A model of this text first appeared in CNBC’s Inside Wealth e-newsletter with Robert Frank, a weekly information to the high-net-worth investor and shopper. Sign up to obtain future editions, straight to your inbox.

A rising variety of rich Individuals are planning to go away the nation within the run-up to Tuesday’s election, with many fearing political and social unrest no matter who wins, in line with immigration attorneys.

Attorneys and advisors to household places of work and high-net-worth households stated they’re seeing report demand from shoppers on the lookout for second passports or long-term residencies overseas. Whereas speak of transferring abroad after an election is frequent, wealth advisors stated this time lots of the rich are already taking motion.

“We have by no means seen demand like we see now,” stated Dominic Volek, group head of personal shoppers at Henley & Companions, which advises the rich on worldwide migration.

Volek stated that for the primary time, rich Individuals are far and away the corporate’s largest shopper base, accounting for 20% of its enterprise, or greater than every other nationality. He stated the variety of Individuals planning to maneuver overseas is up no less than 30% over final yr.

David Lesperance, managing companion of Lesperance and Associates, the worldwide tax and immigration agency, stated the variety of Individuals hiring him for doable strikes abroad has roughly tripled over final yr.

A survey by Arton Capital, which advises the rich on immigration packages, discovered that 53% of American millionaires say they’re extra prone to go away the U.S. after the election, regardless of who wins. Youthful millionaires have been the probably to go away, with 64% of millionaires between 18 and 29 stated they have been “very ” in searching for so-called golden visas via a residency-by-investment program abroad.

Granted, the curiosity in second passports or residencies has been rising steadily among the many American wealthy since Covid-19. Whether or not it is retiring to a hotter, cheaper nation or being nearer to household overseas, the rich have loads of non-political causes to wish to enterprise abroad.

The ultra-wealthy additionally more and more see citizenship in a single nation as a concentrated private and monetary danger. Simply as they diversify their investments, they’re now creating “passport portfolios” to hedge their nation danger. Others need a non-U.S. passport in case they’re touring to harmful international locations or areas hostile to the U.S.

But the elections and the political local weather have accelerated and added to the push by rich Individuals to contemplate a Plan B overseas. Lesperance stated that for greater than three many years, his American shoppers have been primarily involved in transferring abroad for tax causes. Now, it is politics and worry of violence, with subsequent week’s election turbo-charging these fears.

“For a few of them, the first factor is ‘I do not wish to stay in a MAGA America,” Lesperance stated. Others are nervous about violence if he loses, or Vice President Kamala Harris’ plan to tax unrealized capital gains for these price greater than $100 million. Whereas tax analysts say the unrealized positive factors plan has little probability of passing Congress, even with a Democratic majority, Lesperance stated it is nonetheless a danger.

“Even when there may be solely a 3% probability that it occurs, you continue to wish to take out insurance coverage,” he stated.

Attorneys say the rich additionally cite mass faculty shootings, the potential for political violence, antisemitism, Islamophobia and the federal government’s hovering money owed as causes to go away.

In the case of locations, Individuals are trying primarily to Europe. In keeping with Henley, the highest international locations for Individuals on the lookout for residency or second citizenships embody Portugal, Malta, Greece, Spain and Antigua. Italy has additionally grow to be standard for Individuals.

“The love affair between Individuals and Europe has been happening for very very long time,” stated Armand Arton, of Arton Capital. “It comes with a worth, and they’re completely tremendous investing couple hundred thousand {dollars} or a half million right into a property or a fund.”

The foundations and prices, nonetheless, are altering quick. Whereas mass immigration has grow to be a hot-button political concern the world over, some politicians in Europe have began to push back against golden visas that give the rich citizenship or residency purely primarily based on investments.

Portugal, as an illustration, confronted a backlash after a flood of foreigners poured within the Algarve and acquired seaside properties as a part of the golden visa program. With  property costs hovering by 15%, the federal government modified the principles, growing minimal funding thresholds and eradicating residential property as an funding class.

Italy this summer season doubled its flat tax on the abroad incomes of rich foreigners who switch their tax residency to Italy, to 200,000 euros. The change adopted a wave of rich new migrants who got here for this system and drove up Milan property costs.

For now, Malta stays the go-to second passport for the American wealthy. Whereas costly, at about $1 million to $1.2 million all-in, Malta’s funding citizenship program presents citizenship and unrestricted journey and residency in Malta and by extension the European Union, in line with immigration attorneys. The European Union has been difficult the Malta program in courtroom, however most immigration attorneys anticipate the nation to prevail.

The Caribbean is more and more standard for Individuals who merely need a second passport. Shopping for an permitted piece of actual property in Antigua and Barbuda for greater than $300,000 places you on a path for citizenship, which permits freedom to journey to Hong Kong, Russia, Singapore, the U.Okay. and Europe, amongst different international locations. St. Lucia can be more and more standard, attorneys say.

Individuals with ancestry in Eire, Italy and dozens of different international locations can apply for so-called “lineage citizenship,” which is usually far cheaper than an funding visa. Some international locations, like Portugal, additionally provide retirement visas, which permit entry and a path to citizenship.

Do not anticipate to get any citizenship or residencies immediately. With attorneys and international locations inundated with so many functions, and so many various background checks and approvals required, the method can take months or perhaps a yr or extra. And that ready checklist might develop longer relying on the election outcomes.

“It is getting crowded,” Lesperance stated. “And I am positive I’ll get a bunch extra on Nov. 6 or 7.”