Ferragudo, Portugal.
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A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for high-net-worth investors and consumers. Sign up To receive future editions delivered directly to your inbox.
A growing number of wealthy Americans are planning to leave the country by Tuesday electionImmigration lawyers say many people fear political and social unrest no matter who wins.
Lawyers and advisers to family offices and high-net-worth families say they are seeing record demand from clients seeking second passports or long-term residency abroad. While talk of moving overseas after the election is common, wealth advisers say many wealthy people have already taken action this time around.
“We’ve never seen demand like we have now,” said Dominic Volek, head of the private client group at Henley & Partners, which advises wealthy people on international migration.
For the first time, Wallack said wealthy Americans are the company’s largest customer base, accounting for 20% of its business, more than customers from any other country. He said the number of Americans planning to move overseas has increased by at least 30% from last year.
David Lesperance, managing partner of international tax and immigration firm Lesperance and Associates, said the number of Americans hiring him to travel overseas has roughly tripled from last year.
A survey by Arton Capital, which advises wealthy people on their immigration plans, found that 53% of U.S. millionaires said they would be more likely to leave the United States after the election, no matter who wins. Younger millionaires are most likely to leave, with 64% of millionaires aged 18 to 29 saying they are “very interested” in pursuing a so-called golden visa through overseas investment residency schemes.
To be sure, interest in a second passport or residency has been steadily rising among wealthy Americans since Covid-19. Whether it’s to retire in a warmer, cheaper country or to be closer to family abroad, wealthy people have many non-political reasons for wanting to venture overseas.
The super-rich also increasingly view citizenship in a country as a concentrated personal and financial risk. As they diversify their investments, they are now creating “passport combination“To hedge against national risk. Others want to hold a non-U.S. passport in case they travel to a dangerous country or region that is hostile to the United States
However, the electoral and political climate has accelerated and intensified the incentive for wealthy Americans to consider Plan Bs overseas. Lesperance said that for more than three decades, his U.S. clients have been interested in moving overseas primarily for tax reasons. Now, it’s politics and fears of violence, heightened by next week’s election.
“For some of them, the bottom line is ‘I don’t want to live in a Make America Great Again,'” Lesperance said. Others fear there will be violence if Donald Trump loses or Vice President Kamala Harris’ plans fail. Tax on unrealized capital gains For those worth over $100 million. While tax analysts say the chances of the unrealized gains plan passing Congress are slim even with a Democratic majority, Lesperance said it remains a risk.
“Even if there’s only a 3 percent chance of that happening, you still want to buy insurance,” he said.
The wealthy also cited mass school shootings, potential political violence, anti-Semitism, Islamophobia and soaring government debt as reasons to leave, attorneys said.
When it comes to destinations, Americans focus primarily on Europe. Henry said the top countries for Americans seeking residency or second citizenship include Portugal, Malta, Greece, Spain and Antigua. Italy is also popular with Americans.
“The love affair between Americans and Europe has been going on for a long time,” said Armand Aton of Aton Capital. “It comes at a cost, and they could invest hundreds of thousands or half a million dollars into properties or funds.”
However, rules and costs are changing rapidly. While mass immigration has become a hot-button political issue around the world, some politicians in Europe have begun boycott golden visa Giving citizenship or residency to wealthy people purely based on investment.
Portugal, for example, faced backlash after an influx of foreigners flocked to the Algarve and bought beach properties as part of a golden visa scheme. With house prices soaring 15%, the government changed the rules, raising minimum investment thresholds and scrapping residential property as an investment category.
This summer, Italy doubled its flat tax rate on overseas income to 200,000 euros ($217,000) for wealthy foreigners who transfer their tax residency to Italy. The change comes after a wave of wealthy new immigrants arrived to take part in the scheme, driving up Milan’s housing prices.
Currently, Malta remains the preferred second passport for wealthy Americans. According to immigration lawyers, Malta’s citizenship by investment program, although expensive, with a total investment of approximately $1 million to $1.2 million, provides citizenship as well as unrestricted travel and residence rights in Malta and even the European Union. The EU has been challenging the Malta plan in court, but most immigration lawyers expect the country to win.
The Caribbean is increasingly popular among Americans who just want a second passport. By purchasing approved real estate in Antigua and Barbuda over $300,000, you can obtain citizenship, allowing you to travel freely to countries such as Hong Kong, Russia, Singapore, the United Kingdom, and Europe. Saint Lucia is also growing in popularity, lawyers say.
Americans with ancestry from Ireland, Italy and dozens of other countries can apply for so-called citizenship by descent, which is often much cheaper than an investment visa. Some countries, such as Portugal, also offer retirement visas that allow entry and citizenship.
Do not expect to receive any citizenship or residency right away. Because attorneys and countries are flooded with so many applications, and so many background checks and approvals are required, the entire process can take months or even a year or more. Depending on the election results, the waiting list may be longer.
“It’s getting crowded here,” Lesperance said. “And I’m sure I’ll get more on November 6 or 7.”
