Why wealthy US and UK families are turning to investment migration

The USA remains the undisputed leader in private wealth creation and accumulation, home to 37 per cent of the world’s millionaires and accounting for 32 per cent of global liquid investable wealth — a staggering USD 67 trillion according to the Henley & Partners’ USA Wealth Report 2024, yet increasing numbers of Americans, along with those from other highly developed economies such as the UK and Europe, are turning to investment migration programs as a means of securing their future and mitigating potential risks.

The programs involve obtaining alternative residence and/or additional citizenship through investment, creating optionality by providing location fluidity through domicile diversification. For globally mobile entrepreneurs and investors, securing secondary residence rights or citizenships can facilitate international business expansion, ease cross-border banking, and unlock educational and career opportunities abroad for future generations.

A powerful Plan B

In America, growing numbers of high-net-worth individuals view investment migration as a prudent contingency plan amid an unsettled political climate with looming uncertainties. By pursuing a mix of investment migration programs tailored to their individual needs, Americans can proactively manage risks while expanding their options for wealth growth and preservation.

Globally, 2024 is projected to set new records for millionaire migration, with 128,000 high-net-worth individuals forecast to move countries, many via investment migration programs. Last year, Henley & Partners, a leading global wealth and investment migration advisory firm, received a record-breaking number of enquiries from US citizens, and again this year, Americans remain the largest single nationality applying for investment migration programs. Similarly, the number of enquiries from UK and EU citizens are unprecedented.

A portfolio of residence and citizenship options

While historically, clients have tended to proceed with a single investment migration program, the real opportunity lies in diversifying your options through a portfolio of different residence and citizenships across multiple jurisdictions. This strategy provides a hedge against regional and global instability and opens up a world of possibilities for travel, business, and personal growth.

At Henley & Partners, the most sought-after options for US citizens include the Portugal Golden Residence Permit Program and Malta’s citizenship by naturalisation offering, which allows for the granting of citizenship by a certificate of naturalisation to foreign individuals and their families who contribute to the country’s economic development. These pathways are particularly attractive to wealthy Americans as they do not require them to spend significant time in the country which enables investors to maintain their primary residence in the USA while enjoying the benefits and security of a second residence or citizenship in Europe.

Other popular European residence programs include the golden visas in Greece and Spain, which offer pathways to citizenship after meeting certain legal residence requirements. The Mediterranean lifestyle and coastline hold obvious appeal, and offer US investors the flexibility to reside in the USA while having the option to relocate at any point or for part of the year.

Italy’s offering is more nuanced. While the initial two-year investor visa (renewable for a further three years), does not mandate residence, obtaining permanent residence necessitates a five-year period of living in Italy. After 10 years from the initial granting of the visa, investors may apply for citizenship by naturalisation. This extended timeline provides US investors flexibility in the short term while keeping open the possibility of more permanent ties to Italy over the long haul.

A global diversification strategy

Americans and Brits are also exploring investment migration opportunities in the Caribbean, Canada, Central America, Australia, and New Zealand. Each destination offers its own unique advantages, from proximity and affordability to political stability and a high quality of life.

For instance, Antigua and Barbuda’s Citizenship by Investment Program provides a cost-effective route to a second citizenship, while Canada’s Start-Up Visa Program is an attractive option for those seeking a safe and stable environment closer to home. Costa Rica, with its eco-friendly lifestyle and growing expatriate community, is gaining popularity among Americans looking for a Central American base.

Future-proof your family

As the geopolitical landscape continues to fracture, and growing polarisation and fragmentation across many of the world’s developed nations erodes social cohesion more generally, the appeal of investment migration as a means of safeguarding your family’s future and giving them greater options looks set to increase. By carefully considering a mix of residence and citizenship rights tailored to their individual needs and aspirations, American and British investors can take proactive steps to mitigate risk, expand their options, and secure peace of mind in these unpredictable times.

With both the US and the UK heading to the polls in high stakes elections, one thing is clear: investment migration will play an increasingly vital role in the strategies of international investors seeking to navigate the challenges and opportunities of the 21st century.

Henley & Partners is the global leader in residence and citizenship by investment and has been so for over 25 years. With such a wealth of experience, our firm is best positioned to advise you or your clients on their investment migration requirements.

Contact us to arrange an initial private consultation.