Why do so many wealthy people want to leave the US after the presidential election?
Fearing political and social instability regardless of which candidate wins the presidential election on November 5th, an increasing number of wealthy Americans are planning to leave the country.
According to CNBC, lawyers and advisors for high-net-worth families say they are seeing record demand from clients seeking a second passport, or long-term residency abroad.
Dominic Volek, head of the private client group at Henley & Partners, a firm that advises wealthy individuals on international migration, said, "We've never seen demand this high."
According to Volek, wealthy Americans have become the company's largest customer group for the first time, accounting for 20% of its business, more than any other nationality. He added that the number of Americans planning to move abroad has increased by at least 30% since 2023.
David Lesperance, managing partner of Lesperance and Associates, a firm specializing in international tax and immigration services, highlighted that the number of Americans hiring him to help them emigrate has tripled compared to last year.
According to a survey by Arton Capital, a company that advises wealthy individuals on immigration programs, 53% of American millionaires said they are likely to leave the US after the election, regardless of which presidential candidate wins.
Notably, young millionaires are most likely to leave. 64% of millionaires aged 18-29 said they were "very interested" in "golden visas" through overseas investment residency programs.
In fact, interest in a second passport, or permanent residency abroad, has steadily increased among wealthy Americans since the Covid-19 pandemic. Beyond simply retiring in a warmer country with lower living costs, or being closer to family overseas, wealthy individuals have many non-political reasons to live abroad.
Even the ultra-wealthy now consider having only one citizenship a personal risk. Therefore, much like diversifying investments, they are creating a "passport portfolio" to mitigate risk.
The current election and political developments are further prompting wealthy Americans to consider a "Plan B" overseas. Lesperance stated that for over three decades, his American clients have primarily been interested in moving overseas for tax reasons. But now, political factors and violence, along with the November 5th election, are amplifying those fears.
According to Lesperance, for many, the main reason is "not wanting to live with the MAGA (Make America Great Again) movement of Republican presidential candidate Donald Trump." Others fear violence if Trump loses, or that Democratic presidential candidate and Vice President Kamala Harris wants to raise taxes on those with assets over $100 million.
Although tax experts believe Harris's plan is unlikely to pass, even with a Democratic majority, Lesperance says it remains a risk.
Lawyers added that mass school shootings, the potential for political violence, anti-Semitism, anti-Islamism, and soaring government debt are also reasons for wealthy individuals to leave the United States.
The ideal destination for Americans is primarily Europe. According to Henley & Partners, the top countries where Americans seek permanent residency, or second citizenship, include Portugal, Malta, Greece, Spain, and Antigua. Italy is also becoming a popular destination for Americans.
In reality, however, the rules and costs are changing rapidly. Amidst massive immigration, some European politicians have begun to oppose “golden visas” that grant citizenship or permanent residency to wealthy individuals based solely on investments.
Currently, Malta remains a top choice for wealthy Americans seeking a second passport. Despite its high cost of approximately $1-1.2 million, Malta's citizenship-by-investment program offers citizenship and unrestricted travel and residency rights in Malta and the European Union (EU).
Caribbean nations are also increasingly being targeted by Americans seeking a second passport. Specifically, by purchasing a property in the small island nation of Antigua and Barbuda for over $300,000, wealthy Americans can freely travel to Hong Kong (China), Russia, Singapore, the UK, Europe, and many other countries.
