Dec 1, 2024
Leading up to the presidential election, there was a lot of news coverage about celebrities threatening to leave the country if their preferred candidate didn’t win. It remains to be seen how many actually do leave. Still, it turns out that, regardless of the outcome of the election, many of the nation’s millionaires are looking to make a permanent move.
The past year has seen a dramatic rise in those seeking a second passport. Applications for second passports, investment visas and permanent residencies are up more than 30% from last year, according to advisers and attorneys for family offices and high-net-worth families, CNBC Television reports.
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Americans are now the No. 1 group applying for investment migration programs, with 53% of American millionaires and 64% of younger millionaires (aged 18 to 29) saying they’re likely to leave the U.S. after the election — regardless of the winner, according to a survey by Arton Capital, an immigration adviser to the wealthy.
Golden visas are also known as residency by investment programs and allow the wealthy to acquire temporary or permanent residency by buying a house, starting or investing in a company or making a substantial donation. Some countries even offer golden passports.
Why the rich are leaving the U.S.
The reasons for seeking golden visas and passports vary and aren’t just related to the current political climate in the U.S. Some are looking to retire where it’s warmer, others want to be closer to family, and some for tax reasons (or because they want a non-U.S. passport when they travel to certain regions).
Others cite rising antisemitism, Islamophobia, potential for political violence and ballooning government debt. The ultra-wealthy are creating “passport portfolios” to diversify their country risk, as they would diversify their investments.
So where are they going? Malta is reportedly the most popular country for obtaining a second passport, which costs $1 million to $1.2 million, but offers citizenship and the ability to live and work anywhere in the European Union.
Other popular passports come from St. Lucia, which costs about $240,000, and Antigua at $230,000, according to CNBC’s report. Portugal, Greece, Italy and Spain are also popular locations for permanent residency, with the minimum required investment ranging from 250,000 to 500,000 euros ($265,000 to $530,000).
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How to make a similar move
If you’re considering a golden visa or passport, you may want to seek out an adviser who specializes in this area — it’s a complex process that takes anywhere from months to more than a year.
For example, you’ll need to clarify how to file and pay your taxes. The IRS taxes Americans’ worldwide income so, as an American citizen, you may be subject to double taxation. For this reason, some Americans with golden visas actually renounce their U.S. citizenship.
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It could also be challenging to buy real estate, invest in a company or start your own company in a foreign country, since you’ll have to navigate unfamiliar bureaucratic processes and abide by regulations you may be unfamiliar with (or find frustrating). You’ll almost certainly need to enlist the aid of lawyers, real estate brokers and other advisers, which will add to the cost.
As with any expat move, you may face challenges finding a place to live and navigating health care if you don’t speak the language. You may also find that — despite your reasons for the move — you may miss friends and family back home. This is especially true if it’s hard making friends in your new country.
Although many people are in a rush to get these visas, it’s a good idea to spend some time in your intended destination first, to be sure you’re comfortable making a life there.
That being said, rushing isn’t necessarily a bad idea if you have the money, since the rules and costs are rapidly changing as European politicians push back on an influx of expats. For example, Portugal no longer allows residential real estate as an investment and Italy has increased the tax on foreigners who move their tax residency there.
Despite these hurdles, a golden visa or passport can lead to greater mobility and freedom. So, if you have the money and the desire to relocate at least temporarily, it may be worth considering.
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
