A growing number of affluent Americans are considering relocating outside the U.S. following the election.

• Family office and high-net-worth clients are experiencing a surge in demand for second passports and long-term residencies abroad, according to attorneys and advisors.
• Wealth advisors reported that many of their wealthy clients have been taking action to leave the U.S. since the outbreak of Covid-19, with the American rich showing a growing interest in doing so.

The original article was published in CNBC's Inside Wealth newsletter with Robert Frank, providing a weekly guide for high-net-worth investors and consumers. To receive future editions, subscribe and have them delivered directly to your email inbox.

Immigration attorneys report that an increasing number of affluent Americans are preparing to depart the country prior to the election on Tuesday, as they fear political and social turmoil, regardless of the outcome.

Family office and high-net-worth clients are experiencing unprecedented demand for second passports and long-term residencies abroad, according to attorneys and advisors. While the idea of relocating after an election is often discussed, wealth advisors noted that this time, many affluent individuals are already taking action.

Dominic Volek, group head of private clients at Henley & Partners, stated that they have never witnessed such demand as they are currently observing.

Wealthy Americans are now the largest client base for the company, accounting for 20% of its business, which is more than any other nationality. The number of Americans planning to move abroad has increased by at least 30% compared to the previous year.

The number of Americans seeking David Lesperance, managing partner of Lesperance and Associates, for international tax and immigration services has increased by approximately three times compared to the previous year.

According to a survey by Arton Capital, which provides advice to wealthy individuals on immigration programs, 53% of American millionaires are more likely to leave the U.S. after the election, regardless of the outcome. Younger millionaires were the most inclined to depart, with 64% of those aged 18 to 29 expressing a strong interest in obtaining a "golden visa" through a residency-by-investment program abroad.

The demand for second passports or residencies among American wealthy individuals has been increasing since the outbreak of Covid-19. They have various reasons for wanting to relocate overseas, such as retiring to a warmer and more affordable country or being closer to their families abroad.

Citizenship in one country is becoming a concentrated personal and financial risk for the ultra-wealthy, prompting them to create "passport portfolios" to diversify their country risk. Similarly, others are seeking a non-U.S. passport to protect themselves while traveling to dangerous countries or regions hostile to the U.S.

The political climate and upcoming elections have intensified wealthy Americans' interest in considering a Plan B abroad. Lesperance stated that for over three decades, his American clients primarily sought to relocate overseas for tax purposes. However, now their motivations have shifted to politics and concerns about violence, with the upcoming election exacerbating those fears.

Lesperance stated that for some individuals, the main concern is not wanting to reside in a MAGA America. Others are concerned about potential violence if he loses or Vice President Harris' plan to tax unrealized capital gains for those worth more than $100 million. Although tax analysts believe the unrealized gains plan has little chance of passing Congress with a Democratic majority, Lesperance considers it a risk.

He stated that even with a 3% probability of occurrence, you would still want to purchase insurance.

The wealthy also mention mass school shootings, political violence, antisemitism, Islamophobia, and the government's mounting debts as reasons for leaving, according to attorneys.

Americans are increasingly choosing Europe as their preferred travel destination, with Portugal, Malta, Greece, Spain, and Antigua being the top countries for residency or second citizenships, according to Henley. Additionally, Italy has gained popularity among Americans.

"According to Arton Capital's Armand Arton, the longstanding love affair between Americans and Europe has a cost, and they are willing to invest hundreds of thousands of dollars or even a million into properties or funds."

Politicians in Europe are starting to challenge golden visas that grant citizenship or residency to wealthy individuals based solely on investments, as the rules and costs are rapidly changing.

The Algarve experienced an influx of foreigners who bought beach properties through the golden visa program, leading to a backlash in Portugal. In response, the government raised minimum investment thresholds and eliminated residential property as an investment option, resulting in property prices increasing by 15%.

This summer, Italy increased its flat tax on the foreign income of wealthy individuals who relocated their tax residency to Italy to 200,000 euros. The move was prompted by a surge of new wealthy migrants who flocked to the program and caused an increase in Milan property prices.

Malta's investment citizenship program, although costly at around $1 million to $1.2 million, provides citizenship and unrestricted travel and residency in Malta and the European Union. Despite legal challenges from the European Union, immigration attorneys predict that Malta will ultimately succeed in maintaining its program.

Acquiring an approved real estate in Antigua and Barbuda for over $300,000 grants citizenship, enabling travel to Hong Kong, Russia, Singapore, the U.K., and Europe, among other countries. St. Lucia is also gaining popularity, attorneys note.

Individuals with American ancestry from countries such as Ireland and Italy, among others, can apply for lineage citizenship, which is often more affordable than an investment visa. Additionally, certain countries, including Portugal, provide retirement visas that enable entry and a route to citizenship.

The process of obtaining citizenship or residency can take a long time due to the high volume of applications and the various background checks and approvals required. The waiting list may become longer depending on the election results.

"Lesperance stated that the crowd was becoming increasingly congested and he anticipated an influx of additional individuals on either November 6th or 7th."