The Los Angeles Times (LAT) reported on the 13th that as concerns over political uncertainty in the United States grow, the so-called “Golden Visa”—a method of securing overseas permanent residency or citizenship through large-scale investments—is emerging as a new asset management tool among California’s wealthy. In particular, interest has surged to the point where California residents account for up to 20% of global clients at firms specializing in overseas investment immigration. It is analyzed that a significant number of these individuals are seeking to secure a “second residence” in preparation for a potential deterioration of the U.S. political and social situation, rather than leaving the U.S. immediately.
According to the LAT, the number of wealthy Californians pursuing investment immigration to obtain permanent residency and citizenship in foreign countries such as Portugal, Malta, and New Zealand has recently increased to unprecedented levels. Jae Kim and Annie Aiken, a couple residing in San Francisco, are among them. The couple, who have a four-year-old son, are currently undergoing the process to acquire residency in Portugal. The system they utilize is commonly referred to as “investment citizenship” or the “Golden Visa.” It is a scheme that allows individuals to obtain permanent residency or citizenship more easily than through standard immigration procedures by investing a certain amount of capital in real estate, companies, or funds in a specific country.
Basil Moore-Elzeki, Managing Partner at Henley & Partners, an investment immigration consulting firm with an office in Beverly Hills, explained, “Wealthy families have now started thinking, ‘Why not diversify the countries where we can reside, just like with other investment assets?'” While no government agency compiles the total number of Golden Visa applications across the United States, investment immigration firms report that inquiries and applications have increased explosively over the past five years. For one firm, the number of California clients, which was only about three per year five years ago, has now exceeded 100. Concerns about political instability in the United States are cited as the biggest reason the wealthy seek to secure overseas residency rights.
Eric Major, CEO of the investment immigration firm Latitude, stated that approximately 85% of U.S. clients are seeking overseas residency or citizenship due to concerns about political instability. The average net worth of the California clients he deals with amounts to approximately $250 million, and it is estimated that they spend up to $1 million on average to secure a second passport. Major explained their mindset as, “What will you do if the United States stops functioning properly? Just like during World War II, you need a place to go.” The demand for investment immigration among Americans has also increased significantly. As recently as 2019, Americans accounted for less than 5% of Major’s total clients, but they now make up about 75% of his client base.
Tech mogul Peter Thiel is cited as a prominent billionaire seeking to acquire foreign citizenship. According to The New York Times, Thiel is pursuing Argentine citizenship amidst concerns regarding the future political and economic direction of the United States. Europe is the most preferred destination for wealthy Americans, particularly Californians. This is because securing residency or citizenship in an EU member state allows one to enjoy benefits such as residence, employment, and education in various European countries. According to the investment immigration industry, Portugal and Malta are particularly popular in Europe.
There is also a method to acquire citizenship at a relatively lower cost through lineage rather than investment. Countries such as Ireland and Italy offer opportunities for citizenship under certain conditions to foreigners whose parents or grandparents were born or citizens of the respective country. Interestingly, most wealthy individuals applying for Golden Visas do not plan to leave the United States immediately. Many countries do not require residents to live locally for most of the year to maintain permanent residency.