Once considered a niche pursuit, dual citizenship has rapidly gained traction among globally mobile individuals seeking greater security, mobility and opportunity. Citizens from countries like the United States, the United Kingdom, South Africa and Russia have long dominated the demand for second passports, whether driven by political instability, restrictive tax regimes, or diminished travel access. Wealthy individuals from China and India, despite legal or bureaucratic hurdles, have also increasingly turned to investment migration routes, particularly in the Caribbean and parts of Europe.
Malta, too, features prominently in this strategic landscape. Through its regulated pathways, such as the Global Residence Programme (GRP) and the Malta Permanent Residence Programme (MPRP), the country attracts affluent individuals seeking EU mobility, legal certainty, and intergenerational planning advantages. As accredited agents, PKF Malta has long supported clients through the legal and compliance processes to ensure both eligibility and long-term benefits.
Now, a notable shift is emerging in Germany, where a rising number of high-net-worth individuals (HNWIs) are exploring second citizenship as a strategic safeguard. Known for its stability, strong passport and economic resilience, Germany has not typically been associated with outbound citizenship planning. However, in recent months, according to residency and citizenship advisory firm Henley & Partners, there has been a significant increase in inquiries and applications from affluent Germans. Over the past five years, the number of wealthy German nationals seeking second citizenship has reportedly tripled.
Several key factors are converging to drive this emerging trend. First, a recent legal reform has made it much easier for Germans to hold dual citizenship. Since June 27, 2024, the Citizenship Modernization Act (Staatsangehörigkeitsrecht Modernisierungsgesetz, or StARModG) allows German citizens to acquire foreign citizenship without losing their German one, removing the need for prior retention permits. This reform primarily aims to support naturalised citizens and their children, but it also opens new doors for German nationals to seek second citizenship by investment or residence.
Second, geopolitical uncertainty is a major concern. Since the Russian full-scale invasion of Ukraine in 2022, wealthy German families have become more anxious about future conflict scenarios. Fears of conscription have added to the unease. Most recently, Defence Minister Boris Pistorius proposed embedding a conditional conscription mechanism in law, allowing for mandatory service if voluntary enlistments fall short, as is currently the case. While a final decision has not yet been made, the law is expected to be debated before the summer recess and potentially adopted shortly thereafter, adding urgency to long-term personal planning.
Third, global flexibility and personal mobility are driving demand, a trend that accelerated during the COVID-19 pandemic. The disruption to international travel served as a wake-up call to many affluent individuals, who now see second passports or residence permits as an essential part of their risk mitigation strategy. For HNWIs, it’s about ensuring access, not just to travel, but also to lifestyle options and global business opportunities.
Beyond mere travel freedom, second citizenship is often seen as a strategic asset, hedging against legal and financial risks. Investors are seeking to diversify their lives and assets across jurisdictions with more favourable regulatory and economic climates. Some citizenship and residency-by-investment schemes allow real estate investments as part of the qualifying criteria, offering an attractive combination of lifestyle perks and capital growth. For entrepreneurs and business owners, especially those from the renowned German Mittelstand, a network of highly successful, family-owned small and medium-sized enterprises, this can be a pragmatic move. These firms are typically export-oriented and increasingly cautious about Germany’s long-term economic outlook.
So, where are wealthy Germans looking to establish a second foothold? Interestingly, many are choosing destinations far removed from the geopolitical volatility of Europe and the Middle East. Countries like New Zealand, Australia, Costa Rica and Uruguay are popular for their political stability, remote geography, and high quality of life. Caribbean nations such as Antigua & Barbuda, Grenada, and St. Kitts & Nevis are also top choices due to their strong mobility benefits and streamlined citizenship-by-investment programs.
For some Germans, Latin American countries offer lower-cost alternatives for residency, often with minimal stay requirements and more accessible investment thresholds. These programs may include donations to national development funds, real estate purchases or investments in local businesses or stock markets.
With all this movement, one might ask: Are wealthy Germans preparing to leave the country en masse? Not quite. Most aren’t seeking permanent relocation but rather flexibility. Despite Germany’s high number of millionaires, few have left, largely due to the country’s exit tax (Wegzugsbesteuerung), which imposes around 30% on unrealised gains for shareholders holding over 1% in a company. This significant deterrent keeps even highly mobile individuals anchored.
Still, the trend toward second citizenship is real and growing. For many wealthy Germans, residency or citizenship-by-investment schemes are not about leaving but about preparing. It’s a lifestyle and business insurance policy, one that offers access, protection and global positioning.
