Offshore
Politics, Covid And Climate Drive "Golden Visa" Market – Report

While it made a reference to conflict in Europe as a driver of some visa applications, the firm did not refer to Russia's invasion of Ukraine. The report examined trends in the "golden visa" business during 2021.
In 2021, people from the UK, the US and India were keenest to
take advantage of citizenship/residency-by-investment programmes,
sometimes dubbed “golden visas,” according to a firm
specialising in the space. Fears about tax hikes, a desire for
more options post-Brexit and political uncertainties helped fuel
the rise.
Henley &
Partners, one of the largest businesses advising people about
such visas, said in its inaugural Global Citizens
Report that Indian nationals topped the charts for
enquiries received by the firm in 2021, rising by 54 per cent
2020. US citizens were next in line, with the business saying
that it received 26 per cent more enquiries in 2021 after a
red-hot growth rate of 208 per cent in 2020. Enquiries by UK
individuals and South Africans shot up by 110 per cent and 38 per
cent respectively in 2021.
The report was conducted before Russia’s invasion of Ukraine, an
event that has prompted countries such as the UK to
close HNW investor visa programmes and slap sanctions on
oligarchs and those with links to Vladimir Putin’s regime.
Russians have accounted for a sizeable chunk of applicants for UK
Tier 1 investor visas in recent years, for example. (This news
service spoke to the firm about the matter; it may update on how
the Ukraine drama is affecting the sector in due course.)
The Henley & Partners report said two “big Cs” have driven
investment migration – Covid-19 and climate change. It noted that
conflict in Europe has added a third element more
recently.
“It’s no coincidence that each of the W10 [10 wealthiest]
countries have legislation in place granting residence
rights to foreign investors – and five host formal
investment migration programmes. These countries are important
investment migration markets in terms of both supply, thanks to
their attractive and successful programmes, and demand, due to
their significant and growing populations of affluent investors,”
Dominic Volek, group head of private clients at Henley &
Partners, said.
“The rest of the nationalities in our Top 10 for enquiries in
2021 all came from the global south apart from Canada, in ninth
spot, which saw remarkable growth of 86 per cent. In 2022, we are
seeing very similar trends, with early signs of exceeding last
year’s stellar overall growth,” Volek continued.
The market remains controversial. At times, it has been attacked
for encouraging flows of illicit funds as well as being largely a
toy for rich people to avoid paying their alleged fair share of
tax. Defenders say that they give entrepreneurs and business
owners security against having their assets confiscated by
rapacious governments – as has happened in the past – and that
income/wealth generated in their home countries is taxed anyway.
The business of advising people on such programmes has become a
significant part of the wealth management space in its own right.
Geopolitics
The report said the northern hemisphere has become “increasingly
unpredictable” over the past two years, helping feed demand for
such programmes.
The UK’s exit from the European Union has fuelled some growth of
this market, according to Stuart Wakeling, head of its London
office.
“UK nationals still top the charts when it comes to the number of
enquiries in Europe, with Henley & Partners seeing a 110 per cent
increase on 2020’s figures. The vast majority relate to what
options Brits now have in terms of alternative residence or
additional citizenship in the wake of the UK’s exit from the EU.
The biggest growth in Europe, however, comes from Turkey, with a
148 per cent increase in interest, which is why we opened a new
office in Istanbul last year.”
In Dubai, Henley’s office head, Philippe Amarante, said there has
been a growth in demand for visas because of the
pandemic.
“This applies both to inbound programmes such as UAE’s golden
visa options and outbound in the form of investors securing
second or third homes via investment migration-linked real
estate. Particular countries of interest in this regard are
Greece, Portugal, and Spain. With the outlook for 2022 and
related risks and uncertainty on a geopolitical level, the need
for additional residence and citizenship options, and the
recognition that they are indispensable assets to maintain
optionality and access rights, is now widely accepted,” he
said.
Asia and Oceania
In Asia, Nirbhay Handa, group head of business development at the
firm, and head of its global South Asia team, said migration is
rising in Asia.
“A growing number of ultra-high and high net worth investors
focused on futureproofing themselves and their families are
increasingly seeking out alternative residence and citizenship
options,” he said. The firm logged a 52 per cent increase in
client enquiries in 2021 compared with 2020 across South
Asia.
However, the story in East Asia is radically different, because
the pandemic and hardline measures to contain it have reduced
enquiries.
Tough measures in Australia and New Zealand have affected
the “Oceania” market.
“From the mass exodus of expatriates to the severely restricted
mobility of locals, Henley & Partners saw an extraordinary
increase in enquiries as a result,” Scott Moore, head of the
Indonesia and Philippines offices, said.