Many jurisdictions are actively competing to attract high-net-worth individuals (HNWIs) by offering various incentives. This is not surprising given that the world is becoming increasingly interconnected, leading to a growing trend of HNWIs seeking global mobility. HNWIs are individuals with investable assets of USD 1 million or more. This report explores the factors driving this trend, the popular destinations for HNWIs, the types of visas and residency programs available, the benefits and drawbacks of different global mobility options, and the tax and legal considerations.
Global Mobility Trends for High-Net-Worth Individuals
Wealth intelligence firm New World Wealth systematically tracks global wealth migration trends between countries and cities. Their data shows that the number of HNWIs relocating to different countries has significantly increased in recent years. In addition to HNWIs, there are also multi-millionaires (net worth over USD 10 million), ultra-HNWIs (net worth over USD 50 million), and centi-millionaires (individuals with liquid investable wealth of USD 100 million or more). This trend is driven by several factors, including:
- Economic security: HNWIs are seeking stable economies and investment opportunities to protect and grow their wealth.
- Personal safety: Political instability, social unrest, and high crime rates in some countries are pushing HNWIs to seek safer environments for themselves and their families.
- Financial diversification: HNWIs are diversifying their assets and investments across different countries and currencies to mitigate risks.
- Tax optimization: Some HNWIs seek to minimize their tax burden by relocating to jurisdictions with favorable tax regimes.
- Lifestyle preferences: HNWIs are attracted to countries with a high quality of life, better healthcare, education systems, and cultural experiences.
- Global connectivity: Improved transportation and communication technologies have made it easier for HNWIs to maintain connections and manage their businesses across borders.
The COVID-19 pandemic briefly stalled this trend, but it has resumed with renewed vigor. The easing of travel restrictions, global unrest, and economic turbulence are further accelerating the trend. Furthermore, the desire for global mobility has expanded rapidly since the outbreak of the pandemic and now encompasses a wider range of people. For example, 13% of ultra-high-net-worth individuals (UHNWIs) plan to acquire a second identity. The increasing mobility of wealthy individuals is also connected to rising global inequality. Digital transformation is another factor impacting global mobility, enabling remote work and increasing the demand for global mobility programs.
Popular Destinations for High-Net-Worth Individuals
Several countries have emerged as popular destinations for HNWIs seeking global mobility. These include:
- The USA: The USA remains a top choice due to its large economy, vibrant cultural scene, and strong real estate market. Cities like New York, Miami, and Los Angeles are particularly popular.
- Singapore: Singapore attracts HNWIs with its global connectivity, sophisticated banking system, stable political environment, and reputation as a safe and business-friendly environment.
- Canada and Australia: These countries offer a high quality of life, political stability, excellent healthcare and education systems, and attractive immigration programs.
- European countries: Switzerland, Portugal, Greece, and Italy are popular European destinations, offering a combination of lifestyle, cultural attractions, and favorable tax regimes. For example, Spain offers a Golden Visa program that can lead to citizenship and an EU passport.
- The UAE: The UAE has become a favorite due to its competitive tax rates, business opportunities, and the Golden Visa program.
- Israel: Israel attracts HNWIs with its strong economy, innovation, and investment opportunities.
- Uruguay: Uruguay offers a simple residency process, requiring only a declaration of intent to reside and proof of financial independence.
- The Caribbean: The Caribbean region offers attractive real estate-linked investment migration options for centi-millionaires. For example, the Grenada Citizenship by Investment Program allows HNWIs to secure citizenship by investing a minimum of USD 270,000 in government-approved real estate projects.
In addition to long-term relocation, many individuals are seeking "medium-term" solutions, where they may want to spend a few months in a location where they can work remotely and still enjoy the local culture and attractions. The choice of destination ultimately depends on individual needs and preferences, with factors like tax implications, investment opportunities, lifestyle, and family considerations playing a significant role.
