[Edaily Reporter Bang Sung Hoon ] An increasing number of wealthy Chinese are seeking foreign passports, even if it means renouncing their Chinese citizenship. As Chinese authorities tighten oversight and taxation of overseas assets, these individuals are seeking an “escape route” to avoid the tax burden and geopolitical uncertainty.

According to CNBC on the 28th (local time), investment immigration consulting firm Savory & Partners reported a 33% increase in inquiries from Chinese clients since last July. Another investment immigration firm, Global Citizen Solutions, also reported that inquiries from Chinese clients had increased by nearly 40% compared to the same period last year. The surge in inquiries followed the Chinese government’s move last July to impose taxes of up to 20% on certain income and transactions involving overseas trusts.

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◇Taxation of Overseas Trusts… “Surge in Inquiries About Renouncing Citizenship”
China does not recognize dual citizenship. This means that to obtain foreign citizenship, one must renounce Chinese citizenship.

Armand Aton, CEO of immigration consulting firm Aton Capital, said, “We have clients who want to renounce their Chinese citizenship to hold multiple passports,” adding that the choice of which country’s passport to obtain depends on lifestyle and business needs.

Ryan Lin, a director at the Singapore-based law firm Bayfront, reported that the number of wealthy Chinese considering renouncing their citizenship has increased since last July. He explained that while clients previously only discussed the possibility of renouncing their citizenship, there has now been a significant rise in those expressing a concrete intention to actually do so.

Manish Tivrewal, co-founder of the wealth management firm Paro Capital, also noted that the number of Chinese families actively exploring citizenship in other countries since last July has far exceeded the number of families that actually completed the process last year.

However, renouncing citizenship does not automatically eliminate existing tax liabilities. Experts pointed out that, depending on the asset structure, taxes on past capital gains may still apply even after renouncing citizenship. Director Lin explained that those actively pursuing citizenship renunciation are generally people who have already moved a significant portion of their assets and businesses overseas, leaving almost no business ties to China.

◇Caribbean “6-Month Citizenship”… Europe Offers Residency
For wealthy Chinese seeking not merely residency but a foreign passport itself, Caribbean nations have emerged as popular destinations. Countries such as Antigua and Barbuda operate “investment citizenship” programs that grant citizenship in exchange for a specified investment or donation. Co-founder Tivrewal explained that Caribbean citizenship can be obtained within six months, making it much faster than in Europe or the United States, where residency requirements must first be met. Global Citizen Solutions identified the Caribbean as the region with the steepest rise in inquiries from Chinese nationals this year.

For those who do not wish to renounce their nationality, residency permits in Europe and elsewhere serve as an alternative. Aton, the CEO, said, “For high-net-worth Chinese individuals who have no intention of renouncing their nationality, accumulating residency permits or long-term visas from multiple countries is a more attractive option.”

Portugal remains popular for its “Golden Visa” program, which grants residency in exchange for investment and opens the path to citizenship in the long term. Italy is attracting the wealthy by highlighting tax benefits for new residents, international schools, and financial infrastructure. Hungary has also emerged as a new destination, offering long-term residency in exchange for a minimum investment of 250,000 euros (approximately 374.81 million won). Global Citizen Solutions explained, “As major Golden Visa programs in Europe have been abolished or have become more expensive, Hungary is offering Schengen Area residency through regulated fund investments.”

◇Singapore and Malaysia, too… “Review and relocation are separate matters”
Singapore remains consistently popular thanks to its political stability, a well-developed wealth management industry, international schools, and proximity to mainland China. While some families apply for permanent residency with the long-term goal of obtaining citizenship, naturalization is not guaranteed.

Families prioritizing education and quality of life are turning to Australia. Kuala Lumpur and Penang in Malaysia are also gaining attention for their low cost of living, Chinese-speaking communities, and international schools. Argentina, Serbia, North Macedonia, and Bulgaria are also being mentioned as new alternatives.

However, experts have drawn a clear line, noting that interest in foreign citizenship does not necessarily lead to actually renouncing one’s nationality or emigrating. Aton’s CEO emphasized, “Looking into residency options abroad, obtaining multiple passports, and relocating the entire family are completely different decisions.”