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For some wealthy Chinese, securing a foreign passport is becoming the ultimate trade-off: giving up their Chinese citizenship. Wealth advisors say a growing number of affluent Chinese are considering renouncing their nationality as Beijing intensifies scrutiny of offshore wealth, with concerns over taxes, geopolitical uncertainty and greater international mobility driving their interest in alternative passports. China does not recognize dual nationality, meaning Chinese nationals seeking to acquire foreign citizenship must renounce their passports. "We have had some clients who are willing to give up their Chinese citizenship to hold multiple passports," said Armand Arton, CEO of immigration migration consultancy Arton Capital, who added that the choice of passports depends on their lifestyle and business needs. Meanwhile, Ryan Lin, director at Singapore-based legal firm Bayfront Law, said he has seen an increase in wealthy Chinese considering renouncing their nationality since July. That month, Beijing introduced new measures targeting offshore trusts, with certain incomes and transactions potentially subject to a 20% tax. The changes have prompted some families to reassess how they hold and transfer assets overseas. Previously, clients would discuss the possibility of giving up their citizenship. Now, more are expressing concrete intentions to do so, Lin told CNBC. Manish Tibrewal, co-founder of multi-family office Farro Capital, also reported growing interest in foreign passports. The wealth advisory firm is helping some Chinese families pursue Caribbean citizenship alongside Singapore permanent residency, with the longer-term possibility of obtaining Singapore citizenship, subject to government approval. Tibrewal said the number of Chinese families actively exploring alternative citizenship options since July far exceeds those who have completed the process last year. Inquiries from Chinese clients have risen 33% since July, investment migration firm Savory & Partners said, while Global Citizen Solutions reported an increase of nearly 40% compared with the same period last year. Both firms specialize in investment migration, which helps wealthy individuals obtain foreign residency or citizenship, often through qualifying investments in their destination countries. Renouncing Chinese citizenship does not automatically erase existing tax liabilities though. Individuals could remain liable for taxes on historical gains, depending on how their wealth was structured, even after giving up their nationality, but a genuine change in citizenship and residency could affect future obligations, experts said. For many wealthy Chinese, relinquishing their nationality remains a significant sacrifice, particularly for those whose businesses and fortunes are tied to the mainland. Lin said those most willing to take that step generally have few remaining business links to China, with much of their wealth and operations already based offshore. So where are they looking to move? Caribbean: quicker route to citizenship For wealthy Chinese seeking an alternative passport rather than merely overseas residency, the Caribbean has emerged as a popular choice. Countries such as Antigua and Barbuda offer citizenship-by-investment programs that allow eligible applicants to obtain nationality through qualifying investments or contributions. Tibrewal said Caribbean citizenship can potentially be secured within six months, making it considerably faster than pathways in Europe or the United States, where residency requirements often precede naturalization. Arton said the appeal is less about permanently relocating and more about greater flexibility to travel and establish an international base. Global Citizen Solutions said the Caribbean recorded the strongest growth in Chinese inquiries among the destinations it tracked this year. Europe: Portugal, Italy and Hungary European countries are also attracting interest, although many offer residency pathways rather than immediate citizenship. "For Chinese HNWIs who are not willing to give up their citizenship, a portfolio of residencies or long-term visas is a more appealing option," Arton said. Portugal remains popular through its golden visa program, which offers residency through qualifying investments and a potential longer-term route to citizenship. Arton also added that Italy is attracting wealthy families through its favorable tax arrangements for qualifying new residents, international schools and financial services infrastructure. Hungary is another emerging destination, offering long-term residency through qualifying investments starting at 250,000 euros ($290,000). “Hungary is the one that surprises people,” according to Global Citizen Solutions. “As the larger European golden visa routes have closed or become more expensive, Hungary offers residency in the Schengen area through a regulated fund investment.” Singapore: established Asian hub Singapore remains attractive to wealthy Chinese because of its political stability, established wealth management industry, international schools and proximity to mainland China. Some families are pursuing Singapore permanent residency as part of longer-term citizenship plans, although naturalization is neither automatic nor guaranteed. Tibrewal said his firm was assisting some clients with plans involving Caribbean citizenship and Singapore residency, with Singapore citizenship a possible longer-term objective. Australia, Malaysia and other emerging destinations Australia is another popular option, particularly for families prioritizing education and quality of life. Malaysia is also gaining attention, especially Kuala Lumpur and Penang, where lower living costs, Chinese-speaking communities and international schools appeal to families, said the migration consultancies. "We also see interest beyond the obvious hubs in Asia, including Penang and Thailand's long-term resident visa, from families who value lifestyle and lower costs," said Global Citizen Solutions. Meanwhile, Argentina and parts of Eastern Europe are emerging as alternative destinations for those seeking to diversify their international residency options. Arton Capital identified Argentina as a market worth watching, while Savory & Partners highlighted growing interest in Serbia, North Macedonia and Bulgaria. Advisors caution that interest in overseas citizenship does not necessarily translate into completed renunciations or physical relocations. "It's important to recognize that exploring overseas residency, building a passport portfolio, and relocating an entire family are very different decisions," Arton said.
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