Latest news with #DavidLesperance
Newsweek
24-05-2025
- Business
- Newsweek
Why Dual Citizenship Is The New American Dream
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A growing number of Americans are looking at dual citizenship as a fallback plan in times of widespread uncertainty and deepening political divisions, with young people leading the change. A recent survey conducted by Harris Poll found that four in ten U.S. adults (42 percent) have considered or plan to relocate outside the country to improve their quality of life or financial position. Among Gen Zers, this number went up to 63 percent, while 52 percent of millennials were considering moving abroad. "For most of modern history, the American Dream was rooted in one place: America. But that's shifting," Tim Osieki, director of thought leadership and trends at The Harris Poll, told Newsweek. "While dual citizenship used to be reserved for retirees, the wealthy, or those with strong family ties abroad, it's now a growing goal for middle-class Americans who want more control over their future," he said. "It marks a real mindset shift—less about pledging allegiance to one nation, more about staying agile in a world that feels increasingly unstable." Why It Matters The American dream, which has fueled migration to the U.S. for the past century and more, was built on the idea that the U.S. was a land of opportunity offering freedom, financial stability, upward mobility, and personal success, as long as you were willing to work for it. For many ordinary Americans, especially younger ones, that dream has died. It has been killed by the near impossibility of buying a home in the current market and the economic challenges that force them to scramble to keep up with the cost of living and delay their plans to form their own families. The growing interest toward getting dual citizenship, proved by data shared by attorneys and firms helping customers obtain a second passport, shows that many Americans now believe that other countries can give them better opportunities than the U.S. What To Know David Lesperance, managing partner of Lesperance and Associates and a leading international tax and immigration adviser, told Newsweek that the uptick in U.S. nationals looking to get second citizenship originally started in 2016 when Donald Trump was elected over Hillary Clinton. The phenomenon accelerated during the pandemic, when Americans realized they could live wherever they wanted while keeping their job in the U.S., and picked up again after January 6, 2020, and after the 2024 election, Lesperance—a Canadian national with a family history of dual citizenship—said. "I've been using this analogy with my American clients. It's a little cheeky for a Canadian, but I tell them, imagine you live in a political wildfire zone. What's your wildfire concern?" he said. "Taxation, shootings, Islamophobia, anti-semitism, homophobia, any of these drivers," Lesperance added. "And well, what do you do? It's called a wildfire for a reason. What if, despite your most earnest attempts, you can't put out the wildfire? Your fire insurance would be an alternative residence or alternative citizenship." The top reasons why Americans are considering leaving the U.S. for greener pastures, according to the Harris Poll's survey conducted in February, are lower living expenses (49 percent), dissatisfaction with the current political leadership (48 percent), and a desire for a higher quality of life (43 percent). They are looking at countries like Canada, the United Kingdom, Australia, France, Italy, Japan, Mexico, Spain, Germany, and New Zealand, as good options to relocate to. Younger generations are especially interested in dual citizenship, according to the findings of the Harris Poll's survey. "Millennials and Gen Z are rethinking what success looks like—and where it can be found," Osieki said. "Many feel boxed out of traditional milestones like homeownership, or worry that their rights and freedoms are being eroded. So instead of chasing an outdated version of the American Dream, they're chasing global opportunity," he explained. "For these younger generations, dual citizenship isn't a luxury—it's a form of empowerment, a way to unlock better healthcare, more affordable living, and greater freedom to live life on their own terms." Photo-illustration by Newsweek/Getty/Canva Crucially, interest for dual citizenship is also growing among a very specific category in the country: wealthy Americans. Henley & Partners, a company that helps international clients obtain residence and citizenship in other countries, reported a 183 percent increase in interest from U.S. nationals trying to get dual citizenship between the first quarter of 2024 and the first quarter of 2025. Significantly, the company reported a 39 percent increase between the last quarter of 2024 and the first quarter of 2025 alone, demonstrating that interest in dual citizenship grew in the wake of Trump's election and his return to the White House. While the U.S. is still a magnet for millionaires, centi-millionaires, and billionaires, as Henley & Partners data show, a growing number of wealthy Americans are actually looking for other options. "So far in 2025, US citizens account for over 30 percent of all investment migration applications submitted through Henley & Partners—nearly double the combined total of the next five investor nationalities, which include Turkish, Indian, and British," Sarah Nicklin of Henley & Partners told Newsweek. Other citizenship and residency advisory firms, including Latitude Group and Arton Capital, have reported similar increases in demand from U.S. nationals. Arton saw a 400 percent increase in U.S. clients in the first quarter of the year compared to a year earlier, while Latitude said U.S. applications for second citizenship or residency have surged by 1,000 percent since 2020, as reported by Al Jazeera. These numbers reflect evolving perspectives among high-net-worth Americans. "Most view investment migration as sophisticated risk management, creating a 'Plan B' that provides optionality for themselves and their families to relocate if they need or want to," Nicklin explained. "Motivations include geopolitical risk diversification, enhanced global mobility, business expansion, educational and alternative healthcare access, and cross-border legacy planning for future generations." These wealthy Americans are looking to get second passports from European countries, the Caribbean, and the South Pacific, Henley & Partners data show. Dual citizenship, however, has a flip side—including keeping up with the U.S. tax system. "The U.S. is one of the few countries that taxes its citizens no matter where they live, which means even with a second passport, you still have to report your worldwide income to the IRS," Kevin Marshall, a CPA and personal finance expert, told Newsweek. "I've seen clients get caught off guard when they thought having dual citizenship would reduce their U.S. tax duties. It doesn't," he added. "If anything, it makes it even more important to stay on top of your reporting. That's why anyone thinking about a second passport needs to understand what both countries require." What Are The Options Available? There are several ways to obtain a second citizenship or residency in another country for a U.S. national. Countries like Ireland and Spain allow Americans to apply for citizenship if they can prove they have parents or grandparents from there, in a process that usually last between one and three years. Italy, which had a similar program in place for years, just announced this week that it will end it, causing uproar among American descendants of Italian migrants to the U.S. Many countries allow U.S. nationals to apply for citizenship or residence through investment, with programs like the "Golden Visa" which involve buying real estate, purchasing government bonds, or other kinds of financial contributions. These schemes can cost between $10,000 and $1 million and they usually take between 12 and 16 months. Why Are More Americans Interested In Dual Citizenship? Marshall has also noticed a clear trend of more Americans, especially those with significant assets, applying for dual citizenship lately. "People want options, and a second passport gives them just that," he told Newsweek. "From a financial point of view, dual citizenship can open doors that aren't available with just a U.S. passport. Some countries offer access to banks that have stronger privacy rules or different investment vehicles," he explained. Certain countries offer more flexibility in terms of taxes, especially if an individual is structuring international assets or looking to diversify. "When someone is already thinking about estate planning, wealth preservation, or international business, having legal status in another country just makes planning more effective," Marshall said. But there is more than just financial opportunism behind the sudden rise in interest in dual citizenship among Americans. "There's also a growing sense that things are a little less stable at home than they used to be," Marshall said. "We've seen political shifts, healthcare disruptions, and economic uncertainty, and for people who have the means, being able to step away and settle elsewhere—even temporarily—is seen as a smart way to protect themselves and their families." That may be better access to schools abroad, smoother travel, or just knowing there is another place to go if things turn really bad. "This kind of flexibility has become a serious part of personal planning," Marshall said. "What's interesting is that this shift isn't just about wealth or status," he added. "The world feels more unpredictable than it did a decade ago, and people are responding in practical ways. Dual citizenship is one of those ways. It's not just a luxury anymore—it's part of a well-rounded financial and personal strategy." According to Osieki, dual citizenship is quickly becoming the modern safety net in the U.S. "With economic pressures mounting, political division deepening, and growing concerns about personal rights, Americans are no longer just toying with the idea of living abroad—they're taking steps to make it happen," Osieki said. "It's not about abandoning the U.S.—it's about creating options. A second passport gives people mobility, security, and the freedom to build a life on their own terms—wherever that may lead." Among Henley & Partners' clients, some of the most cited reasons and concerns behind getting a second passport include the current political situation, with some saying the country no longer represents their values; others cite what they see as the end of democracy; growing antisemitism; concerns that same-sex marriages, as well as mixed marriages, may be nullified, and parents of transgender children express concern about their future. Is The U.S. About To Face An Exodus Of Residents? Experts agree that growing interest in dual citizenship won't bring forward a mass exodus of Americans any time soon. "Most American clients we engage with are primarily wanting a Plan B or option to relocate if they need or want to but almost all of them say they don't want to leave the U.S., even temporarily," Nicklin said. "They just want to have something in place so that they have the option if it becomes necessary." But growing interest in a second passport shouldn't be considered a small, neglectable phenomenon either. According to Lesperance, most people don't like to move, abandoning their familiar life for one that is widely unknown. And they only move where they know they can meet their family's needs. For some U.S. households, these needs may leave them no other option than moving abroad. After Trump signed an executive order aimed at restricting gender care for individuals under the age of 19 in late January, Lesperance got several new clients with trans children. "I got seven clients, seven families with trans children in nine days," he said. "That's a pretty specific group of high-net worth families with trans children. Those people were under direct threat. They could smell the smoke from the wildfire." Others might never trigger their "fire escape plan," Lesperance said, but they want to know they have one. "This isn't about a mass migration overnight—but we are at a tipping point," Osieki said. "One in five younger Americans say they're seriously considering moving abroad, and that kind of intent matters. So, while it may not be an exodus yet, it's certainly a movement, and it speaks volumes about how people are feeling about life in the U.S. right now," he said. "The American Dream may not be ending—it could simply be relocating."
Euronews
07-05-2025
- Business
- Euronews
Europe's top tax breaks for the rich – see how countries compare
ADVERTISEMENT European governments are grappling with budget constraints. Weak growth, trade shocks, and ageing populations continue to hit state coffers — while countries are also scrambling to boost defence spending. Against this backdrop, European nations are competing to attract and retain the wealthy, hungry for the investment and tax revenue they may bring. Euronews Business explores the tax perks on offer, along with the pushbacks against them. An earlier version of this article can be found here. Italy Italy is a popular destination with expats not only for its culture and climate, but also because of its tax perks. On the face of it, the country has relatively high levies on personal and corporate income, although there are tax incentives available to foreigners. One of the most well-known is its flat tax regime, which allows wealthy individuals to pay a fixed sum on all foreign-sourced income. This is regardless of the amount earned. The annual fixed fee has recently been increased to €200,000, from the previous €100,000. The advantage is available for up to 15 years, and it's also only open to those who have not been tax residents in Italy for at least 9 out of the last 10 years. Given the cost of the flat tax, it's only interesting for very high-net-worth individuals. "Italy is very popular," tax and immigration advisor David Lesperance told Euronews Business. "When the flat tax was €100,000, one of my clients told me that's what he paid his accountant every year. You've got to remember that, with the lump sum tax, there are no compliance costs for tax planning." Switzerland Switzerland also has a type of lump-sum scheme (forfait fiscal), although the Swiss state claimed last year that fewer than 0.1% of its taxpayers were charged using this method. The way it works is that, instead of collecting fees based on income or wealth, some Swiss regions calculate a rate based on an individual's expenses. While the lump-sum scheme can be interesting for the super rich, the state has put in place a minimum tax base. ADVERTISEMENT This is the higher of two figures: either seven times your annual rent or the rental value of your primary property, or higher than CHF 429,100 (around €455,000) - as of 2024. These thresholds apply at a federal level, although specific regions can increase the minimum sum. You're eligible for the forfait fiscal if you have no Swiss citizenship, and if you are coming to live in the country for the first time - or after an absence of 10 or more years. Beneficiaries are also forbidden from holding employment or running a business in Switzerland. ADVERTISEMENT This means the scheme is intended to lure a small number of rich expats who have passive income. Portugal Tax perks have become a polemic topic in Portugal due to the soaring cost of living, which has been partially stoked by the arrival of wealthy foreigners. Even so, after scaling back benefits in 2023, the Portuguese government has now reintroduced tax breaks for expats (Non-Habitual Residence 2.0). "Portugal had the NHR regime which allowed you to live in Portugal for up to 10 years and not pay much tax on foreign income," explained Gregory Goossens, a tax lawyer at Taxpatria. ADVERTISEMENT In particular, this attracted a large number of retirees, who decided to relocate to Portugal and pay no income tax on their foreign pension income. For those who were generating income in Portugal, specific activities were taxed at a favourable rate of 20%. Related Average salaries across Europe: Which countries have the highest pay? Personal income tax rates in Europe: Where do workers pay the highest and lowest taxes? As well as upsetting locals, the NHR system prompted criticism from Nordic states, who were observing an exodus of their older citizens. Finland and Sweden notably made formal requests to change their double tax treaty rules with Portugal. ADVERTISEMENT This would allow them to impose levies on the pensions of their migrating expats. In response to pressure, Portugal has now altered its tax breaks to "focus on people with an education who can really contribute something to the Portuguese economy", explained Goossens. Under the NHR 2.0 rules, highly qualified professionals can secure a 20% personal income tax rate for 10 consecutive years, along with tax reductions on certain sources of foreign income. Foreign pensions are excluded from this exemption, meaning they are fully taxable under standard rates. ADVERTISEMENT Shell companies Another way that rich individuals can enjoy low effective tax rates is through the use of shell companies, according to the EU Tax Observatory. The body notes that these firms are "in a grey zone between avoidance and evasion" in the sense that they are designed to avoid income tax. Individuals sheltering assets in this way decide to place their wealth in the name of a company they control, instead of classing it as personal income. A key feature of a shell company is that it has no active business operations. Withdrawals from the company are taxed at normal rates, although the taxpayer can harbour the excess in the holding firm. ADVERTISEMENT Setting up such a structure is particularly profitable in countries where the rate of corporation tax is low. Interesting countries are therefore Ireland (12.5%), Hungary (9%), Bulgaria (10%) and Cyprus (12.5%). While the OECD has been working with member states to introduce a global minimum corporate tax rate of 15%, this only applies to firms earning more than €750 million. More than 140 countries have signed up to the deal, but implementation is still a work in progress. ADVERTISEMENT A tax haven for one isn't paradise for all Tax planning cannot simply revolve around one or two types of rate, but rather a whole host of factors must be considered, experts told Euronews. Fees to keep in mind include taxes on personal and corporate income, capital gains, inheritance, and wealth - as well as social security charges. In addition to the locations listed above, countries such as Malta and Monaco can all be considered fiscally advantageous, but it all depends on the nature of someone's income. In some cases, this means even famously high-tax areas such as Belgium can be called havens. ADVERTISEMENT As the OECD continues efforts to raise corporation tax, it is yet to be seen whether this will encourage conversations around other rates and diminish tax perks. "Nations would not provide tax breaks or specialist visas to the wealthy unless they resulted in a greater overall benefit to the state than the cost," argued Jason Porter, business development director at Blevins Franks Financial Management. "You could say whatever tax they collect will be greater than they would have without the encouragement, as the individuals concerned are unlikely to have moved there otherwise." "It is also important to realise what the total benefit might entail, including the property market, spending in local businesses and the potential for entrepreneurial investment locally." ADVERTISEMENT The trade-offs of wooing wealthy foreigners is a question that continues to dominate political debates, with the push and pull set to continue.
Yahoo
07-05-2025
- Business
- Yahoo
Europe's top tax breaks for the rich – see how countries compare
European governments are grappling with budget constraints. Weak growth, trade shocks, and ageing populations continue to hit state coffers — while countries are also scrambling to boost defence spending. Against this backdrop, European nations are competing to attract and retain the wealthy, hungry for the investment and tax revenue they may bring. Euronews Business explores the tax perks on offer, along with the pushbacks against them. An earlier version of this article can be found here. Italy Italy is a popular destination with expats not only for its culture and climate, but also because of its tax perks. On the face of it, the country has relatively high levies on personal and corporate income, although there are tax incentives available to foreigners. One of the most well-known is its flat tax regime, which allows wealthy individuals to pay a fixed sum on all foreign-sourced income. This is regardless of the amount earned. The annual fixed fee has recently been increased to €200,000, from the previous €100,000. The advantage is available for up to 15 years, and it's also only open to those who have not been tax residents in Italy for at least 9 out of the last 10 years. Given the cost of the flat tax, it's only interesting for very high-net-worth individuals. "Italy is very popular," tax and immigration advisor David Lesperance told Euronews Business. "When the flat tax was €100,000, one of my clients told me that's what he paid his accountant every year. You've got to remember that, with the lump sum tax, there are no compliance costs for tax planning." Switzerland Switzerland also has a type of lump-sum scheme (forfait fiscal), although the Swiss state claimed last year that fewer than 0.1% of its taxpayers were charged using this method. The way it works is that, instead of collecting fees based on income or wealth, some Swiss regions calculate a rate based on an individual's expenses. While the lump-sum scheme can be interesting for the super rich, the state has put in place a minimum tax base. This is the higher of two figures: either seven times your annual rent or the rental value of your primary property, or higher than CHF 429,100 (around €455,000) - as of 2024. These thresholds apply at a federal level, although specific regions can increase the minimum sum. You're eligible for the forfait fiscal if you have no Swiss citizenship, and if you are coming to live in the country for the first time - or after an absence of 10 or more years. Beneficiaries are also forbidden from holding employment or running a business in Switzerland.
