Wealthy Americans Look to Change Citizenship to Reduce Tax
illi News/10292776

UXBRIDGE, U.K. - illiNews -- 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 illi News

• Illinois 45th District Candidate Josh Atkinson Introduces a New Way to Reach Voters
• Kentucky Judges Ignore Evidence, Prolong Father's Ordeal in Baseless Case
• Contracting Resources Group Receives 2025 HIRE Vets Platinum Medallion Award from the U.S. Department of Labor
• Suburban Orthopaedics Expands Spine Team with Board-Certified Surgeon Joseph Brindise, DO
• Naperville: Drive Sober or Get Pulled Over This Season

"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 illi News

• Crunchbase Ranks Phinge Founder & CEO Robert DeMaio #1 Globally. Meet him in Las Vegas-Week of CES to Learn About Netverse, Patented App-less Platform
• Fintravion Business Academy(FBA)Under Adrian T. Langshore Advances FintrionAI 6.0 Architecture
• Bensenville cleaning company offers free home cleaning for cancer patients
• IODefi Introduces New Web3 Infrastructure Framework as XRP Ledger Development Gains Global Attention
• Terizza Forms Strategic Collaboration with UC San Diego to Pioneer Next-Generation Distributed AI Infrastructure

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.