Henley & Partners: Entrepreneurs Opt for Domicile Diversification in Covid-19 Era
LONDON, March 9, 2021 /PRNewswire/ -- The significant global volatility driven by Covid-19 has led to a spike in affluent entrepreneurs and international investors building geographically diversified domicile portfolios through residence- and citizenship-by-investment in a bid to overcome the limitations and risks of being restricted to a single residence.
In the past eight months, 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 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. Enquiries from Canadians are up 34%, and there have been 29% and 26% more enquiries from UK and French nationals, respectively.
Dr. Juerg Steffen, CEO of Henley & Partners, says ultra-high-net-worth individuals from the world's most advanced economies are opting for an integrated investment migration portfolio of complementary citizenship and residence options to create optimal value and mitigate risk in terms of where they and their families can live, work, study, and invest. "It's a classic case of not putting all your eggs in one basket. The majority of program options include the whole family, and many extend to parents and even to grandparents and siblings. The more jurisdictions you can access, the more diversified your assets and opportunities, and the lower your exposure to country-specific risks such as poor health security, increased tax rates or unexpected policy changes."
The growing interest in securing a suite of domicile options to improve the resilience of portfolios and ensure physical and financial longevity and legacy in the wake of the pandemic is a world-wide phenomenon, according to Dominic Volek, Group Head of Private Clients at Henley & Partners. "This is about taking a truly global perspective, and the best way to do that is to have a diversified portfolio — a range of locations where you, your family and extended family, and your assets can be based, giving you alternative business, career, educational, healthcare, and lifestyle opportunities on a worldwide scale."
"There are many options that cater for large, multi-generational families who don't necessarily want or need to be in the same location. For example, a successful tech entrepreneur could apply for Australia's Global Talent Independent Visa to obtain permanent residence there. The children have their sights set on studying in Europe or the UK, so they also apply for the UK Investor Immigration Program or the Portugal Golden Residence Permit Program. The retired parents, on the other hand, would prefer to spend time in Thailand, so they could apply for the Thailand Elite Residence Program, which has an option that includes multiple dependents. Covid-19 has reminded us that we need to take a long-term strategic approach, not make a mad dash to the emergency exit when things go wrong in our current place of residence."
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