They don’t burn their passports. They merely upgrade their selections.
Over the past decade, especially after 2020, there’s been a quiet but dramatic trend among top earners and global entrepreneurs—away from static, citizenship-based taxation and toward something strikingly more fluid. They’re choosing mobility over allegiance, optimization over tradition.
In the context of U.S. tax law, the motive is particularly evident. The United States remains one of the very few governments that taxes based on citizenship, not residency. Even if a person lives abroad, every dollar earned—whether from dividends in Dubai or property profits in Prague—is still susceptible to IRS examination. For people earning at scale, this structure can feel like a glass ceiling.
By using digital residency programs like Estonia’s e-Residency or acquiring second citizenship through investment, many are establishing what experts now call a “portfolio of presence”—a modular framework of residencies, bank accounts, and travel privileges. It’s a really successful technique to eliminate friction while keeping access to global markets.
| Category | Key Facts |
|---|---|
| Core Trend | Growing number of high earners renouncing primary citizenship, particularly U.S., in favor of multi-jurisdiction residency |
| Key Driver | Citizenship-based taxation and global income reporting requirements |
| Notable Increase | U.S. renunciations rose from roughly 1,500 in 2010 to over 6,700 in 2020 |
| Legal Threshold | U.S. citizens taxed on worldwide income regardless of residence |
| Exit Tax Rule | Net worth above $2 million may trigger expatriation tax |
| Digital Residency Example | Estonia’s e-Residency program enables remote EU-based company formation |
| Popular Destinations | UAE, Portugal, Caribbean nations offering residency or citizenship by investment |
For many, the spark wasn’t a dramatic moment—it was paperwork. The inconvenience of filing taxes twice, prohibited overseas bank accounts, or FATCA reporting. The combined weight felt more like bureaucratic burden than civic duty. So they started asking better questions.
More than 6,700 Americans had officially relinquished their citizenship by 2020. Ten years ago, there were just 1,500. The curvature is sharp. And it keeps going up.
Particularly inventive approaches have emerged—especially across Europe and the Gulf. The UAE’s 10-year Golden Visa enables long-term residency without income tax requirements. In Portugal, a €250,000 cultural investment unlocks not just residency, but EU movement and a path to citizenship. Vanuatu, Dominica, and Grenada now grant full second citizenships within months—often faster than a business license renewal in California.
Many started to view a single citizenship as a liability during the pandemic, when borders closed without warning and even holders of luxury passports were left stuck. One founder I met recalls languishing in Bangkok, unable to reach Canada or Australia. “That’s when I realized my passport wasn’t enough,” he informed me. “It was a bottleneck.”
I recall pausing when he said that. It didn’t sound paranoid—it sounded prudent.
What used to be viewed as a fringe option now feels strikingly conventional among high-net-worth individuals. They’re not disengaging from society; they’re reallocating risk.
Through strategic investment and legal advice, they’re constructing a constellation of presence sites. A tax residence in the UAE. Banking in Singapore. Property in Portugal. Business formation in Estonia. Each one increases flexibility without necessitating long-term relocation.
There are certain difficulties with this strategy. Exiting U.S. citizenship, for instance, can trigger what’s known as a “exit tax” if one’s assets surpass $2 million. The process entails in-person embassy interviews, expensive costs, and final tax files. It’s not casual. But neither is it insurmountable.
For many, the ability to live or invest more freely, greatly reduced tax pressure, and noticeably better financial mobility outweigh the loss of Medicare or voting privileges. They frame it as evolution rather than abandonment.
The digital residency trend is particularly useful to remote entrepreneurs. Estonia’s e-Residency permits them to start EU-based firms without physical relocation. It’s an excellent reaction to the growing mismatch between digital commerce and traditional territorial legislation. It’s also highly adaptable, especially for freelancers and consultants managing foreign clientele.
Complementing this are digital nomad visas. Portugal, Spain, Italy, Costa Rica—they all now offer legal arrangements for remote workers to live, pay local taxes at attractive rates, and enjoy high-quality infrastructure. In the context of hybrid work, this development feels inevitable.
There’s also a philosophical thread flowing beneath these decisions. Many mention not simply tax optimization but a fundamental unease with political uncertainty, ideological polarization, and monitoring regimes. The decision to diversify is as much about personal security as it is about spreadsheets.
Importantly, those relinquishing U.S. citizenship don’t do it mindlessly. Nearly all secure second passports in advance—often through Caribbean citizenship-by-investment programs, which are swift, affordable, and universally acknowledged. Grenada’s program is notably popular due to its access to E-2 U.S. business visas, paradoxically enabling renouncers to return on fixed circumstances.
In recent months, attention has spread beyond individuals. Small investment firms and IT startups are also seeking to incorporate in jurisdictions that prioritize digital technology. The legal and tax certainty, together with access to banking and payment rails, creates a very efficient base for worldwide operations.
Additionally, there are cultural changes. Among younger entrepreneurs and digital nomads, the idea of being linked to one flag feels archaic. Instead, many develop community through coworking spaces in Lisbon, creative collectives in Tbilisi, or crypto hubs in Dubai. Their networks are cross-border, mobile, and multilingual.
By merging various locations, they are not avoiding citizenship—they are altering it. They aren’t dismissing responsibility, but dispersing it across systems that match with their ideals and needs.
As a journalist, I’ve noticed how rarely this movement is written about with complexity. It’s either portrayed as tax avoidance or idealized as eternal freedom. But the answer resides somewhere quieter—individuals seeking resilience in a more unpredictable climate.
Since the implementation of digital nomad visas, we’ve seen a shift in what residency implies. It’s no longer connected to where you’re born or even where you physically live. It’s about access, choice, and legal architecture.
I anticipate a more active response from governments in the upcoming years. Some may restrict capital flight or boost departure fees. Others will compete—offering speedier pathways, smarter visas, and more responsive systems. The next decade will likely yield a tiered map of digital-friendly, tax-light countries.
For early-stage owners, especially those earning online or managing distant staff, the appeal of a multi-presence lifestyle is evident. It gives freedom, risk diversification, and space to think worldwide without the pull of obsolete administrative borders.
At its essence, this transformation is not only legal. It’s cultural. It has to do with agency.
Instead of being tethered to a particular place, these new people are making place itself a tactic.
