Record numbers of wealthy Americans are planning to leave the United States

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A growing number of wealthy Americans are planning to leave the country in the lead-up to Tuesday's election, with many fearing political and social unrest regardless of who wins, according to immigration lawyers.

Lawyers and advisors to family offices and high-net-worth families said they are seeing record demand from clients looking for second passports or long-term residencies abroad. While talk of moving abroad after the election is common, this time wealth advisors said many wealthy people are already taking action.

“We have never seen demand like we are seeing now,” said Dominic Volek, head of the private client group at Henley & Partners, which advises wealthy people on international migration.

Volek said that for the first time, wealthy Americans now constitute the company's largest customer base, representing 20% ​​of its business, or more than any other nationality. He said the number of Americans planning to move abroad is up at least 30% compared to last year.

The number of Americans hiring for potential trips abroad has nearly tripled from last year, said David Lesperance, managing partner at Lesperance and Associates, an international tax and immigration firm.

A survey by Arton Capital, which advises the wealthy on immigration programs, found that 53% of American millionaires say they are more likely to leave the United States after the election, regardless of who wins. Younger millionaires were the most likely to leave, with 64% of millionaires aged between 18 and 29 saying they were “very interested” in seeking so-called golden visas through the Residency by Investment Program abroad.

To be sure, interest in second passports or residencies has been steadily increasing among wealthy Americans since COVID-19. Whether it's retiring to a warmer, cheaper country or moving closer to family abroad, the wealthy have plenty of non-political reasons for wanting to venture abroad.

The wealthy also increasingly view citizenship in a country as a concentrated personal and financial risk. Just as they are diversifying their investments, they are now creating “passport portfolios” to hedge their country's risks. Others want a non-US passport in case they travel to countries or dangerous areas hostile to the United States

However, the election and political climate have accelerated, increasing the push for wealthy Americans to consider a backup plan abroad. For more than three decades, Lesperance said, his American clients have been mainly interested in moving abroad for tax reasons. Now, it's politics and fear of violence, with next week's elections fueling those fears.

“For some of them, the main thing is, 'I don't want to live in America,'” Lesperance said. Others fear violence if Donald Trump loses, or Vice President Kamala Harris' plan to tax unrealized capital gains for those worth more than $100 million. While tax analysts say the unrealized gains plan has little chance of passing Congress, even with a Democratic majority, Lesperance said it still poses a risk.

“Even if there's only a 3% chance of it happening, you still want to get insurance,” he said.

The wealthy also cite mass school shootings, the potential for political violence, anti-Semitism, Islamophobia and high government debt as reasons to leave, lawyers say.

When it comes to destinations, Americans primarily look to Europe. According to Henley, the top countries where Americans are looking for residency or second citizenship are Portugal, Malta, Greece, Spain and Antigua. Italy has also become very popular with Americans.

“The love affair between Americans and Europe has been going on for a very long time,” said Armand Arton of Arton Capital. “It comes with a price, and they are perfectly fine investing a couple of hundred thousand dollars or a half-million dollars in a property or a fund.”

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 to push back against golden visas that grant wealthy people citizenship or residency based solely on investments.

For example, Portugal faced backlash after a flood of foreigners flocked to the Algarve and bought beach property as part of the Golden Visa program. With property prices rising by 15%, the government changed the rules, increasing the minimum investment and removing residential property as an investment category.

This summer, Italy doubled the fixed tax on the foreign income of wealthy foreigners who transfer their tax residency to Italy, to 200,000 euros ($217,000). This change came in the wake of a wave of newly wealthy immigrants who came to participate in the program, which sent property prices in Milan soaring.

For now, Malta remains the second passport for wealthy Americans. Although Malta's investment citizenship program is expensive, with total costs ranging from $1 million to $1.2 million, it provides citizenship, unrestricted travel and residency in Malta and therefore the European Union, according to immigration lawyers. The European Union has been challenging Malta's program in court, but most immigration lawyers expect the country to prevail.

The Caribbean is increasingly popular for Americans who simply want a second passport. Purchasing a piece of approved real estate in Antigua and Barbuda for over $300,000 puts you on the path to citizenship, which gives you the freedom to travel to Hong Kong, Russia, Singapore, the United Kingdom and Europe, among other countries. St. Lucia is also increasingly popular, lawyers say.

Americans with origins in Ireland, Italy and dozens of other countries can apply for so-called descent citizenship, which is usually much cheaper than an investment visa. Some countries, such as Portugal, also offer retirement visas, which allow entry and a path to citizenship.

Do not expect to obtain any citizenship or residency immediately. With lawyers and countries inundated with so many applications, so many different background checks and approvals required, the process can take months or even a year or more. This waiting list could get longer depending on the election results.

“It gets crowded,” Lesperance said. “And I'm sure I'll have more on November 6 or 7.”