For the world’s wealthiest families, luxury increasingly means more than just owning property in London, Dubai, Milan, or New York. Equally important is the ability to choose a country in which to live, invest, run a business, educate children, and pay taxes.
UHNWIs are increasingly separating citizenship, tax residency, business location, and wealth location. A second passport, a Golden Visa, a luxury property abroad, or a special tax regime are becoming elements of a single wealth management strategy.
Henley & Partners calls this model a “sovereign portfolio”—a portfolio of citizenships, residence rights, investments, and jurisdictions. In the world of private wealth, it serves a similar function to asset diversification: reducing dependence on a single country, tax system, and political situation.
Why do the richest want to have multiple citizenships and residencies?
An example of this way of thinking is Peter Thiel, co-founder of PayPal and Palantir and one of the most influential technology investors in the US.
In 2026, Thiel moved his family to Buenos Aires for several months. According to the Financial Times, he purchased property in Argentina, enrolled his children in a local school, and met with President Javier Milei. However, there is no confirmation that he obtained or formally applied for Argentine citizenship.
Argentina isn’t his first alternative destination. Thiel has also held New Zealand citizenship since 2011.
However, this doesn’t mean he’s withdrawing his wealth from the United States. His assets, technology investments, and business interests remain firmly tied to the US.
This demonstrates a fundamental principle of modern UHNWI wealth management: where you live, where your assets are located, and where you tax residency are not necessarily the same.
What is the difference between a second passport and tax residency?
Citizenship, residence and tax residency are three different statuses.
Citizenship provides a passport and the rights that come with belonging to a given country. Migration residency allows one to legally live there. Tax residency, on the other hand, determines where and to what extent a person’s income is taxed.
Therefore, the owner of a luxury property in Dubai does not automatically have to become a tax resident there, just as the holder of a second passport does not have to live in the country that issued it.
The United States is a special case. US citizens generally file tax returns for their worldwide income with the US tax authorities, even when living abroad. For US UHNWIs, a second passport is primarily a tool for mobility and security, not a simple way to terminate their tax relationship with the US.
What is a sovereign portfolio in UHNWI wealth management?
Global migration of wealthy individuals is reaching record levels. According to New World Wealth data published by Henley & Partners, approximately 134,000 millionaires will change their country of residence in 2024. The estimate for 2025 is 142,000, and the forecast for 2026 is 165,000. At the same time, over 28% of Henley clients applying for alternative residency or citizenship already live outside their country of citizenship.
This isn’t a classic emigration from country A to country B. For a UHNWI family, the structure can be completely different: citizenship in one country, tax residency in another, a family office in a third, luxury real estate in another, and an alternative passport providing the family with additional mobility. This is precisely the kind of arrangement that creates a “sovereign portfolio.”
Why is Italy attracting new UHNWI residents?
Italy is one of the most interesting European examples of competition for global wealth.
From 2026, a qualifying new resident can have their foreign income taxed at a flat rate of €300,000 per year. For family members covered by the system, the rate is €50,000. The conditions, among other things, are that they have not been an Italian tax resident for at least nine of the ten years preceding the move.
For someone earning multi-million dollar income from investments, dividends, or assets located outside Italy, this can significantly alter their tax bill. However, Italy’s advantage doesn’t end with taxes. Milan, Lake Como, Tuscany, and Rome combine a luxury real estate market with international schools, private banking, culture, a developed luxury goods market, and access to the entire European Union. For UHNWIs, this combines wealth management with a quality of life that’s harder to find in jurisdictions competing almost exclusively on low taxes.
Is Dubai still a safe haven for global wealth?
Until recently, Dubai was one of the most obvious destinations for wealthy entrepreneurs leaving the UK, Europe, and Asia. Its lack of personal income tax, Golden Visa, dynamic luxury real estate market, and burgeoning private banking and family office sectors have made the United Arab Emirates one of the most important centers for global wealth management.
In 2026, however, the situation became more complicated. The ongoing US-Iran conflict and tensions around the Strait of Hormuz seriously tested one of the UAE’s most important assets for the first time in years: its sense of security and geopolitical stability.
Henley & Partners continues to rate the Emirates highly in terms of competitiveness for mobile capital, highlighting its taxation, infrastructure, investment opportunities, and long-term residency rights. At the same time, the number of inquiries from those already living in the UAE seeking additional residency and citizenship has significantly increased.
This doesn’t necessarily mean an outflow from Dubai. Instead, it demonstrates that even one of the most attractive locations for UHNWIs is not currently considered the only safe haven for family and wealth.
An entrepreneur can continue to run a family office in Dubai, own a luxury property there and benefit from Emirati tax residency, while also maintaining European residency or an additional citizenship elsewhere in the world.
Paradoxically, the current situation in the Middle East strengthens the argument for building a “sovereign portfolio”: diversification of jurisdictions is intended to protect UHNWIs not only from high taxes, but also from geopolitical risks.
Could Argentina become a new destination for UHNWIs?
Javier Milei’s Argentina is attempting to enter the global competition for entrepreneurs and private capital. Decree 524/2025 created the possibility of granting citizenship to foreigners making investments deemed significant for the country. However, the program should not be presented as a simple “Argentine passport for $500,000.” The official decree uses the term “relevant investment” but does not define a single amount applicable to all investors.
Much more interesting from a wealth management perspective are the tax regulations. Obtaining citizenship through investment does not automatically grant Argentine tax residency. This is important for individuals who wish to establish an additional residency option or citizenship but do not intend to transfer all their global assets to Argentina. At the same time, a person who effectively becomes an Argentine tax resident is generally subject to different rules, including the taxation of worldwide income.
How much does second citizenship in the Caribbean cost?
Caribbean countries continue to offer one of the most direct Citizenship by Investment models.
In Dominica, the basic contribution to the Economic Diversification Fund is $200,000 for a single applicant. An investment option in approved real estate is also available.
St. Kitts and Nevis requires a minimum of $250,000 in Sustainable Island State Contributions, while Antigua and Barbuda requires a minimum National Development Fund contribution of $230,000.
Unlike the UAE Golden Visa, the investor receives citizenship, not just residency. However, this does not automatically translate into tax residency. For the UHNWI family, a second passport can primarily be a tool for succession planning, increased mobility, and insurance against political changes, sanctions, or problems in the country of primary residence.
Can you still buy citizenship in Europe?
Here, options are increasingly limited. The most important signal was the April 2025 ruling of the Court of Justice of the European Union concerning Malta. The Court found the model of granting citizenship directly in exchange for certain payments and investments to be contrary to European Union law.
Europe, however, continues to court wealthy new residents. However, the instrument is changing. Instead of classic “golden passports,” residency programs, solutions for investors and entrepreneurs, and special tax systems similar to Italy’s are gaining importance.
What does a second passport give to a UHNWI?
The benefits extend far beyond lower taxes. Second citizenship or secondary residency can provide:
- the possibility of quickly relocating the family to another country,
- access to alternative tax residence,
- the possibility of educating children in a different educational system,
- access to another real estate market and banking system,
- greater freedom to conduct international business,
- diversification of political risk,
- greater international mobility,
- additional opportunities in wealth succession planning.
There is no single ideal country.
Italy can combine a favorable tax system with a European lifestyle and luxury real estate. Dubai offers a business environment, private banking, and no personal income tax. Caribbean countries offer additional citizenship, and Argentina is trying to create its own model for attracting global capital.
Is a second passport becoming the new symbol of luxury?
For decades, premium real estate has been the symbol of international wealth: an apartment in Manhattan, a house in London, a villa on the French Riviera, or an estate on Lake Como.
Today, the most mobile UHNWIs are taking things a step further. Their luxury real estate portfolios are complemented by a portfolio of jurisdictions. Alongside asset management comes residence management. Alongside financial succession, they also focus on citizenship and residency planning for the next generation.
The wealthiest don’t have to give up their country of origin. Instead, they want to have options. They can run a business in the United States, own a luxury property in Italy, become a resident of Dubai, and simultaneously have a second passport to provide their family with additional security.
In the world of UHNWIs, luxury increasingly means more than just what you can own. It also means the ability to choose where you want to live, invest, and manage your wealth.
Photo: Sebastian Cyrman, unsplash.com
Written with the support of SI.
