A report by investment-migration consultancy Henley & Partners states that the US is experiencing changing migration patterns among millionaires as wealthy individuals seek alternatives abroad partly due to domestic political and economic uncertainties.
While headlines suggest millionaires may be fleeing the US, data shows a “millionaire remix” within the country as cities like Austin see their wealthy populations more than double due to factors like growing tech industries.
“Sensationalist headlines occasionally crop up about an impending millionaire exodus from America due to higher taxes, crime, or other domestic concerns,” Mehdi Kadiri, head of North America at Henley & Partners, wrote.
At the same time, Henley & Partners is seeing record numbers of wealthy Americans inquire about citizenship and residence programs in other countries for insurance against turmoil.
The Portugal Golden Visa is most popular, allowing residence in the EU.
“However, the data shows net inflows remaining sturdily positive over any multi-year period. Rather than wholesale fleeing, what we observe today is more of a ‘millionaire remix’ within America,” Kadiri said.
Reasons for pursuing options abroad include mitigating political risk, business opportunities, and reduced taxes, as affluent citizens seek backups amid high domestic tensions.
“With political divisions and societal tensions at an all-time high, American investors, entrepreneurs, and wealthy families are increasingly hedging their bets and pursuing backup citizenship or residence abroad, signaling declining faith in the domestic outlook,” Kadiri wrote.
Henley anticipates continued strong demand in 2024.
“We anticipate similar strong demand in 2024,” Kadiri said, “as more high-net-worth individuals across the political spectrum seek to hedge uncertainty.”
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