Why Americans Are Buying a Second Citizenship and Foreign Passport

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Only 51% of US citizens hold a valid US passport.

But a remarkable shift is occurring – Americans aren’t only traveling abroad more than ever before. They’re increasingly seeking second citizenship and global mobility options. And this pursuit of dual citizenship transcends political divisions. Conservatives, liberals, and centrists desire more opportunity, mobility, security, and optionality through foreign citizenship.

At the Latitude Group, we’ve witnessed this transformation firsthand.

With over a century of collective expertise in building, administering, and advising on Citizenship by Investment programs around the world, our team has helped many American citizens obtain citizenship and foreign nationality in carefully selected countries. In this article, you will learn why Americans are increasingly pursuing dual citizenship and how you can too.

The Universal Appeal of Second Citizenship

Dual citizenship has grown in appeal among Americans, especially since 2020. US citizens have undergone a profound shift in how we view national identity and international opportunity.

While other countries (e.g. India, China) around the world only recognize singular citizenship, both the United States and Canada permit dual citizenship and don’t discourage their citizens from connecting with their roots and obtaining a valid passport in two or more countries. 

Today’s reality of interconnected economies and globalized societies has transformed dual nationality from a rarity into a powerful tool for optionality. Simply put, with dual nationality and a second passport, you have far more options to work, bank, invest, study, and live all around the world. If you’re restricted to the citizenship with which you were born, you also restrict yourself from the privileges you could have if you were a dual citizen.

Second Citizenship as Insurance

Our data at the Latitude Group reveals a fascinating trend: Inquiries for second citizenship have surged across all nationalities. But notably, 42% of our client base is now US citizens in search of a second passport.

They don’t live in a particular state. They don’t belong to a particular political party. Nor do they suffer from the same problems. And, they don’t only want to acquire citizenship: They want an insurance policy in case they need it and more options in an increasingly unpredictable world.

Through Citizenship by Descent, Citizenship by Investment, or naturalization via permanent resident status, Americans are actively expanding their international footprint.

The motivations behind this trend form what we call the SMILE framework:

• Safety/Security
• Mobility
• Insurance
• Lifestyle/Legacy
• Education/Employment

This framework transcends political divisions, speaking to fundamental human desires for security and opportunity. For instance, while some clients might generally focus on financial investments and tax optimization opportunities and other clients on lifestyle and global mobility, both groups share common ground in wanting a better future for themselves and their families.

Why Americans Pursue a Second Citizenship

Most Americans have just one nationality. They’re born in the United States and they have no intention of leaving the United States, as evidenced by the fact that just 51% of US citizens own a valid passport.

But this trend is changing, especially among high-net-worth Americans.

First, 20% of the 11.4 million married households in the United States have a foreign spouse, meaning the opportunity exists for millions of Americans to acquire dual citizenship via their spouse’s foreign nationality. To qualify and acquire citizenship, they often must reside in the other country for some time. However, some countries do not require any physical presence to grant citizenship to a spouse of a citizen.

Second, safety concerns drive many to explore dual citizenship in another country – whether for political instability or simply peace of mind. Even if violent and non-violent crime may not have increased in some areas, Americans perceive that it has. Countries offering economic citizenship (i.e. citizenship by investment) have recognized this demand. They’ve created investment programs that appeal to Americans seeking dual citizen status and personal security abroad.

Third, mobility has become increasingly crucial for Americans. In 2020, the strength of the US passport was severely impacted by wide-spread travel bans for Americans due to the pandemic. A second passport from a European country can significantly enhance travel freedom, not only offering the visa-free travel that the second citizenship offers, but all the rights that only citizens of the European Union enjoy – like residency, travel, and labor rights in 27 European member countries.

Even permanent residents (a permanent immigration status with slightly fewer privileges than citizenship status itself) of other countries may have opportunities that were previously closed to US passport holders alone.

Having multiple citizenships creates opportunities for diversification, investment and banking, asset protection, and market penetration that are not available to those with citizenship in just one country. This appeals particularly to investors who understand the value of diversification beyond their country’s borders.

The lifestyle and legacy components resonate deeply with families looking to provide their children with more opportunities. Whether through EU citizenship or permanent residency elsewhere, parents see foreign citizenship as a gift, especially to their children born in the US, offering them genuine choices in where to live, work, study, and thrive.

Finally, education and employment opportunities multiply significantly with dual citizenship. From preferential access to world-class universities to the ability to work freely in multiple jurisdictions, the advantages of being a dual citizen are substantial. As more countries introduce residency and citizenship programs, they’ll compete and have to stand out effectively to attract wealthy individuals.

A Second Citizenship for Aligned Culture, Values, and Taxes

Dual citizenship is not merely a travel convenience. It’s a tool for diversification, investment, and security. As the United States and other countries adjust taxation policies and regulations, investors who choose to work with Latitude view foreign citizenship as a way to preserve their wealth and expand their investment profile for their families.

Values and Freedoms

As American culture changes at a break-neck speed, millions of US citizens are looking into a life abroad for more compelling levels of freedom and values that more accurately reflect their own.

For instance, Malta’s Citizenship by Investment program is a prime example of how traditional European values can align with modern wealth preservation strategies and tax incentives. With full citizenship status, they gain access to a stable jurisdiction with strong property rights and favourable tax regulations.

A second citizenship in Malta requires a genuine connection through financial investment and rigorous due diligence and compliance, reflecting principles of earned privilege and integration. Like most countries with economic citizenship programs with various eligibility criteria, Malta requires applicants to join the society and respect the country to acquire citizenship. 

Tax Incentives and Optimization

Generally, American investors and entrepreneurs believe that high taxes hinder economic growth and personal freedom, especially those on higher income brackets. Taxes on job-creating, entrepreneurial, wealthy Americans are seen as punitive and antithetical to the ideals laid out in the Constitution.

Tax optimization opportunities can be substantial for those who hold dual citizenship in carefully selected jurisdictions. The United States levies a citizenship-based tax rather than the more common residence-based tax, meaning that no matter where in the world Americans live or make money, they still owe taxes to the US government. Neither Canadian citizenship, British citizenship, Chinese citizenship, Indian citizenship, nor Spanish nationality requires such tax compliance: Citizenship-based taxation is a uniquely American policy.

Regardless, US citizens can still optimize their global tax position. Special tax credits (e.g. Foreign Housing Credit), exclusions (e.g. Foreign Earned Income Exclusion), and double tax treaties with more than 65 countries allow Americans abroad to reduce their taxes if they plan correctly.

So if your goal is to more efficiently manage your wealth within the framework of international law, moving abroad on multiple citizenships may help. Those who travel abroad to, live in and become tax residents of Malta often find that the country’s territorial tax system provides clarity and opportunity lacking in other jurisdictions.

Case Study: Malta Citizenship by Investment

We’ve mentioned that Malta offers citizenship several times above. Through Malta’s popular Citizenship by Investment program, US citizens can obtain the country’s passport (an EU citizenship) in as little as 16 months while maintaining citizenship in their home country.

Malta Exceptional Investor Naturalization (MEIN) Program

Malta’s Citizenship by Investment program is especially popular with Americans seeking a second passport in as little as 16 months. To obtain citizenship in Malta, applicants must choose one of the following two options:

• Obtain a residence in Malta for 12 months, contribute €750,000 to the government, and buy a local property worth at least €700,000 or rent a local residential property with an annual lease of at least €16,000.

• Obtain a residence in Malta for 36 months, contribute €600,000 to the government, buy a local property worth at least €700,000 or rent a local residential property with an annual lease of at least €16,000.

Additionally, second citizenship applicants must pay a charitable donation of at least €10,000 to a registered NGO supporting philanthropic causes such as cultural, sporting, or animal welfare.

Malta Permanent Residence Program (MPRP)

To be eligible for a Maltese residence permit, investors must prove at least €500,000 in capital assets, of which €150,000 must be liquid. Then, the investor must choose between the following options:

• Contribute €80,000 to the government and buy a property worth at least €375,000.
• Contribute €110,000 to the government and rent a local residential property with an annual lease of at least €14,000.

These minimum thresholds make Malta’s residency program one of the most cost-efficient in Europe. Plus, the investor can then qualify for permanent residency in just 6-8 months processing time. 

For many Americans, obtaining citizenship in Malta is about gaining second citizenship in a jurisdiction that shares their values of economic freedom and family-focused policies. The country’s approach to permanent residency and citizenship embraces global mobility and wealth preservation.

A Second Citizenship for Improved Social Services and Lifestyle

A second passport gives you the opportunity to live anywhere you please, a lifestyle change that can be liberating.

While some countries maintain restrictive policies on granting citizenship to foreigners, many nations now recognize dual citizenship and even triple citizenship as an asset. Multiple citizenships allows Americans to embrace a slower pace, higher quality of life, community, and social systems that align with their interests.

Educational opportunities represent another compelling factor. Many countries that recognize dual citizenship offer world-class universities at a fraction of US costs. Even if born abroad, your children with a second citizenship can access these prestigious institutions without accumulating student debt as they might in the United States.

Lifestyle and Worldview

Americans increasingly seek citizenship in countries whose social policies align with their worldview. Whether through a naturalization process or direct citizenship by investment, these individuals are drawn to societies that prioritize:

• Work-life balance and extensive leave policies
• Cultural integration and diversity
• Strong public transportation systems
• Urban planning focused on walkability and community

For those granted citizenship in EU countries, the ability to live and work across the European Union creates opportunities for career and personal growth. The EU’s freedom of movement policy allows individuals to experience other cultures while maintaining their legal status and social benefits across the whole region.

Generally, life in the EU is higher quality with a longer lifespan, lower health expenditure per capita, fewer work hours, more paid vacation, and more life satisfaction. Americans see dual nationality as a way to participate in societies that share that vision for the future.

Whether through permanent residency leading to citizenship or direct citizenship by investment programs, these pathways offer membership in communities dedicated to social change and cooperation.

The Pragmatic Perspective on Second Citizenship

A record-high number of Americans don’t identify with a particular political party and are politically independent. The Latitude Group works with hundreds of Americans annually who seek a balanced approach to life. They want to build their businesses, they want to diversify their investments, and they want to provide the best opportunity possible for their children.

Increasingly, obtaining citizenship in foreign countries represents a strategic asset – one that provides both financial benefits and lifestyle opportunities. This perspective views dual citizenship not through an ideological lens, but as a practical tool.

Why the Portugal Golden Visa May Be the Answer

Portugal perfectly exemplifies this pragmatic approach. Why would someone choose to invest in Portugal?

• Coastal lifestyle
• Mediterranean climate
• Top-ranked quality of life
• Hub for business and innovation
• Low physical presence requirement of 14 full days in every two-year period in order to renew residence

The Portugal Golden Visa program is particularly attractive to American investors and entrepreneurs because of its flexibility. Compared to other residency programs in the region, Portugal offers a path to citizenship despite low physical presence requirements. Most other programs require full-time residence for citizenship qualification.

Furthermore, recent developments by the immigration department of the government (AIMA) have made their popular golden visa program even more compelling: A digital platform for applications and a private sector pro bono effort will help slim the backlog for 58,000 current applicants and their families. By starting the naturalization clock at the moment of application submission, this modernization will accelerate new applicants’ path to permanent residency or citizenship.

For American investors, this means shorter processing times and greater transparency throughout the investment process. Portugal has seen a 239% increase of US citizens residing in the country since 2017.

The investment landscape in Portugal offers multiple pathways to maintaining temporary residence or graduating to permanent resident status or even citizenship. While real estate investment options are no longer available, new opportunities exist through a €500,000 qualifying investment in funds or local businesses. Moreover, without incurring penalties, US citizen investors can even fund Portuguese Golden Visas using IRAs and 401Ks.

These investment programs allow foreign nationals to:

• Establish and/or invest in businesses
• Contribute to national development through donations to science or the arts
• Access the broader European Union market
• Obtain permanent residency or dual citizenship and a second passport after just five years

Permanent residents find themselves ideally situated to access EU markets. And citizenship in Portugal gives investors extensive residency, labor, education, and travel rights across the whole EU.

California climate and lifestyle

Portugal has become a thriving tech center, especially for those in the crypto and traditional finance industries. This environment particularly appeals to American entrepreneurs and investors wanting to expand their international portfolio while maintaining a high quality of life. In fact, Portugal ranks 12th in the world in quality of life and 7th in safety.

Looking ahead, Portugal’s commitment to sustainability and innovation mirrors California in these areas. Investors may invest their qualifying funds in initiatives dedicated to renewable energy, environmental protection, and smart city projects.

Generational planning

For families considering the future and their legacy for decades to come, Portuguese citizenship offers significant advantages for future generations. Even children born abroad to Portuguese citizens can claim citizenship, creating a lasting legacy of global mobility and access to opportunities. Not to mention, the country’s high-quality education system provides excellent opportunities for academic development.

The convergence of tax benefits, EU access, business and investment opportunities, and lifestyle advantages makes Portugal’s citizenship pathway particularly attractive to pragmatic investors. As countries around the world navigate geopolitical, economic, political, and social changes, Portugal offers a compelling case study for a second passport and dual citizenship.

How US Citizens Can Acquire Dual Citizenship and Get a Second Passport

The path to acquiring foreign citizenship through investment requires careful consideration of the more than ten available programs, each of which offers unique advantages for American clients.

Our American clients’ interests broadly fall into two categories in terms of economic citizenship programs: Caribbean Citizenship by Investment, known for their competitive pricing, and European programs (such as golden visas and Maltese Citizenship by Investment) that provide broader access to the EU but cost substantially more.

Second Citizenship in the Caribbean

Caribbean countries Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia offer Citizenship by Investment. All five countries recognize dual citizenship and provide visa-free travel to more than 140 destinations worldwide.

By purchasing government bonds or donating funds for national development, investors can obtain a second citizenship for US$200,000. Real estate options start at US$300,000. Normally, citizenship processing requires 6-12 months for due diligence and investment verification.

Second Citizenship in the European Union

There are several ways to obtain citizenship in the EU.

The first and most affordable is Citizenship by Descent. Simply by showing lineage records like birth certificates, marriage documents, citizenship files, and other proofs, US citizens can claim citizenship in many European countries of their ancestors. For example, Italian citizenship by descent allows applicants to trace their Italian heritage back to ancestors who were alive after the founding of Italy in 1861 and apply for a second citizenship.

Secondly, while they require longer timelines and physical presence, European golden visa programs offer residency to American citizens who meet investment requirements and provide a path to EU citizenship. The Portugal Golden Visa, which requires an investment of €500,000 in qualifying funds, allows investors to become permanent residents or dual citizens after just five years of maintaining their visa, learning basic Portuguese, and meeting physical presence requirements (only seven days per year for those five years).

Hungary, Italy, and Latvia (all members of the EU) also offer citizenship via residency by investment schemes.

Lastly, Malta is the only current EU member country to offer citizenship by investment. Starting at €600,000 plus other fees, US citizens can obtain a powerful dual citizenship with visa-free travel to more than 185 countries and access to European settlement rights.

Legal status obtained through any of these European programs provides lifelong, comprehensive rights for you and your family.

Reputable jurisdictions conduct thorough background checks to ensure only qualified foreign nationals gain citizenship. This typically includes:

• Verification of the source of funds
• Criminal background checks in the United States and other countries where you and your family have lived
• Assessment of business interests and financial stability

Dual Citizenship via a Foreign Spouse

If your spouse’s nationality is not American, US citizens can claim dual citizenship in that country. Often, qualifying for that second citizenship requires physical presence and a residence permit before naturalization. But as a far more affordable and frequently faster route to dual citizenship, we recommend investors consider that path if they have access to it.

The Process to Obtain Dual Citizenship

For Americans exploring their second citizenship options in the Caribbean, Europe, or via their spouse, you must first understand your goals. Only then can you evaluate whether dual citizenship is possible and how you can obtain that second citizenship. Third, US citizens should also consider their circumstantial reporting requirements and legal obligations. Working with experienced advisors like Latitude ensures compliance with both your home country’s regulations and those of your second citizenship.

The process typically begins with choosing the most suitable program based on investment capacity, timeline requirements, and long-term objectives. Success depends on careful planning and expert guidance through each step of the application and naturalization process.

The Latitude Group can help you achieve your goal of dual citizenship in a foreign jurisdiction with the budget, timeline, and security you desire.

Conclusion

The last few years have taught Americans that global mobility is a necessity. Dual citizenship has become a cornerstone of future planning for wealthy American investors. Whether driven by financial security, political direction, lifestyle choices, or family legacy, that second citizenship in the jurisdiction you desire can provide unprecedented opportunities for you and your family – for generations to come.

The time for exploring second citizenship is crucial. Many investors wait until they need dual citizenship to acquire it. Often, it’s then too late or more complicated. The right jurisdiction for your second citizenship may require a longer timeline than you anticipate. Plus, the right program for you and your family may require physical presence or permanent resident status before you can naturalize and obtain citizenship.

Early movers gain significant advantages in establishing their international plan.

At the Latitude Group, our team of experts are ready to guide you through the process of acquiring the dual citizenship that unlocks your future and sets up your future generations for success.

Every journey to dual citizenship begins with a conversation about possibilities. Contact the Latitude Group, experts in the investment migration industry with over a century of collective experience building, administering, and advising on citizenship and residence by investment programs.