The Benefits of Building an Integrated Investment Migration Portfolio

Create opportunity and mitigate risk in the Covid-19 era by developing a portfolio of complementary citizenship and residence options for you and your family.

In the past eight months, the leading international citizenship and residence advisory firm Henley & Partners has seen a 32% increase in the daily average number of enquiries compared to the first six months of 2020. The shifts in the predominant nationalities of entrepreneurs who are interested in investment migration are eye opening — with the most astonishing being a 192% leap in enquiries from US citizens in 2020 compared to the previous year. Nowhere close to that, but no less remarkable, there was a 34% increase in enquiries from Canadians, a 30% rise in enquiries from Australians, and 29% and 26% more enquiries from UK and French nationals, respectively.

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The program that US citizens and Canadians were most interested in is the Portugal Golden Residence Permit Program, with a great deal of interest also shown in the St. Kitts and Nevis Citizenship-by-Investment Program and Malta’s Individual Investor Program, which has now reached its cap. Australians enquired most about the Turkey Citizenship-by-Investment Program and the Portugal Golden Residence Permit Program. The French were most interested in the St. Kitts and Nevis Citizenship-by-Investment Program, the Singapore Global Investor Program, and the Portugal Golden Residence Permit Program — the program that received the highest number of enquiries from UK citizens, with the Austria Private Residence Program and the Greece Golden Visa Program also attracting a great deal of their attention.

While a single alternative residence or citizenship will always be an asset, investing in a suite of different domiciles worldwide will hedge against manifold levels of volatility, creating an enhanced combination of value and yield. The majority of investment migration program options include the whole family. Many extend to parents and others even to siblings and grandparents, such as the St. Lucia Citizenship-by-Investment Program, which has a minimum contribution requirement of USD 100,000. The Caribbean countries that host citizenship-by-investment options have been particularly innovative during the past year and several have extended their ranges of options.

For investors who prefer their Plan B to be closer to Europe, both the Montenegro Citizenship-by-Investment Program and the Turkey Citizenship-by-Investment Program are extremely popular choices that grant citizenship-by-investment to applicants and their family members. The minimum financial requirement for the Montenegro Citizenship-by-Investment Program is EUR 350,000 and for the Turkey Citizenship-by-Investment Program, the minimum contribution required is USD 250,000. The more jurisdictions you and your family can access, the more diversified your assets and opportunities, and the lower your exposure to country-specific risk and global volatility.

For decades, it has been accepted best practice to invest in different regions and different asset classes, from equities to real estate, to spread the risk and find the greatest value. But what about where you reside? The same principle applies. In an increasingly unpredictable world, you need to diversify your geographical domicile options to guarantee and enhance long-term success by securing access to top quality education and healthcare, for example.

Investors who are seeking islands of safety for their children and parents, with excellent education options, are attracted to the New Zealand Investor Resident Visa Program. The Investor 1 and Investor 2 resident visa programs allow applicants to live, work, and study in New Zealand. Residence can be obtained through investing at least NZD 3 million (Investor 2) or NZD 10 million (Investor 1) and maintaining these investments in New Zealand for a minimum of four and three years, respectively. Applicants may include their spouses and dependent children (up to the age of 24); once applicants have obtained residence, their parents may apply under the Parent Retirement program.

Situated in the Mediterranean Sea, Malta enjoys an excellent reputation for its splendid climate, friendly people, low crime rate, and superb quality of life. In December 2020, Malta announced new Granting of Citizenship for Exceptional Services by Direct Investment Regulations (S.L. 188.05) (the Regulations) that allow for the granting of citizenship by a certificate of naturalization to foreign individuals and their families who contribute to the country’s economic development. This is possible following a 36-month residency period or by exception a 12-month residency period. The minimum investment is EUR 738,000 (or EUR 888,000 by exception) depending on the residence status length (36 or 12 months, respectively) and this newest investment migration offering will no doubt be highly sought after, but investors should be aware that under the Regulations, applications are limited to 400 annually and 1,500 in total. Malta also hosts the Malta Residence and Visa Program with a minimum contribution of EUR 330,000.

Another safe haven well known for its high standard of living, clean environment, low crime rate, and outstanding infrastructure, not to mention affordable, high quality education is Canada. There are several options to become a permanent resident in Canada and each program has different conditions. Under the Quebec Immigrant Investor Program, main applicants must prove a minimum net worth of at least CAD 2 million and commit CAD 1.2 million to a zero-interest Quebec government bond for five years.

You also need to reduce your exposure to risks such as higher crime, increased tax rates, political instability, social turmoil, poor governance, or unexpected policy changes. Entrepreneurs and investors recognize that having a diversified portfolio of residences and/or citizenships can add impetus to their wider wealth planning and legacy management strategies to protect against further downside and to create new value and enhance wellbeing for the entire family.

The mounting interest in securing multiple options for domicile is a world-wide phenomenon. HNW and UHNW investors from emerging and developed economies alike are seeking out alternative business, career, educational, and lifestyle opportunities on a worldwide scale, broadening their option base and transcending the constraints imposed on them by their countries of origin to improve the resilience of their portfolios and ensure physical and financial longevity and legacy.

Affluent investors are realizing the compounded and multi-generational benefits of acquiring several citizenships and/or residences to expand the future potential for their global families. For instance, an Indian UHNW entrepreneur residing in Dubai, with family businesses in Southeast Asia, India, and the Middle East and real estate in Europe, where they wish to acquire residence, at the same time would like their children to be able to live and study in the UK in a few years’ time, so while applying for the UK Investor Immigration Program they also apply for the Portugal Golden Residence Permit Program because after five years as a legal resident of Portugal, where the physical presence requirement is limited, they and their children can be eligible to apply for Portuguese citizenship, which would then provide them with settlement freedom throughout the EU. The UK’s Tier 1 Investor visa requires a substantial financial commitment in the UK of GBP 2 million, whereas the minimum contribution for Portugal is EUR 250,000.

There is also an increase in the number of UHNW investors wanting to include their siblings, parents, and grandparents in their investment migration applications. There are many options that cater for large, multi-generational families, and family members do not necessarily have to reside in the same location. For example, a successful tech entrepreneur could apply for Australia’s Global Talent Independent Visa, or any of Australia’s residence-by-investment options for that matter (the minimum contribution is AUD 1.5 million under the Investor Stream), to obtain permanent residence there. Their children, meanwhile, have their sights set on studying in Europe, so they also apply for the Greece Golden Visa Program, which has no residence requirement and a minimum investment of EUR 250,000 if the real estate option is selected. And since December 2020, minors may apply for a Greek Golden Visa as a main applicant through purchasing real estate or opening a time deposit bank account in Greece, so they might consider that option for their children. Their retired parents, on the other hand, would prefer to live in Thailand, so they also apply for the Thailand Elite Residence Program, which has an option called the Elite Family Excursion that includes dependents, which may include legitimate parents, stepparents, a spouse (including by civil union), children, and stepchildren. This option is for a minimum of two people and each member is issued with a five-year privilege entry visa. The one-time fee of approximately USD 25,000 covers both applicants, with an additional charge of approximately USD 10,000 per dependent.

Before Covid-19, affluent investors chose where to reside based on somewhat predictable factors such as quality of life, access to education, and travel freedom. Now the big drawcards include safety and security, access to first-class healthcare with strong capacity, reliable infrastructure, pandemic preparedness and management, good airlinks, and most importantly — better prospects for their children and grandchildren and a safe and comfortable retirement for their parents and grandparents. Building a varied investment migration portfolio can hedge against ongoing risk and uncertainty and facilitate both wealth portfolio and holistic lifestyle diversification that creates significant new value and positive optionality.

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