The New Must-Have Asset for the Uber-Rich

So, I have a bit of a following on Twitter, where a decent-sized collection of humans know me for my commentary on the crypto market.  

Occasionally, direct messages land in my inbox from some of my followers…typically crypto-related inquiries, as you might imagine. But in the last few months, I’ve noticed a growing number of questions on an entirely different topic… 

Now, granted, the raw number of questions isn’t huge—six or seven, maybe eight. Still, I’ve never received questions on this topic before and the fact that they are showing up now has to say something about the zeitgeist of the moment.  

The questions? Well, they’re all similar to this one: 

Yo, so this second-passport stuff I’ve been reading about, is it legit? Will I get in trouble for having a second passport? And how much would it really cost—assuming this is legal? 

Second passports are becoming the accessory of choice these days among well-to-do Americans. Indeed, America’s super-rich are increasingly buying passports through what’s known as “Golden Passport” or citizenship-by-investment programs offered by various countries, primarily in the Caribbean and parts of Europe.  

As Insider put it: 

The number of wealthy Americans applying for citizenship or residency in foreign countries has skyrocketed over the past three years as U.S. billionaires, tech entrepreneurs, and celebrities look to create a “plan B” for their families, multiple investment migration firms told Insider. 

But it’s not just those groups of people who are interested in a second passport. If my Twitter DMs are anything to go by, a lot of ordinary investors are looking to explore their second passport options. 

Now, to be clear and to address those questions above: Yes, owning a second passport is perfectly legal as an American. The U.S. Supreme Court has even weighed in on this, and concluded that it is perfectly fine for Americans to possess multiple passports from multiple countries.  

And, yes, second passports are legit. Frankly, owning a second passport is the lifestyle equivalent of owning multiple credit cards. You never know when one credit card could be stolen or stop working for some reason right at the moment you need it. With a backup credit card, you’re good to go. Same with passports.  

The pandemic serves as a good example of that. 

Having a second passport offered a degree of flexibility and migratory freedom most of the world didn’t have. During that period, U.S. citizens lost access to large swaths of the world—so much so that the value of a U.S. passport tumbled to #17 in the Henley Passport Index. It had been in the top five or six. 

Those Americans who owned a second passport, had the freedom to jet off to some other destination to escape the chaos in the U.S. during that crisis. 

When it comes to second passports, there are a few different ways you can nab one. 

The easiest way is simply to channel your inner billionaire and buy one through a “Golden Passport” or citizenship-by-investment program. As for cost of these…well, at minimum you’re looking at about $100,000 to get a passport in one of the Caribbean islands like Dominica or St. Lucia. Both are fairly well-respected passports.  

If Europe is more to you taste, you’re looking at places like North Macedonia at just under $200,000, or Montenegro at roughly $450,000 as the cheapest options. Both countries are on path to join the European Union, at which point their citizenship by investment programs will likely be greatly more expensive, or could be terminated. So, this is the temporary, bargain-basement approach to gaining European citizenship. 

The other ways to get a passport are far more cost-effective.  

If you have a grandparent or even a great-grandparent who hailed from overseas, you could be entitled to a second passport due to your ancestry.  

As many as 40% of Americans are entitled to a second passport in Europe through avenues such as this. Yet, it’s an option that far too few Americans explore. 

At the end of the day, a second passport is a keystone in building a Plan B, which I think everyone should have these days. Much of the world—and that definitely includes the U.S.—finds itself in an increasingly unsettled state.  

Owning access to multiple currencies across multiple bank accounts outside the U.S., owning access to crypto you can tap into anywhere in the world at any time, and owing a second passport that grants you entrée into another country where you can live and work…those are bedrocks of Plan B. 

I have two of the three in place, and I am working on the third—the passport (though I do have a long-term residence visa for the Czech Republic, which does offer significant flexibility in a crisis). 

This is a period in world history where a sense of security goes to those who begin to prepare now.