On November 1, CNBC reported an unprecedented wave of affluent Americans preparing to leave the United States following the presidential election, driven by fears of political and social instability, regardless of the winner. This growing uncertainty has intensified interest in securing second passports or long-term overseas residency.

Dominic Volek, Head of Private Clients at Henley & Partners—a global consultancy specializing in residence and citizenship planning—revealed that Americans have become the firm's largest client base, now accounting for 20% of total clients. “We have never witnessed demand of this magnitude,” Volek stated, adding that the number of Americans making emigration plans has surged by at least 30% compared to last year.

David Lesperance, Managing Partner at Lesperance & Associates, a firm specializing in international tax and immigration law, observed a similar trend. He reported that inquiries from Americans about potential relocation have nearly tripled over the past year.

A recent survey by Arton Capital indicates that 53% of U.S. millionaires are considering emigration after the election, irrespective of the outcome. This inclination is notably stronger among younger millionaires; 64% of those aged 18 to 29 are highly interested in obtaining a “golden visa” through foreign investment programs.

Interest among wealthy Americans in acquiring second passports or overseas residency has existed since the COVID-19 pandemic, often for non-political reasons like retirement or travel convenience. However, CNBC emphasizes that the approaching election and a volatile political climate have accelerated the search for what many describe as a “Plan B.”

Lesperance, who has advised clients for nearly three decades, explained that while tax avoidance has historically driven emigration interest, current motivations now include political instability and fears of violence. Some clients have expressed reluctance to live in a “MAGAed America,” while others worry about potential unrest if former President Donald Trump loses or about Vice President Kamala Harris's proposed wealth tax policy.

Currently, the US levies capital gains taxes only upon the sale of assets. Kamala Harris's proposal seeks to tax unrealized capital gains for individuals with a net worth exceeding $100 million. Despite skepticism among tax experts regarding the likelihood of such legislation passing, even with a Democratic congressional majority, Lesperance stressed that the perceived risk has motivated high-net-worth individuals to seek financial “insurance” through alternative residency options.

Beyond political concerns, factors such as escalating school shootings, the potential for political violence, and rising instances of antisemitism, Islamophobia, and xenophobia are also prompting affluent Americans to consider relocating. Concerns over ballooning federal debt have further fuelled this trend.

As for preferred destinations, Henley & Partners and Arton Capital noted that Europe remains the primary choice for wealthy Americans considering relocation. Popular destinations include European nations such as Portugal, Malta, Greece, Spain, and Italy. However, soaring property prices, driven by foreign investment, have led some governments to tighten rules and increase thresholds for citizenship-by-investment programs. As a result, Caribbean countries like Antigua and Barbuda and Saint Lucia have emerged as attractive alternatives. In Antigua and Barbuda, a $300,000 investment in approved real estate can grant citizenship, offering visa-free access to destinations such as Hong Kong, Russia, Singapore, the United Kingdom, and much of Europe.

Americans with ancestral ties to countries like Ireland or Italy can pursue “citizenship by descent,” a cost-effective option compared to investor visas. Additionally, nations like Portugal offer retirement visas, which provide residency and a pathway to citizenship.

Nevertheless, the process of acquiring foreign citizenship or residency can be protracted, involving extensive background checks and bureaucratic delays. CNBC noted that depending on the US election results, already considerable waiting periods may become even longer, potentially extending for months or years.




Deep Throat

** The blog article is the sole responsibility of the author and does not represent the position of our company. **