In a highly unstable global landscape, investment migration is on the rise. Political instability has always been a key push factor, and this has been amplified recently by the pandemic, rapid climate change, and escalating geopolitical tensions. This year, a sense of unease has been mounting in Israel, with frequent demonstrations against proposed plans to overhaul the judiciary.
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As a result of rising uncertainty, having the option to live or do business in a country of their preference has become a top priority for investors who feel a pressing need to improve safety and security for their families, escape oppressive or corrupt regimes, access premium education and world-class healthcare, and enjoy more favorable tax environments.
In increasing numbers, they are considering investment migration solutions that offer them and their families the flexibility to move between two or more countries by enabling them to acquire residence rights or citizenship in exchange for a significant contribution to the host nation. This ‘location fluidity’ allows them to have greater control over their assets and protect their families and their wealth. One of the many advantages of investment migration is enhanced access to world-class education. Children are our most precious assets and providing them with the opportunity to attend the ‘best of the best’ international schools and universities is one of the most valuable investments parents can make.
Investors diversify their domiciles to mitigate risk
The more jurisdictions families can access, the more diversified their assets and opportunities, and the lower their exposure to country-specific risk and global volatility will be. In the current environment, residence and citizenship by investment programs create significant value for investors seeking alternative domicile options and provide a channel for building a migration portfolio of multiple complementary residence and citizenship options to hedge against all forms of volatility and take advantage of new opportunities.
Once niche, citizenship planning and investment migration are now an increasingly core component of wealth management strategies around the world. Many investment migration programs include the option to invest in real estate in return for residence or citizenship. Investors acquire a sizeable asset with the potential to increase in value as well as the ability to live in a new country and move around more freely — something that can be extremely valuable in times of turbulence.
Millionaires on the move again
There was a steady growth trajectory in millionaire migration until 2020, but the Henley Private Wealth Migration Dashboard revealed that high-net-worth individuals are back on the move. 2023 is predicted to be a boom year, with the highest number of migrating millionaires on record — 125,000. Last year, Israel was one of the top 10 countries in terms of net outflows, with 2,500 more millionaires leaving the country than immigrating.
There has also been a marked increase in interest in investment migration products in Israel in recent months. Henley & Partners saw enquiries from Israeli citizens shoot up by 180% between Q4 2022 and Q1 2023. Enquiries by Israeli investors were an astonishing 1,013% higher in Q1 2023 than in Q1 2022.
The allure of Europe prevails, with Portugal topping the list
All top five programs Israeli investors are enquiring about in 2023 are in Europe. Portugal’s Golden Residence Permit Program is the most popular, followed by Greece’s Golden Visa Program, Austria Citizenship by Investment, and Malta’s Citizenship by Naturalisation for Exceptional Services by Direct Investment Regulations, which allow for the granting of citizenship by a certificate of naturalization to foreign individuals and their families who contribute to the country’s economic development, as well as the Malta Permanent Residence Programme.
For those on a quest for a cosmopolitan lifestyle in an affordable EU member state, Portugal presents an attractive option, with its flexible Golden Residence Permit Program and favorable non-habitual-resident tax scheme. Golden Residence Permit holders who choose to relocate to Portugal can obtain a 10-year tax exemption on most foreign-sourced income as well as benefiting from zero wealth taxes and exemptions on gifts to their families. For the real estate option, the minimum investment is EUR 280,000, and one of the biggest drawcards is that after just five years of legal residence they may apply for Portuguese citizenship.
Greece’s coveted golden visa
Greece’s Golden Visa Program requires a minimum real estate investment of EUR 250,000 to be eligible for a renewable five-year residence permit. Drawn to its Mediterranean lifestyle, those who opt to relocate to Greece under the program also benefit from numerous tax incentives. Effective 1 August 2023, the real estate investment will double to USD 500,000 in certain parts of Greece, so now is the perfect time to acquire Greek residence by investing in an alternative home in Europe. After seven years of legal residence (with no requirement to reside in Greece), investors can apply for citizenship.
The time to invest is now
We live in an era of increasing complexity and fragility, but opportunity always beckons. There are many compelling investment migration safety nets for high-net-worth individuals beyond their home countries, and there is no time like the present for investors to diversify their residence and/or citizenship options. With global and regional trends poised for volatility for some time to come, a responsible and forward-looking approach to the future will see the highest yields.
To find out more about these or any other investment migration programs, or our education services, please contact Dan Marconi, Head of the Tel Aviv office at Henley & Partners. As the pioneering firm and global leader in residence and citizenship by investment, we are best placed to successfully serve international clients and partners interested in acquiring alternative residence and citizenship options.