A Quarter of UHNWIs Worldwide Plan to Acquire a ‘Second Citizenship’
Written by the Founder of PCS, Ceri Pratley.
Despite a reduced desire to travel, nearly a quarter of ultra-high-net-worth individuals (UHNWIs) are currently planning to apply for a second passport or citizenship – representing a substantial 50% jump in a year – according to a survey published by international real estate consultants Knight Frank.
Mobility is the key driver of investment migration, said the ‘Attitudes Survey 2021’, and “nothing quite reveals the true power of a passport like the inability to travel”. With the Covid-19 pandemic in full swing, many found their plans during 2020 restricted in ways never experienced before.
“Mobility, both in the present and as a future hedge, is a strong driver of demand for citizenship-by-investment programmes, followed closely by business advantages,” said Professor Kristin Surak of the London School of Economics. “Often it is privileges in third countries – not the place granting the citizenship – that are sought. In light of the Covid-19 pandemic, people are rethinking where they want to be for the medium term and where has good healthcare even more.”
The ‘Attitudes Survey 2021’ was based on responses provided by over 600 private bankers, wealth advisors, intermediaries and family offices that manage a combined US$3.3 trillion of wealth for UHNWI (defined as having a net worth of at least US$30 million) clients.
Broken down by region the responses were as follows:
As can be seen, the regions that are equal to or significantly above the average are Africa, Asia, Europe, Latin America, the Middle East and Russia & CIS.
It should be noted that it may not be necessary or advisable for all such clients to obtain a second citizenship; they may achieve the same or better results through a suitable residency and/or tax residency programme.
Why are we experiencing an increase in demand?
The way we live, work and interact has changed significantly for many of us over the past 12 months. The Covid pandemic has provided a very practical demonstration that it is not only possible, but often equally or more productive, to work remotely. This in turn has led many individuals and families, not just UHNW’s, to reassess and plan changes to their lifestyle – to move to a new country in search of a more comfortable living and working environment, better healthcare, educational and business opportunities as well as enhanced tax efficiency.
Increased awareness
In recent years residency and citizenship planning has been more prominently discussed within the wealth management industry and mainstream media. This has resulted in increased awareness amongst professionals and their clients of the opportunities and benefits to be gained when creating and implementing considered and compliant residency and citizenship planning strategies.
The survey also reveals that, in addition to the ongoing disruption created by the pandemic, advisers listed ‘Domestic Government Policy’ and ‘Tax Issues’ as the second and third issues of concern to their clients.
As can be seen, the regions where concerns about ‘Domestic Government Policy’ are significantly above the average are Africa and Latin America, while for ‘Tax issues’ it is Europe, Latin America, North America and the UK. These issues are clearly at the forefront of clients’ minds and will play an important part in determining the best country in which to establish a new residency, tax residency and/or citizenship.
Significant opportunities and benefits
Residency and citizenship-based government programmes can offer a wide range of opportunities and benefits, which are summarised below:
A wide range of solutions
Private Client Services’ (PCS) extensive network of professional service partners ensures that we are well placed to assist in determining the most suitable strategy for our clients’ needs. Solutions can be subdivided into three main categories:
- Residency
- Citizenship
- Tax Residency
Each of these categories can be implemented independently or they can be combined to adapt to a client’s personal requirements. These can further be broken down into the following countries and programmes:
Comprehensive tax efficient solutions
Partners within the Private Client Services (PCS) network work closely with applicants during each stage of the planning and implementation process. When combined and managed correctly, the following products and services will enable families to develop and implement a comprehensive, flexible and tax efficient strategy:
- International residency and citizenship programmes
- Tax residency
- Trusts and foundations
- Estate and succession planning
- International retirement plans
- Wealth management
- Corporate structures and banking
- International life and medical insurances.
Contact us
If you have any questions or would like to discuss how you and your family could benefit through the creation and implementation of an international residency and citizenship-based strategy, please contact us at [email protected]
Data for this article was taken for the Knight Frank ‘Wealth Report 2021’, which can be accessed at: Knight Frank ‘Wealth Report 2021’
Amendments to the Portugal Golden Visa Residency Permit (GVRP)
On the 12th February 2021 the Portuguese government announced that it had passed into law amendments to the minimum qualifying investment requirements associated with the Portugal Golden Visa Residency Permit (GVRP) programme. The amendments are as follow:
- Capital Investment
Currently €1 million to be increased to a minimum of €1.5 million - Qualifying Investment Funds
Currently €350,000 to be increased to a minimum of €500,000 - Residential Property Investments
The minimum sum required remains the same €500,000 and €350,000 (for renovation projects) but only in qualifying areas (detailed below) - Job Creation
Currently €350,000 to be increased to a minimum of €500,000 for incorporation of or an increase of share capital of a company which creates five new jobs for at least three years - Science & Research Activities
Currently €350,000 increasing to a minimum of €500,000
GVRP Qualifying Municipalities for Residency Real Estate Investment - Effective 1st January 2022
Qualification of residential property investments will be moved away from metropolitan and coastal areas with the aim of encouraging increased foreign direct investment in low-density regions. The map above shows in which municipalities residential property will qualify for the GVRP programme.
Act Now to Secure Your Preferred Investment with a Lower Minimum Investment Requirement
It is important to note that anyone submitting their GVRP application before the 1st January 2022 will qualify under the current rules. If therefore you or your clients intend to apply for the Portugal Golden Visa Residency Permit programme we suggest that you act now. Arrange a call or video conference with one our experienced advisers and receive a comprehensive and unbiased overview of the programme and its qualifying investment options.
Established Local Presence
PCS network partners have a long-established office and team based in Portugal meaning that we are best placed to assist clients with all requirements in-house and which enables us to keep costs low and ensure that the process is completed in an efficient manner.
All-Inclusive GVRP Application Processing Services from the Comfort of Your Home
Please view the following link for an overview of the GVRP related services that we are able to initiate and complete prior to your need to travel to Portugal:
Save yourself and your family $45,000 and utilise this extended limited offer by opting for a St.Kitts citizenship by investment programme that grants you visa-free access to over 165 countries! It happens to be the most cost-efficient programme right now and we are happy to help you through the entire process, from start to completion!
The Grenada Citizenship by Investment Programme was re-established in 2013 and Investors are given the opportunity to apply for themselves and their dependents to become lifetime citizens of Grenada in accordance with legal requirements. Most importantly, the Grenada Programme is often chosen due to the sheer benefits one receives after the application is processed such as:
•Citizenship for life and for future generations
•No minimum stay requirements
•Attractive tax regime; limited capital gains tax and no inheritance tax
•Ability to live and work in any other member state of the CARICOM
The Portuguese GoldenVisa Residence Permit (GVRPP) provides qualifying non European investors and their families full rights to live, work and study in Portugal. The residence permit also provides visa free access throughout the Schengen zone and after 5 years, the right to apply for permanent residency or citizenship.
Regulated Investment Fund
•Minimum investment of €350,000
•Highly experienced investment managers
•Investors may receive a fixed annual dividend payments
•Additional distributable income payments based upon performance
•A share in all capital gains made upon the sale of the underlying assets
•0% tax applicable to the purchase or sale of units
•0% income tax for non-tax residents and only 10% for tax residents
Special Offer- The St. Lucia citizenship programme provides applicants, their families and future generations a second citizenship and visa-free travel to 144 countries including Europe and the UK. The St. Lucia government has recently announced the covidー19 Relief Bond' which is available until 31st December 2020 and as a minimum investment requirement of US$ 250,000 into government bonds which must be held for 5 to 7 years.
The Grenada citizenship by investment programme provides applicants, their families and future generations a second citizenship and visa-free travel to 143 countries including Europe and the UK. Applicants qualify with a government donation of $150,000 or by investing a minimum of $220,000 into shared property. Grenada is also part of the coveted US E-2 visa treaty which enables its citizens to invest in a US business and qualify to live and work there!
Become a citizen of the world by investing in Antigua’s Citizenship by Investment programme which has been a popular choice among eagled-eyed business professionals and high-net-worth individuals as it includes:
• Visa-free travel to over 130+ Countries which includes EU, UK, Hong Kong etc
• Lifetime Citizenship
• Live, work and settle in any other member of the CARICOM country
• No Residency or Visit Requirements
If you're a foodie, Greece is where you need to be. Apart from wine being affordable, their healthy cuisine will do your body a world of good!
Also, the cost of living in this beautiful country works out to 25-50% cheaper than other countries in the European Union!
If economic safety is what you're aiming for, then Cyprus is your answer! Lovely climate, excellent infrastructure, a huge ex-pat community and perfect for those who are looking to 'live the dream'.
Investing in European Residency or Citizenship by Investment programmes starting at €280,000, provide the whole family with the following benefits:
• Live, Work and Study in Europe
• Multiple Investment Options
• Extensive Visa-Free Travel
• Tax Efficiency
• A Secure and Stable Environment
• Processed in 3 to 6 months
PCS’s extensive network of offices and local professional service partners means that we are best placed to assist, advise, and support applicants throughout the application process. We work closely with applicants during each stage of the process, ensuring that they successfully qualify, apply,
process, and ultimately receive their preferred residency or citizenship through investment.
The Saint Lucia Citizenship by Investment Unit has announced effective immediately, wide-ranging reductions and other attractive changes to most options under its Citizenship by Investment Program:
•Investment in Government Bond starts at $250,000.00 (a discount of 50%)
•The Investment amount in the Bond is refunded in full at the end of the holding period
•Processing Fees are waived
•Holding Period is 5-7 years
•Investment is to be made only after approval is granted
•Administrative Fee is discounted by 40%
Offer Valid Until 31 December 2020.
The Saint Lucia Citizenship by Investment Unit has announced effective immediately, wide-ranging reductions and other attractive changes to most options under its Citizenship by Investment Program:
•Investment in Government Bond starts at $250,000.00 (a discount of 50%)
•The Investment amount in the Bond is refunded in full at the end of the holding period
•Processing Fees are waived
•Holding Period is 5-7 years
•Investment is to be made only after approval is granted
•Administrative Fee is discounted by 40%
Offer Valid Until 31 December 2020.
The Antigua and Barbuda Citizenship by Investment Program has been enhanced with a modification to its educational pathway to citizenship.
Here are the key elements of the fund:
•Investment Amount is US$150,000.00 for a family of six (6) persons (previously this was for a family of four persons)
•No Processing Fees apply (a savings of US$55,000.00)
•A member of the family is entitled to a one (1) year tuition-free scholarship at the University of the WestIndies
•The minimum family size eligible to apply under this option is six (6) persons
•The family may include dependent parents (of at least 58 years of age).
For the family-oriented individual, investing in renovated properties has become one of the most popular investment options available to international investors and their families as it provides the following benefits:
•A minimum qualifying investment requirement of €350,000
•Minimum stay requirements of only 7 days per year in Portugal
•Obtain residency within 3 - 6 months
•All renovations are taken care of by the developers and are included within the cost
•Full property rental management services
•A choice of guaranteed or flexible investment returns
•Reduced minimum investment of €280,000 if in a low-density area
The Saint Kitts Citizenship by Investment Program is the latest of the Caribbean programs to respond meaningfully to the global Covid-19 pandemic. The Citizenship by Investment Unit has announced with immediate effect, its Sustainable Growth Fund Limited Time Offer which slashes the contributions payable under the donation option.
SUSTAINABLE GROWTH FUND LIMITED TIME OFFER
Valid Only Until 31st December 2020
•The investment amount for a family of up to four persons has been reduced by $45,000.00 (from $195,000.00 to $150,000.00).
•The addition of any other eligible dependent is only $10,000.00 (e.g. a family of 5 persons is $160,000.00).
•Available only to a limited number of applicants.
THE PLATINUM STANDARD OF SAINT KITTS AND NEVIS CITIZENSHIP
•Visa-free travel to 156 countries worldwide.
•Passport is recognized globally and is of excellent repute.
•Highest ranked passport of a Caribbean country with a citizenship by investment program.
•Oldest citizenship by investment program in the world.
•Quick and diligent decision-making.
•Accelerated processing in just 60 days.
•Offers a safe and healthy environment - no fatalities or hospitalizations from Covid-19.
A leading country for individuals and families seeking residence in the EU, Portugal provides a stable political and social environment, clear and transparent tax rules, good infrastructure, a favorable investment climate, and excellent quality of life.
Benefits of the Golden Visa Residence Permit include but are not limited to:
•Obtain European residency within 3 - 6 months
•An applicant may include dependent children and parents
•Visa-free travel within the Schengen Zone
•Multiple investment options from €350,000
•Low minimum stay requirements, averaging 7 days per year
•Qualify for citizenship or permanent residency after 5 years