UK Non-Dom Nixed: Who Benefits? - 4 CIPs We Never Discuss - 6 Million Eligible for Portuguese Citizenship by Descent ++
Remember that you can listen to a professionally-read audio version of this newsletter on our Spotify channel.
You can also get this weekly newsletter via email.
Investment Migration This Week
The Greek golden visa program experienced robust demand in January 2024, with 686 applications received—a 5% year-over-year increase; however, processing times have lagged, resulting in a backlog of nearly 30,000 pending applications, primarily concentrated in the Athens region. Anticipation remains high amid impending price increases, with the government considering a two-tier system: €800,000 for major cities like Athens and popular islands and €400,000 for most other areas. Final details on the new rules are expected this month, according to golden visa specialist lawyer Alexander Varnavas, FIMC . Chinese nationals constitute the largest participant group, holding six out of ten valid golden visas, while the program maintains an exceptionally low rejection rate of under 1%.
The UK government is abolishing its centuries-old "non-dom" tax regime that allowed wealthy foreign residents to avoid taxes on overseas income, fulfilling demands to end preferable treatment but prompting fears of an exodus among ultra-high-net-worth individuals. While extending temporary tax breaks and a 4-year grace period for new arrivals' foreign earnings, the overhaul scraps the remittance basis making all residents' global income taxable after 4 years - a move advisors warn will "certainly" motivate outflows of affluent taxpayers. As the UK aligns its policies, rival European jurisdictions like Italy, Malta, Spain, and others are touting their own alluring non-dom regimes and tax incentives to attract these highly mobile, footloose millionaires and billionaires.
The abolition of the UK's "non-dom" tax regime has prompted an estimated 68,000 high-net-worth individuals (HNWIs) to explore alternative residency options; in turn, several Western European nations are positioning themselves to capitalize on this exodus by promoting their own preferential tax schemes catered to affluent foreign residents. Greece offers a €100,000 annual flat tax for investors injecting €500,000 into Greek assets, Italy imposes a €100,000 lump-sum tax on foreign income for up to 15 years, and Switzerland's forfait fiscal regime bases taxation on living expenditures rather than income—exemplifying the lucrative enticements beckoning HNWIs across the continent.
Effective March 7th, 2024, Ireland is mandating visas for Dominica and Vanuatu nationals visiting or transiting through the country, citing a need to align with the UK's recent revocation of visa-free access privileges which cited "abuse" of Dominica's citizenship by investment program. While acknowledging relatively low travel volumes from the two Caribbean nations, the Irish government frames the new visa regime as maintaining "effective immigration control" though officials in Dominica view it as a "punitive measure" potentially restricting mobility for its citizens unfairly.?
In a response to the U.S. sanctioning Tal Dilian - CEO of controversial spyware firm Intellexa - for invasive surveillance activities, Malta has initiated proceedings to strip the Israeli national of the Maltese citizenship he presumably acquired via investment, invoking provisions allowing citizenship revocation for conduct contrary to the public interest within 10 years. The move underscores Malta's willingness to rescind economic citizenship rights when warranted despite screening challenges, aligning with pressures on CBI jurisdictions to proactively root out bad actors as highlighted by the EU's post-Ukraine war call for rescinding sanctioned individuals. Similar revocations due to misconduct have previously taken place in Cyprus and Saint Lucia.
Bangladesh, Pakistan, Samoa, and Seychelles offer little-known citizenship by investment programs that fail to attract significant interest. In some cases, this is due to ambiguous requirements or high investment thresholds, while in others it’s because of lengthy residency periods or the relatively low quality of the citizenships they provide. To become competitive, these programs would need to lower investment requirements, reduce or eliminate residency periods, and target specific markets, such as stateless individuals in Bangladesh's case. Despite the challenges, these obscure CIPs could potentially find their niche in the investment migration market with the right improvements and marketing strategies.
Hong Kong's recently reopened Capital Investment Entrant Scheme (CIES) has received over 100 inquiries and a number of applications on its first day of operations, with a majority of the interest coming from professional service providers. IMI Official Partner company Globevisa was first to submit an application to the new program. To qualify for the new CIES, applicants must meet specific criteria, including making an investment of at least HKD 30 million in Permissible Investment Assets, with detailed allocation requirements.
In an interview with IMI, Turkey CBI specialist Aran Hawker says his biggest business concern right now is war. “More significant geopolitical tensions and impactful conflicts are my main concerns,” he says, adding that “some in the industry see it as an opportunity to push global mobility assets, ignoring the bigger picture and misunderstanding the lingering effects these conflicts can have on the industry.”
An estimated 6 million people worldwide have a claim to Portuguese citizenship through their grandparents, thanks to the country's vast diaspora spanning more than five centuries. Portuguese citizenship is highly valuable, as it grants the right to live and work in any EU or EEA country, provides access to one of the world's most powerful passports, and offers the opportunity to live in a country with a high standard of living. This article explains how to proceed to claim your Portuguese citizenship by descent.?
Investment migration people in the news this week included:
Graph of the Week
Enrolled Agent, Accredited Business Advisor
1 年Portuguese citizenship by descent applications are currently taking over 2 years.