Henley & Partners, a renowned entity specializing in facilitating the relocation process for affluent individuals across borders, has witnessed a remarkable surge in demand for its services. As highlighted by a report from Quartz, the year 2023 marked a significant milestone, with an unprecedented 120,000 high-net-worth individuals opting to transition to new countries. This notable escalation starkly contrasts with the figures from a decade prior, where only 51,000 individuals made similar moves. The criterion set by Henley & Partners defines high-net-worth individuals as those possessing a minimum of $1 million in liquid investable assets. Although not every affluent individual is departing from the United States, a substantial portion is exploring contingency plans, indicating a notable shift in sentiment and behavior.
David Lesperance, a seasoned immigration and tax adviser, sheds light on the concerns driving this trend among his affluent clientele. Issues ranging from the prevailing political climate to recurring incidents of school shootings and the looming specter of potential tax hikes have fueled apprehensions among these individuals. While obtaining a second passport or securing residency rights in another country may not immediately translate into action, Lesperance emphasizes the importance of such measures as a form of insurance and a strategic escape plan in uncertain times.
Delving deeper into the insights provided by Mehdi Kadiri, Henley & Partners’ astute North America managing partner, sheds light on the evolving landscape of global migration patterns. While the allure of the United States remains undeniably strong, evidenced by the relocation of 2,100 millionaires to the country in the previous year, a notable trend emerges. Increasing numbers of affluent individuals are opting for alternative destinations such as Australia, the United Arab Emirates, and Singapore. Within the United States itself, Kadiri observes what he terms a “millionaire remix,” whereby emerging urban centers like Austin, Miami, and Scottsdale are experiencing a surge in popularity, while more traditional hubs like Los Angeles, New York, and Chicago witness modest declines in residency.
Despite America’s enduring appeal, particularly among tech entrepreneurs drawn to the promise of the “American dream,” Kadiri sounds a note of caution. He underscores the potential ramifications of civil unrest, political assaults on democratic norms, and the erosion of social cohesion on America’s long-term prospects for attracting global talent. These multifaceted dynamics underscore the nuanced landscape of global migration patterns and the evolving preferences of affluent individuals seeking stability, opportunity, and security in an increasingly uncertain world.