I have a very dear friend who remarried several years after his wife died. His current wife is a wonderful woman who owned a house in Qualicum Beach, British Columbia, and the two of them lived half of each year there and half in Southern California. A few years ago, my friend was diagnosed in Canada with a form of blood cancer, and he began treatment. Because he had permanent-resident status, he qualified for Canada’s universal health insurance.
When I spoke to him by phone, he sounded as if he had one foot in the grave. They sold the home in California and bought a house in Washington state. There, he began treatment under his U.S. health insurance. Within weeks, he was back to sounding like my old friend, and he’s still doing well.
While in Canada, he and his wife began investing in warehouses. I never inquired why. Earlier this year, they sold the house in British Columbia, but they now rent a house there. Again, I haven’t asked why. I really don’t like to pry, but I think I’ve figured out their strategy after reading a column by Kevinisha Walker in the Los Angeles Times Essential California. They may want to qualify for a “Golden Visa.”
Leaving California
Walker writes, “When it comes to fleeing California, the Golden State’s wealthiest residents aren’t only considering locations within the U.S. A rising number of them are using capital to seek residency and citizenship outside the country, motivated by fear of political instability in the U.S.…” Frankly, I don’t think that “political instability” is the sole reason that people are leaving California or the United States.
Housing costs are a factor, even for the rich. But it’s not just the cost of a house, it’s also the property tax, state income tax, county taxes, city taxes, and the general cost of maintenance. For more than a hundred years, California has been a magnet, drawing people from other states and other countries. Now, it’s almost as if the magnet has reversed its polarity.
In 2025 alone, the Golden State lost more than a quarter of a million people. And according to the Public Policy Institute of California, “Over the past 25 years, California has had its slowest rates of population growth ever recorded.” Hans Johnson and Eric McGhee of the Institute write, “It is a remarkable turnaround for California — once the epicenter of population growth in the United States.” They point out that the “affordability crisis,” especially housing costs, has played a key role.
The super rich
However, extremely wealthy people have an additional reason for emigrating. Walker states, “Tech billionaire and former Californian Peter Thiel is pursuing citizenship in Argentina out of concern for where the U.S. seems to be headed, including a tax on billionaires…” This past week, there were three propositions on the ballot: one to establish the tax on the superrich, and two to obviate that proposition if it had passed. However, fear of the “billionaire tax” is not the sole reason. Walker points out that interest in “citizenship by investment surged in 2020, when wealthy people felt trapped by pandemic lockdowns and the restrictions countries put on nonresidents…”
Politics has also played a role. When Donald Trump was elected to a second term as President of the United States in 2024, interest in leaving the U.S. increased, especially in Democrat-heavy states, like California. And the urge to move out of the country continues to increase. For the superrich, the primary motivation seems to be finding a place where their wealth will be protected.
The golden visa
The “golden visa” is the ticket to residency in another country. Walker informs, “With the golden visa program, often called citizenship by investment, individuals who invest hefty amounts of money into a country, either through buying property or direct investment, can more easily become permanent residents or citizens.” Apparently, right now the golden visa is seen as an option, but not an immediate certificate of transfer to another country.
Walker cites Paul Williams, chief executive and founder of La Vida Golden Visas, a London-based company. He states, “You don’t know if your house is going to burn down or if a plane is going to crash into it, but you take out the policy just in case.” So, the wealthy are investing in certain countries as their insurance policy in case the tide in California — as possibly elsewhere in the U.S. — turns against them.
My friend in the state of Washington is not “superrich,” but he and his wife have enough to own their house outright, invest in warehouses in Canada, and rent a part-time home there. Actually, they probably don’t need a haven for their money. I think they both enjoy just living there. I can understand that. I’ve been to three Canadian provinces, and I’ve enjoyed all of the people I’ve met there.
Foreign residency
By far, the most popular residency program in Europe is Portugal. Even people who have average incomes in the U.S. are finding it possible to live there and enjoy a better life on a median income, by U.S. standards. But for the superrich who desire a golden visa it’s more expensive.
Walker writes, “In Portugal, it is typical for a family to invest 500,000 euros — equal to about $579,000 — in a capital venture or private equity fund, with the requirement that a little more than half of the funds be invested in Portuguese businesses.”
And establishing residency is easy. According to Walker, “The government requires applicants to spend at least two weeks in Portugal for the first two years of their residency visa.” After that, it’s up to the new residents as to whether they’ll complete the requirements for citizenship.
There are more than two dozen countries in the European Union, and requirements for the golden visa vary, but they all expect applicants to invest substantially in business. To billionaires and multimillionaires, that’s not a problem.
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Jim Glynn es Profesor Emérito de Sociología. Se le puede contactar en j_glynn@att.net.