Ongoing COVID-19-driven volatility has made having alternative residence and citizenship options more essential than ever to protect your family’s global access.
By Dominic Volek, Group Head of Private Clients at Henley & Partners
Relentless pandemic-fueled uncertainty has led to a spike in international investors and entrepreneurs building diversified domicile portfolios through residence- and citizenship-by-investment programs to overcome the limitations of being restricted to one jurisdiction.
Henley & Partners has seen a 51 percent increase in average daily inquiries in 2021 compared to 2020, with eye-opening shifts in the predominant nationalities of investors — the most profound being a 207 percent leap in inquiries by U.S. citizens. Other notable increases in inquiries by Canadians, Australians, and U.K. nationals occurred, of 47 percent, 41 percent, and 33 percent, respectively — all indications that wealthy investors are actively seeking access to alternative options should the need arise.
Diversify Domicile Options to Reduce Exposure and Create Value
It is accepted best practice to invest in multiple regions, sectors, and asset classes to spread risk — the same applies to your residence. A single alternative residence or citizenship is always an asset, but a suite of domiciles worldwide hedges against manifold levels of volatility, creating an enhanced combination of value and yield. The more jurisdictions a family can access, the more diversified its assets and opportunities and the lower its exposure to country-specific risk and global volatility.
In unpredictable times, geographically diversifying domicile options with investment migration enhances long-term success by securing access to top-quality education and healthcare, for example. It also reduces exposure to risks such as political instability, poor governance, or unexpected policy changes.
Top Residence-by-Investment Options
A person of talent and means need not limit themself to one country. Residence programs, also known as «golden visas», provide affluent families with the option to relocate and the right to live, work, study, and receive healthcare in a different country. The Portugal Golden Residence Permit Program, for example, is in high demand, with a minimum investment of 280,000 Euros and a processing time of three to eight months. Applicants can apply for Portuguese citizenship after five years of residence.
(Portugal is considered as one of the world’s most globalized nations)
Investors seeking a safe haven with top education options are drawn to the New Zealand Investor Resident Visa Program. The Investor 1 and Investor 2 programs allow applicants and their families to live, work, and study in New Zealand. Residence can be obtained by maintaining investments of at least 10 million New Zealand Dollars (Investor 1) or 3 million New Zealand Dollars (Investor 2) in New Zealand for a minimum of three or four years, respectively.
(New Zealand is an attractive destination for investment, business, and families)
Leading Citizenship-by-Investment Options
Citizenship programs provide the privilege of second or alternative citizenship, which in turn gives the right to settle in a new country as well as greater travel freedom. Most program options include the whole family, and many extend to parents, siblings, and grandparents, such as the St. Lucia Citizenship-by-Investment Program, with a minimum contribution of 100,000 U.S. Dollars and a processing time of three to four months.
(St. Lucia lies in the Caribbean Sea, northwest of Barbados and south of Martinique)
For those seeking a Plan B in Europe, the Montenegro Citizenship-by-Investment Program, with a minimum financial requirement of 350,000 Euros and a three-month processing time, is extremely popular.
(Montenegro is known for its magnificent and unparalleled natural beauty)
Invest in an Essential Asset Class
Once «nice-to-have», alternative residence and citizenship are now «must-have» essential assets. In the current context, it is vital to design portfolios that diversify jurisdictional risk in terms of personal mobility as well as financial and real estate investment. Investment migration programs are a vital backup plan that will endure for many generations, providing unparalleled safety, security, stability, and opportunity.
As the industry pioneer, Henley & Partners is best placed to guide you and/or your clients on the various residence and citizenship options.
- Visit henleyglobal.com for more information and to arrange a consultation with one of our specialist client advisors in over 30 offices worldwide.
