Investment Migration Council

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  • Reimagining Investment Migration: Redefining Narratives and Remodelling Pathways

    Reimagining Investment Migration: Redefining Narratives and Remodelling Pathways

    Investment migration has been put on the fast-track for reinvention, propelled in no small part by the increased pressure of international bodies to reform many of its practices. Bruno L’ecuyer, CEO & Co-Founder of the Investment Migration Council

    In 2023, investment migration found itself at a crossroads, teetering on the precipice of profound transformation. Last year, the traditional practices of investment migration faced unprecedented scrutiny and pressure from international organisations. The European Union, which has long been a vocal critic, repeatedly called on its member states to abandon investment migration pathways, even wielding the threat of revoking visa-free travel for third countries. Elsewhere, the OECD and the Financial Action Task Force (FATF) argued that investment migration is prone to corruption and misuse if it is not properly managed.

    As the year unfolded, many wondered if this marked the end of investment migration as we knew it. Change came swift and at times, bewildering, with policy announcements oscillating between implementation and reversal. However, beneath the tumultuous surface, 2023 emerged as a pivotal year, prompting a critical re-evaluation of long-established norms in the thrilling world of investment migration.

    A Look Back

    For context, policy changes are somewhat inherent to investment migration. Throughout the years, various pathways opened, closed, and some even reopened. Investment migration traces its roots to St. Kitts and Nevis in the Caribbean, where the first modern citizenship-by-investment pathway was introduced in 1984 as a tool for economic advancement. The Republic of Ireland followed four years later, establishing a naturalisation programme, which was terminated the following decade.

    The introduction of residence-by- investment started in 1986, when Canada introduced its Federal Immigrant Investor Programme, followed by the US’ EB-5 visa in 1990. However, residence by investment became extremely popular after Portugal introduced its residency pathway in 2012. Five years later, nearly half of all EU member states offered similar routes to residency. Today, investment migration is featured in immigration law in most UN recognised countries, albeit in different forms and shapes.

    2023 Policy Changes

    However, there’s no denying that we have seen some important shifts and changes in 2023. The year was marked by the ever- evolving narrative that the days of investment migration as it was long known are counted. The United States called for reform from Caribbean nations, while the European Union urged its member states to phase out existing pathways and even threatened to revoke visa-free travel for countries providing citizenship through investment.

    Malta now stands out as the sole EU country offering a direct path to citizenship in exchange for qualifying investment, but it’s under EU pressure, leading to uncertainty about its future.

    Ireland closed its residency pathway in 2023, and the Netherlands announced the discontinuation of its residence permit for foreign investors starting from 2024. Portugal initially proposed ending its residency pathway in February last year but later reversed its decision, opting to eliminate the real estate option instead.

    Interestingly, the likelihood that residence pathways would become obsolete sparked a surge in applications. Spain and Italy, among other countries, witnessed unprecedented levels of applications, a trend largely attributed by many service providers to the Fear of Missing Out (FOMO).

    Simultaneously, new residency pathways have emerged. Namibia has stepped into the residency arena, offering investors the opportunity to live, conduct business, and study in the African nation in exchange for a minimum real estate investment of $316,000 USD. Meanwhile, the UK has introduced the Innovator Founder visa, and Canada has reopened the Quebec investor programme. In addition, Hong Kong is poised for a revival in investment-based immigration after a hiatus since 2015.

    Too Big to Fail?

    Some analysts describe investment migration as too big to fail. It is estimated to generate approximately €20 billion annually. In certain microstates and island economies, revenue from foreign investment and government gains through investment migration accounts for a substantial 10% to 40% of GDP. These injections of revenue play a crucial role, frequently offsetting deficiencies experienced in other economic sectors. Globally, investment migration has acted as a catalyst for substantial infrastructural enhancements, spanning resorts, harbours, airports, hospitals, office spaces, luxury residential developments, and even entire airlines. International bodies like the IMF, OECD, and FATF have acknowledged this economic impact.

    Over the years, investment migration has had its fair share of scandals, mishaps, and controversies, which have made it a controversial topic. As early as 2018, Transparency International urged governments to implement robust governance and oversight mechanisms in their pathways. Since then, the sector has seen notable progress.

    Caribbean Reform

    In numerous nations, we observed the adoption of stricter regulations, enhanced transparency, and the establishment of a more rigorous due diligence procedure. These measures have notably bolstered the credibility of investment migration, mitigating the risks associated with money laundering and illicit activities. This shift aims to ensure that only genuine investors are eligible for residency and citizenship. For instance, the Caribbean’s investor citizenship routes have long faced scrutiny due to lax due diligence and transparency. However, in 2023, most Caribbean nations have taken proactive measures. These initiatives involved the restructuring of government units and a comprehensive overhaul of due diligence processes, aiming to significantly enhance transparency and credibility.

    Corruption and Misuse

    Undoubtedly, this evolution wasn’t solely driven by voluntary decisions within nations; external pressure played a pivotal role, particularly when the visa-free travel privileges to the EU and UK were jeopardised. Moreover, in November, the FATF and the OECD unveiled findings from a joint report investigating the threats of money laundering and financial crimes associated with citizenship and residency by investment. The report argues that if appropriately managed, investment migration holds potential benefits for both host nations and individuals in theory. Yet, the practical implementation of such initiatives harbours substantial risks, encompassing money laundering, fraud, and various forms of misuse.

    The report also provides a long list of recommendations to aid decision- makers and administrators in mitigating these risks. The IMC, along with other professionals, commended the report, highlighting that any measures leading to more robust standards are beneficial. However, several professionals in the investment migration sphere emphasised significant shortcomings. They underscored how certain recommendations mirror existing practices while simultaneously condemning the report for oversimplifying and generalising.

    A Focus on Emerging Markets

    Meanwhile, new investment migration pathways are emerging in rapidly developing economies. Countries like Egypt, UAE, Jordan, Qatar, Bahrain, and Saudi Arabia have initiated pathways aimed at attracting foreign investment. These avenues have effectively engaged Middle Eastern investors, especially from nations like Saudi Arabia, Kuwait, and the UAE. With investment migration becoming more accessible and economic conditions in many countries growing more challenging, there’s anticipation that these options might attract interest from a broader demographic beyond just millionaires. Furthermore, there’s a growing demand for similar pathways in Latin America and Africa.

    While expectations abound for the emergence of more pathways, there’s also an anticipation of increased scrutiny. Crucial factors like compliance, trust in the process, and stringent regulation will significantly determine the sustainability and success of these initiatives. Additionally, concerns regarding democracy, governance, and how these states manage and oversee their pathways could potentially impact their longevity.

    From Mobility to Relocation

    In recent years, investment migration has seen tremendous growth. Various global upheavals like Covid-19, the Russia-Ukraine conflict, and escalating conflicts in places like the Gaza Strip have caused widespread social, political, and economic strains, prompting people to migrate across borders and relocate businesses and assets swiftly.

    What’s increasingly evident is that investor migrants aren’t merely seeking backup plans for increased mobility; they’re looking for pathways ensuring a stable future for their children, even if it entails relocation. This shift signifies a positive evolution for an industry that has been under scrutiny due to the perceived weak connections between investors and their adopted countries. Countless discussions have revolved around the issue of physical presence requirements.

    Experts argue that obtaining a residence permit through investment migration is often just the initial step for investors in a new country. The real value lies in subsequent investments, taxes contributed, economic spending, and job creation. Yet, the industry still grapples with fully demonstrating how these factors can thrive without relying solely on physical presence as a benchmark.

    Retirees, Start-up Entrepreneurs and Digital Nomads

    Amid an uncertain economic outlook, the demand for migration persists, leading to a surge in interest surrounding entrepreneur and start-up visas. These initiatives focus on attracting active investment and highly skilled individuals, steering away from negative sentiments often associated with passive investment migration policies. There is a clear trend that traditional investment migration is following suit, with Portugal abolishing real estate investments after locals were priced out of the housing market.

    Additionally, a multitude of countries has embraced the trend of introducing Global Nomad visas, allowing individuals to work remotely while residing in different countries. However, these programmes have faced significant criticism due to poorly designed legislation and open questions about tax liability, and experts have long highlighted the need for improvement in this domain.

    Retirement migration has caught the attention of migration professionals, with numerous countries that have existing residency pathways, or operated them in the past, also starting to introduce dedicated retirement visas. While retirees might not be investing directly in these jurisdictions, their spending on housing, services and other necessities generates positive net benefits for the local economy.

    Economists also anticipate that countries dealing with high debt, slow growth, and ambitious net-zero climate goals will continue to actively seek foreign capital. If conventional investment migration routes undergo reform or closure, alternative tax incentives may emerge in their stead. An example is Spain, which passed a law in January enabling non-residents, including digital nomad visa holders, to pay a flat 24% tax rate on income up to €600,000 over six years— contrasting sharply with the 47% rate for residents in higher income brackets.

    Stigma and Sustainability

    Investment migration has long grappled with a persistent stigma that hinders its evolution. The term “golden visas” has inadvertently led to misconceptions, painting investment migration as exclusive enclaves solely for the wealthy elite. Yet, the reality is quite different. These initiatives, aimed at attracting foreign investment, serve as drivers for economic growth and are vital for many nations’ development agendas. Unfortunately, this terminology has fuelled misunderstandings, overshadowing the broader advantages investment migrations offers.

    Public opinion has undeniably influenced investment migration development, sparking worries about the impact of foreign investment on local economies and societies. Countries have responded by instituting measures mandating investments in sustainable projects or contributions to social causes in exchange for residency. These actions not only enhance the reputation of these pathways but also ensure their positive impact on local economies and societies.

    Nothing to Hide

    However, the transformation of investment migration goes beyond reforming pathways; it involves reshaping mindsets, dispelling myths, and fostering a collaborative environment where investment becomes a conduit for progress, inclusivity, and shared prosperity.

    Conceptually, many people still struggle with investment migration. The idea that citizenship or residency can be granted in return for investment raises concerns about favouritism and unequal access to privileges. However, the industry must illustrate the tangible economic and social contributions facilitated by these investments.

    Crucially, the industry must pivot towards heightened transparency in fund allocation, stricter compliance measures, rigorous due diligence, and standardised best practices across the ecosystem. Variations in adherence to these standards have tarnished investment migration’s image, creating a negative perception that affects all players within it.

    Contrarily, a level playing field fosters openness where transparency acts as the cornerstone. As transparency gains prominence, it paves the path toward a fairer and more dependable landscape. After a series of surprises in 2023, there is hope that 2024 will bring greater clarity about the future of investment migration.

  • One Year After the Enactment of the EB-5 Reform and Integrity Act: What is the Data Showing Us about the New Era of EB-5?

    One Year After the Enactment of the EB-5 Reform and Integrity Act: What is the Data Showing Us about the New Era of EB-5?

    Lee Y. Li, Director of Policy Research and Data Analytics at Invest in the USA (IIUSA), delves into the statistics.

    In March 2022, the EB-5 Reform and Integrity Act (RIA) was passed in the US Congress and subsequently signed into law by President Biden. Several months later, in July 2022, the US Citizenship and Immigration Services (USCIS) released new forms -Form I-526 (Standalone Investor Petition) and Form I-526E (Regional Centre Investor Petition) – as part of the RIA implementation, discontinuing the old Form I-526 (Alien Entrepreneurs Petition). A year later, in July 2023, USCIS began reporting data on three types of Form I-526 petitions: legacy I-526 petitions predating the RIA, new direct EB-5 investment Form I-526 (direct I-526), and the Form I-526E for Regional Centre EB-5 investment. Here are four key data points that we learned from the most recent statistics.

    Over $1.5 Billion in Capital Investment has Been Raised Through EB-5 Since the Inception of the RIA

    Based on our calculations, over $1.5 billion has been raised through the EB-5 programme since the inception of the RIA, and nearly $1.4 billion in capital investment has been generated through the programme in FY2023 alone. The amount of EB-5 investment generated in the first three quarters of FY2023 already represents a 190% increase from the amount of EB-5 investment raised in the entire FY2022.

    Over $1.5 Billion Raised through EB-5 since RIA

    Demand for EB-5 Continues to Grow Since RIA

    USCIS received 1,558 I-526E petitions and 129 I-526 (direct EB-5) filings. The volume of I-526 filings, including both I-526 (direct EB-5) and I-526E, in the current fiscal year has already represented a 103% growth compared to the total number of I-526 petitions filed throughout all FY2022. In addition, 649 I-526E petitions were filed in Q3, FY2023, representing a 31% growth from the previous quarter. The number of I-526E filings has increased consecutively in each quarter since the inception of the form in Q4 FY2022, indicating the continuing growth in demand for EB-5 Regional Centre projects among investors across the globe.

    Continued Growth of the Demand for EB-5 Figure 2: Number of Form I-526E and I-526 (Direct) Filed by Quarter

    Higher Case Adjudication Volume in FY2023

    USCIS processed 1,930 legacy I-526 cases in the first three quarters of FY2023, marking a 60% increase from the total I-526 adjudication volume in FY2022. Although USCIS did not disclose any data on the number of I-526 (direct) and I-526E cases that have been adjudicated, we believe that the agency has already started approving I-526E cases that are associated with investment in an EB-5 project located within a rural area. Overall, the increase of case adjudication should translate into the improvement of case processing time for I-526 petitions.

    As USCIS continues to process a relatively large number of legacy I-526 cases in FY2023, the number of pending legacy I-526 petitions continues to decline. As of the end of Q3, FY2023, there were 10,802 pending legacy I-526 cases, which represents a 7% decrease from the previous quarter. The backlog of legacy I-526 cases has been reduced by 16% since the beginning of FY2023.

    Higher Case Filing and Adjudication Volume in FY2023
    Figure 3: YOY Data Comparison for Form I-526s Filed, Adjudicated & Pending

    Approval Rate of Pre-RIA I-526 Cases Dropped Significantly in the Last Two Fiscal Years

    Since FY2022, the average approval rate of legacy I-526 cases has seen a significant decline. Particularly, less than half of the I-526 cases that were adjudicated in FY2022 received an approval from USCIS, marking the lowest approval level in the 32-year history of the EB-5 programme. In the first three quarters of FY2023, the average approval rate of pre- RIA I-526 petitions was 68%, bouncing back from the historical low but remaining at the second-lowest level observed in the last 10 years. USCIS has not released any information shedding light on the reasons behind the recent surge in legacy I-526 case denials.

    Approval Rate of Pre-RIA I-526 Cases Remain at a Historical Low
    Figure 4: Average Approval Rate of Form I-526 (Legacy) by Fiscal Year

  • New IMC Business Membership Tiers Foster Inclusivity and Collaboration

    New IMC Business Membership Tiers Foster Inclusivity and Collaboration

    The IMC has overhauled its corporate membership structure and introduced new Business membership tiers. The IM Yearbook sat down with Jacqueline Gauci, Head of Membership Services at the IMC, to discuss the changes.

    Can you explain the rationale behind introducing new IMC membership tiers? What were the key factors and insights that led to this decision?

    The decision to introduce new IMC membership tiers was driven by a combination of key factors and insights that we gathered through a thorough evaluation process. As the IMC approaches its 10th anniversary in 2024, our membership has grown significantly, now boasting over 450 members hailing from 60 different countries. This remarkable growth has brought about a considerable increase in diversity within our membership, marking a notable evolution since the inception of our project, which initially started with only a handful of members.

    To provide context, our organisation underwent a successful review of our individual membership tiers in 2019, but it became increasingly apparent that our business membership programme required a similar assessment. Many of our individual members expressed a strong interest in transitioning to business membership status; however, they often found that the existing membership tiers and associated benefits were primarily tailored to larger organisations.

    The rationale behind introducing new IMC membership tiers is grounded in our commitment to inclusivity and providing value to all members, regardless of their organisational size or structure. Our goal is to ensure that our business membership programme aligns with the diverse needs and aspirations of our members. By doing so, we are not only adapting to the changing dynamics of our membership but also enhancing the overall experience and relevance of the IMC as we move into our milestone 10th year.

    What specific research, meetings and feedback from members and stakeholders played a crucial role in shaping the new membership structure? Can you highlight some key takeaways from this process?

    Our approach was multifaceted. First, we embarked on a comprehensive research initiative. This involved benchmarking our membership tiers against other similar professional bodies to understand best practices. Next, we conducted a series of face-to-face interviews, hosted roundtable events, and employed various feedback mechanisms to ensure we understand our members’ needs and expectations.

    Lastly, our team has many years of experience in managing a professional association and our prominent position within the IM sector provided us with a strong foundation for this undertaking. It allowed us to combine our historical knowledge with contemporary insights, resulting in a membership structure that addresses both current and future industry demands.

    A significant revelation during this process was the need for inclusivity. As mentioned, many stakeholders emphasised the importance of offering alternative pathways for smaller regional companies to access the benefits of IMC membership. This feedback resonated deeply with us, as we recognised the value of enabling organisations of all sizes to invest in their teams, nurture their talent, and cultivate a more resilient and trustworthy global network.

    We are proud to have transformed our membership offerings to better align with the evolving needs of our diverse membership base, ultimately fostering a stronger and more inclusive community within the IM sector.

    How do these new membership tiers align with the wider goals of the IMC?

    We recognise that the migration field is evolving rapidly, and as such, we are committed to accommodating a wider and more diverse range of firms and their exceptional talent from every corner of the world. By doing so, we reinforce our dedication to becoming a truly international organisation that mirrors the global, diverse nature of our sector.

    The IMC is a forward-thinking organisation prepared to navigate the forthcoming decade of transformation within investment migration. We are not merely adapting to change; we are actively driving it, with the aim of strengthening our community, providing valuable resources to members at all stages of their careers, and contributing to the ongoing success of the profession on a global scale.

    The new membership structure differentiates firms based on their size, reach and services offered. Do you expect that this segmentation will enhance collaboration and networking among members within each tier?

    Indeed, the introduction of our new membership structure is strategically designed to foster and amplify collaboration and networking within each tier.

    By grouping firms that share similar characteristics, we create organic opportunities for members to connect with peers who face similar challenges and opportunities. This shared context not only facilitates more meaningful interactions but also encourages the exchange of valuable insights and experiences specific to their tier.

    For instance, smaller firms may find common ground in navigating the intricacies of their tier, while larger organisations can explore collaborations that leverage their collective resources and expertise. Similarly, firms with a more global footprints or service portfolios can engage in more targeted discussions, allowing for a deeper exploration of industry trends, challenges, and innovative solutions.

    We do believe that our tiered membership structure serves as a catalyst for deeper engagement within these sub-communities, enabling members to build relationships, exchange knowledge and collaborate on projects that directly benefit their specific circumstances.

    How did the transition from the old business membership levels to the new gold and platinum tiers affect existing members?

    The transition was seamless and hassle-free for our existing members. The membership benefits of the business members remained intact during this transition.

    There was no need for existing members to take any action, as the IMC handled all administrative aspects of the transfer. Corporate members became automatically gold tier members, while Corporate plus members seamlessly transitioned to the platinum tier. So, all that existing business members needed to do was to become familiar with the new tier names – gold and platinum – and start using them when referencing their membership level.

    Looking at the bigger picture, do you anticipate changes in the types of firms that will become IMC members? Are there expectations of attracting a broader range of organisations, including those operating in the wider migration field?

    Yes, we are actively seeking to attract organisations beyond the traditional boundaries of investment migration. The aim is to create a thriving ecosystem where not only experts in investment migration but also professionals from related fields can come together to reap the benefits of IMC membership, such as increased visibility, opportunities for professional growth, access to a talent pool, and the ability to tap into a global network of like-minded professionals. In essence, we are opening our doors wider to make the IMC an essential hub for professionals across the migration spectrum.

    New IMC Business Membership Options at a Glance:

    Blue

    Membership at this level is for firms that generally operate with a domestic footprint offering a minimal of investment migration options to private clients and have around five employees. Benefits include up to four team members to join as full IMC members. Examples of such firms include domestic licensed agents, and small family- owned law firms. Annual Fee: €3,000

    Silver

    Membership at this level is for firms that generally operate with a domestic or regional footprint offering a minimal of investment migration options to private clients and have around 10 employees. Benefits include up to six team members to join as full IMC members. Examples of such firms include domestic licensed agents, family- owned law firms. Annual Fee: €5,000

    Gold

    Membership at this level is for firms that operate with a regional or global footprint offering a variety of investment migration options to private clients and / or B-to-B clients with around 25 employees. Benefits include up to 10 team members to join as full IMC members. Examples of such firms include international marketing agents, multi-national law firms, corporate service providers, accountancy firms, family offices, banks, due diligence providers. Annual Fee: €7,000

    Platinum

    Membership at this level is for firms that operate with a global footprint offering a variety of investment migration options to private clients and / or B-to-B clients and government advisory services with around 50 employees. Benefits include up to 15 team members to join as full IMC members. Examples of such firms include international marketing agents, multi-national law firms, corporate service providers, big 4 accountancy firms, multi-family offices, global banks, global due diligence providers. Annual Fee:€10,000

    Titanium

    Membership at this level is for firms that operate with a global footprint offering a variety of investment migration options to private clients and / or B-to-B clients and government advisory services with around 200 employees. Benefits include up to 125 team members to join as full IMC members. Examples of such firms include international marketing agents, multi-national law firms, corporate service providers, big 4 accountancy firms, multi-family offices, global banks, global due diligence providers. Annual Fee: €150,000

  • Navigating Changes in Portugal’s Residency Pathway

    Navigating Changes in Portugal’s Residency Pathway

    While the termination of Portugal’s real estate investment option may have disappointed some investors, the country’s residency pathway remains open for those willing to explore alternative options, says Jerome Morgan, Founder, President & CEO of the Mercan Group.

    Could you provide a brief overview of Mercan Properties? What would you highlight as your most important milestones and achievements?

    Mercan Properties specialises in the development and management of hotel assets within Portugal’s tourism sector. Presently, Mercan boasts a diverse portfolio of 30 projects spanning key regions such as Porto, Vila Nova de Gaia, Matosinhos, Lisbon, Amarante, Santiago do Cacém, Évora, Beja, the Algarve, and Madeira Island, collectively valued at €1.2 billion. Mercan Properties has significantly contributed to Portugal’s economy by not only attracting foreign investment but also by establishing high-quality tourism assets that drive employment, elevate local potential, and fortify Portugal’s reputation as a premier global tourist destination.

    Acquiring real estate to obtain residency is no longer possible in Portugal. How does this development impact your business operations and the investors associated with the company?

    It is important for investors and potential investors to understand that Portugal’s residency pathway has changed, but it hasn’t been terminated. While direct real estate investment is no longer possible, the government has recognised the vital role of foreign investment to advance the country’s strategic priorities.

    We will continue our operations in Portugal, focusing on the management of hotel assets and hospitality within the tourism sector. Our strategies will focus on future investments aimed at fostering growth in tourism and the Portuguese economy. This is what we have been doing since 2015. With plans to inaugurate three additional hotels in 2024, our commitment to Portugal remains unwavering.

    In this new reality, what unique offerings do you provide to potential investors?

    We have adapted our business model to align with the new legislative landscape. One avenue offered under the revised law involves investment in venture capital funds to gain residency. We perceive this avenue as compelling for investors. Specifically, investors can engage with Mercan’s venture capital fund. This fund will encompass a diverse portfolio of assets and channel investments into companies managing hospitality and tourism services in Portugal. We aim to differentiate ourselves from other funds by prioritising investment security and predictability. Our focus remains on the hospitality and management sector, solidifying our standing as a key player in Portugal’s vibrant tourism industry.

    What specific factors or attributes attract investors to Mercan Properties in comparison to other investment opportunities?

    Our business strategy has always been aligned with hospitality and tourism activities in Portugal, and now, we are advancing through the establishment of a dedicated venture capital fund.

    We believe our strength lies in our sector experience and extensive knowledge of various residence-by-investment models worldwide, making us a prominent player in the field. Our successful track record and established international partnerships over three decades have empowered us to offer secure and distinctive investment opportunities in promising markets and services. Furthermore, our portfolio places us among the top 10 players in terms of the largest number of fully operational hotels in the country. This achievement is a result of our promotion of internationally renowned brands within the hospitality and tourism sector.

    How do you foresee the evolution of residency by investment over the next two to three years? Is there a risk that Portugal might permanently close its residency pathway?

    Portugal is set to hold elections in March 2024, which will bring forth a new government and parliament. It’s challenging to predict the future strategic priorities of the incoming executive. However, one certainty remains: Foreign investment has significantly contributed to Portugal’s development, particularly in the realm of tourism. We are confident that key policymakers will continue to acknowledge this reality. We maintain the belief that residency investment models, which positively impact Portuguese society through affordable projects, cultural and heritage promotion, tourism, and hospitality activities, will continue to be considered by the relevant authorities. These models create a high economic impact and add substantial value to the country. As such we do not foresee the extinction of these foreign investment avenues in Portugal.

  • Navigating Austria’s Merit-Based Citizenship

    Navigating Austria’s Merit-Based Citizenship

    Stefan Pacher from Austrian law firm Wolf Theiss contends that Austria’s merit-based pathway to citizenship stands as a genuine alternative to citizenship by investment.

    Austria, distinct from traditional citizenship-by-investment pathways, offers a merit-based route to citizenship through exceptional achievements. Governed by the Austrian Citizenship Act (Staatsbürgerschaftsgesetz), this pathway establishes unique conditions for individuals to acquire Austrian citizenship and consequently obtain an EU passport. This article serves as a comprehensive guide for immigration professionals, emphasising the programme’s merit-based nature.

    Granting Citizenship for Exceptional Achievements

    Under section 10(6) of the Austrian Citizenship Act, individuals may receive Austrian citizenship based on exceptional achievements they have demonstrated and are expected to continue demonstrating in the future. This grant is made if it aligns with the interests of the Republic of Austria.

    While the law doesn’t provide precise definitions for the terms used, generally, individuals such as sports personalities, renowned artists, entrepreneurs, and philanthropists have successfully utilised this provision.

    It is up to the Federal Government of Austria to confirm whether the naturalisation of a foreigner is in the particular interest of the Republic of Austria due to the exceptional achievements of the applicant. The government holds substantial discretion in determining whether an applicant’s case meets the specified criteria. Their decision is final and not subject to appeal.

    Guidelines for Exceptional Achievements

    To enhance clarity and transparency in evaluating exceptional achievements aligning with Austria’s interests, the Federal Government has issued guidelines. These guidelines aim to define extraordinary accomplishments as those significantly exceeding average standards. Furthermore, an individual is never naturalised “in lieu of honour”.

    Outlined below are the Federal Government’s criteria for assessment:

    • Scientific Contributions: Involvement in pioneering research or advancement of existing scientific domains, especially benefitting Austria. This includes international recognition and a high standing in the scientific community, substantial publications, and the transfer of knowledge to Austria.
    • Business Contributions: Holding influential positions or ownership in companies with high economic performance, job creation and investment in Austria, fostering international recognition, and strengthening economic relations.
    • Sports Achievements: Demonstrating exceptional performance unmatched by Austrian athletes, maintaining outstanding performance for at least a year, with potential for sustained success and immediate inclusion in an Austrian national team.
    • Artistic Contributions: Making significant artistic contributions in Austria, contributing to art education, enhancing Austria’s artistic reputation globally, attracting audiences through outstanding work, and innovating artistic forms.

    While these guidelines concentrate on science, business, sports, and the arts, it’s important to note that exceptional achievements in other domains, such as philanthropy, are also acknowledged.

    General Criteria

    In addition to exceptional achievements, specific naturalisation requirements apply universally. These encompass integrity, no adverse impact on Austria’s international relations, a positive attitude towards Austria, and no active residence ban.

    Of note, applicants under section 10(6) of the Austrian Citizenship Act aren’t required to renounce their foreign citizenship(s) or prove proficiency in the German language or knowledge of Austrian history.

    The procedure is quite technical and consists of several steps. Due to the fact that each case is unique, there is no timeframe until an applicant can obtain Austrian citizenship via this route. Usually, the entire process spans one to three years. It should also be noted that the names of applicants are not published.

    In conclusion, the Austrian Citizenship Act offers a unique and merit-based pathway to Austrian citizenship and an EU passport that differs widely from traditional citizenship-by-investment programmes. This pathway offers an intriguing option for individuals such as high-net-worth individuals (HNWIs), renowned athletes, globally acclaimed artists, and scientists seeking Austrian citizenship based on their exceptional contributions.

  • Malta’s Residency Options at a Glance: Solutions for Global Migrants

    Malta’s Residency Options at a Glance: Solutions for Global Migrants

    The Residency Malta Agency, led by CEO Jonathan Cardona, outlines the key benefits Malta offers for families, digital nomads, as well as start-up founders.

    The world is witnessing a significant surge in global migration, with high- net-worth individuals from countries facing economic challenges seeking alternative jurisdictions to safeguard their future. The value of freedom of movement has gained newfound significance in the wake of the Covid pandemic’s restrictive periods. Additionally, as remote work has become the norm, digital nomads and remote workers have discovered the ability to work from anywhere while maintaining their employment and business ties to their home country.

    These remarkable shifts and trends are creating a growing demand for economic mobility and solutions that facilitate the relocation of families and businesses. Residency Malta has stepped in to provide answers and solutions to meet these evolving needs.

    Malta’s Appeal

    People considering relocating to a new country often have specific motivations. The desire to provide a better future for their families is a common driving force. Healthcare, education, and safety are key concerns for prospective immigrants, and Malta excels in these areas. The country is known for its safe environment, reputable educational opportunities, and top-notch healthcare services. Despite its multicultural community, Malta’s societal values are deeply rooted in family, and its small size fosters a close-knit community. The added benefit of English as an official language makes communication effortless.

    From a business perspective, Malta offers a robust jurisdiction with a diverse economy, access to the European market, a pro-business environment, and support from government entities. Daily air and sea connections to Europe, North Africa, and the Middle East, along with excellent telecommunications infrastructure, make it an ideal hub for businesses. Malta Enterprise, the government’s economic development agency, provides funding support for start-ups, and the country’s small size is perfect for testing new products and services.

    For digital nomads, Malta presents a unique opportunity to experience diverse cultures and histories, make friends, enjoy the pleasant climate and outdoor activities, meet like-minded individuals, and work from anywhere using the abundant public Wi-Fi hotspots.

    Residency Malta’s Offerings

    Residency Malta offers distinct solutions and migratory pathways for non-EU nationals through three flagship programmes:

    • Malta Permanent Residence Programme: This programme allows families to establish Malta as their permanent second home through a residency-by-investment solution.
    • Nomad Residence Permit: Designed for remote workers, this programme offers temporary residence for one year, with the option to renew twice, allowing up to three years of residence.
    • Malta Startup Residence Programme: Founders, co-founders, core employees, and their family members can obtain a three-year residency permit (extendable for an additional five years) (3 years + 3 years for core employees) while setting up innovative ventures in Malta

    Prioritising Due Diligence

    One of Residency Malta’s key focuses is due diligence, ensuring only fit and proper individuals are granted Maltese residency, maintaining the strength and reputation of its programmes. Stringent checks are conducted on all applicants across all programmes.

    Maintaining Service Excellence

    Residency Malta upholds high levels of service excellence through substantial investments in people, training, and technology. Specialised training for team members keeps them at the forefront of their respective fields. Our ongoing digitalisation efforts have improved efficiency and efficacy, allowing automated processes to handle routine tasks, and freeing up time for more complex responsibilities.

    Malta’s Irresistible Allure

    The true allure of our programmes lies in Malta itself— a strategic Mediterranean location, rich history, family-oriented culture, hospitable people, and world-class services create an unbeatable combination.

    In conclusion, Residency Malta offers compelling solutions for those seeking a change in their lives, whether for family, business, or adventure. Malta’s unique blend of opportunities and its commitment to service excellence make it a prime destination for those looking to enhance their quality of life.

  • Look for a Partner, not a Service Provider

    Look for a Partner, not a Service Provider

    Exiger’s Karen Kelly believes investment migration programmes must seek partners, not mere service providers, to navigate the ever evolving due diligence landscape.

    When Karen Kelly began her journey at IPSA International in 2008, the field of investment migration was on the brink of significant expansion. While IPSA initially had a broader focus, working for corporations of all sizes – from Fortune 100 companies to mid-sized and owner-managed businesses – across a broad range of industries including local, state and government agencies, it also started performing due diligence related to immigration, citizenship, and visas. As one of the industry pioneers, the firm also began collaborating with financial institutions working with applicants to investment migration programmes in Canada and the UK. “Looking back at that time, I can say that this early period marked the foundation for what would later become best practices in due diligence reports,” says Kelly. “Many of those fundamental elements that we developed remain in place, albeit with some subtle differences, while some aspects have expanded over time,” she adds.

    Growing Together

    Around the year 2011, IPSA started working directly with governments particularly in the Caribbean, and later in Europe. “Our work grew because the programmes took off, and throughout the years, due diligence evolved alongside the investment migration industry,” she says. In 2017, IPSA Canada was acquired by Exiger. “Then Exiger launched its Immigration, Citizenship & Visa (ICV) due diligence practice, and we continued with that focus on government programme due diligence,” Kelly explains.

    Reflecting on the early days, Kelly acknowledges that over the years, many Citizenship by Investment (CBI) units have significantly enhanced their understanding and expertise in due diligence. Moreover, she says the level has been taken up another notch in recent months.

    In many countries, CBI staff have undergone comprehensive training in anti-money laundering and countering terrorism financing. CBI units have been restructured on the advice of external compliance experts to ensure that all procedures are updated, and that rigorous quality control is strictly adhered to.

    While Kelly acknowledges that part of this dedication to training and development came in response to international pressure, she also emphasises that critics often speak of due diligence as if nothing had been done before, “but that’s far from the truth.” When examining the Caribbean CBI programmes, she noted “a profound dedication” to due diligence. “This commitment starts at the leadership level, which is crucial within an organisation. They are motivating their staff to grasp due diligence and undergo training.”

    Exiger has responded to this need, and a significant part of its work with CBI programmes today consists of training due diligence staff in government agencies. “We offer updates or refreshers to new staff, helping them build their internal capacity and grow their team. This approach ensures that everyone starts from a baseline level that is greatly improved over where it was 10 years ago, for sure, and even five years ago. So yes, the commitment to training and learning is evident,” she says.

    A Close Relationship

    Kelly says that the relationship between investment migration programmes and due diligence providers has significantly evolved over the years. Due diligence firms are no longer mere service providers. “There is a mutual understanding that this is a genuine partnership. It only works when both parties share a commitment to raising standards. The programmes depend on us to meet their requirements and they appreciate our transparency and honest advice. So, I believe that the term ‘partnership’ accurately describes our current dynamic.”

    Kelly also emphasises that this partnership extends to addressing the challenges investment migration faces in the United States and the European Union. “Government units often find themselves in a position where they need to provide informal responses or describe the actions of their due diligence partners to other countries or international bodies. We have well-established methodologies and standards in place, and we are more than willing to share those details. This helps them effectively demonstrate the diligence of their partners.”

    While due diligence companies like Exiger do not handle the entire due diligence process, with programmes also incorporating additional information gathered through domestic or international law enforcement and intelligence agencies, “we know we are an important part”, says Kelly. “We want to give them all the ammunition they need for a successful dialogue with these international parties,” she adds.

    Tailored Training

    Exiger leverages subject matter experts to provide training on a wide range of topics relevant to due diligence based on its clients’ requests. Introductory sessions for new employees cover the fundamentals of due diligence, including understanding its key components and recognizing potential red flags. Exiger also offers training specific to the cultural context of due diligence in various regions or countries.

    “We help participants understand how certain factors may raise red flags in the Middle East, for example, but not necessarily in the US. This training underscores the significance of considering cultural factors and their impact on the interpretation of due diligence results,” Kelly explains. Training sessions also cover the availability of information, which can vary significantly from one country to another.

    “For instance, the absence of findings about a failed business might be due to the fact that bankruptcy isn’t recognised there. However, most individuals wouldn’t be aware of these nuances. So, our subject matter experts focus on highlighting the distinctions between jurisdictions to enhance understanding,” she says.

    Advanced Course

    Exiger also offers a comprehensive four- day advanced training course, which serves as a unique forum for programme practitioners involved in reviewing applicant due diligence. CBI unit staff and officers engage in extensive discussions and mutual learning about due diligence.

    “Participants can share their own experiences, focusing on general insights without disclosing confidential information. This collaborative environment allows attendees to learn from one another in terms of their approach to due diligence. Since not everyone approaches this process the same way, and different programmes have distinct procedures, this exchange of knowledge is invaluable,” says Kelly.

    A significant part of this training involves case studies with hypothetical due diligence and applicant profile scenarios. Attendees of the course, grouped with colleagues from other programmes, then analyse the case. They discuss what they find most relevant, what questions they would ask to mitigate risk, and how they would summarise or present the risk to a decision maker.

    “This exercise provides intriguing insights as attendees often have varying perspectives. It’s not because one person is taking it more seriously than another, but rather because different individuals have different preferences for the depth of questioning. Some may want to ask more questions, while others feel they have all the necessary information in front of them to make an assessment. This unique opportunity benefits the programmes we collaborate with, enabling their participants to bring this newfound knowledge and practical experience back to their teams to share and engage in meaningful discussions with their colleagues.”

    Be More Critical

    Despite the improved understanding of due diligence by CBI units, Kelly identifies areas for further enhancement. “In my experience, one of the questions that programs should pose more frequently, and I would appreciate being asked more, pertains to methodology. While due diligence providers may assert their ability to perform a service, it is crucial to request a comprehensive explanation of their methodology from inception to completion,” advises Kelly.

    She highlights that, at times, buzzwords like “monitoring” are used without specifying the details. Consequently, she recommends that CBI staff pose specific questions related to scope, such as: What data, precisely, is monitored? What is the threshold for information to be reported? How frequently is it conducted? Is a quality assurance process in place? “These enquiries empower programmes to acquire a deeper understanding and refrain from merely accepting surface- level assurances,” she explains.

    She emphasises that there’s no need to hesitate when asking such questions. A due diligence partner should seamlessly integrate into the CBI team, becoming an extension rather than a distant outsourced provider. “Reputable due diligence providers should readily engage in open discussions and willingly share their methodologies. In essence, this dialogue not only enables programmes to establish elevated standards but also motivates providers to align with and meet those standards,” she concludes.

  • How the War in Israel and Gaza is Impacting Investment Migration

    How the War in Israel and Gaza is Impacting Investment Migration

    After a long period of relative calm, the oldest conflict in the Middle East surged back into prominence. The IM Yearbook asked what impact the Israel- Hamas conflict has on investment migration.

    In 2023, the Israel-Hamas conflict reverberated across the Middle East. Despite the grim toll of lives lost, some commentators argue that this moment marks the region’s best opportunity for peace in decades. Yet, paradoxically, it also presents the highest risk of the conflict escalating uncontrollably. While it is unclear which path it will take, the IM Yearbook has gathered diverse perspectives on how this conflict impacts investment migration.

    Conflict and Migration

    Geopolitical instability and conflict have historically triggered migration and stand as fundamental catalysts for investment migration. This time is no exception, asserts Manpreet Kataria, Managing Partner of Alpha Immigration Associates, situated in the UAE.

    “We haven’t experienced an immediate impact – positive or negative – from the Israel-Hamas conflict but we expect increased numbers of Palestinian applications over the long term. As of now, the immediate focus of Palestinians is on survival and helping their family back home,” he says.

    “With the preference given to Dual nationals for evacuation during the conflict, a major awareness is expected to arise in the Middle East. Anyone living in the conflict zone or in a place where a conflict is anticipated would definitely take this into account and get a second residency or citizenship to safeguard themselves and their families,” he adds.

    No Safe Place

    Meanwhile, the conflict’s ripple effects have reached neighbouring countries. For instance, it prompted Iran-aligned armed groups to terminate a nearly year-long unilateral truce with US forces in Iraq and Syria. Rawa Kamal Ahmed, Immigration Department Manager of Moonline Travel and Trade in Iraq, describes the population in the region as “more stressed than anywhere else in the world.”

    Ahmed notes a surge in requests for citizenship and residency through investment, a trend expected to persist in the foreseeable future as the conflict has instilled a new level of fear among the young. “Sadly, the new generation believes, like previous generations, that Iraq will never be a safe place,” he adds.

    Business Relocation

    Elsewhere, immigration specialists have observed a surge in interest for residency options from Israelis. Cyprus has become a key destination as the island’s proximity, with just under an hour of flight time from Israel, has historically attracted a sizable Israeli community. Chriso Savva, Director of Chriso Savva LLC, underscores that not only are many Israelis pursuing residency permits in Cyprus, but they are also increasingly moving their businesses to the island.

    Amid an already tense global landscape, the war’s impact has extended to far-off continents, fostering divisive rifts that transcend mere pro-Israel or pro-Palestinian sentiments. Antisemitism is resurging, and cities spanning from London to Kuala Lumpur have witnessed pro-Palestinian demonstrations.

    Ron Klasko, Managing Partner of Klasko Immigration Law, stresses that the recent political shifts and responses to conflicts in the Middle East have influenced investment migration trends in the US. “Unfortunately, many American citizens, especially Jewish people, have safety and security concerns. This has led to increasing interest for third country citizenship or residence,” Klasko says. In response to this demand, Klasko co-founded Exodus Migration LLC, dedicated to guiding individuals and families in identifying suitable destinations for temporary or permanent relocation based on their specific needs and circumstances.

    Uncertain Future

    Towards the close of 2023, no one knew when or how the war will end, and it is impossible to predict. What seemed certain though is that the longer the war plays out, the greater the potential for wider consequences well beyond the Israeli or Palestinian borders. Optimists hoped that the Palestinian Authority – seen as more moderate than Hamas – could emerge strengthened, and Israel could re-commit itself to peace talks. But these days optimism is in short supply. The toll it has exacted is stark: thousands of lives lost, hundreds of thousands displaced, with many lacking a place to call home once the conflict ceases. These consequences will leave profound wounds etched into the fabric of 2024.

  • From 2024 to the Future A Candid Conversation with Dr Juerg Steffen

    From 2024 to the Future A Candid Conversation with Dr Juerg Steffen

    Dr Juerg Steffen, CEO of Henley & Partners, offers insights into the present landscape of investment migration, and discusses the evolving trends and strategies that will define the path forward.

    As investment migration pathways continue to rapidly evolve, could you share with us the top three trends that have significantly impacted the industry over the past 12 months?

    There are several converging global trends that are having a notable impact on the investment migration sector. The seismic geopolitical shifts that are creating a more multipolar world, along with the rise of wealth in the global south, have seen interest and uptake surge in certain countries, such as India, South Africa, and Turkey. The BRICS group of Brazil, Russia, India, China, and South Africa has emerged as an economic force that can no longer be overlooked. With its recent expansion to include six additional countries, including the UAE and Saudi Arabia, the BRICS +6 grouping constitutes 36% of global GDP and 46% of the world population. And while there are many affluent individuals in these countries, they do not enjoy a great deal of travel freedom or economic mobility, hence their growing interest in investment migration.

    Another trend driving our sector is the relentless and ongoing volatility we have experienced since we entered the 2020s, and this is exacerbated by a range of factors including unprecedented levels of violence and conflict in the Middle East, the war in Ukraine, and the mounting climate emergency. This is amplifying security, political, and economic risks, prompting affluent families globally to diversify their citizenship and residency and create a portfolio of domicile options through investment migration to extend their personal access rights to different jurisdictions to protect their lifestyles, wealth, and legacies. Even in highly developed countries with strong passports such as the UK and the USA, we are seeing sustained high interest in and demand for investment migration programs.

    And finally, overburdened governments struggling to mitigate the relentless economic pressures caused by global phenomena such as Covid-19, climate change, and aging populations, have driven up the supply side of our industry. The competition to attract capital and talent has never been fiercer, and we have seen a significant increase in interest from governments across the world in either introducing new or reviving existing investment migration legislation and options.

    Could you provide examples of countries that have developed new pathways or revitalised existing ones to entice foreign investors? And most importantly, what strategies have proven effective in this regard?

    The UAE has been immensely successful in enhancing its liveability and drawing the talented and the wealthy to its shores. This is in part due to its business-friendly policies, but it has also launched and expanded its residence by investment offering to retain and expand its population of affluent residents, so qualifying applicants can invest in a licensed company, an accredited local fund, or real estate to secure a UAE golden visa. Last year, the UAE had the highest net inflow of HNWIs globally, so clearly this was a successful strategy.

    The Antigua and Barbuda Citizenship by Investment pathway has also grown in popularity after it introduced a family option: the University of the West Indies Fund, contributing a minimum of $150,000 to the university for a family of a minimum of six persons.

    Moreover, nations as varied as Canada, the UK, Portugal, and St. Lucia all offer a business option. Such investment pathways are often industrially specific, with residence or citizenship granted to participants who invest in commercial enterprises and industries to create jobs. Industrially specific investment migration tends to launch new projects that benefit all levels of society.

    If we look back over the past few decades, St. Kitts and Nevis is another example of a small island nation using investment migration to restructure its economy and raise hundreds of millions of dollars in foreign direct investment geared towards laying the foundations for future growth and development. The St. Kitts and Nevis Citizenship by Investment Program has brought great value — at times estimated at 36% of its total revenue. Like several other countries, St. Kitts had a time limited offering that enabled investors to make a non-refundable contribution to its Sustainable Growth Fund (SGF).

    In response to international criticism, we’ve observed certain countries, especially in the Caribbean region, enhancing the security, management, and economic aspects of their investment migration pathways. Do you believe these changes have effectively addressed the concerns raised?

    My understanding is that the concerns were around issues of security and the potential abuse of investment migration pathways, and steps have been taken to strengthen due diligence, introduce mandatory interviews, and in the case of St. Kitts and Nevis, the minimum investment amounts have been increased. Due diligence is a fundamental aspect of every investment migration solution as it acts as a gatekeeper, not only protecting host nations from personae non gratae, but also safeguarding the integrity of the sector itself, so any steps to increase compliance are steps in the right direction.

    As demand for investment migration continues to grow, especially now as political strife, societal breakdowns, and climate and financial crises proliferate across the world, the sector must rise to the challenge and work even harder to improve its governance and due diligence standards.

    Some countries, like the UK, Portugal, and Ireland, have closed some of their investment migration pathways to new applicants. What do you think are the primary reasons behind such closures, and do you anticipate more countries following suit?

    Different countries have their own reasons for making such decisions. The most successful investment migration pathways are designed to serve a certain purpose, and once that has been achieved, or if it is not being achieved, it is best practice to reassess and adjust the investment options. Since Brexit, the UK has been making changes to its immigration policies across the board, from refugees, to students, to workers, and high-net worth individuals have been no exception to this change. The country is, however, encouraging innovation with the launch of the Innovator Founder visa in 2023.

    Ireland established its pathway to stimulate investment, which it has achieved, and it will also continue its Start-up Entrepreneur Programme. The door has not been completely closed to innovative, business-minded investors. Portugal’s parliament has reapproved the bill to now end its real estate investment migration option, with the programme generating nearly €500 million between January and August 2023. Other investment pathways remain, and Portugal is still issuing golden residence permits. So yes, certainly in time, other pathways will make changes or end certain options, but we will also see new options emerge in other countries. Both the supply and demand side of the sector continues to grow.

    From your perspective, what additional innovations or improvements do you believe should be introduced to enhance the global landscape of investment migration?

    The great wealth transfer has been a talking point for several years now and is truly underway. To enhance the investment migration sector and keep ahead, we need to be mindful of and take seriously the needs and aspirations of the next generation and be proactive to ensure that we remain as relevant to them as we currently are to their parents and grandparents. No matter where we are in the world today, we can all see and feel the very real effects of climate change, which Gen Z and Gen Alpha children are growing up with as part of their daily lives. Sustainability and the climate emergency are urgent issues for them to address. It would be valuable to see more ESG investment migration options being offered by governments that address these concerns and would benefit both host countries societies and the future of our planet.

    Remote work and global nomad visas have become increasingly popular. What challenges and criticisms have these programmes faced, and how can they be improved?

    Digital nomad visas have certainly gained in popularity, and although the nomads themselves are expected to bring economic benefits to the host country, it is not clear to what extent, and there are also tax implications to consider. They are still in their infancy, and over time it should become clearer how best to proceed to ensure that these visas are beneficial for all. For instance, red tape should be minimised, countries could consider offering tax incentives, and they need to ensure that it is relatively uncomplicated to obtain a work permit, open a bank account, set up a business, and of course, ensure that the tech infrastructure is efficient. Perhaps there could be project-specific nomad visas to address certain skills gaps, which would benefit the host country and nomads alike.

    Given the rapid changes in the industry, what role do you see technology and digital solutions playing in the future of investment migration? Are there any emerging tech trends that you find particularly intriguing?

    It is fascinating to observe in real time how the metaverse is reshaping many aspects of our society, even how sovereign states conceptualise and manage citizenship. We are now seeing the whole concept of sovereignty coming into question as the virtual frontier continues to expand. More possibilities are emerging, and nation states are beginning to explore how they can use the virtual world to grow their political capital and sovereign equity.

    One way they are doing so is by offering virtual citizenship, with Barbados being the pioneer and first to launch a virtual diplomatic embassy in Decentraland. Such initiatives also provide nation states with new possibilities for diversifying the type of capital they attract. The metaverse is built on blockchain, so perhaps in future digital assets, cryptocurrencies, and NFTs will become accepted forms of investment. The shift towards e-citizenship could be transformative for investment migration, but as with digital nomad visas, they will require careful consideration on thorny issues such as tax — where do you pay it if you are a dual citizen and resident of both virtual and physical nations?

    Looking beyond traditional investment migration, what innovative approaches or unconventional ideas do you think have the potential to disrupt or reshape the industry in the years to come?

    As mentioned previously, seemingly futuristic ideas such as citizenship in the metaverse are now very real, and a KPMG report is predicting that eventually, digital citizenship could even replace passports and residence cards for the physical world. We already see Singapore using biometric technology and facial recognition to allow passengers to fly without passports or boarding passes. If they are successful in attracting wealthy and talented individuals, virtual nations could gain sufficient power, influence, and to rival real-world nation states. And then of course, if certain key regions move towards being almost borderless, such as has been on the cards in Africa for some time, this would disrupt the global mobility hierarchy.

    On a more personal note, as you reflect on your five-year tenure as CEO of Henley, can you share with us the key milestones and challenges you’ve encountered along the way? What stands out as the most memorable highlight, and conversely, what was the most significant hurdle you’ve had to overcome?

    The first six months or so of the Covid pandemic was certainly a very challenging and demanding period for our sector and our firm as many governments closed their immigration offices, and we were unable to submit residence and citizenship applications on behalf of our clients. It was a time of great uncertainty and anxiety as nobody knew what was going to happen next and how things would turn out. Clients had to wait extended periods of time to begin and complete their application process which impacted heavily on our business. However, it also underscored the importance of having a portfolio of resident and citizenship options that provides you with personal access rights to different jurisdictions around the world in times of crisis. This led to a significant spike in interest and applications, and this is a trend that continues to this day. One of our biggest achievements was the recent opening of our 40th office, with many more planned and in the pipeline due to the unprecedented global demand for residence and citizenship by investment by investors and governments alike. Our sector and the positive value we create for both global citizens and sovereign states is certainly going from strength to strength.

    As one of the biggest players in the investment migration industry, Henley & Partners has landed in the hot seat more than once in recent years. Is there a thought provoking question that you’ve always hoped a journalist would ask you, yet it has never come up in an interview?

    Generally, I wish journalists would ask me more about who is applying for the different residence and citizenship pathways and why they are interested in it. It offers a fascinating reflection of our world today that provides valuable insights into a country’s economic outlook and future trends. For instance, prior to Covid, a high percentage of our applicants came from emerging markets with relatively weak passports that limited their global mobility and aspirations. They were interested in either moving to a more developed economy or at least have the option to move or travel there without restrictions if they needed too.

    During and after Covid, a new trend emerged that expanded our client base into highly developed and relatively stable nations in Europe and the US who woke up to the importance of having options in terms of where in the world they could live, work, invest and retire. The concept of domicile diversification and building up a portfolio of alternative residence and citizenship options that gives you and your family personal access rights to multiple jurisdictions has really taken off with investors all over the world. In this transitional period that is plagued by heightened security, political, and economic risks, wealthy families regardless of what citizenship they hold are revisiting their priorities to ensure their legacies, wealth, and lifestyles are protected, and that they don’t just have Plan B in place, but also a Plan C and D.

  • Empowering Investment Migration Professionals: IMC Launches new Executive Master’s Programme Amid Unprecedented Global Changes

    Empowering Investment Migration Professionals: IMC Launches new Executive Master’s Programme Amid Unprecedented Global Changes

    The Investment Migration Council unveils its Executive Master’s Programme, designed to assist professionals in navigating the multidimensional challenges of the rapidly evolving investment migration landscape. Dr Dee Allen and Philip Allen have assisted the IMC in developing the programme, and here they explain what students can expect.

    2023 was an eventful year for investment migration, and 2024 shows no signs of being any different. Elections will shape global politics in 2024, and ongoing shifts in the global order will trigger significant changes in the policies and approaches many governments will take towards investment migration. Investment Migration Council (IMC) members now face a new challenge: dealing with complex multidimensional threats and changes happening simultaneously at breakneck speed. In the face of a broad, complex and ever-evolving regulatory landscape, IMC members must prepare to enhance their knowledge, skills, and abilities to confidently present recommendations to their clients and drive successful outcomes. Why is this going to be critical in 2024? In an increasingly competitive residency and citizenship market, wealthy individuals and their advisers expect those they are seeking guidance from to not only predict but also proactively navigate the nuanced migration landscape, thus proving their credibility, value, and evidence of their subject matter expertise.

    The IMC Executive Master’s in Investment Migration

    Focused on providing IMC members with a 360° vision of what is transforming the world of investment migration right now, the IMC’s new Executive Master’s in Investment Migration Programme equips students with the knowledge to meet clients’ growing demands, the confidence to adjust a firm’s offering to new business conditions and the awareness to seize opportunities before competitors do.

    Programme Content

    Drawing on new research, case studies, data, and examples from a diverse set of geographies, business models, and economic contexts, The Executive Master’s in Investment Migration strengthens the standing of an investment migration professional. The Executive Master’s will be a highly interactive, immersive learning experience designed to expand the capacity to think and act strategically. The student will become a skilled problem solver who has the expertise and confidence to tackle the nuances of investment migration.

    With this new qualification, one will:

    • Obtain a holistic and in-depth understanding of the critical issues in investment migration.
    • Distinguish between Residency by Investment (RBI) and Citizenship by Investment (CBI) and its implications.
    • Assess the key issues and initiatives in investment migration such as ethics, AML, KYC, and standards from different jurisdictions.
    • Utilise case studies to critically assess investment migration approaches, actors, and models in the ecosystem.
    • Develop an implementable project and gain professional development.

    Designed to run over 12 weeks, the Executive Master’s in Investment Migration Programme is currently being developed and will include a series of compulsory and optional modules as indicated in table A.

    Programme Delivery and Assessment

    The programme will be delivered through a combination of live, tutor-led online sessions and face-to-face, in-person residential workshops, led by a faculty of hand-picked industry and academic experts. The distinguished members of our faculty include Professor Kristin Surak from the London School of Economics, the author of “The Golden Passport: Global Mobility for Millionaires”.

    A key benefit of the programme will be the provision of an interactive learning environment for participants through group activities to stimulate peer learning and knowledge sharing. In each cohort, students will be subdivided into small tutorial groups, all of whom will be supported by dedicated subject matter expert tutors who will facilitate group discussions, provide subject matter input, and facilitate the sessions.

    All students will be encouraged to collaborate and work towards developing an implementable project, report, tool, or output that is focused on a particular investment migration issue to be practically employed, as part of the assessment.

    Certification and Launch Date

    Upon successful completion, participants will be awarded with a certificate from the Investment Migration Council and an endorsing educational institution. The programme will be launched at the Investment Migration Forum in April 2024 in Dubai.

    For more information, visit: https://investmentmigration.org/education/

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