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According to immigration lawyers, a growing number of affluent Americans are planning to leave the nation in the lead-up to Tuesday’s election, with many of them fearing social and political instability regardless of the outcome.
The demand from clients seeking second passports or permanent residence overseas is at an all-time high, according to lawyers and counselors to family offices and wealthy families. After an election, it’s not uncommon for people to discuss moving abroad, but this time, according to wealth consultants, many of the wealthy are actually doing so.
Dominic Volek, group head of private clients at Henley & Partners, which counsels the wealthy on international migration, said, “We’ve never seen demand like we see now.”
According to Volek, the company’s biggest clientele for the first time is affluent Americans, who make up 20% of its total revenue, more than any other country. According to him, there are at least 30% more Americans planning to relocate overseas than there were the previous year.
The number of Americans hiring David Lesperance for potential relocation abroad has nearly tripled since last year, according to Lesperance and Associates, the international tax and immigration firm’s managing partner.
53% of American billionaires believe they are more inclined to leave the country after the election, regardless of the outcome, according to a survey conducted by Arton Capital, which counsels the wealthy on immigration policies. 64% of millionaires between the ages of 18 and 29 stated that they were “very interested” in applying for so-called golden visas through an overseas residency-by-investment program, making younger millionaires the most likely to depart.
Granted, since COVID-19, wealthy Americans have become increasingly interested in obtaining second passports or residency. The wealthy have many nonpolitical motives for wanting to travel abroad, such as retiring to a warmer, less expensive nation or being nearer to family.
Additionally, citizenship in a single nation is increasingly viewed by the ultra-wealthy as a concentrated financial and personal danger. In addition to diversifying their investments, they are now hedging their country risk by constructing “passport portfolios.” Others desire a non-U.S. passport in case they are visiting dangerous nations or areas that are antagonistic to the United States.
These nations will grant you citizenship if you make a significant enough investment.
Globally competitive “citizenship by investment” initiatives
| Min capital | Investment holding period | Allows residency / work / study in | ||
|---|---|---|---|---|
| Austria | ‘Substantial’ economic contribution | N/A | 27 EU countries | |
| Malta | 600K € | 5 years | Malta | |
| Turkey | $400K | 3 years | Turkey | |
| Antigua + Barbuda | $230K | 5 years | ||
| Dominica | $200K | 3 or 5 years* | ||
| Grenada | $235K | 5 years** | CARICOM member countries | |
| St. Kitts + Nevis | $250K | 7 years | ||
| St. Lucia | $240K | 5 years |
Note: Unless otherwise specified, minimum capital amounts are in USD.
Antigua + Barbuda, Bahamas, Barbados, Belize, Dominica, Jamaica, Grenada, Guyana, Haiti, Monserrat, St. Kitts + Nevis, St. Vincent + the Grenadines, St. Lucia, Suriname, and Trinidad + Tobago are all members of the Caribbean Community (CARICOM).
- If sold to a new investor in the Confederation of British Industry, Dominica needs a five-year holding term; however, if sold on the open market, the holding time is only three years.*If Grenada is sold to another citizenship investor, there must be five-year holding period.
Henley & Partners, the source
However, the political environment and the elections have intensified and increased the pressure on affluent Americans to think about a backup plan overseas. According to Lesperance, his American clients have been primarily interested in relocating abroad for tax purposes for over thirty years. These days, it’s politics and the dread of violence, which will be heightened by the election next week.
Lesperance stated, “I don’t want to live in a MAGA America,” which is the main concern for several of them. Some fear unrest in the event that Donald Trump loses, while others are concerned about Vice President Kamala Harris’ proposal to tax unrealized capital gains for individuals with assets above $100 million. Even with a Democratic majority, tax specialists think the unrealized gains plan has little chance of passing Congress, but Lesperance said it’s still a risk.
“You still want to get insurance even if there is only a 3% chance that it happens,” he stated.
According to lawyers, the rich also point to the government’s mounting debts, antisemitism, Islamophobia, major school shootings, and the possibility of political violence as reasons for leaving.
Americans are primarily searching for places to visit in Europe. Portugal, Malta, Greece, Spain, and Antigua are the top nations for Americans seeking residency or second citizenship, according to Henley. Americans have also come to love Italy.
Armand Arton of Arton Capital stated, “The love affair between Americans and Europe has been going on for a very long time.” “It has a cost, and they have no problem spending a few hundred thousand dollars or half a million dollars on a fund or piece of real estate.”
However, the expenses and regulations are rapidly evolving. Despite the fact that mass immigration has become a contentious political problem worldwide, some European politicians have begun to oppose golden visas, which provide affluent people citizenship or residency solely on the basis of their investments.
For example, Portugal experienced criticism as a wave of foreigners flooded into the Algarve and purchased beachfront homes under the golden visa scheme. The government altered the regulations, raising the minimum investment levels and eliminating residential property as an investment category, in response to the 15% increase in property prices.
This summer, Italy doubled its flat tax to 200,000 euros ($217,000) on the foreign incomes of wealthy foreigners who moved their tax domicile to Italy. Property prices in Milan increased as a result of the move, which came after a rush of wealthy new migrants arrived for the program.
These nations will provide temporary residency under “Residency by Investment” programs globally if you make a sizable enough investment.
Min capital | Allows residency / work / study in | Freedom of movement | Permit validity | ||
|---|---|---|---|---|---|
| Cyprus | 300K € | CyprusLive/study only | Cyprus | 10 yrs | |
| Greece | 250K € | GreeceLive/study only | 5 yrs | ||
| Italy | 250K € | Italy | 2 yrs | ||
| Malta | 175K € | Malta | Schengen countries | 5 yrs | |
| Portugal | 250K € | Portugal | 1 yr | ||
| Spain | 500K € | Spain | 3 yrs | ||
| Switzerland | 250K CHF | SwitzerlandLive/study only; cannot work while in country | 12 mos | ||
| UK | Innovative, scaling business creation | UK | UK | 3 yrs + 4 mos | |
| New Zealand | 5M NZD | New Zealand | New Zealand | N/A | |
| Thailand | 900K THB$25K USD | ThailandLive only | Thailand | 2 yrs | |
| Canada | 1M CAD | CanadaSome exceptions in Quebec | Canada | 5 yrs | |
| U.S. | $800K USD | U.S. | U.S. | 2 yrs | |
Note: The Schengen area of Europe includes non-EU nations Iceland, Liechtenstein, Norway, and Switzerland as well as EU members Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, and Sweden.
Henley & Partners, the source
Malta continues to be the preferred second passport for wealthy Americans. According to immigration lawyers, Malta’s investment citizenship program grants citizenship along with unrestricted travel and residency in Malta and, consequently, the European Union, despite being costly, costing roughly $1 million to $1.2 million altogether. Although the EU has been contesting the Malta program in court, the majority of immigration lawyers believe Malta will win.
For Americans who just want a second passport, the Caribbean is becoming more attractive. When you spend more than $300,000 on an authorized piece of Antigua and Barbuda real estate, you start the process of becoming a citizen, which grants you the ability to travel to places like Hong Kong, Russia, Singapore, the United Kingdom, and Europe. Lawyers believe St. Lucia is likewise becoming more and more popular.
Applying for so-called lineage citizenship, which is usually significantly less expensive than an investment visa, is an option for Americans with ancestry in Ireland, Italy, and dozens of other nations. Retirement visas, which grant entrance and a route to citizenship, are also provided by several nations, such as Portugal.
You shouldn’t anticipate obtaining citizenship or residency immediately. The process can take months or even a year or longer because countries and attorneys are overloaded with applications and numerous background checks and clearances are needed. And based on the outcome of the election, that waiting list might get longer.
Lesperance remarked, “It’s getting crowded.” “And on November 6 or 7, I’m sure I’ll get a lot more.”