And It’s Not Just to Avoid Taxes.
History is like the weather here in Cape Town. If you don’t like it, just wait. It’ll change soon enough…
That certainly applies to the recent history of migration by investment.
For generations, high-net-worth individuals have sought residency in the United States.
Their motivations varied, but typically there were both “push” and “pull” factors.
On the push side, well-heeled foreigners were looking to escape poor living conditions, unstable governments, high taxes, and even violence in their home countries.
US opportunities, lifestyle, and stability pulled them in that direction…
But that’s all changing—and fast.
The US is no longer the preferred destination for foreign millionaires.
These days Australia takes the top spot, followed by the United Arab Emirates and Singapore. The US comes in fourth.
But the more significant shift involves rich Americans fleeing their own country.
According to investment migration specialists Henley & Partners, 2023 saw the highest number of emigration inquiries from American clients ever.
Incredibly, the number of wealthy Americans making inquiries about expatriating was up 504% compared to 2019, just four years ago.
According to Henley, the most popular destinations for rich Americans seeking a Plan B are Portugal, Malta, Spain, Greece, and Italy.
That matches my own experience with people who sign up for personal consultations through my Global Citizen service.
We’re often told that the wealthy just want to “avoid tax” by going overseas…
But this does not seem to be the case with American millionaires.
Here’s why: American millionaires will probably pay more tax overall when they move to those countries I’ve listed…
So why aren’t Americans flocking to places that have low to no income tax, like some Caribbean islands and a handful of countries in Eastern Europe?
I have a theory based on feedback from the people who consult with me at Global Citizen.
Although they may have strong feelings about certain political issues, most wealthy folks’ main concern is stability. Certainty that the laws won’t change too much and there’ll be security for their wealth…
In the US right now, nearly every day we see media reports about people going bankrupt because of medical bills, folks unable to save for retirement, companies giving you higher prices and poorer service…
Having a lot of money protects you from those things, and other troubles in society… but only up to a point.
Eventually, ordinary working Americans start to express their frustration in other ways.
The frustration and stress is vented at the ballot box, by voting for evermore extreme politicians on the left and right.
When combined with the irresponsible free-for-all that is the US media, this has produced extreme instability in Washington… leading to an inability to legislate on even the most basic issues, such as honoring the national debt.
Many high-net-worth Americans might think their taxes are too high already…
But most of them, I believe, are realizing that the consequences of an unstable society can be even worse.
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