Millionaires often move countries in the search for wealth growth and personal security. This can otherwise be explained as the act of wealth migration. It is a tool that wealthy people such as entrepreneurs and investors use to protect themselves financially whilst also seeking personal and financial freedom. According to a Henley & Partners Global Citizens Report, approximately 88,000 millionaires moved to a new country throughout 2022.
If we look back to 2020 when Covid shook the world, HNWIs who did have a secondary residence or citizenship were unable to leave countries with no access to a backdoor. This inability to move countries placed these individuals at risk of different tax obligations.
According to Nomad Capitalist, in recent years, HNWI migrants have expressed renewed interest in obtaining residency in another country via investment programs in Europe and some of the fastest growing markets across the world.The attractions for such a move include competitive tax rates, offshore opportunities and a robust economy. However, it is not just the financial benefits that allure HNWIs. Many of the destinations are diverse in nature and offer a beautiful surrounding to live in. Locations include the UAE, Greece, Israel, Portugal and Australia.
According to Henley & Partners, the UAE is at the top of the list when it comes to wealth migration. The organisation continued to explain that the destination ‘enjoys a projected four percent increase in its influx of high-net-worth individuals by the end of 2023’. The primary reason for HNWIs and investors moving to this location includes competitive tax rates. This advantage makes it a haven for entrepreneurs and investors to diversify their portfolios and offshore a portion of their business. This in turn helps entrepreneurs to expand their business or create an entirely new one from scratch.
As a destination for wealth migration, the UAE has more expats than natives, with the former making up 80% of the population. The UAE has been able to structure its foreign relations in a manner that is collaborative and commercially viable through the several residency by investment programs for businesses and wealthy individuals across the world. One example of this is the UAE launched its golden visa program that was launched back in 2019. This visa is attractive for foreign investors as it is valid for ten years.
The second most popular destination that is attracting foreign HNWIs is Greece. This is a highly regarded location in the EU for wealth migration due to its golden visa program that was introduced in 2013. Many HNWIs and UHNWIs have invested in this program due to the fact that the minimum investment of €250,000 and the visa lasts for 5 five years. Such an investment enables individuals to purchase a property.
In third place, there is Israel. By the end of 2022. According to Henley & Partners, the country saw a 2% increase in the influx of millionaires by the end of 2022. The country offers a B/5 investment visa for US citizens that was introduced in 2019. The visa acts as a reciprocity agreement between the US and Israel. US citizens can have legal residency providing that they are able to make a substantial investment that acts as a contribution to the economy and that they employ Israelis.
There is no denying that wealth migration acts as a great way to measure the health of an economy. Putting investment/residency systems into place attracts millionaires who seek financial and business growth alongside secondary citizenship. Vorto Trading works with individuals to manage their foreign exchange and helps HNWIs across the globe to transfer money. If you would like to learn about how we can assist you with your FX requirements, contact us today.