Record number of wealthy Americans considering leaving the United States

Ferragudo, Portugal.

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A growing number of wealthy Americans are considering leaving the country in the run-up to Tuesday's election, with many fearing political and social unrest regardless of who wins, according to immigration attorneys.

Lawyers and advisers to family offices and high-net-worth families said they were seeing record demand from clients seeking a second passport or long-term residency abroad. While it's common to talk about moving abroad after an election, wealth advisors say this time around, many wealthy people are already taking action.

“We have never seen demand as strong as today,” said Dominic Volek, head of the private clients group at Henley & Partners, which advises the wealthy on international migration.

Volek said that for the first time, wealthy Americans are by far the company's largest customer base, accounting for 20 percent of its business, more than any other nationality. He said the number of Americans considering going abroad is up at least 30% from last year.

David Lesperance, managing partner of Lesperance and Associates, the international tax and immigration firm, said the number of Americans hiring him for possible overseas moves has roughly tripled from the previous year. 'last year.

A survey by Arton Capital, which advises the wealthy on immigration programs, found that 53% of American millionaires say they are more likely to leave the United States after the election, regardless of who wins. Younger millionaires were most likely to leave, with 64% of millionaires aged 18 to 29 saying they were “very interested” in pursuing so-called golden visas through a residency-by-investment program. stranger.

Certainly, interest in second passports or residencies has continued to grow among wealthy Americans since Covid-19. Whether it's retiring in a warmer, cheaper country or being closer to family abroad, the wealthy have many non-political reasons for wanting to venture abroad.

The ultra-rich also increasingly view citizenship in a single country as a concentrated personal and financial risk. While diversifying their investments, they are now creating “passport portfolios” to cover their country risk. Others want a non-US passport in case they travel to dangerous countries or areas hostile to the United States.

However, the elections and the political climate have accelerated and reinforced the desire of wealthy Americans to consider a plan B abroad. Lesperance said that for more than three decades, his U.S. clients were primarily interested in moving overseas for tax reasons. Today, it is politics and the fear of violence that are at issue, with next week's elections reinforcing these fears.

“For some of them, the number one thing is 'I don't want to live in a MAGA America,'” Lesperance said. Others are worried about violence if Donald Trump loses, or Vice-President Kamala Harris' plan to tax unrealized capital gains for those worth more than $100 million. While tax analysts say the unrealized gains plan is unlikely to pass Congress, even with a Democratic majority, Lesperance said it's still a risk.

“Even if there’s only a 3 percent chance of it happening, you still want to get insurance,” he said.

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Lawyers say the wealthy also cite mass school shootings, the potential for political violence, anti-Semitism, Islamophobia and skyrocketing government debts as reasons to leave.

When it comes to destinations, Americans mainly turn to Europe. According to Henley, the top countries for Americans looking for residency or second citizenship are Portugal, Malta, Greece, Spain and Antigua. Italy has also become popular with Americans.

“The love affair between Americans and Europe has been going on for a very long time,” said Armand Arton of Arton Capital. “It comes at a price, and they may well invest a few hundred thousand dollars or half a million in a property or a fund.”

However, rules and costs are changing quickly. As mass immigration has become a hot-button political issue around the world, some European politicians have begun to oppose golden visas that grant the wealthy citizenship or residency based solely on investments.

Portugal, for example, faced a backlash after a flood of foreigners flocked to the Algarve and bought beach properties under the Golden Visa program. Faced with a 15% increase in property prices, the government changed the rules, increasing minimum investment thresholds and removing residential property as an investment category.

This summer, Italy doubled its flat tax on the foreign income of wealthy foreigners who transfer their tax residency to Italy, to 200,000 euros ($217,000). The move follows a wave of new wealthy migrants joining the program that has driven up real estate prices in Milan.

For now, Malta remains the second essential passport for wealthy Americans. Although expensive, at between $1 million and $1.2 million all-inclusive, the Malta Investment and Citizenship Program offers citizenship as well as unrestricted travel and residency in Malta and, by extension, the European Union , according to immigration lawyers. The EU has challenged Malta's program in court, but most immigration lawyers expect the country to prevail.

The Caribbean is increasingly popular with Americans who simply want a second passport. Purchasing approved real estate in Antigua and Barbuda for over $300,000 puts you on the path to citizenship, allowing you to travel freely to Hong Kong, Russia, Singapore, United Kingdom United and Europe, among other countries. St. Lucia is also growing in popularity, advocates say.

Americans with ancestry in Ireland, Italy and dozens of other countries can apply for so-called lineage citizenship, which is typically much cheaper than an investment visa. Some countries, such as Portugal, also offer retirement visas, which allow entry and access to citizenship.

Don't expect to get citizenship or residency right away. With so many lawyers and countries inundated with numerous applications and many different background checks and approvals required, the process can take months or even a year or more. And this waiting list could grow longer depending on the election results.

“It’s crowded,” said Lesperance. “And I’m sure I’ll have a lot more on November 6 or 7.”

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