Wealthy Americans Increasingly Consider Leaving the U.S. Amid Political Uncertainty

A growing number of wealthy Americans are making plans to leave the United States due to concerns over political and social unrest, according to immigration attorneys and recent surveys.¹ This trend reflects a significant shift in the mindset of America's affluent population, who are looking for stability and security outside their home country.¹

Record Demand for Second Passports and Residencies

Immigration advisors are witnessing unprecedented interest from American clients in securing alternative citizenships or residencies. Dominic Volek, group head of private clients at Henley & Partners, stated that for the first time, wealthy Americans are the firm's largest client base, accounting for 20% of their business, surpassing all other nationalities¹. The number of Americans making plans to move abroad has increased by at least 30% compared to the previous year.¹

David Lesperance, managing partner of Lesperance and Associates, has observed a similar trend.¹ He noted that the number of Americans hiring his firm for possible moves overseas has roughly tripled over last year¹. This surge in interest is not solely attributed to the recent elections but also to broader concerns about the country's future direction.

Political Climate Fuels Relocation Plans

A survey conducted by Arton Capital revealed that 53% of American millionaires plan to leave the United States after the election, regardless of who wins.³ Younger millionaires showed even higher interest, with 64% of those aged 18 to 29 expressing a desire to obtain "golden visas" through investment programs abroad.³ These visas grant residence or citizenship in exchange for substantial economic investments in the host country.

The political landscape has become a significant motivator for these relocation plans. Factors driving this interest include:

• Fear of Political Instability: Concerns about potential unrest following the elections, irrespective of the outcome.¹

• Tax Implications: Worries about possible tax reforms, such as proposals to tax unrealized capital gains for individuals worth more than $100 million.¹

• Social Issues: Increasing anxieties over mass shootings, rising polarization, antisemitism, and other societal challenges.¹

• Economic Concerns: Apprehensions about the government's soaring debts and the long-term economic implications.¹

Preferred Destinations for Relocation

Europe has emerged as a top destination for Americans seeking residency or second citizenship.¹ Popular countries include:

• Portugal: Known for its favorable investment programs and quality of life¹.

• Malta: Offers citizenship through investment, granting unrestricted travel and residency within the European Union.¹

• Greece, Spain, and Italy: Attracting interest due to their cultural appeal and investment opportunities.¹

The Caribbean is also appealing to those looking for second passports:

• Antigua and Barbuda: Investing in approved real estate over $300,000 can lead to citizenship.¹

• St. Lucia: Offers citizenship-by-investment options that provide global mobility benefits.¹

Changes in Immigration Policies

Some countries are adjusting their immigration and investment policies in response to the influx of foreign investors:

• Portugal: Increased investment thresholds and removed residential property from eligible investment categories to address rising property prices¹.

• Italy: Doubled its flat tax on overseas incomes of wealthy foreigners relocating to the country to €200,000.¹

These changes reflect a global trend where nations are re-evaluating their golden visa programs to balance foreign investment with local economic and social considerations.

Implications for the United States

The trend of wealthy Americans considering relocation has broader implications:

• Economic Impact: Potential loss of investment and entrepreneurial talent could affect economic growth.²

• Global Mobility: Reflects concerns about the U.S.'s future stability and its ability to attract and retain global talent.²

• Shift in Confidence: Indicates a growing uncertainty among the wealthy about the country's political and social trajectory.¹

Despite these concerns, the United States remains a top destination for global millionaires, accounting for about 32% of global liquid investable wealth, approximately $67 trillion.² It is home to 37% of the world's millionaires.² However, the increasing desire among American millionaires to secure alternative residencies suggests a shift in confidence regarding the nation's future.

Younger Millionaires Leading the Exodus

The younger demographic of millionaires is particularly inclined to consider relocation:

• Higher Interest in Golden Visas: 64% of millionaires aged 18 to 29 are "very interested" in seeking golden visas.³

• Desire for Quality of Life: Many believe they would have a better quality of life overseas during different presidential administrations.³

• Global Citizenship Mindset: Younger wealthy individuals are more open to being global citizens and diversifying their residency options.³

Challenges and Considerations

While the interest is high, there are challenges associated with relocating:

• Lengthy Processes: Obtaining citizenship or residency can take months or even years due to increased demand and bureaucratic procedures.¹

• Changing Regulations: Countries may alter their investment and immigration policies, affecting eligibility and costs.¹

• Financial Commitments: Investment thresholds for golden visa programs can be substantial, requiring significant capital outlay.¹

Conclusion

The increasing number of wealthy Americans contemplating relocation underscores significant concerns about political uncertainty, social issues, and potential economic changes in the U.S. With demand for second passports and residency programs reaching unprecedented levels, this trend highlights the importance of stability and security for high-net-worth individuals.

As countries worldwide adjust their immigration policies, the choices made by these individuals may have profound impacts on both their new destinations and the U.S. economy. The phenomenon reflects a broader shift towards global mobility among the affluent, seeking to hedge against risks and secure their wealth and well-being in an unpredictable world.

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_{1. CNBC, Wealthy Americans making plans to leave the U.S., 2024.}

_{2. Quartz, American millionaires are looking to leave, Henley report says, 2024.}

_{3. Quartz, A lot of millionaires are considering leaving the U.S. after the election—regardless of who wins, 2024.}

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