Why Indian HNIs are looking for second residency & citizenship?

India’s affluent class is moving abroad through significant investments. As they seek an affordable and secure residential choice for their families, wealthy Indians are looking into golden visa programs that grant residency and even citizenship in return for a large investment.

Despite the COVID-19 pandemic, wealthy Indians made the most number of enquiries for Residency by Investment (RBI) or Citizenship by Investment (CBI) programs. The number of enquiries rose by 62.6 percent from 2019.

Let’s first understand the difference between residency and citizenship:

What is Residency and citizenship by Investment?

Many nations throughout the world provide residence and citizenship by investment programs that allow successful businessmen, HNIs, and start-ups to get residency or citizenship in their country by making a qualified investment. This program is quickly gaining traction among HNIs throughout the world who want to live in a country other than their own nation for a variety of reasons.

Fast growing Indian HNIs

Along with Bangladesh, Vietnam, China, and Poland, India is considered one of the top ten fastest increasing high net worth countries.

According to the Global Wealth Migration Review survey, nearly 5,000 millionaires, or 2% of India’s total number of high net worth individuals, left the country in 2020. Although the Covid has put overseas trip plans on hold, it hasn’t stopped high-net-worth individuals (HNIs) from looking for new countries to call home, either as long-term residents or citizens. The pandemic could be a game changer because it is obligating the rich to consider migration. It’s no longer only about visa-free travel or easy access to global markets; it’s also about wealth diversification, improved healthcare, and education.

There are numerous reasons why Indian HNI’s and UHNI’S are Immigrating in other countries, few of them are as follows;

• Healthcare - Covid-19 has been a major proponent of a long-standing trend among wealthy Indians to “globalize their lifestyles and fortunes.” I think investors don’t want to wait for the third wave of the pandemic. The pandemic has the potential to change the game because it is forcing the HNIs to consider migration in a more comprehensive way to defend against the pandemic’s uncertainties.
• Children’s Education - Education builds the spirit of teamwork and creates a sense of discipline in children, which helps in their growth as well as the growth and development of the nation in their future. However the cost of education is very high in many foreign countries. Alternatively if the parents obtain residency and citizenship in their countries, their children can avail the benefit of reduced fee.
• Quality of life - Quality of life is a non-financial component associated with job and life satisfaction. After having travelled abroad, Indian HNIs aspire to achieve the same quality of life lived by people in developed countries.
• Expansion of Business - Residency and citizenship by Investment enables the businessmen to travel hassle-free in and out of India to their preferred destinations for business expansion, collaborations forming alliances or bringing in new technology to India and vice-versa.
• Tax Planning - By taking advantage of NRI status, making investments through lawful foreign trusts, and the DATT signed by India with several nations across the world, investing overseas can provide you with the greatest answer for tax planning.
• Visa-free travel throughout the world - Exporters, businesspeople, and investors from India and Asia can apply for residency in nations that do not require physical presence but do issue residence permits/passports. They can travel visa-free to over 130 countries with these documents.
• Portfolio diversification and Wealth management - For smart investors and HNIs who want to study the world’s stock markets, investing in developed countries could be the greatest option for wealth management and portfolio diversification.

If you are looking for a better future, healthcare and education facilities, this is the right time to take the first step.