There has been a marked increase in American families looking to create more options for the future – and it is little wonder, given the geopolitical, financial and social instability surrounding them. In fact, Gallup found in 2025 that one in five Americans would move permanently to another country if they had the opportunity. Among women aged 15 to 44 the figure reaches 40%, up from 10% in 2014. Those are whole-population numbers rather than a measure of wealthy households, and Gallup asks about moving rather than about second passports – but the direction of travel matches anecdotal evidence about enquiry volumes from US families.
Cost of living, quality of life and dissatisfaction with the direction of domestic politics are among the reasons most commonly cited in wider research on the subject. There are, then, multiple driving forces behind this increase in Americans considering other options. But how do they turn this into a potential reality?
Creating a Plan B
Among families with the means to enhance their strategic optionality, residency, tax, investment and even potential citizenship are all interconnected long-term planning decisions – though, as set out below, the citizenship timeline in Portugal changed materially in May 2026.
It is rarely as simple as deciding to pack up all the family’s possessions and move to another country overnight – even if regulations allowed for this. For many, it is more about establishing a plan for the next five, ten or even 20 years, which gives them options regardless of the global and national challenges which arise over that time.
Decisions to be made may centre around whether relocation is an immediate wish, or whether the family simply wants to establish the right to live elsewhere at a later date. Whether a permanent move is ever on the cards, or whether it’s about splitting time across various locations. Whether to change their tax residence, and whether overseas investment would impact their US tax obligations.
Alongside the financial, investment and regulatory considerations, there are of course those which centre around their family’s needs and wishes. Education for younger generations, the affordability and quality of healthcare, and the lifestyle itself – they will all factor into which route is chosen, or which ‘Plan B’ seems the most compatible.
Stay or go – or something in between
Establishing residency overseas does not have to mean leaving the US completely – and this is why it can prove an attractive option for those wishing to plan for the future rather than emigrate immediately. Different residency programmes involve various levels of commitment: Portugal’s Golden Visa, for example, requires seven days in the first year, and 14 days in each subsequent two-year period, as stated by AIMA.
For those seeking to broaden their options, rather than those ready to relocate today, this is an important distinction. By choosing a residency programme in a country where the in-person requirements are less onerous, they can begin establishing an additional legal foothold now – allowing for the fact that application processing runs to months rather than weeks – and make choices about where to live (and where to be a tax resident) at some point down the line.
Separate personal and professional
Under Portugal’s qualifying investment fund route, the same capital can support both a residency application and a family’s wider investment strategy. That is not the same thing as a win/win, and it should not be presented as one. The residency outcome and the investment outcome need to be assessed separately: capital placed in these funds is at risk, returns are not guaranteed, and the investment has to stand on its own merits rather than on the residency rights attached to it. Where the risk, liquidity, fees, underlying assets, time horizon and fit with the family’s existing portfolio are properly understood and appropriate, it can form a coherent part of a wider plan.
For Americans, there is another consideration: the interaction between overseas investments and US tax and reporting requirements. Non-US funds may be treated as Passive Foreign Investment Companies for US tax purposes, carrying their own reporting obligations and elections – the Qualified Electing Fund election among them. These should be worked through with US-qualified tax counsel before any subscription is made.
Obtaining residency under some programmes such as Portugal’s Golden Visa does not mean individuals need to become a tax resident of Portugal. As reported by the OECD, Portuguese tax residency is generally triggered by spending more than 183 days in the country within a 12-month period, or by maintaining a habitual residence there. Separately, and regardless of where they live, US citizens and green card holders remain within the US tax and reporting net. But it is important to ask (and answer) questions around tax and wealth before any decision is made.
Intergenerational optionality
For US families, creating a Plan B is not just about giving them choices for the future and broadening their investment portfolio. Particularly when exploring options within the EU, their decisions now may impact their children’s optionality in the future. When it comes to enhancing the next generation’s ability to live, study and work outside of America, this can be another reason why residency, and even citizenship, are becoming serious considerations for many.
As of May 2025, under the Lei Orgânica nationality rule, the qualifying period for naturalisation is now ten years of legal residence for most non-EU nationals, including Americans, and seven years for EU and CPLP nationals, replacing the previous five-year rule. The clock runs from the issue of the first residence permit rather than from the date of application, and nationality applications filed on or before 18th May continue under the former regime. The Golden Visa residency route itself is unchanged – thresholds, stay requirements and family inclusion all remain as they were – but any family planning around a future Portuguese passport should now be working to the longer timeline. The rules for children born in Portugal to foreign parents have also tightened, and require a parent to have completed five years of legal residence at the time of birth.
It is impossible to predict what may happen over the next decade or so, and whether this will encourage families to stay in the US or cement their plans to explore other options. But by laying the foundations now, and essentially opening doors which are open on today’s rules, it is possible to create a structure which allows for easier decision making when that time comes. Programmes and nationality rules do change – Portugal’s own reform this year is the clearest recent example – which is an argument for taking proper advice early rather than assuming a window will stay open indefinitely.
For some, they may never decide to make the move overseas – in which case, they have simply broadened their options for travelling and diversified their holdings geographically. For others, they may eventually decide to emigrate – a much easier move with the right structure already in place to do so. And for a third group, a more flexible approach may end up being the preferred option, never tying themselves down in one place, but giving themselves as many options as possible to afford them the freedom they desire.
The families asking questions about residency, relocation and regulations aren’t necessarily planning to leave. They are simply making sure that, if and when their priorities change, they have choices available to them and their children. Given the fluctuating nature of the world around us, that seems like incredibly smart family and financial planning.
