Why Americans are Increasingly Considering a ‘Plan B’ Passport in 2025

In these days of turmoil, it seems that just about every news headline is shrieking about political division or economic jitter.

Has there ever been a better time for US citizens to start exploring and organising their own ‘Plan B‘?

Beneath the surface of everyday business in the United States, a compelling and strategic shift is underway. 

For a growing number of US entrepreneurs, business owners and wealthy citizens, the question isn’t if they should diversify their options but how.

And, in terms of that how, many are reaching the conclusion that a Plan B, secured via a properly thought-out second residency or citizenship, is one of the first and most important steps. 

This isn’t some fringe movement. 

The Nomad Capitalist team is seeing a large number of US citizens actively acquiring second residencies and citizenships. It’s a calculated move with many benefits. 

So, we’ve put together an exploration of the less obvious but far more impactful reasons why a Plan B is becoming the new essential strategy for 2025.

The Pros and Cons of a Plan B

Any dive into the reasons behind the current Plan B surge should begin with a look at the pros and cons of this strategy.

​​Advantages of Having a Plan B

The first perk of having a Plan B has to do with increased global mobility. 

A second citizenship, or a new residency, can grant you visa-free travel to a surprisingly large number of countries. If you’re not able to freely visit certain countries, you can use a second passport to strategically fill those gaps.

Suddenly, that impromptu weekend in the Bahamas becomes a lot easier. Or, doing business in China or the EU could become much more accessible with the right passport.

Beyond the jet-setting, there’s the rather important matter of risk diversification. The world can be more than a little unpredictable, so a Plan B provides a degree of insulation. 

Then there are the tax advantages. A second residency or citizenship alone does not negate your US tax obligation. However, strategic planning can potentially reduce the overall tax burden. 

A US citizen can legally lower their tax on investment gains by living and investing in a country with no capital gains tax but CGT is just one example and the tax laws for each country are different.

Some have no corporate or personal income tax and some have territorial tax systems, meaning you don’t pay tax on income from abroad. In short, there’s a whole world of choices out there, offering many tax advantages.

Then there’s the potential for expanded horizons. 

New business ventures, different investment markets – perhaps even sending the kids to a school where they actually learn a foreign language properly – are all possible with a Plan B. 

On top of all that, there’s the improved quality of life.

Maybe it’s a lower cost of living, maybe it’s universal healthcare, or maybe it’s just the sheer joy of living somewhere where the sun occasionally shines. 

All this adds up to the rather comforting feeling of security and peace of mind – knowing you have options should the need arise.

Disadvantages and Challenges of a Plan B

Still, while a Plan B is an important consideration, it shouldn’t be sugar-coated.

The process itself can be a maze of paperwork, legal research and enough due diligence to make your head spin. It’s not a weekend project – it’s a commitment.

Then there’s the issue of tax headaches for US citizens: Uncle Sam, as previously mentioned, is very persistent. 

US citizens are taxed on their worldwide income, regardless of whether you’re sipping champagne in Monaco or braving the drizzle in Manchester. Ignoring this fact is a recipe for financial disaster.

The only way to avoid this would be renouncing your US citizenship, which comes with the need for a whole new kind of separate Plan B.

There’s also the question of ‘fitting in’. Cultural adjustment is a real challenge: You might have to learn a new language, adapt to unfamiliar customs and potentially feel like a fish out of water. 

The Reasons Behind the Plan B Surge 

​​The Plan B passport surge is being driven by a number of factors, ranging from political concerns to a search for economic opportunity.

Political Uncertainty and Polarisation

United States politics is a mess right now.

The chasm between left and right seems to widen by the day, leaving many feeling politically homeless and the desire for a bit of peace extends beyond party lines.

A creeping, but relentless, polarisation of opinion is pushing people to look for places where political discourse doesn’t feel quite so confrontational.

There’s also the stability factor. Whichever side you stand on politically, living in the US can involve a major government shift every four years. This can cause chaos with your investments and business.

Economic Concerns and the Appeal of Moving Out of the US 

There’s also a real sense of economic unease in the US right now. 

Concerns about inflation, the national debt, tariffs, potential trade wars and the long-term success of the current system are forcing many to look at alternative options. 

Countries with lower living costs, more stable economies, or different approaches to financial planning are becoming harder to ignore. 

Global Mobility and Freedom

Freedom: It’s a word that carries a lot of weight in the US. 

However, for many Americans, freedom in 2025 is less about American ideals and more about practicalities.

It’s about the freedom to move across international borders without the endless paperwork and tax hurdles. 

It’s the freedom to live, work or simply spend a long time in a place that matches your lifestyle, values or even just their preferred climate. 

It’s the freedom to hang on to as much of your hard-earned money as you want.

These are symbolic shifts from the old ‘freedoms’ at a time when, as some critics point out, American freedom seems to be at risk.

Tax Optimisation

For high-net-worth individuals, a second residency or citizenship is the key to a carefully designed global tax strategy. 

This pertains to understanding all the rules in many countries so you can plan your affairs to get the best result.

Of course, there’s a difference between holding a residence permit and having tax residence status. But, if you do want to become a tax resident of a new country, you can’t do this without your own Plan B.

It often also involves complex variables, such as tax treaties, foreign-sourced income rules and reporting requirements. 

However, the rewards are well worth it, especially when done right.

Lifestyle and Quality of Life

Sometimes, the allure of a Plan B comes from a yearning for something new or better. 

For many, that means a better quality of life – swapping a frantic, high-pressure existence in a crowded city for a slower pace of life in a beautiful coastal town. 

For others, it might be about finding a better healthcare system or simply enjoying a lower cost of living, so that you can have a more comfortable retirement.

It might even be as simple as trading grey skies for never-ending sunshine. 

Or maybe, you just feel like you don’t ‘fit in’ in the US anymore. If this is the case, you can rest assured there’s a country out there that better serves your needs.

It’s all about finding a location that aligns with your personal priorities, or as we like to call it, a place where you’re treated best. 

Education Opportunities Abroad

For many families, a Plan B is the key to unlocking educational opportunity. 

A second residency, or even citizenship, in some of the most prestigious economies means you gain access to world-class educational institutions. 

Your kids will be able to gain access to education that might never be available if they stayed in the US.

New Investment Opportunities in a Globalised World

​​A strategically chosen Plan B can give you access to previously inaccessible investment opportunities. 

For example, a second residency in a country with a strong tech sector like Ireland might grant you priority access to early-stage venture capital funds, normally held for locals. 

Or, a second residency could open doors to real estate investments in markets with favourable tax treaties and high-growth promise or even help you invest directly in farmland or renewable energy projects.

The possibilities are almost endless. 

Exploring Plan B Options: Residency and Citizenship 

When we talk about what a Plan B is in practical terms, we’re referring to two main avenues: residency and citizenship. 

Both have different requirements and privileges.

Understanding Dual Residency

Residency grants you the right to live in a particular country, often with certain conditions attached.

These requirements often come in the form of minimum annual stays, proof of financial self-sufficiency or small to large investments.

However, the advantages are clear as you: 

• Can spend a long time in your chosen country
• Could potentially benefit from its tax system 
• Will enjoy the freedom to travel to your new residency with ease
• May be able to gain citizenship in roughly four to ten years.

Most importantly, a residence permit gives you options without the commitment of citizenship. And if you’re investing in a residence, it’s usually a fraction of the cost of a second passport.

Pathways to Residency

The path to residency is rarely a universal affair. 

Each country often has its nuances with each program they offer, but across the board, there are some similarities in how they work and what they offer in return. 

The first and often most popular option is residency by investment. The investment part of these programs typically relates to real estate, government bonds or donations.

The price tag, as one might expect, varies wildly – from easily accessible sums to figures that could make even a seasoned investor wince. 

For example, Portugal’s Golden Visa program requires a minimum donation of €250,000. 

On the other hand, Malta’s Permanent Residence Program requires a combination of property investment, government contribution and a donation to a registered NGO, which can exceed €400,000. On the plus side, that could grant you a fast-tracked EU Plan B passport.

Elsewhere, if your skillset aligns with a country’s specific needs, skilled migration program might offer a viable pathway – Canada and Australia are well-known for their points-based skilled migration systems. 

For those dreaming of sun-drenched retirement, Spain and Panama offer accessible residency options, requiring proof of reliable income or savings. 

And finally, for entrepreneurs, creating a business, like in the UK, can grant you residency.

Note that residency has a time limit. It also often has physical presence requirements to maintain your residency status.

Sure, you can renew your residence permit in most cases, but it’s not like getting a passport, which is a lot more permanent.

Understanding Dual Citizenship

Plan B passport and citizenship, unlike residency, is the full monty, granting you all the rights and perks of a citizen. 

For Americans, dual citizenship is generally permissible, although it’s worth noting that some countries don’t favour dual citizenship. 

The benefits are:

• Gaining a new passport that gives you the ability to travel freely to many countries
• The ability to live and work freely in multiple countries
• A deeper level of security and belonging
• When done right, it provides access to more markets and investment opportunities.

With a citizenship, you can also move to the country permanently, and come and go as you please, without needing to renew your residence status.

Pathways to Second Citizenship

The pursuit of a second passport is a more demanding endeavour than residency. 

The most direct route, for those with fortunate ancestry, is citizenship by descent. 

If your lineage traces back to certain nations, you might be eligible based on heritage. To get it you will need to trace a genealogical paper trail, but it’s faster and less expensive than other avenues. 

Ireland and Italy, with inclusive descent criteria, are popular choices.

For others, naturalisation is the conventional path. This usually requires you to stay in the country for several years, along with showing you know the language and how to live there. 

However, the duration of residency required varies greatly: In the UK, it’s only five years, whereas in Spain it’s ten years. 

A more exclusive and costly option is citizenship by investment. These programs, offered by nations such as Dominica and St Kitts and Nevis, grant expedited citizenship in return for investments.

Some countries, like Serbia, might bestow citizenship upon an individual who has provided the country with an exceptional contribution.

Why Americans Are Increasingly Considering a Plan B: FAQs

Ready for a Plan B Passport?

The reasons behind the surge of people looking for new global options paints a clear picture of the importance of a Plan B passport or residence.

In an era of increasing uncertainty, expanding your options gives you a powerful advantage. 

It grants greater control over your future, protects you against unforeseen circumstances and potentially leads you to new ventures or journeys. 

However, a second residency or citizenship is a serious undertaking, one that requires careful planning, a lot of research and expert guidance. On top of that, the process can be complex, the financial investment large and the tax benefits vary. 

Instead of spending countless hours reading through complex legal jargon and comparing countless programs, let our team at Nomad Capitalist do it for you. 

We can help you assess your personal needs and goals, identify the best options to then build and execute a well-thought-out plan to help you go where you’re treated best.