GLOBAL WEALTH, GLOBAL MIGRATION AND GOLDEN VISAS
The increased interest and demand for investment diversification and better volatility management has sparked interests for the Golden Visas programs from investors, especially those who suffered major setbacks during the 2007- 2008 financial crisis. The “Golden Visa” requires investment of a significant sum of money into an issuing country against a permanent residence permit or citizenship of that particular country. Key drivers for the Golden Visas programs are the offering countries’ economy, their taxation policies, the quality of life, quality and relatively low cost of health care, the safety and security factor, the rule of law and the countries openness towards multicultural diversity. Golden visas further allow investors to have better control over their investments. A Golden Visa from an EU state is particularly desirable as it entails freedom of movement throughout the entire Schengen Zone. If the Golden Visa eventually leads to EU citizenship, the holder can travel visa-free travel to over a hundred countries in the world, depending on the rank of the issuing State on the passport index.
Global wealth has increased by some 26% in the past 10 years, from $161trn in 2008 to $204trn in 2018.and is further expected to rise by 43% over the next decade, reaching $291 trillion by 2028. The UHNW population of the Asia Pacific region currently stands at 23,000 holding total wealth of $2.6 trillion. The number of bilionaires in China is increasing on a weekly basis and China currently has more than a 100 million individuals in the top 10% of global wealth distribution world-wide. Australia has in recent years surpassed Canada and France to become the seventh largest wealth market in the world. Thailand, China and India have witnessed spectacular growth of 182 %, 105% and 86% in their respective number of billionaires whilst Germany is now home to over 16,000 UHNWI, ranking third in the number of billionaires’ population, behind the U.S and China. Vietnam is projected to have a growth rate of 200% within the coming decade. Total wealth held in Africa has risen by 14% over between 2008 and 2018.
The UHNWI of today have become “global citizens”; 43% of them have lived in at least two countries and 20% in at least three or more countries. This is a growing trend with the millennials, HNW and UHNW and it is expected to further increase substantially over the next five years. Seizing this opportunity, many countries are offering to the wealthy the opportunity to become residents or citizens via Golden visas programmes, with a view to attract direct foreign investment into their economy.