Wealthy Individuals Worldwide Accelerate Relocation as More Consider Giving Up U.S. Citizenship

[Financial News]

The global movement of the rich is clearly accelerating.
Unlike in the past, they are not moving simply to reduce their tax burden. They are relocating based on factors such as quality of life and geopolitical considerations.
In particular, the number of people seeking to renounce their U.S. citizenship has surged since the launch of Donald Trump’s second administration.

According to Consumer News and Business Channel (CNBC) on the 11th (local time), a survey by Swiss investment bank UBS showed that the combined wealth of the world’s billionaires reached a record high of about 15.8 trillion dollars (around 22.8 quadrillion won) last year.
The study found that, as they transfer their assets to the next generation, many of them are also searching for new places to live.
Among the billionaires surveyed, 36% had already experienced migration, and the share was even higher among those aged 54 and under, at 44%.
Their reasons for moving were not limited to tax issues, as is commonly assumed. They are choosing locations for their heirs based on quality of life and concerns about geopolitical risk.
They want their descendants to live in places that are more open and international.
As an estimated 83 trillion dollars in wealth is passed down over the next 20 years, some countries are likely to benefit while others lose out.

According to Farro & Co, a multi-family office based in Singapore, “this is the largest transfer of private wealth in history.”
It also looks very different from past trends.
Whereas people once moved primarily in search of growth opportunities, today the emphasis has shifted toward defending wealth and securing flexibility.
In an effort to diversify geopolitical risk in the same way they spread financial assets, many are establishing bases in multiple jurisdictions.

Greenback, a firm that provides tax services to Americans living abroad, reports a sharp rise in the number of people seeking to renounce their U.S. citizenship since the start of Trump’s second administration.
In a survey last year, 49% of U.S. citizens residing overseas said they were considering giving up their citizenship, a steep increase from 30% the previous year.
This trend is rooted in the country’s unusual tax system. The United States taxes individuals based on citizenship rather than residence. Even if Americans live abroad and pay taxes in their country of residence, they must still file separately and pay taxes to the U.S. Internal Revenue Service.
Seventy-five percent of respondents cited complex tax filing requirements and double taxation as reasons for considering renunciation.
Political dissatisfaction with the Trump administration’s policies was also a factor, mentioned by 51% of respondents.


dympna@fnnews.com Song Kyung-jae Reporter