The investment amount and rules vary by destination, ranging 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 over 120,000 investment citizenships or visas are issued annually worldwide, and that the number is growing. “People want them for all sorts of reasons,” he told Business Insider. “Some are looking to protect wealth or worried about the political situation at home.” New Zealand’s golden visa requires an investment of about $3 million US dollars, while several Caribbean countries offer citizenship in exchange for investments of up to $250,000.

Since relaxing the rules around its golden visa last year, New Zealand has seen a surge in applications from Americans.

Lesparance said some of his clients planning a potential exit from the US pursue investment citizenship while they wait for their lineage citizenship to come through. “They get out, they save this much in tax,” he said, “but once they’ve got their Irish passport, their Saint Kitts and Nevis passport’s going to collect dust in a drawer somewhere.” Some ultrawealthy Americans pursuing second passports or residency abroad are doing so with no intention of actually moving.

Many already manage assets, businesses, and investments across jurisdictions, and advisors say an additional citizenship is another way to diversify — a backup option in case the US becomes more costly 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.”