Residency vs Citizenship: How Globally Mobile Families Think About Plan B Today

Share:

Global mobility planning has evolved significantly over the past decade. 

What was once viewed as a niche exercise for a relatively small segment of internationally active families is now increasingly treated as part of broader long-term planning. For many clients, the question is no longer whether a second residence or citizenship might be useful, but rather what type of status makes the most sense, in which jurisdiction, and for what purpose. 

In a recent episode of The Global Passport Investor, Latitude Group Chairman and CEO Eric Major sat down with Dom Sheehan-Barnes, Latitude’s UK Country Manager, to discuss how client motivations have changed across regions, how demand has shifted over time, and why the distinction between Residence by Investment (RBI) and Citizenship by Investment (CBI) matters more than ever. 

Their conversation offered a useful reminder that the investment migration industry is no longer driven by one type of client or one type of objective. Different markets approach these solutions differently, and increasingly, families are thinking less transactionally and more strategically. 

From the Island of Jersey to the World of Global Mobility

For Mr Sheehan-Barnes, his route into investment migration first began in Jersey, where the movement of wealth, capital, and high-net-worth individuals has long been part of the island’s economic fabric. 

“Coming from Jersey, you kind of have an understanding for this idea of wealth migrating because Jersey has run a successful high-net-worth tax residency program for many years, so the notion of wealth or a country pulling in wealth and talent and capital is not unusual for someone born in Jersey,” he explained. 

That early exposure shaped his understanding of why jurisdictions create structures to attract internationally mobile wealth, and how those systems support broader economic goals. From there, his career moved through fiduciary services and executive search before arriving at Latitude, where the appeal was immediately clear. 

“What stood out for me at the time was just the global aspect of it,” said Mr Sheehan-Barnes.  

“Having that understanding of global wealth moving and countries wanting to attract certain types of people, it just made sense.” 

That foundation matters. In investment migration, strong advisory work depends not only on understanding programs, but on understanding governments, process, documentary requirements, and the realities of delivery. 

As Mr Major noted during the discussion, advisors do not directly control every aspect of a case: 

“We’re a great face and knowledge of expertise to these solutions, but we don’t necessarily directly control all aspects of it. In fact, there’s a thing called the government in between.” 

That distinction may sound obvious, but it is central to how good advisory work is done. Understanding what authorities require, how files are assessed, and how expectations should be managed often makes the difference between theoretical advice and practical guidance. 

Different Markets, Different Motivations

One of the most useful parts of the conversation was the contrast between African demand and North American demand, and how motivations differ across client bases. 

Earlier in his career at Latitude, Dom worked primarily with clients in Sub-Saharan Africa, particularly Nigeria and South Africa. In those markets, the central driver was often straightforward: better travel access. 

“That real drive and push for a more powerful travel document ultimately led a lot of Nigerian interest.” 

For many of those clients, a second passport created practical business and lifestyle benefits. It meant easier travel for family holidays, but also easier access to European conferences, meetings, and business development opportunities. 

“You had that mixture of ‘I want it for leisure… I want to take the kids skiing and see Europe’ but I also need it for that business travel,” he said.  

That is a very different dynamic from the one Latitude now sees most often in the United States. 

The Rise of the American “Plan B” Client

When Dom began working more heavily with North American clients, the profile changed. 

“In the U.S. it’s that Plan B hedging client that is looking to hedge against any category of volatility in the home country,” said Mr Sheehan-Barnes. 

This is one of the most important shifts in global mobility planning over the last several years. For many American clients, the primary driver is not immediate relocation. It is optionality. 

That optionality may relate to: 

• long-term family flexibility 
• education opportunities 
• lifestyle preferences 
• future relocation possibilities 
• broader geopolitical or economic risk management 

Throughout their discussion, Mr Major and Mr Sheehan-Barnes repeatedly returned to this distinction between Plan A and Plan B clients. 

A Plan A client is someone who intends to move and needs the chosen jurisdiction to function as an immediate base. A Plan B client, by contrast, often wants legal status in another country without disrupting life today. 

“If we have a Plan A prospective client, we know that the jurisdiction they’re selecting is very important because they’re ultimately moving there… But on the Plan B side, it ultimately comes down to geography,” explained Mr Sheehan-Barnes.  

This is where investment migration becomes less about moving and more about preserving future choice. 

Residency vs Citizenship: Why the Difference Matters

For prospective clients entering this space, one of the first strategic distinctions is the difference between residency vs citizenship. 

This may sound like a technical distinction, but in practice it shapes almost everything: timing, benefits, obligations, family inclusion, long-term planning, and regulatory sensitivity. 

Mr Sheehan-Barnes explained that, for many American clients, Europe remains highly attractive, but often in an idealized way. 

“There is this kind of romanticizing about Europe from the U.S. market… probably because of that strong connection with vacations, holidays in the area.” 

That attraction often pulls clients toward countries such as Italy, Greece, and Portugal, which frequently “win the day,” as he put it. But what most European jurisdictions offer through investment migration is residence, not citizenship. 

That residence still has real value. It may provide the right to live, work, and study in a country, and in some cases it can develop into permanent residence over time. But it is not the same as holding a passport from that country. 

Mr Major highlighted why permanent residence still matters, particularly for U.S. clients: 

“It’s really hammering home the importance of that PR. And they understand that because of the green card. It’s a notion they’re familiar with.” 

This comparison is useful. Many American clients intuitively understand the value of a green card, and therefore also understand why a European permanent residence card can be a meaningful form of long-term optionality, even if it is not citizenship. 

Why Citizenship Remains Sensitive in Europe

The discussion also touched on a topic that has become increasingly important in the European Union: the political and legal sensitivity surrounding citizenship. 

“Citizenship is a sensitive subject. It certainly is a sensitive subject within the European Union,” said Mr Major.  

That sensitivity has shaped how European frameworks have evolved. Traditional passive citizenship routes have narrowed or closed, while other countries have leaned more heavily into citizenship by merit or residence-led pathways. 

Mr Sheehan-Barnes has worked closely with these more nuanced frameworks, particularly in Malta and Austria, and emphasized that they should not be viewed as passive programs in disguise. 

“It’s not a program. You’re hiring us like you would a law firm.” 

That line captures an important difference. In these cases, the applicant is not simply checking boxes on a published scheme. They are working with a specialist team to assess whether there is a genuine basis to present a credible case around contribution, profile, alignment, and national interest. 

“They should never be viewed in a light of passive because they’re not,” he said.  

This is where the modern European citizenship conversation differs sharply from older models. The contribution is expected to be real, the profile must fit, and in many cases there is a knowledge-transfer or project component that goes well beyond writing a check. 

Mr Major reinforced this idea by pointing out that the value a client brings may go beyond capital alone: 

“Beyond their capital, there’s also the potential for knowledge transfer. There’s the potential for them being actually involved in some of the execution.” 

This is a very different proposition from the way many outsiders still imagine the industry. 

A More Strategic Industry Than Before

Another theme that came through strongly in the conversation was the increasing maturity of the client base. 

For some earlier markets, the demand was largely transactional: better travel access, smoother mobility, faster business movement. 

Today, particularly in the U.S., the conversation is more layered. 

Clients are asking: 

• Where do I want status? 
• Would I ever actually use this country? 
• Is this a lifestyle option, a family option, a business option, or simply a hedge? 
• Do I want a passport, a residence card, or a path that could become permanent over time? 

Mr Sheehan-Barnes described his approach as top-down rather than bottom-up. 

“There’s no point discussing the investment and the government fees if you don’t want to live in Greece. Why are we talking about Greece?” 

That may sound simple, but it is a powerful advisory principle. Good mobility planning begins not with the product, but with the client’s geography, psychology, lifestyle, and objectives. 

The SMILE Framework in Practice

Toward the end of the discussion, Mr Major summarized the broader logic behind the way Latitude approaches mobility planning through its SMILE framework: 

• Security 
• Mobility 
• Insurance 
• Lifestyle 
• Education and Employment 

These are not abstract ideas. They correspond directly to the different reasons clients seek alternative status. 

“The motivations are different in each market. They all touch at different levels into what we love to say, this acronym of SMILE, security, mobility, insurance policy that these programs offer, a lifestyle opportunity… and, of course, there’s also employment at times as well as educational opportunities for the children.” 

That range of motivations is exactly why the conversation around residency vs citizenship is no longer niche. 

For some clients, the priority is easier business travel. For others, it is a European base, family optionality, or long-term resilience. 

One Industry, Many Use Cases

What this conversation ultimately highlighted is that global mobility planning is no longer defined by one archetype. 

There is no single “investment migration client”. 

There are: 

• internationally mobile business owners 
• families looking for Plan B options 
• clients with immediate relocation goals 
• clients seeking travel flexibility 
• applicants with deep ties to specific countries 
• individuals looking for long-term residence without citizenship 
• others seeking citizenship but only where the fit is real and defensible 
• families focused on legacy planning, looking to create greater optionality for future generations through access to education, mobility, and jurisdictional choice 

Increasingly, we also see clients thinking in terms of geographic diversification rather than single-program solutions. 

This may involve combining different types of programs across jurisdictions (for example, pairing European residency with citizenship options in other regions) to build a more resilient and flexible global position over time. 

The role of the advisor is to understand these distinctions and guide accordingly. 

That is why the difference between residency vs citizenship, Plan A and Plan B, and transactional thinking versus strategic thinking matters so much. 

For those entering the field for the first time, that may be the most useful lesson of all. 

Global mobility, then, is not one product. It is a set of tools, used differently depending on who the client is, what region they come from, and what kind of future they are trying to build. 

For a deeper discussion of this topic, including real-world examples and broader context, you can watch the related episode of The Global Passport Investor podcast here: https://www.youtube.com/watch?v=m4qJzB0RxeA 

If you would like to understand how second citizenship or residence might fit into your own long-term plans, Latitude’s advisors are available for a confidential conversation.