Showing posts with label HNWI. Show all posts
Showing posts with label HNWI. Show all posts

23 March 2021

Top investment migration programme options for high net worth individuals

In response to the unprecedented global demand among affluent investors for residence- and citizenship-by-investment programmes as a means of overcoming the limitations and risks of being restricted to a single jurisdiction in the wake of COVID-19, Deep Knowledge Analytics and Henley & Partners have partnered to produce the Investment Migration Programs Health Risk Assessment

Source: Henley & Partners website. Illustration for the Investment Migration Programs Health Risk Assessment.

This digital publication features systematic analysis, interactive tools, and exclusive insights into how efficiently the countries that offer these programmes have performed during the global pandemic and the likelihood of them being oases for longevity in future.

Considering over 4,000 data points and 140 different parameters, the Investment Migration Programs Health Risk Assessment ranks the economic, social, and health stability achieved by 31 countries that host residence- and/or citizenship-by-investment programmes as well as the strengths, weaknesses, opportunities, and threats or risks that they face in the battle against the global health and economic crisis triggered by COVID-19.

Dr Juerg Steffen, CEO of Henley & Partners, said the report is an invaluable resource for those considering investment migration as a means of creating optimal value and mitigating risk in terms of where they live, work, study, and invest. “Understandably, the chaos and disruption that has been experienced worldwide over the past year has seen access to health security become a chief concern, and our high-net-worth clientele is no exception in this regard,” he said.

Dmitry Kaminskiy, Co-founder and Managing Partner of Deep Knowledge Group, agreed and pointed out that as the ‘health as the new wealth’ paradigm gains prominence among the global investment community, along with the notion that health, rather than wealth, is the most valuable asset class, we will see the ascendance of regions that promote both individual and institutional migration and relocation on the basis of prioritising wellbeing rather than capital.

“Within the next decade, we will witness the tax and wealth preservation havens of today transform into the longevity and healthtech havens of tomorrow, with citizens, investors, and companies alike choosing to relocate to longevity-progressive regions,” he said.

While the results reveal that Canada is the top-performing investment migration country out of 31 countries and territories studied in terms of health management and risk readiness. New Zealand is in 2nd position, and Australia narrowly behind in 3rd place. The UAE is in 6th place, ahead of Singapore, which is in 7th place and Hong Kong, which is 8th. Turkey is a joint 11th with Ireland.

Dr Parag Khanna, Founder and Managing Partner of FutureMap, said many countries can learn from the COVID experience and improve their health security while also undertaking other reforms to attract the next wave of investor migrants. “The investment migration programme options in the future may well grow rather than recede. Many countries have cleverly amended their visa policies on the fly during the pandemic, allowing tourists to become classified as nomads, nomads to convert into entrepreneurs, and entrepreneurs into residents.”

Kevin Bürchler, Head of Key Accounts at the Swiss Insurance Partners Medical Family Office, says it is evident that you can no longer rely on access to only one healthcare system, no matter how well developed it might be. “Securing residence through investment migration programmes in countries that rank highly when it comes to their government’s risk management and healthcare readiness is certainly a viable mechanism to improve your access to quality healthcare and therefore enhance your possible longevity,” he said.

Former US Ambassador to the Asian Development Bank and MD of advisory firm RiverPeak Group Curtis S. Chin said, “It is little wonder that entrepreneurs and investors looking to diversify their domiciles have also looked to this most dynamic region of the world. In the short term, borders are largely likely to remain closed, and governments are moving forward with vaccination programmes at a slow pace. But the long-term economic opportunity and quality of life of numerous Asia-Pacific nations remain key draws.”

The UAE has the highest emergency preparedness score of all 31 countries. Turkey was bolstered by its impressive government efficiency score - the second highest of all the citizenship-by-investment countries.

Regional tensions in the Middle East have been easing in the first few months of 2021, with governments moving towards cautious cooperation. Dr Robert Mogielnicki, a Resident Scholar at the Arab Gulf States Institute in Washington, said, “Rather than engaging in direct and costly disputes, governments with available resources are jockeying for regional influence in the COVID era. In the UAE, governments at the federal and emirate levels have rolled out several long-term visa schemes and a legal pathway to citizenship in an effort to retain and attract the talented expatriates needed for robust economic growth.”

Kaminsky said, “We can expect to see a ‘new normal’ of small, technocratic nations that selectively promote both personal and institutional citizenship to individuals, companies, and investors committed to advancing longevity-related technologies in exchange for access to some of the world’s most sophisticated and progressive healthcare, life insurance, medtech, healthtech, longevity fintech, agetech, and wealthtech ecosystems.”

Dr Steffen concluded, “Participating in a residence- and citizenship-by-investment programmes can be seen as an investment in physical and financial longevity — one that can provide a safe passage to health security in an alternative location should the need arise. By investing in a suite of programmes, investors and their families are also automatically endowed with an extended range of options for themselves and their families, including healthcare.”

19 April 2019

Dubai attracted over 1,000 millionaire residents in 2018

- Hamdan bin Mohammed: "The leadership’s clear vision for the future has transformed the UAE into a leading global lifestyle and business destination”

- More than 1,000 millionaires chose to move to Dubai in 2018

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai said that the UAE has been able to create a robust investment and economic environment due to the clear vision of the country’s leaders. Their keenness to ensure high levels of happiness for residents, visitors and investors, and create a supportive environment for ideas and innovation, have helped make the UAE a leading lifestyle and business destination.

HH Sheikh Mohammed bin Rashid Al Maktoum, VP and PM of the UAE and Ruler of Dubai seeks to make Dubai and the UAE a land of opportunity for talent and a magnet for investments that can benefit not only the region but all of humanity, Sheikh Hamdan added.

Sheikh Hamdan’s comments came on the back of a new report that shows Dubai was a major beneficiary of changing global wealth trends in 2018. The Global Wealth Migration Report for 2019, developed by AfrAsia Bank and New World Wealth, says that Dubai attracted more than 1,000 millionaires from outside the country, surpassing major cities like Los Angeles (US), Melbourne (Australia), Miami (US), New York (US), San Francisco (US) and Sydney (Australia).

The report described Dubai as the most prominent financial centre in the Middle East, and one of the safest cities in the region as well as a popular destination for high-net worth individuals (HNWIs) and wealthy expatriates. It also said that Dubai is an example of the power that business incentives have in encouraging business formation.  

Approximately 2,000 HNWIs, each with at least US$1 million worth of net assets, moved into the UAE in 2018, boosting the local economy. The number of affluent migrants in the UAE rose 2% in 2018 compared to the previous year, according to the report.

The 2019 Global Wealth Migration Report said that global wealth migration saw an acceleration in 2018. Approximately 108,000 millionaires (HNWIs) migrated in 2018, compared to 95,000 in 2017. China saw a mass exodus of 15,000 millionaires in 2018, the most significant of any country in the world. India saw an exodus of about 7,000 millionaires, while Turkey saw 4,000.

The report also found that HNWIs migrate because they are looking for security and safety, modern lifestyle, high standards of living, better educational opportunities and healthcare. Driven by its success as a focal point for global trade, and as an important transportation hub, Dubai offers many advantages that make it a haven for the world's wealthy.

Based on an ethos of peaceful coexistence and tolerance, the UAE is home to people of over 200 nationalities. Its strong legislative framework provides high levels of safety and security while its infrastructure incudes high-quality tourism facilities, service levels and entertainment offerings. Dubai has built a global reputation as a city with a highly developed infrastructure, and attracts millionaires due to business incentives, robust foreign trade and international connectivity.

3 April 2017

Henley & Partners appointed global concessionaire for Thai residency programme

From left: Sunchai Kooakachai, Deputy MD, Colliers International, Pruet Boobphakam, Thailand Elite's President, Dominic Volek, Henley & Partners, Managing Partner and Head, Southeast Asia, Kobkarn Wattanavrangkul, Minister of Tourism and Sports of Thailand, and Kylie Luo, BDO Tax Advisory Executive Director.
From left: Sunchai Kooakachai, Deputy MD, Colliers International, Pruet Boobphakam, Thailand Elite's President, Dominic Volek, Henley & Partners, Managing Partner and Head, Southeast Asia, Kobkarn Wattanavrangkul, Minister of Tourism and Sports of Thailand, and Kylie Luo, BDO Tax Advisory Executive Director.

Henley & Partners, an international residence and citizenship advisory firm, has been appointed the global concessionaire to promote Thailand’s residence visa programme, Thailand Elite, which gives foreigners the right to live in the country for up to 20 years.

The Land of Smiles, as it is often referred to because of the friendly disposition of its citizens, has become one of the most sought-after destinations in Southeast Asia. An increasing number of wealthy families and retired individuals in Europe, the US, Japan and other developed nations are moving to Thailand because of its temperate climate, spectacular landscape and outstanding leisure facilities.

Thailand is also the best country to start a business, according to the 2017 Best Countries report*, which ranked 80 countries based on attributes such as affordability, bureaucracy, manufacturing costs, connectivity to the rest of the world and ease of access to capital.

Over the last four decades, Thailand has become an upper-income country. It has been widely cited as a development success story, with sustained strong growth and impressive poverty reduction. Besides being rich in agriculture, its industrial production facilities are global leaders in automobiles, electronics, healthcare and jewellery.

Initiated by the Royal Thai government, Thailand Elite is the first programme of its kind worldwide, to attract wealthy global citizens, families, investors and entrepreneurs who want to spend extended periods of time in the country and take advantage of its beneficial tax regime and affordable yet  high standard of living.

Wealthy individuals around the world are migrating or acquiring citizenship of other countries, in increasing numbers. The New World Wealth report* shows that global wealth is expected to rise by 35% over the next decade and approximately 82,000 high net worth individuals (HNWIs) migrated in 2016, compared to just 64,000 in 2015.  This trend is accelerating against a background of strong growth in global wealth and international mobility, says Henley & Partners.

Reasons why people migrate include a better quality of life, security, taxation, or skills acquisition.
Reasons why people migrate include a better quality of life, security, taxation, or skills acquisition.

Reasons behind migration vary. Apart from financial considerations such as better business opportunities and a favourable tax and regulatory environment, lifestyle factors such as warmer climate, higher quality of life, safer physical environment and better education for children are also high on the list of motivations**.  

Dominic Volek, Head of Southeast Asia at Henley & Partners, says: “The concept of global citizenship is gaining traction as a beneficial second or third residence or citizenship gives wealthy individuals more control, personal freedom, privacy and security, especially in today’s changing and uncertain world.  

“In response to these migration trends, governments are rolling out residence and citizenship programs as a way of driving economic growth, securing much-needed foreign investment as well as attracting people who have proven business success, talents and networks,” Volek explains.

To obtain the Thailand residence visa, foreigners must be a member of Thailand Elite, an exclusive programme offered by Thailand Privilege Card Company (TPC), a wholly-owned subsidiary of the Tourism Authority of Thailand. The programme provides a multiple entry visa and allows holders to stay in the country for an unlimited period of time subject to the validity of the programme option chosen.

The normal one-year stay extension can be made every year without the usual need to cross the border. The application process is very efficient — it takes less than one month to get visa issuance and collection at designated airports — and there are seven different programme options available to meet different family and individual needs.

Volek concludes: “International residence and citizenship planning has become an important focus for mobile entrepreneurs, wealthy individuals and their families who are interested in a more global lifestyle and broadening their opportunities. We are confident that we can help make a significant difference to Thailand’s economy by promoting this world-leading residence programme to those wanting to establish Thailand as their second home for part of the year or even move there permanently.”

Why Thailand and why now? One strong reason is a growing economy, with tourism arrivals of over 32 million last year accounting for 12% increase in tourism revenues, said Kobkarn Wattanavrangkul, Minister of Tourism and Sports of Thailand. "With tourism comes trading and investment," she said in an opening address.

"We offer a good life," she said, noting that Thailand is a medical and wellness hub, a sports hub, a food hub, a shopping hub, and international education hub, and is working on improving port facilities to bolster its positioning as a hub for marine activities.

"'Born to eat', that is the motto of people in Thailand. Nine of Asia's 50 Best restaurants are in Thailand," she said. "We are a global city with a local heart, and once we become friends, we become friends forever."

In a panel session Minister Wattanavrangkul further shared that some 150,000 non-Thais are living in Thailand on long-stay or working visas. "We see many enquiries and many comments from them about being able to stay (for longer)," she said. "This programme will help to support what Thailand would like to be."

"We're promoting Thailand as the regional office for many sports; there are runs and marathons every two weeks, and you can find major sports events in Thailand," she said. "We have Thanyapura Health and Sports Resort which has been authorised for Olympics athlete development programmes. It is fully booked for the next one or two years.

Sunchai Kooakachai, Deputy MD, Colliers International, said that there are two drivers to investment, infrastructure, and to capitalise on the 32 million-plus visitors a year. He added that properties in Thailand are typically 30% cheaper than equivalents in Singapore. "Bangkok and Phuket are still the main destinations, and then Chiang Mai," he said. "Pattaya also sees strong demand from foreign investors."

Kylie Luo, BDO Tax Advisory Executive Director, added that the top tax rate may be 35% but the tax regime is both straightforward and friendly. "What the person needs to look at is their home country tax status," she said. "(You are taxed) only when you receive income. If you don't bring it into Thailand in the year it is derived, in this case it would not be taxable in Thailand."

Pruet Boobphakam, Thailand Elite's President, said that most of the HNWIs in the programme are from the UK, US, China, France, Japan and Australia.

Wattanavrangkul lists the attractions of Thailand.
Wattanavrangkul lists the attractions of Thailand.
We have everything," summarised Wattanavrangkul, listing six-star hotels, jungles, and quiet places to relax as some of the different environments that Thailand offers."It is not just sightseeing. This is a place where you can retire with investment."

Interested?

The following are the most popular options:  

 Elite Ultimate Privilege — 20-year residence visa with complimentary VIP services for applicants over the age of 20 years, who pay a one-off fee of approximately US$60,000, plus an annual fee of approximately US$600

 Elite Privilege Access — designed for family applications and provides a 10-year residence visa, with complimentary VIP services. The one-off fee is approximately US$30,000 for the main applicant and approximately US$22,500 for each dependent with no annual fee or age restriction

 Elite Easy Access — a popular option with a five-year residence visa for expats or business people wishing to enter and exit Thailand regularly. The one-off fee for this package is approximately US$15,000, with no annual fee or age restriction

*The 2017 Global Wealth Review (GWR): Worldwide Wealth and Wealth Migration Trends   

**The Rise of the Global Citizen? – Barclay’s Wealth Insights 

***The 2017 Best Countries report by US News & World Report, Y&R’s BAV Consulting and the Wharton School of the University of Pennsylvania 

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