The wealthy are obtaining second citizenships, citing the risk of instability.

Wealthy families in the U.S. are increasingly seeking second citizenships and national residencies as a way to secure their financial risks, reports a leading law firm.

They are creating these "passport portfolios."

Collections of second, as well as third or fourth citizenships, are for wealthy individuals in case they need to leave their home country. The company Henley & Partners, which specializes in high-net-worth citizenships, reported that Americans now outnumber all other nationalities when it comes to securing additional residencies or citizenships.

Dominik Volek's statement

"The U.S. is still a great country, it's still an amazing passport," said Dominic Volek, head of the high-net-worth client group at Henley & Partners. "But if I'm rich, I'd like to protect myself from the level of volatility and uncertainty. The idea of diversification is well understood by wealthy people in terms of their investments.

Recent examples of second citizenships

Recent high-profile examples of second citizenships include billionaire tech investor Peter Thiel, who acquired New Zealand citizenship, and former Google CEO Eric Schmidt, who applied for citizenship in Cyprus.

Renunciation of American citizenship

Although a relatively small number of Americans renounce their citizenship each year, for most it becomes financially unfeasible due to the "exit tax." Instead of giving up their citizenship, many wealthy Americans are seeking additional visas or citizenship programs.

Main directions for additional passports

According to Henley, the main destinations for additional passports among Americans are Portugal, Malta, Greece, and Italy. The Portuguese "Golden Visa" program is particularly popular, while Malta offers a "Golden Visa" for 300,000 euros invested in real estate.

Three main reasons for the growth of American passport portfolios

There are three main reasons for the growth of American passport portfolios, or "location diversification." An alternative passport facilitates travel, business trips, and financial transfers.

Political reasons

Some wealthy Americans simply want a backup residence for a possible retirement or for political reasons in the U.S. "We are all living in uncertain times, not just in the U.S., but in all nations around the world," said Volek. "Who knows what will happen next? It's not just about having a comprehensive Plan B, but also Plans C and D."