The migration of wealth is a widespread trend among high-net-worth individuals (HNWIs) seeking financial and political stability in a favourable climate. Acquiring an additional residence or citizenship provides increased flexibility and opens doors to opportunities in the world’s leading economies. This article explores routes and the practical steps HNWIs can take when considering relocation options.
High-net-worth individuals seeking to diversify their residency or citizenship options have a variety of pathways available, each with distinct benefits and requirements. One of the most popular options for acquiring residency or citizenship in foreign countries involves special programs, commonly known as ‘golden visas,’ which include Residency by Investment (RBI) and Citizenship by Investment (CBI) routes. However, there are additional ways to achieve global mobility and wealth management goals. Below is an overview of different options.
- Real Estate Investment. Investing in real estate is a prevalent route to acquiring citizenship or residency. Applicants are typically required to purchase property within the host country, often from government-approved projects.
- Business Investment. Some CBI and RBI programs encourage economic growth by requiring investments in local businesses or enterprises.
- Bank Deposit. Certain countries offer citizenship or residency programs to individuals who make substantial financial deposits into local banks, enhancing the local economy.
- Government Contributions. Many countries offer citizenship in exchange for a direct financial contribution to a national fund or development program. These contributions are typically non-refundable.
- Government Bond Investment. Investing in government bonds is another pathway to citizenship, appealing to those seeking low-risk investment options.
- Renting Property. For those not ready to invest heavily, renting property can be a more accessible way to establish residency.
Alternative Residency Routes
Beyond traditional investment pathways, several countries offer alternative routes to residency:
- Digital Nomad Visas: As remote work gains traction, many countries have introduced digital nomad visas to attract skilled professionals who can work from anywhere. Countries such as Spain, Italy, Estonia, Croatia, and Barbados offer visas for remote workers, allowing them to reside within the country while working for foreign employers.
- Entrepreneurial Visas: Nations such as Canada, the United Kingdom, and New Zealand provide visas for individuals who establish businesses that create jobs and contribute to the economy. Requirements often include a detailed business plan and minimum investment thresholds.
- Pensioner Visas: Countries like Greece, Portugal, Panama, Costa Rica, and Malaysia offer residency programs for retirees with a stable pension income. These programs usually require proof of a minimum monthly income from pensions, investments, or savings and health insurance.
When evaluating these pathways, HNWIs should consider factors such as:
- Investment Amounts: Minimum investment requirements vary significantly between programs.
- Processing Times: The duration to obtain residency or citizenship can range from a few months to several years.
- Tax Implications: Understanding the tax obligations in both the new country and the individual’s home country is crucial.
- Residency Requirements: Some programs require physical presence in the country for a certain period, while others do not.
- Family Inclusion: Many programs allow the inclusion of family members, but terms vary.
The following table serves as a guide, detailing key information such as eligibility criteria, investment thresholds, and the unique advantages selected countries offer. Whether your priorities lie in investment requirements, tax optimization, accessing top-tier education systems, or simply enjoying a quality lifestyle, this table is designed to provide you with the insights needed to make an informed choice that aligns with your personal and financial goals.
Selected Residency and Citizenship Programs for HNWIs
(as of November 2024)
| Country | UAE | Italy | Portugal | Spain | Greece | Cyprus |
|---|---|---|---|---|---|---|
| Real Estate Investment | + | + | – | + | + | + |
| Business Investment | – | + | + | + | + | + |
| Bank Deposit | – | – | – | + | + | – |
| Minimum capital | AED 2 million | EUR 250,000 | EUR 250,000 | EUR 500,000 | EUR 250,000 | EUR 300,000 |
| Digital Nomad Visas | + | + | + | + | + | + |
| Pensioner Residency Visas | – | + | + | + | + | – |
| Obtaining citizenship through residency | – | after 10 years | after 5 years | after 10 years | After 7 years | After 7 years |
| Ease of Obtaining Residence Permit* | 3 | 3 | 3 | 3 | 3 | 5 |
| Tax Regime* | 4 | 2 | 4 | 3 | 4 | 5 |
| Quality of Life* | 3 | 4 | 5 | 5 | 4 | 4 |
| Cost of living* | 3 | 2 | 2 | 2 | 4 | 3 |
| Education* | 2 | 4 | 5 | 4 | 3 | 2 |
| Healthcare* | 4 | 4 | 3 | 3 | 3 | 3 |
| Safety* | 4 | 4 | 4 | 4 | 4 | 4 |
* Scored from 0 to 5, High = Good
Conclusion
HNWIs seeking to relocate from the UK have a plethora of options available, ranging from investment in real estate and businesses to unique visas for digital nomads and retirees. Each pathway offers its own set of advantages, requirements, and considerations, including investment thresholds, tax implications, and quality of life. It is vital for potential relocators to thoroughly assess these factors and consult with experienced advisors to make informed decisions that align with their financial and lifestyle goals.
If you are considering relocation or planning on moving your business to a new country, book a call with our expert team to discuss the best options for you. From seamless company registration to comprehensive property management services in the UK and abroad, we ensure a smooth and compliant process, so you can focus on growing your investments.
