Wealthy Americans Plan to Leave Amid Election Fears
Growing Concerns Over Political and Social Unrest
A rising number of wealthy Americans are preparing to leave the country ahead of Tuesday’s election. Many express fears of political and social unrest, regardless of the election outcome. Immigration attorneys are noting this trend as they witness a surge in inquiries about second passports and long-term residencies abroad.
Record Demand for International Migration
Attorneys and advisors to family offices report unprecedented demand for assistance with international migration. Dominic Volek, head of private clients at Henley & Partners, stated that wealthy Americans now constitute the company’s largest client base, making up 20% of their business. He noted a 30% increase in American clients planning to move overseas compared to last year.
Tripling Interest in Overseas Moves
David Lesperance, managing partner at Lesperance and Associates, has observed a dramatic rise in American clients seeking help with overseas relocations, with inquiries tripling since last year. This growing interest signals a significant shift in priorities among wealthy individuals.
Survey Shows Majority of Millionaires Considering Departure
A recent survey by Arton Capital revealed that 53% of American millionaires are more likely to leave the U.S. after the election, regardless of the results. Notably, younger millionaires show the highest interest in relocating, with 64% of those aged 18 to 29 expressing strong interest in golden visa programs through residency-by-investment options.
Longstanding Trends Accelerated by Current Events
The desire to move abroad among wealthy Americans has been on the rise since the COVID-19 pandemic, driven by non-political motivations like retirement in warmer countries or closeness to family. However, recent elections and political climates have intensified these considerations.
Fear of Political Violence Influencing Decisions
Lesperance noted that for over thirty years, American clients primarily focused on tax benefits for moving abroad. Today, fears related to politics and potential violence dominate their concerns, particularly in light of the upcoming election. Some individuals cite worries about living in a politically charged environment as a significant factor in their decisions.
Insurance Against Uncertainty
With uncertainties looming, even low-probability risks motivate wealthy Americans to consider relocating. Lesperance emphasizes that even a 3% chance of adverse political changes leads many to seek “insurance” through overseas options.
Concerns Over Domestic Issues
In addition to political unrest, wealthy individuals cite various domestic issues as reasons for their planned departures. These include mass shootings, potential political violence, rising antisemitism, Islamophobia, and government debt concerns.
Popular Destinations for Relocation
When considering relocation, Americans predominantly look towards Europe. Henley’s data shows that countries like Portugal, Malta, Greece, Spain, and Antigua are top choices for those seeking residency or second citizenships. Italy has also gained popularity among American expatriates.
Long-standing Affinity for Europe
Armand Arton of Arton Capital highlights the enduring affection Americans have for Europe. He notes that many wealthy individuals are willing to invest significant sums into properties or funds to secure their residency.
Changing Regulations and Costs
However, the landscape of immigration is shifting rapidly. With mass immigration becoming a contentious political issue, some European politicians are pushing back against golden visa programs that grant residency or citizenship based solely on financial investments.
Portugal’s Response to Foreign Investment
Portugal recently adjusted its golden visa rules in response to a surge in foreign investors, particularly in the Algarve region. The government increased minimum investment thresholds and eliminated residential property as an investment option to control rising property prices.
Italy’s Tax Changes Impact Wealthy Migrants
This summer, Italy doubled its flat tax on the overseas income of wealthy foreigners relocating there, raising it to 200,000 euros ($217,000). This policy change followed an influx of wealthy migrants, which contributed to soaring property prices in Milan.
Malta Remains a Top Choice
Currently, Malta’s citizenship investment program remains a favored option for wealthy Americans. Despite its high costs, ranging from $1 million to $1.2 million, it offers citizenship with unrestricted travel across the EU, a significant draw for potential migrants.
Caribbean Passports Gaining Popularity
The Caribbean is also becoming a popular destination for Americans seeking second passports. By purchasing approved real estate in Antigua and Barbuda for over $300,000, individuals can pursue citizenship, which grants extensive travel options.
Exploring Lineage Citizenship
Many Americans are also exploring lineage citizenship opportunities in countries like Ireland and Italy, which can be more affordable than investment visas. Additionally, countries like Portugal offer retirement visas that provide pathways to residency and citizenship.
Lengthy Application Processes
Prospective migrants should be prepared for lengthy application processes. With a surge in inquiries and various background checks required, obtaining citizenship or residency can take several months or even longer.
Anticipating Increased Applications Post-Election
Lesperance predicts an influx of new applications immediately following the election, signaling that concerns about political and social stability will continue to drive wealthy Americans towards international options. The demand for alternative citizenship and residency solutions is likely to grow as uncertainty persists.
