Top Countries to Get Residency When You Renounce US Citizenship

Donald Trump’s return to the White House has reignited America’s political divide.

For some, his second-term victory is a triumph. 

For others, it’s a tipping point.

The early months of Trump’s second presidency were chaotic, with the pro- and anti-Trump camps agreeing on only one thing – the turmoil wasn’t going to abate quickly.

So, it should come as no surprise that, within hours of the election results, a familiar trend in American life resurfaced – citizens making plans to leave the country.

Whichever side of the political debate you might stand on, Trump’s second presidency is just one piece of a bigger picture: rising crime, high taxes and increasing government oversight are pushing more US citizens to reconsider where and how they want to live.

Many are concluding that the ultimate conclusion is to renounce their US citizenship entirely. 

Why?

Because the US is one of the very few countries that enforce citizenship-based taxation, which means you owe the IRS – no matter where you live.

The burden of complying with US tax laws is costly, time-consuming and intrusive, and, for many expats, there’s no better way to escape the financial straitjacket than to hand in their passports and start afresh.

The problem is that’s easier said than done. You can’t just jet off and post back your passport c/o 1600 Pennsylvania Ave.

You need a plan. 

Without a second residency or citizenship, you risk becoming stateless, which isn’t something you want to experience.

On the other hand, with the right advice, you can choose to live somewhere that offers a higher standard of living and more of the financial and personal freedoms that you aspire to.

But it’s complicated and there are a lot of options out there, so the Nomad Capitalist team has put together this in-depth investigation of the best countries for Americans to move to. 

Pros and Cons of Renouncing US Citizenship

Some argue that the US isn’t what it used to be, and perhaps by default, neither is its passport. Should you decide to renounce, there are some issues to be aware of. 

This guide explores the implications of renouncing in greater detail later on, but some of the main positives include the following:

• No longer having to pay any US taxes (unless you retain assets in the US) 
• No longer having to report your worldwide income and file annual tax returns
• Being free to obtain another citizenship in a low-tax country
• Being able to drastically reduce your income tax due burden
• No longer having to worry about what is and isn’t taxed by each country and foreign tax credits
• No longer being taxed on the interest from US bank deposits.

However, there are some downsides, such as:

• No longer having access to the US job market
• Not having the consular protection of the US government overseas
• It can be harder to enter the US (although you still can)
• No longer being able to vote in US elections
• Having to pay a renunciation fee of US$2,350.

Options When You Renounce US Citizenship

Officially, unless you possess another foreign nationality, you could be rendered stateless after renouncing your US citizenship.

This means you would lack the protection of any government and, because you’re not entitled to a passport from any country, would find it difficult to travel.

However, this rarely happens. You can usually be a resident of a country as you plan to get another citizenship.  

There are ways to fast-track a new citizenship through investment and choosing countries with an easier path. 

But before that, citizenship by descent through your bloodline, more specifically, your ancestry, is well worth exploring.

You may already know you have Irish, Italian, Polish, Jewish or Portuguese ancestors, for example, so checking if you qualify is a relatively fast and cheap way to obtain a second citizenship. 

So, who is eligible for citizenship by descent? 

If one or more of your ancestors came from another country, you could reclaim the citizenship of your grandparents or great-grandparents. In rare circumstances, even your ancestors’ citizenship before your great-grandparents may qualify you. 

The problem with citizenship by descent is that the process can take years. And finding all of the original documents proving your ancestral ties can be tricky.

The key point to understand is that this differs from citizenship by investment, where you commit a certain amount of money through a donation or a real estate purchase to gain citizenship.

It’s also different from citizenship by naturalisation, where you usually have to relocate to a specific country and spend considerable time there. You often have to take a test involving civic and language elements, as well as prove you’re healthy and have no criminal record.

There are other ways to get citizenship, including by exception – having it granted by the target nation’s president (which is rare).

Finally, there are residence-by-investment or golden visa schemes that allow foreign investors to obtain a residence permit if they invest in real estate or the local economy. This residence can eventually turn into citizenship through naturalisation.

Generally, the term refers to programs in European countries like Portugal, Italy and Greece.

Best Countries for US Citizens to Move To

For someone who wants to leave the US, either because they don’t want to live in the same country as Donald Trump or just to escape high taxes and rising crime rates, various European countries have substantial tax incentives for new arrivals.  

Some Latin American and Caribbean countries are also good bets for citizenship with tax and lifestyle benefits. In Asia, residence is easier to get if you can demonstrate substantial financial means.

So, which are the best passports to have, post your ‘escape’ from the United States? 

Europe and Eastern Europe: Lifestyle Benefits

You can’t easily invest in the passports of the most desirable European countries because they generally don’t have citizenship-through-investment programs. 

Some have residence-by-investment programs (golden visas), but you’ll need to move quickly to take advantage.

Rules are rapidly changing for many of these golden visas, though some remain a viable option to get citizenship if you’re prepared to wait five or six years.

Your best option for a speedy European citizenship is Malta.

Malta is part of the European Union, so being a Maltese citizen gives you all the benefits of a top European passport, which you may think is more valuable than one from the US. 

Malta’s previous CBI program has been replaced largely by the new naturalisation program (MEIN) which starts with a residence permit and then a passport within about 18 months of application.

Once attained, you can choose to keep the Maltese passport in your back pocket, or you can choose to live anywhere in Europe.

This route requires a minimum investment of €600,000, although you’ll pay a host of extra fees depending on how many dependents you’re planning to bring with you. 

You can add your spouse, children and even your parents. Everyone can live, work, study and travel in Europe or have the option to do so at any time. 

How will Malta tax you if you stay long enough to become a tax resident? 

Malta is not a 0% tax country, but taxes are low by European standards. 

In Malta, you will be taxed at a flat tax rate.

You’re required to remit at least €100,000 to Malta, and you’ll pay 15% tax on whatever you remit, so that means a minimum tax bill of €15,000 per year. 

Being a Maltese citizen allows you to live in tax-friendly Malta and any European country you’d like. Citizenship can be passed down to future generations, meaning they can live in Europe no matter what happens.

On the other hand, Georgia offers residence permits for investors, business owners and real estate buyers who can then obtain citizenship by naturalisation after 10 years. 

A residence permit gives you the right to stay in the country and the right to run a business, work, travel, study or simply retire.

There are three residence options:

• A short-term residence permit
• An investment residence permits
• A Georgian work residence permit.

The short-term residence permit is issued to those who own immovable property with a market price above US$100,000 (equivalent in GEL).

This can be a single property or a portfolio with a total value exceeding or equal to US$100,000.

A certified audit or a creditor must establish the market value of the property to grant a short-term residence permit. 

The investment residence permit is issued to individuals and their families with a minimum investment in property or otherwise valued at least US$300,000. Investment can be made in several ways, not just through real estate.

The benefit is that the principal and qualifying family members can immediately get five years of temporary residency.

Once the five-year period is over, permanent residency will be issued after approval. Under the US$100K investment, you have to wait ten years before you can apply for permanent residency.

Lastly, for those who want to apply for a Georgian work residency, it’s issued both for employment and entrepreneurial activities. 

If you’re an employee, you must have an employment contract or employment certificate with at least six months remaining.

See our ultimate guide on how to get residence in Georgia for more details. 

Latin and South America: Cheap and Easy

If you’re a US citizen looking for a fast and easy country to obtain residence, Latin and South America tick many boxes. 

For example, Argentina and Peru require just two years of legal residence in their country before you can apply for citizenship. 

You’ll need to learn Spanish, but getting the residence permit is substantially more straightforward than in many European countries, and you don’t have to pay for the privilege. 

Generally, in Latin American countries, you must show an income of between US$1,000 and US$3,000 a month in exchange for a residence permit. 

Once you have that residence permit, you can move to the country and spend a prescribed amount of time there.

Six months is usually the minimum amount, and after several years, you can apply for naturalisation and a passport.

There are no donations to make. In many cases, in Latin America, you don’t even have to put any money into the country. You’ll just need to show them you have it. 

Now, of course, living in a country for six, eight, nine or more months per year may subject you to taxes, which is again where this is about more than just getting a passport.

For example, Colombia’s taxes are among the lowest in the Organisation for Economic Co-operation and Development (OECD), and they are lower than in all European countries.

If you spend 183 days there on a temporary residence permit and work towards permanent residence, you will pay low taxes. See our guide if you’re interested in Colombian residency and citizenship in 2025.

Latin American countries also offer citizenship by descent. However, the process can take years, which neatly brings us to the next option. 

The Caribbean: Citizenship by Investment

Not every US citizen wants to escape to Europe. Some prefer the warmer climes of the Caribbean. 

British overseas territories like the Cayman Islands or Turks and Caicos allow you to buy real estate, generally for a million or several million US dollars, or to form a company and get a residence permit.

The Bahamas does the same, but you must live there to get citizenship. 

Living in a British Overseas Territory and getting a passport for a country like the Cayman Islands also allows you to apply for British citizenship.

So, if you eventually want to live in the UK, living in the tax-friendly British Caribbean Islands nation could be a good way to get started.

However, you must commit to spending most of your year on that island to qualify for citizenship. 

Again, that’s the difference between a residence permit and citizenship – if you want to move to the Cayman Islands or the Bahamas, you won’t get citizenship immediately. 

You’ll get a residence permit, and if you spend enough time there (about nine months per year), you can eventually get a passport. 

For those who want a passport faster, five countries in the Caribbean, two of which are also tax-free, offer passports in about a year in exchange for a donation. 

We compare all the Caribbean citizenship-by-investment options here. 

Unlike buying real estate or forming a company, this is money that you can’t get back. 

Now, these islands charge much less for the privilege than Malta because they aren’t part of the EU and don’t offer the chance to live in Switzerland, Spain or France.

However, becoming a citizen of an Eastern Caribbean country gives you access to other Caribbean countries and a larger union called the Caribbean Community, which includes countries like Belize.

Donations for citizenship by investment programs in the Caribbean start at about US$200,000.

Asia and Southeast Asia – Territorial Taxes

The thing about Asian residence programs is that they favour wealth rather than income.

Generally, if you can show you have wealth and are willing to invest in their country, you’ll be granted residence.

Many have territorial tax systems, so they only tax you on money you earn there. In other words, they leave your worldwide income alone.

Some examples of Asian territorial tax countries include Malaysia, Singapore, Thailand and the Philippines. If you become a taxpayer or a tax resident in these countries, your foreign income won’t be taxed.

Asian countries like Malaysia have plenty to offer, including a high standard of living, excellent healthcare, affordable property, good schools and modern infrastructure. They’re also much cheaper than most Western countries.

Some popular residence options include:

Malaysia: The MM2H visa program allows foreigners to obtain a five-year residence permit if they meet specific health and income requirements, deposit about US$150,000 in a Malaysian bank and invest in a residential property there. You can withdraw half of your bank deposit to help invest in your property.

Thailand: You can apply for Thai residency if you have lived there for a certain time, can show proof of monthly income of at least 80,000 Baht (around US$2,380) or invest at least 10 million Baht (around US$297,745) into a Thai private or public organisation.

Best Countries for Americans to Move To: FAQs

Planning to Leave the US?

Many people who dislike Trump want to go to Europe for its more liberal social policies. 

However, many conservatives tell us they also want European passports for flexibility and to give their children and future generations more opportunities.

Our key piece of advice is not to rush but to plan your escape carefully.

You might not even need a passport as you might require a residence permit to live where you want. 

On the other hand, you might also need two passports, one for now and one for later.

Whatever route you choose to go down, do it the right way.

There are countries that you don’t think are tax-friendly but could help significantly optimise your taxes: Ireland, the UK, Malta, Cyprus, Switzerland, Italy and Greece are among them, but there are also countries outside of Europe. 

And just because you see headline tax rates in one country doesn’t mean that’s what you’ll pay.

Very simply, there are many places to choose from, so take advantage of the choices open to you. 

You can choose your tax rate, lifestyle and future. Along the way, you can win your financial and personal freedom.

With the ideal combination of tax planning, residence and asset protection strategies, you can be taxed practically zero. Here at Nomad Capitalist, we call this going where you’re treated best. To create your bespoke plan, become a client today.