This growing trend has attracted attention, especially as individuals and families re-evaluate their long-term goals in a rapidly changing global environment. Countries such as Portugal and Italy, with their attractive Golden Visa and investor visa programs, are becoming top destinations for those looking to relocate or secure a second residency.


Safety and Stability Concerns

For many Americans, concerns about safety and political instability have prompted the search for alternatives outside the U.S. Rising crime rates in certain urban areas, political polarization, and an uncertain future regarding governance and policy are motivating individuals to seek refuge in countries with perceived greater stability. Countries offering residency or citizenship programs often have stable governments, lower crime rates, and a strong rule of law, making them attractive options.

The COVID-19 pandemic further heightened these concerns, as many individuals looked for countries with strong healthcare systems and less exposure to pandemics or natural disasters. The ability to relocate during times of crisis has become a key priority for high-net-worth individuals and families.

Immigration advisor Kurran Sachdeva of Valerio Partners (www.valeriopartners.com) notes that ‘Optionality is being increasingly appreciated by Americans from both retiring baby boomers and tech upstarts. They appreciate the simplified environments of European cities and family friendly communities.’


Lifestyle and Quality of Life

Indeed, lifestyle changes are another significant factor driving Americans to consider second residences or citizenships. The search for a better work-life balance, a slower pace of life, or access to desirable climates often leads people to explore options in Europe, the Caribbean, or Latin America. Mediterranean countries such as Portugal and Italy offer a mild climate, rich cultural experiences, and a slower pace of life compared to the hustle and bustle of American cities.

Moreover, remote work has transformed how people think about living abroad. With the ability to work from anywhere, many professionals are no longer tied to a particular location, allowing them to choose places that offer a better quality of life. Cities like Lisbon, Portugal, and Florence, Italy, are now becoming hubs for digital nomads and expatriates who value cultural richness, beautiful surroundings, and a favourable cost of living.

This aligns with their preferred areas for real estate investment. Luiz Maia’s boutique real estate advisory business, Maia International, deals regularly with American investors and acknowledges that ‘"Americans tend to focus on the coastal stretch between Lisbon and Cascais," an area that offers the best of both worlds—modern city amenities with beautiful beaches just a short drive away. Many Americans are looking for holiday homes or investment properties in this region, drawn by its luxurious lifestyle and proximity to Lisbon’s international airport."


Tax Optimization

Tax considerations are a major driver for high-net-worth individuals seeking second citizenships. The U.S. is one of the few countries that imposes taxes on its citizens regardless of where they reside, creating a complex and sometimes burdensome tax situation for expatriates.


However, obtaining residency or citizenship in another country can open the door to tax optimization strategies.


David Lesperance founder and managing partner of Lesperance Associates (www.lesperanceassociates.com) , a well-known international tax and immigration advisor, has observed: “A second citizenship is becoming an increasingly important tool in international tax planning. Many high-net-worth individuals are taking advantage of countries that offer tax incentives for foreign residents. By doing so, they can strategically reduce their overall tax exposure while maintaining global mobility and access to new markets.”


Several countries, such as Portugal and Italy, offer tax-friendly regimes for foreign residents. Portugal's Non-Habitual Resident (NHR) regime provides significant tax breaks for foreign income, particularly for pensioners, retirees, and remote workers. Italy’s flat-tax regime offers individuals relocating to the country the option to pay a fixed annual tax on foreign income, regardless of the amount earned.


This combination of global mobility and tax efficiency is a compelling reason many Americans are exploring second residences and citizenships as part of their long-term financial planning.


Lesperance notes further that ‘Aligning solid exit and entry advice is essential and that this should not be short cut. Jurisdictions all have their unique nuances that need to be managed efficiently when leaving or arriving somewhere new’.


Portugal and Italy: Golden Visa and Investor Visa Programs

Portugal and Italy are among the European countries leading the way in offering Golden Visa and investor visa programs. These programs allow individuals to obtain residency, and eventually citizenship, through real estate investments, business ventures, or financial contributions.

Portugal’s Golden Visa program, introduced in 2012, has been a massive success, offering residency permits to investors in exchange for investments largely in Portuguese qualifying funds.

Golden Visa qualifying funds cannot invest directly or indirectly in real estate and Portugal does furthermore consider the ‘spirit of the law’ when reviewing the eligibility of options. Investors must be mindful that their Golden Visa application process will only be approved in 2 or 3 years after application. Only at that stage will they know if their investment has qualified or not. Surely one would be best served not taking unnecessary risks when selecting a qualifying investment.

Michael Maxwell who pioneered the first Golden Visa eligible funds and recently initiated Portugal Panorama FCR (www.portugalpanorama.com), Portugal’s first co-investment fund, agrees stating ‘We want to sleep well at night and so should those who invest for Golden Visa purposes. We have ensured that zero Golden visa risk is tolerated and that any investments made are in winning areas of the Portuguese economy alongside those with the best track record.’

Italy’s Investor Visa program, launched in 2017, allows individuals to invest in Italian government bonds, companies, or start-ups in exchange for residency.

Italy’s rich cultural heritage, Mediterranean lifestyle, and strong family values make it particularly attractive to those seeking a lifestyle upgrade.

A good example of a qualifying investment is Ariete Capital (www.arietecapital.com) which offers Italy on an ‘Investment Plate’ alongside lifestyle benefits. The Ariete Portfolio invests into 12 leading blue-chip public Italian companies as well as a mix of cash derivatives, private placements and alternatives. Besides consistent returns according to significant back-testing, investors also have the flexibility of bi-annual liquidity should needs change.

This aligns with the diversification, flexibility and governance appreciated by Golden Visa investors.

In both countries, individuals can enjoy visa-free access to the Schengen Area, providing freedom of movement across much of Europe, which is a key draw for those seeking a global lifestyle.


The Road Ahead

As Americans continue to seek safety, lifestyle improvements, and tax optimization, the demand for second residences and citizenships is expected to grow. Countries with investor visa programs, like Portugal and Italy, will likely remain popular destinations, offering an appealing blend of cultural richness, strategic tax advantages, and access to the broader European market.

For many, obtaining a second residence or citizenship isn’t just a matter of securing a safety net—it’s about unlocking new opportunities for global mobility, financial security, and an improved quality of life. With careful planning, individuals can reap the rewards of a second passport while enjoying a life of greater freedom and flexibility.


Contact information:

Michael Maxwell - Founder

Portugal Panorama

michael@portugalpanorama.com

+351 965 592 312

www.portugalpanorama.com