The New Contingency & The Rise of Second Residency as a Portfolio Addition in 2026

The acquisition of a second residency or citizenship used to be a luxury for those interested in tax optimization and had millions in the bank. The additional citizenship/residency strategy has evolved into a global risk management and contingency play available for all net worths.

This shift is driven by a confluence of geopolitical instability, increasing regulatory complexity and the changing nature of work. For Ultra High Net Worth and High Net worth families seeking to preserve generational wealth, this product has an unquantifiable ROI. Newcomers to the citizenship/residency by investment landscape have been international students, healthcare arbitragers, retirees and lately H-1B professionals pursuing career stability. A "Plan B" residency is not a luxury anymore but an essential component of a resilient global life strategy.

High Net Worth Families and Tax Optimization

The decision to pursue a second residency for high-net-worth families is typically motivated by factors beyond simple tax reduction. While tax efficiency remains a consideration, primary drivers have shifted towards succession planning and continuity compliance. This trend reflects a growing recognition that political, social and economic volatility pose a substantial threat to wealthy families.

Continuity and Compliance

Continuity in the wealth planning industry refers to ensuring uninterrupted access to assets, education, mobility and lifestyle, regardless of political or economic circumstance. Political polarization is a significant factor in fueling HNW exoduses. In present this can be seen in parts of Europe and Asia where high net worth individuals are leaving in droves because of the political and economic environment in their home country. A second residency is the best kind of insurance available to investors because it provides a safe harbor and a reliable legal jurisdiction for family members and business operations.

Compliance has also become a significant factor for HNW individuals. The rise of global transparency initiatives such as the Common Reporting Standard (CRS) and the Foreign Tax Compliance Act (FATCA) has made hiding assets virtually impossible. HNW families are seeking jurisdictions that offer regulatory clarity and a predictable legal framework. A second residency in a well-regulated jurisdiction simplifies the navigation of complex cross border reporting requirements and reduces the risk of inadvertent non-compliance.

Succession Planning and Heir Protection

The most compelling non-tax driver is succession planning. The goal is a smooth intergenerational transfer of wealth and control of assets. Jurisdictional differences in inheritance law, forced heirship rules and guardianship can severely complicate this process and potentially devastate a family's legacy.

The Role of Wealth Managers and Family Offices

Private banks, Family Offices and wealth managers are no longer treating "Golden Visas" or Citizenship by investment programs as fringe services. They are integrating them directly into core offerings alongside wealth preservation, succession planning and global asset allocation.

Residency/Citizenship by investment is viewed as a strategic investment that contributes to the family's overall risk management profile. Wealth managers advise clients to use the investment required for a Golden Visa as a means of diversifying their asset portfolio across different currencies and jurisdictions in order to eliminate country-specific economic risk. In addition to diversification, the investor gets the ROI of permanent residency in another country.

This shift reflects a fiduciary duty to provide comprehensive risk mitigation. The highest-level wealth managers are proactively advising on a Plan B residency to ensure that families retain unrestricted global mobility and access to their assets. This integration of investment migration into a holistic wealth planning strategy has solidified residency/citizenship by investment as a fundamental component and cornerstone in modern day wealth planning. Any manager considered valuable has made this shift to golden visa integration and is discussing it with their clients.

The New Value Prop for H-1Bs

H-1B holders have been under attack recently from the current administration. For this group the plan b is a direct response to the precarity and limitation of the U.S. employment visa system. They risk having their entire life upended if they don't find a viable solution or take the necessary precautions.

Healthcare, Stability and Cost of Living

The allure of a lower cost of living is extremely attractive to H-1Bs but the focus for these highly skilled professionals is often the healthcare access and overall stability. The H-1B visa ties a worker's residency and their employer sponsored healthcare to the livelihood of their job. Without that job the worker and their family lose everything. This creates an immense personal risk for the H-1B and their family. This instability drives skilled workers to seek systems where residency grants access to a national healthcare system where their medical security is decoupled from their employment status.

Anonymous Case Study

A software engineer from India is working in Silicon Valley on an H-1B visa. He has been nervous for years about potential layoffs and has saved every dollar he's earned. He is interested in the EB-5 investor visa, but the current administration has made him nervous about staying in the United States. He works remote and decides to enroll in the Portuguese Golden Visa so he has permanent residency for his family, quality healthcare and so his children will have access to the entire EU when they begin their education and professional careers. He now has a predictable path to permanent residency and citizenship for him and his family.

Conclusion

The modern pursuit of citizenship/residency by investment and its evolution is a powerful testament to the market demand for stability and security. Motivations have matured from a simple tax play to a pivotal mobility strategy focused on longevity in multiple arenas. The desire for residency-based healthcare and long term stability is also important for individuals of all walks of life and not just those with large bank accounts.

The second residency market serves as the ultimate strategy to transform an investor's global mobility from a simple lifestyle play into a valuable risk management tool.