Living Abroad Is Easier Than Ever
Over the past decade, global travel has become more common than ever before. While many still consider America their home, these trips have truly opened their eyes to the possibility of living somewhere else.
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Now, as the United States struggles to maintain a steady economy, taxes are raised, and the 2024 presidential election is right around the corner, thousands of wealthy Americans are starting to think living abroad would be better.
Millionaires Are Making Moves
Of course, for many Americans, the dream of living in another country is just that: a dream. Without substantial income, it can be extremely challenging to apply for a foreign passport or even a long-term visa.
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However, for those who do have disposable income, the process is actually quite simple. Many countries, especially in Europe, only require a few hundred thousand dollars in investments to obtain citizenship. And for a multimillionaire, that’s pocket change.
Migration Consultancy Reports a 500% Increase in Inquiries
Migration consultancy films Henley & Partners and New World Wealth released a report this month entitled “2024 USA Wealth Report.”
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It contained a plethora of data regarding America’s high-worth population. But one especially interesting statistic it noted is that inquiries from uber-wealthy US citizens about citizenship abroad increased by 500% in the last five years.
Citizenship-By-Investment Programs
The vast majority of these inquiries are multi millionaires looking for a simple way to get citizenship in another country. Luckily for them, there are several options, but the most popular is a citizenship-by-investment program.
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Several countries in Europe are willing to exchange a long-term visa or citizenship for a few hundred thousand dollars worth of investments in their economy. Each nation has its own stipulations, such as minimum investments, background checks, and even residence requirements that force applicants to live in the country for a specific length of time before getting their permanent residency.
Top Countries for Wealthy Americans
Among the many countries offering such options, the most popular destinations for wealthy Americans are Greece, Portugal, Spain, and Italy.
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As some of the most beautiful, temperate, and cultural countries on the planet, there are many reasons why Americans are choosing these four Mediterranean paradises. But it helps that they have the simplest application processes, too.
Why Are So Many Rich Americans Getting Foreign Citizenships?
When it comes to why there has been such an immense influx of rich Americans applying for foreign citizenships, there’s no one answer.
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Some feel as though US schools are no longer safe for their children and others believe that the 2024 election (no matter who wins) may just tear the country apart. But the majority are worried about Biden’s “billionaire tax,” and want to live somewhere where the government won’t take 25% of their earnings.
Will America Experience a Millionaire Exodus?
It’s important to understand that these uber-wealthy Americans aren’t necessarily packing their bags just yet. They are simply applying for foreign citizenships in case they want to use them at a later date.
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At this point in time, it’s become far more common for the American elite to migrate within the country to cities and states with lower taxes and cost of living.
Where Are American Millionaires Moving To?
Many extremely wealthy Americans are leaving states like California and New York for greener, i.e. cheaper, pastures.
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Austin, Texas; Miami, Florida; and Scottsale, Arizona, have seen the biggest influx in American millionaires and billionaires over the past decade. Elon Musk recently relocated from California to Texas, and several Hollywood A-listers like Mark Wahlberg and Celine Dion, have also left the Golden State behind to save money on income and property taxes.
The USA Has More Millionaires and Billionaires Than Any Other Country on Earth
Although the wealthy are moving, they aren’t leaving the USA just yet. As of March 2024, there are more millionaires in the USA than anywhere else in the world. In fact, the 2024 report notes that 37% of all millionaires live in America.
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Currently there are 5.5 million millionaires and 788 billionaires in the USA, and those numbers are growing every year.
These Numbers May Change Depending on Who Wins the Oval Office in November
The USA has seen a 62% increase in millionaires over the past year, and most experts agree that this number is likely to continue to grow over the coming decade.
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However, exactly how many more people are added to the list will undoubtedly depend on who wins the presidential election in November. President Biden has famously proposed a “billionaire tax” that could minimize the increase in ultra-wealthy Americans, whereas former president Donald Trump has promised to decrease taxes for America’s elite.
America’s Economy Will Suffer if Its Uber-Wealthy Move Away
As California has already noticed, fewer millionaires means less money for the state. Even if only a small percentage of America’s excessively wealthy leave the USA behind for the good life abroad, it will absolutely negatively affect the country’s economy.
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Of course, no one knows yet how many will actually leave and how drastically the economy will suffer. But if the 2024 report is any indication, there will likely be a significant exodus of America’s wealthy in the next few years.