Why are Americans Leaving the US for a ‘Plan B’ Passport in 2025

In these days of turmoil, it seems that just about every news headline is announcing more political division and economic uncertainty.

There has never been a better time for US citizens to start exploring their immigration options. 

Beneath the surface of everyday life in the United States, a 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 concluding that a Plan B, secured via a properly thought-out second residency or citizenship, is one of the most important steps. 

This isn’t some fringe movement, either. 

The Nomad Capitalist team is seeing a large number of US citizens actively acquiring second residences and citizenships.

Recent research by Harris Polls found that over 40% of Americans, especially younger generations, are thinking about moving abroad. 

In fact, many advisory firms like ours are fielding record US enquiries. 

Our data also indicates that following the US elections and President Donald Trump’s return to the White House, searches and formal requests for information on dual nationality skyrocket, doubling or tripling almost overnight. 

Even before the latest election cycle concluded, surveys showed that over half of America’s millionaires were already exploring pathways on how to leave the country.

Make no mistake, this surge of interest isn’t driven by wanderlust. It’s a calculated reaction to severe pressures back home and a strategic move for more global freedom or opportunities. 

So, we’ve put together our thoughts on the more impactful reasons why a Plan B is becoming essential for 2025.

The Pros and Cons of a Plan B

Whether you’ve already decided to take action, or are actively researching your options, having a Plan B is a surefire way to be ready for what’s next. Naturally, there are both positives and negatives to be aware of. 

​​Advantages 

The first advantage of having a Plan B is 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.

If you plan well and your second passport is, for example, from an EU member state, these rights often extend across the entire bloc, unlocking access to the entire area’s lifestyle and financial opportunities.

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 important benefit of risk diversification. The world can be more than a little unpredictable, so a Plan B provides a high degree of flexibility. 

Then there are the tax advantages. For American citizens, a second residency or citizenship alone does not negate your US tax obligation. However, strategic planning can potentially reduce your 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 this is just one example and the tax laws for each country are different.

Some countries 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 your kids to a school where they 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 shines. 

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

Challenges

Still, while a Plan B is an important consideration, it’s not a silver bullet. 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 big 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 they’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 is to renounce your US citizenship, which comes with the need for a whole new level of commitment. 

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 Americans are Leaving the US

​​The Plan B passport surge is being driven by a number of factors. 

Political Uncertainty and Polarisation

Politics in the United States is a mess right now. The chasm between left and right seems to widen by the day, leaving many feeling politically homeless and desiring peace that 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 isn’t good for your investments and business.

Economic Concerns 

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

These are symbolic shifts at a time when some critics point out that American freedom seems to be at risk.

Tax Incentives

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

This involves understanding all the rules 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 a Plan B.

It 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 could mean moving from a busy, stressful city to more relaxed living in a beautiful coastal town. 

For others, it might be about finding a better healthcare system or simply enjoying a lower cost of living, for a more comfortable retirement.

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, going where you’re treated best. 

Education Opportunities Abroad

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

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

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 potential or help you invest directly in farmland or renewable energy projects.

The possibilities are 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 universal. 

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

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 plus side, this could grant you a fast-tracked EU passport.

Elsewhere, if your skillset aligns with a country’s specific needs, a 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 more permanent.

Understanding Dual Citizenship

A Plan B passport and citizenship, unlike residency, grants you all the rights and privileges 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:

• 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
• Access to more markets and investment opportunities.

With 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 ancestral ties 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 are popular choices. 

Italy has proven exceptionally popular, reportedly accounting for 80% of the recent surge in US descent applications. However, as things often change within this industry, Italy tightened its rules in April 2025, now generally restricting claims to those with Italian parents or grandparents.

For others, naturalisation is the conventional path. This usually requires you to stay in the country for several years, along with showing that 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 an investment.

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

How to Leave the US?

The core principle around maintaining US citizenship is that it can only be lost voluntarily and with the specific intention of giving it up. 

This intention to give it up isn’t merely assumed. It must be actively demonstrated through specific actions defined by law, often called ‘potentially expatriating acts.’ 

These expatriating acts include:

• Formally giving up your citizenship at a US embassy or consulate abroad (this is the clearest way)
• Serving in a foreign military that’s hostile to the US or serving as an officer in any foreign military
• Taking an oath to another country when becoming its citizen, but only if that oath or your actions clearly show you intend to renounce your US allegiance (most standard oaths don’t)
• Accepting certain foreign government jobs, especially high-level ones requiring an oath
• Committing treason.

Most importantly, the US State Department usually assumes you want to keep your US citizenship when you do things like become a citizen of another country, take a standard oath or accept a regular job with a foreign government. 

Just doing these things doesn’t automatically mean you lose your US citizenship. 

For a full-on dive into how to renounce, read our article here. 

Leaving the US with a Plan B: FAQs

Ready for a Plan B Second Passport?

Obtaining a Plan B passport is a serious undertaking, one that requires long-term vision and careful planning.

In era marked by growing uncertainty, having a second citizenship offers you a powerful advantage. It gives you more control over your future, shields you from unforeseen political or economic shifts and opens the door to new opportunities for travel, investment and lifestyle.

But the process is far from simple. It requires careful planning, in-depth research and expert guidance. From navigating complex residency or citizenship requirements to understanding the financial and legal implications, it can be both time-consuming and costly.

Complex legal jargon means the potential tax benefits can be difficult to decode without the right advice, especially when dealing with cross-border obligations and global income.

Done properly though, a second passport is more than just a travel document – it’s a strategic asset offering lasting freedom and security.

You didn’t build your success by settling for less – and you shouldn’t start now. With the right planning, you can live in a country that rewards ambition, respects privacy and gives you the leverage to grow on your own terms.

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

We assess your personal needs and goals with you to execute a well-thought-out plan to help you go where you’re treated best. Get in touch today.