Industry Insights – Investment Migration

In a recent discussion with Rohit, Country Head – India at Henley & Partners, he shared interesting insights into the world of Investment Migration and what he perceives regarding the latest trends in investment migration among high-net-worth families (HNIs) and successful entrepreneurs worldwide.

A Quick Introduction to Investment Migration –

Investment migration, also known as citizenship or residency by investment, allows individuals to obtain citizenship or residency rights in another country by investing in its economy. This typically involves purchasing real estate, making a financial investment, or creating jobs in the host country. The primary motivation behind investment migration is to gain greater freedom of movement, access to better healthcare and education systems, or establish a foothold in a politically stable environment.

Snippets of discussion

Q1: Could you share the critical global mobility trends witnessed this year?

A1: The trends we are seeing in terms of recent global mobility, be it the ongoing Ukraine-Russia crisis, impending climate change scenario, or Middle East crisis, indicate that more and more people are thinking of relocating to more secure places that offer a better quality of life.

Q2: Has the concept of Investment Migration become more popular in the last few years?

A2: Yes, significantly. In this era of uncertainty, having the right to reside in another country or having another citizenship, with access to different lifestyles, health care benefits, and second home opportunities, is becoming an ultimate asset, and people are realizing the importance of domicile diversification. (Domicile diversification refers to spreading investments across different geographic regions or countries to reduce risk.)

Q3. How has the investment migration landscape changed in India?

A3. Awareness about residence-by-investment and citizenship-by-investment opportunities globally has increased two-fold. Now, the trend we are seeing is that the type of inquiries has also become specific, i.e., immediate relocation or Plan B options.

Let me share an example. Post 2020, in India, the majority of the inquiries at our firm are geared towards Residence-by-Investment programs in Portugal, Greece, Malta Residence programs, and also Spain, RBI, and Italy Investor visas. This trend is due to the increased awareness about the flexibility and the features that these European Residence programs offer to the applicant and their families including minimal or even zero stay requirements. We are seeing a significant uptick since last 2-3 years as Indian families are getting accustomed to having second home opportunities and having one leg outside of India to fulfill their family or business objectives.

Q4: Do you see climate change as one of the factors that global families consider while evaluating the Investment Migration options?

A4: Climate change is now becoming an essential topic of discussion among developed and developing nations and the private sector. The impact of climate change on future migration and global mobility has become increasingly important and evident in recent years.

Q5. What are the key triggers for Indian families to consider investment migration programs?

A5. The three key reasons, in my opinion, are -

1)?Children’s Higher Education: The pandemic situation in 2020 and 2021 has made many Indian families realize the importance of having a backup plan or an insurance policy by opting for a residence-by-investment or a citizenship-by-investment option for their children's future.

2)?Global mobility: For many Indian families, global mobility has always been paramount, as they need to travel for business, pleasure, or other reasons, except, of course, the pandemic situation in 2020 & 2021 when the travel bans were strictly enforced.

3)?Wealth Preservation Factor: India continues to be an excellent place for wealth creation. Indian HNIs are realizing the opportunity that Investment Migration allows them to diversify their wealth or real estate portfolios by investing abroad, while at the same time considering the wealth preservation factors, including estate planning needs.

Q6: What are the most enquired destinations from Indian families?

A6: Indian families are increasingly embracing the concept of second home opportunities as a 'Plan B,' with one-foot outside India to pursue their family or business goals. We have seen a surge in inquiries about European Residence-by-Investment programs in Portugal, Greece, Spain, and Malta in the last two years.

The US, UK, Australia, and Canada have historically been popular among Indian families. We get business migration and specific immigration inquiries on these countries from business owners, entrepreneurs, and startup founders, as these are considered 'complete relocation' opportunities.

Q7. Is the US EB5 Program still popular amongst Indian families?

A7. US EB5 is a permanent residence program that has been traditionally very popular among Indian families for many years as a full relocation migration opportunity. The demand for the US EB5 program remains strong, with the most important underlying motivator being Indian parents' desire for their children to pursue higher education at US Ivy League Universities and secure a future without encountering visa complexities after graduation in the US.

Q8. Could you highlight any other key emerging trends in the migration landscape?

A8. Yes. We are also seeing the emergence of skill-based migration programs known as Global Talent Visas, especially in Australia and the UK. These visas are aimed at high-caliber individuals from the digital technology sector. They have become popular among successful CXOs, digital entrepreneurs, and technology professionals who can demonstrate vast experience in their qualifying industry domain.

These are not sponsored or work permit-driven; the successful applicant has full rights to live, work, study, and include their family without much Investment. Since the bar is high, the process involves a strict assessment, eligibility, and evaluation criteria.

In conclusion, the increasing awareness and interest in investment migration among Indian families reflect a growing desire for security, opportunity, and flexibility. As global mobility trends evolve and challenges like climate change loom large, having a 'Plan B' outside of India continues to gain traction. This offers families avenues to safeguard their future and confidently pursue their aspirations.

Disclaimer from Renous

The opinions expressed in this article are those of the guest author and do not necessarily reflect the views of our publication. The information provided in this article is for general informational purposes only, and should not be considered as professional advice. The reader should always conduct their own research and due diligence before taking any action based on the information provided in this article.