Wealthy Chinese Weigh Giving Up Citizenship as They Hunt for Second Passports

A growing number of wealthy Chinese are weighing a difficult choice: surrendering their Chinese citizenship in order to hold a foreign passport. Wealth advisers say the trend is being driven by tighter scrutiny of offshore wealth, concerns about taxes, geopolitical uncertainty and a desire for greater international mobility.

The trade-off exists because China does not recognize dual nationality. Chinese nationals who acquire another citizenship must give up their Chinese 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 consultancy Arton Capital. He added that the choice of passports depends on a client's lifestyle and business needs.

Ryan Lin, a director at Singapore-based law firm Bayfront Law, said he has seen more wealthy Chinese considering renunciation since July. That month Beijing introduced measures targeting offshore trusts, under which certain incomes and transactions could face a 20% tax. Some families have since reassessed how they hold and transfer assets overseas. Lin told CNBC that clients once merely discussed the possibility of giving up citizenship, while more now voice concrete intentions to do so.

Other firms report similar momentum. Manish Tibrewal, co-founder of multi-family office Farro Capital, said the number of Chinese families actively exploring alternative citizenship since July far exceeds the number who completed the process last year. Savory & Partners said inquiries from Chinese clients have risen 33% since July, while Global Citizen Solutions reported an increase of nearly 40% compared with the same period last year.

Renunciation does not wipe the slate clean on taxes. Experts said individuals could remain liable for taxes on historical gains, depending on how their wealth was structured, although a genuine change in citizenship and residency could affect future obligations. The step also remains a major sacrifice for people whose businesses and fortunes are tied to the mainland. Lin said those most willing to take it generally have few remaining business links to China, with much of their wealth and operations already offshore.

The Caribbean has emerged as a popular choice for those who want a passport rather than only residency. Countries such as Antigua and Barbuda run citizenship-by-investment programs. Tibrewal said citizenship there can potentially be secured within six months, far faster than routes in Europe or the United States, where residency requirements often come before naturalization. Global Citizen Solutions said the Caribbean saw the strongest growth in Chinese inquiries among the destinations it tracked this year.

In Europe, most options involve residency rather than immediate citizenship. Arton said those unwilling to give up their citizenship find a portfolio of residencies or long-term visas more appealing. Portugal remains popular through its golden visa program, while Italy draws families with favorable tax arrangements for qualifying new residents. Hungary offers long-term residency through qualifying investments starting at 250,000 euros ($290,000). "Hungary is the one that surprises people," Global Citizen Solutions said, noting that it offers Schengen-area residency through a regulated fund investment as larger golden visa routes have closed or become costlier.

Singapore remains attractive for its political stability, established wealth management industry, international schools and proximity to China. Some families are pursuing permanent residency as part of longer-term citizenship plans, though naturalization is neither automatic nor guaranteed. Australia appeals to families focused on education and quality of life, and Malaysia, including Kuala Lumpur and Penang, is drawing interest for lower living costs, Chinese-speaking communities and international schools. Advisers also pointed to Thailand's long-term resident visa, Argentina, Serbia, North Macedonia and Bulgaria.

Advisers caution that interest does not always lead to action. "It's important to recognize that exploring overseas residency, building a passport portfolio, and relocating an entire family are very different decisions," Arton said.