NTL Trust
IMI Official Partner
A growing number of Americans, particularly high-net-worth individuals (HNWIs), have begun to redefine the traditional concept of the American Dream. Rather than aspiring to own a home with a white picket fence in the suburbs, many are now dreaming of a life abroad, immersed in new cultures and experiences.
This shift in mindset has been driven by a combination of factors, including political and economic instability at home, a desire for new cultural experiences and a higher quality of life, and the search for financial benefits and opportunities.
The recent volatile changes have further underscored the deep political divisions and tensions within the United States, leading even more Americans to explore the possibilities of investment migration and the allure of living abroad.
The Changing American Dream
The American Dream has long been synonymous with the idea of achieving success and prosperity through hard work and determination. Traditionally, this has meant owning a home, building a successful career, and providing for one’s family within the United States.
However, in recent years, a growing number of Americans have begun to question this traditional narrative and look beyond the country’s borders for new opportunities and experiences.
One of the key drivers of this shift is the increasing political and economic instability within the United States. From contentious elections and social unrest to the impact of trade wars and market fluctuations, many Americans are feeling a sense of uncertainty about the future of their country.
The recent upheavals in the political race have further inflamed partisan tensions, signaling an overall change in the economic and cultural narrative and a shift in the American psyche.
According to a 2021 survey by the Pew Research Center, only 54% of Americans believe that the American Dream is attainable for most people, down from 71% in 2019. This growing sense of disillusionment has led some to seek out more stable and predictable environments abroad, where they feel they can have greater peace of mind and security.
Another factor contributing to the changing American Dream is the desire for new cultural experiences and a higher quality of life. As the world becomes more interconnected and accessible but domestic tensions rise, many Americans are drawn to the idea of setting up a contingency plan in a solid destination that offers security, safety, and a high living standard that is somewhat familiar.
This is particularly true for HNWIs, who often have the means and flexibility to pursue these opportunities. According to a 2022 report by Knight Frank, 34% of global HNWIs are planning to apply for a second citizenship, with the United States ranking as the second most common country of origin for these individuals.
The Appeal of Investment Migration
For American HNWIs looking to build a life abroad, investment migration programs have become an increasingly popular option. These programs allow individuals to obtain residency or citizenship in a foreign country by making a significant investment in the local economy, such as purchasing real estate or investing in a business.
According to a 2022 study, the number of Americans inquiring about these programs has increased by 327% since 2019.
One of the key benefits of investment migration for American HNWIs is the ability to diversify their assets and create a backup plan in case of economic or political instability at home. By investing in foreign real estate or businesses, they can spread their risk and potentially enjoy greater financial security. This is particularly attractive given the ongoing uncertainty in the world’s conflicts and challenges.
Since the US is one of the global key leaders, having a plan B in a safe country separated from any global tension, conflict, or mere inflation sounds like a call to action for a regular American citizen.
Another major draw of investment migration is the lifestyle benefits it can offer. Many American HNWIs are attracted to countries with a lower cost of living, a more relaxed pace of life, and access to high-quality healthcare and affordable education.
For example, countries like Greece and Turkey are popular among American investors for their sunny climates, rich cultural heritage, and affordable cost of living compared to major U.S. cities.
In addition to lifestyle benefits, investment migration can also offer significant tax advantages for American HNWIs. The United States is one of the few countries in the world that taxes its citizens on their worldwide income, regardless of where they live. However, by obtaining residency or citizenship in a country with more favorable tax policies, American HNWIs can potentially minimize their tax liability.
Choosing the Right Destination
When considering investment migration options, American HNWIs typically evaluate a range of factors to determine the best destination for their needs and goals.
One of the most important considerations is political and economic stability. Countries with stable governments, strong economies, and low levels of corruption are particularly attractive, as they provide a more predictable and secure environment for investment and long-term planning.
Another key factor is the standard of living and quality of life offered by the destination country. American HNWIs often seek out places with high-quality healthcare, education, and housing, as well as a range of cultural amenities and recreational opportunities.
Greece, with its stunning natural beauty, rich history, and laid-back Mediterranean lifestyle, has become a popular choice among American investors in recent years. According to Enterprise Greece, the country’s official investment promotion agency, the number of American applicants for the Greek Golden Visa program, which offers residency in exchange for a real estate investment of at least €250,000, increased by 75% between 2019 and 2021.
Tax and financial incentives are also a major consideration for American HNWIs exploring investment migration options. Countries with favorable tax policies, such as low personal income tax rates or exemptions for foreign income, can be particularly attractive.
For example, Saint Kitts and Nevis, a Caribbean island nation, has become a popular choice among American investors for its platinum standard citizenship by investment program, which offers citizenship in exchange for a donation or an investment in real estate. The country has no personal income tax, capital gains tax, or inheritance tax, making it an attractive option for tax optimization.
Ease of integration and accessibility are also important factors for American HNWIs considering investment migration. Countries where English is widely spoken or where there are strong support systems in place for foreign investors can be particularly appealing, as they can ease the transition and integration process.
Countries that are geographically close to the United States or that offer easy travel access, like
Paraguay, Uruguay, and Panama, through their great residency programs, can be attractive for those who wish to maintain close ties with family and friends back home.
The Role of Friendshoring
In addition to these traditional considerations, a new factor is emerging as a key driver of investment migration decisions for American HNWIs – friendshoring.
Friendshoring refers to the practice of moving business operations and investments to countries that have strong diplomatic, economic, and cultural ties with the United States. In the aftereffects of the COVID-19 pandemic and growing geopolitical tensions, many American companies and investors are looking to reduce their reliance on countries like China and diversify their operations to more stable and friendly markets.
For American HNWIs considering investment migration, friendshoring can offer a range of benefits. By investing in countries with strong ties to the United States, they can enjoy greater geopolitical stability, reduced supply chain risks, and access to new markets and talent pools. Additionally, friendshoring can offer lifestyle benefits, such as a sense of familiarity and comfort in countries with shared cultural values and language.
Countries like Greece, Turkey, Paraguay, and Saint Kitts & Nevis, which have strong diplomatic and economic ties with the United States, are actively seeking to attract American investors through friendshoring initiatives. They see an opportunity to capitalize on the growing desire among American HNWIs for a “Plan B” abroad.
Greece has established a number of bilateral agreements with the United States in recent years, including a revised Defense Cooperation Agreement and a Science and Technology Agreement. These agreements have helped to strengthen the economic and cultural ties between the two countries and make Greece an increasingly attractive destination for American investors seeking a stable and friendly environment.
Turkey, too, has been working to position itself as a key strategic partner for the United States in the region. The country has a growing economy, a highly skilled workforce, and a strategic location at the crossroads of Europe, Asia, and the Middle East.
In recent years, Turkey has made significant investments in infrastructure and technology, making it an attractive destination for American companies looking to expand their operations and tap into new markets.
Paraguay, while perhaps lesser known among American investors, is also actively seeking to attract foreign investment through friendshoring initiatives. The country has a stable democratic government, a growing economy, and a welcoming business environment, making it an attractive option for American companies looking to diversify their operations in South America.
Paraguay has a strong agricultural sector and is a major producer of soybeans, corn, and other commodities, making it an attractive destination for American investors in the agriculture sector.
Saint Kitts and Nevis, a small Caribbean island nation, has also been actively courting American investors through its citizenship by investment program. The country has strong diplomatic ties with the United States and is a member of the United Nations, the Commonwealth of Nations, and the Organization of American States.
Characteristics of American HNWIs Utilizing Investment Migration Programs
American HNWIs who utilize investment migration programs to build their life abroad typically share several key characteristics. These individuals tend to be globally minded, with a keen interest in exploring new cultures, languages, and ways of life.
They see the world as their oyster and are open to the idea of living and working abroad.
Financially savvy and risk-averse, American HNWIs who pursue investment migration programs have a deep understanding of global markets and investment opportunities.
They view investment migration as a way to diversify their assets and create new streams of income while carefully considering the potential risks and rewards. They often work closely with trusted advisors like NTL Trust to thoroughly vet programs and ensure their investments are secure.
Ultimately, American HNWIs who utilize investment migration programs tend to be forward-thinking, globally-minded individuals with a keen eye for opportunity and a desire to create a better life for themselves and their families.
By carefully weighing a range of factors and working with trusted advisors, they are able to navigate the complex world of investment migration and unlock new possibilities for growth, prosperity, and personal fulfillment.
Navigating the Investment Migration Landscape
For American HNWIs considering investment migration, navigating the complex and ever-changing landscape can be a daunting task. With so many options available and so many factors to consider, it can be difficult to know where to start. This is where the expertise of investment migration advisors like NTL Trust can be invaluable.
NTL Trust has been helping HNWIs to identify the best options for their unique needs and goals, taking into account a wide range of factors, such as political stability, economic opportunities, lifestyle benefits, and tax implications, for more than 30 years.
We also provide guidance on the various programs available, including citizenship by investment and residency by investment, and help clients understand the requirements, timelines, and benefits of each option since we have a vast pool of knowledge and expertise through decades in this industry.
NTL Trust also plays a critical role in helping clients navigate the complex legal and regulatory landscape of investment migration. They ensure that all necessary documentation is in order, that clients are in compliance with all relevant laws and regulations, and that the investment migration process is carried out smoothly and efficiently.
In addition to providing technical expertise, NTL Trust advisors also offer valuable insights and guidance on the cultural, social, and practical aspects of building a life abroad.
They can help clients understand the local business environment, connect with key contacts and resources, and navigate the challenges of integrating into a new community.
Ultimately, working with a reputable investment migration advisor like NTL Trust can provide American HNWIs with the guidance, support, and peace of mind they need to successfully navigate the investment migration landscape and achieve their goals of building a prosperous and fulfilling life abroad.
Whether seeking to diversify their assets, optimize their tax strategy, or simply explore new opportunities for growth and adventure, American HNWIs can benefit from the expertise and experience of these trusted advisors as they embark on this exciting new chapter in their lives.
To learn more, contact NTL Trust today.
