Why Americans Are Leaving the US: Insights from a Global Citizen

In recent years, a growing number of Americans have been choosing to leave the United States and live abroad. This trend has caught the attention of many, including major news outlets like CNN, which reported that for some, the "American Dream" now means leaving America. But what's driving this exodus, and what does it mean for those considering a life outside the US?

The Growing Trend of Americans Moving Abroad

According to a recent survey of 3,000 Gen Z US citizens:

• 25.6% want to live abroad for better healthcare
• 18.9% desire new cultural experiences
• 18% seek a lower cost of living
• 17.7% want to leave due to American politics

These statistics paint a picture of a younger generation looking beyond US borders for opportunities and lifestyle improvements. To gain more insight into this trend, we spoke with Andrew Henderson, CEO of Nomad Capitalist, a leading resource for global citizens.

Andrew Henderson: A Global Citizen's Perspective

Andrew Henderson is not just an expert on global citizenship - he's living it. Having renounced his US citizenship, acquired multiple passports, and established residences in various countries, Henderson offers a unique perspective on the benefits and challenges of international living.

When asked about his decision to give up US citizenship, Henderson shared a compelling insight:

"Do I want to be in a country that's more neutral and just gets along with everybody - gets along with Europe, gets along with China, just minds their own business? Or do I want to have the scarlet letter that I'm from a country that goes around pissing everyone off?"

This statement highlights a key consideration for many looking to expand their global presence: the impact of a country's foreign policy on personal and business opportunities.

The Shifting Global Landscape

Henderson points out that the world's economic center of gravity is shifting. While wealth has been moving westward for many years, it's now moving back to the east. This shift presents new opportunities for those willing to explore beyond their home countries.

Moreover, the quality of life and cost of living in many countries outside the US can be significantly better. Henderson notes that internet connectivity, often assumed to be superior in the US, can actually be faster and more reliable in countries like Malaysia.

The Evolving Passport Landscape

One interesting development Henderson highlights is the changing value of passports globally. While a US passport was once considered the gold standard, the gap between it and passports from emerging countries is narrowing.

For example, Georgian citizens recently gained visa-free access to China, and several Balkan countries now have visa-free access to both Russia and China. This evolving landscape means that citizenship from countries once considered less advantageous may now offer significant benefits.

Tax Considerations for Global Citizens

One of the most significant factors driving Americans to consider life abroad is taxation. The US is one of the few countries that practices citizenship-based taxation, meaning US citizens are required to file taxes regardless of where they live.

However, Henderson points out that living abroad can still offer significant tax advantages:

"If you can go from paying 37% at the top federal bracket plus whatever the state is if you have it, plus Social Security, the cap plus Medicare with no cap, plus whatever new - I mean, I keep hearing about a wealth tax they keep trying to bring in - going even to 10% is not a bad deal."

For non-Americans, the tax situation can be even more advantageous. Many countries offer favorable tax regimes for residents who spend a significant portion of their time outside the country.

Investment Opportunities Abroad

Henderson also shared insights on investment opportunities in lesser-known markets:

Southeast Asia

• Malaysia: Offers high-quality healthcare at low prices and a tax-friendly environment.
• Cambodia: Potential in real estate investments.
• Nepal and Bangladesh: Emerging markets worth exploring.

Eastern Europe

• Georgia and Armenia: High interest rates on term deposits (up to 11%).
• Bank of Georgia stock: Has performed well due to inflows from Russian immigrants.

Latin America

• Uruguay: Good for opening bank accounts.
• Brazil: Some stocks have performed well, though Henderson considers this more tenuous.

China

Despite recent economic challenges, Henderson sees opportunity in beaten-down Chinese stocks, particularly bank stocks offering high tax-free dividends.

The Future of Global Citizenship

Looking ahead, Henderson predicts that the concept of global citizenship will become increasingly mainstream. He's seeing a trend of very successful people, including billionaires, becoming interested in diversifying their citizenship and residency options.

He emphasizes the importance of having multiple residences and passports, not just for tax reasons, but also for geopolitical considerations. As the world becomes more complex and interconnected, having options in different countries can provide both security and opportunity.

Conclusion: A New Paradigm for Success

The trend of Americans leaving the US is more than just a reaction to domestic issues - it's a recognition of the changing global landscape and the opportunities it presents. As Andrew Henderson's insights show, becoming a global citizen can offer advantages in terms of lifestyle, taxation, investment opportunities, and personal freedom.

Whether you're considering a move abroad or simply looking to diversify your options, understanding the global perspective is increasingly crucial. As the world continues to evolve, those who can adapt and take advantage of international opportunities may find themselves best positioned for success in the 21st century.

Remember, the key is to approach these opportunities with an open mind, thorough research, and a willingness to embrace new cultures and ways of doing business. The world is vast, and for those willing to explore it, the possibilities are endless.

Article created from: https://youtu.be/Sj7sw4_a2kA?feature=shared