What We Think
April 28, 2022
The Effect of Global Crises on Investment Migration
Recent worldwide events have had an impact on most industries, including Investment Migration. The investment migration industry will keep having to change and adapt to the demands brought as a result. Brexit, Covid-19 and the recent ongoing Russia-Ukraine war between have had an impact on the demand and eligibility for residency and citizenship programmes, and the ways in which applications are submitted.
Unlike other sectors it seems that Investment Migration benefits from crisis, but why is this? According to the Investment Migration Executive 2021 survey of RCBI clients, 67% of the respondents chose the ‘need for mobility and the ability to travel freely’ as the main reason for obtaining citizenship or residence by investment. It is likely that recent events and crisis’s made individuals re-evaluate their priorities, leading them to seek access to countries which would provide a safer life for themselves and their families, this includes countries with a stronger health care system following the pandemic.
The most popular residence by investment programme in 2020 was that of Portugal’s Golden visa. With the Schengen zone being closed for most of 2020 high-net worth individuals realized the importance and value of having a European residence card. The freedom of movement is taken for granted until that freedom is taken away and the pandemic put a spotlight on the perks of having a 2nd residence.
The recurring extensions of the lockdown currently occurring in Shanghai, China and various restrictions imposed on Shanghai residents without advance warning is leaving them frustrated, concerned and uncertain on whether their lives will ever return to normal . This has spurred an increase in enquiries for obtaining a second residency or citizenship. In this specific case, the requests are leaning towards the increase of physical relocation and the relocation of applicants’ assets to RCBI countries.
The motivation for ultra-HNWI to secure alternative residence or citizenship is becoming more personal, with applicants looking to diversify not only their options for investments sake but to improve their lifestyles. For years to come, diversification of residency and citizenship through investment migration will be a robust and sustainable solution for ever changing social, political and economic circumstances.
Malta continues to provides a number of solutions to clients seeking relocation in terms of residence, tax residence and also citizenship. Get in touch with our team should you wish to organise a call to understand how we can assist.
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