For some wealthy Chinese, securing a foreign passport is the ultimate trade-off of giving up Chinese citizenship.
Wealth advisers say there is growing interest in alternative passports as more wealthy people consider renunciation of their nationality due to concerns about taxes, geopolitical uncertainty and increased international liquidity as the Chinese government tightens scrutiny of overseas wealth.
China does not allow dual citizenship, so Chinese nationals seeking foreign citizenship must surrender their passports.
“Some clients are willing to give up their Chinese nationality in order to hold multiple passports,” said Armando Arton, CEO of immigration consultancy Arton Capital, adding that the choice of passport depends on lifestyle and business needs.
Meanwhile, Ryan Lin, a director at Singapore-based law firm Bayfront Law, said an increasing number of wealthy Chinese were considering renunciation since July.
In the same month, the Chinese government introduced new measures targeting offshore trusts, potentially subjecting certain income and transactions to a 20% tax. This change has caused some families to reconsider how they hold and move assets overseas.
Previously, the client had discussed the possibility of renunciation of citizenship. More people are now expressing specific intentions to do so, Lin told CNBC.
Manish Tibrewal, co-founder of multifamily office Faro Capital, also reported growing interest in foreign passports.
The wealth advisory firm has helped some Chinese families obtain Caribbean citizenship alongside Singapore permanent residency, with the possibility of long-term Singapore citizenship subject to government approval.
Tibrewal said the number of Chinese families actively considering alternative citizenship options since July far exceeds the number of families who completed the process last year.
Investment migration firm Savory & Partners said inquiries from Chinese clients had increased 33% since July, while Global Citizen Solutions reported an increase of nearly 40% compared to the same period last year.
Both companies specialize in investment migration, helping high-net-worth individuals obtain foreign residency or citizenship, often through qualified investments in the destination country.
However, renunciation of Chinese citizenship does not automatically eliminate existing tax liability.
Even after renouncing citizenship, individuals may still be liable to pay taxes on historical benefits, depending on the composition of their wealth, but a genuine change in citizenship and residency rights could impact future obligations, the experts said.
Giving up nationality remains a significant sacrifice for many wealthy Chinese, especially those whose business and fortunes are tied to the mainland.
Lin said the companies most eager to take that step generally have few remaining business ties to China, and much of their wealth and business is already based overseas.
So where are they planning to move?
Caribbean: faster route to citizenship
The Caribbean has emerged as a popular choice for wealthy Chinese looking for an alternative passport to simply living abroad.
Countries such as Antigua and Barbuda offer citizenship-by-investment programs that allow eligible applicants to acquire citizenship through qualified investments or donations.
Tibrewal said Caribbean citizenship could be secured within six months, much faster than in Europe or the United States, where residency requirements are often required before naturalization.
Mr Urton said the appeal was more flexibility for travel and establishing an international base, rather than a permanent move.
Global Citizen Solutions said the Caribbean region recorded the highest growth in inquiries from Chinese nationals among the destinations it surveyed this year.
Europe: Portugal, Italy, Hungary
European countries are also attracting interest, but many of them offer residency routes rather than immediate citizenship.
“For high-net-worth Chinese people who don’t want to give up their citizenship, a portfolio of residency and long-term visas is a more attractive option,” Arton said.
Portugal continues to be popular through its Golden Visa program, which offers residency through qualified investments and a long-term route with the possibility of gaining citizenship.
Urton added that Italy is attracting wealthy families through tax incentives for new residency status, international schools and financial services infrastructure.
Hungary is also an emerging destination, offering long-term stays through qualifying investments starting at €250,000 ($290,000).
According to Global Citizen Solutions, “Hungary is surprising.” “With Europe’s large golden visa routes closed or becoming more expensive, Hungary is offering residence rights within the Schengen area through regulated fund investments.”
Singapore: Established Asian hub
Singapore remains an attractive destination for wealthy Chinese due to its political stability, established wealth management industry, international schools, and proximity to mainland China.
Some families seek to obtain Singapore Permanent Residency as part of their long-term citizenship plans, but naturalization is neither automatic nor guaranteed.
Mr Tibrewal said his company has helped some clients with plans involving Caribbean citizenship and Singapore residency, and that Singapore citizenship could be a long-term goal.
Australia, Malaysia and other emerging countries
Australia is another popular choice, especially for families who prioritize education and quality of life.
Malaysia is also in the spotlight, particularly in Kuala Lumpur and Penang, where low living costs, Chinese-speaking communities and international schools are attractive to families, the migration consultancy said.
Global Citizen Solutions said: “Aside from the obvious hubs in Asia, such as long-term residence visas in Penang and Thailand, we are also seeing interest from families who value lifestyle and want to keep costs down.”
Meanwhile, Argentina and parts of Eastern Europe are emerging as alternative destinations for those seeking to diversify their international living options.
Arton Capital identified Argentina as a market worth watching, while Savory & Partners highlighted growing interest in Serbia, North Macedonia and Bulgaria.
Advisers caution that interest in overseas citizenship does not necessarily lead to complete renunciation or physical relocation.
“It’s important to recognize that considering living abroad, building a passport portfolio, and moving your entire family are completely different decisions,” says Arton.
