Wealth Report 2018

The trend for increased demand for second citizenship and passports is continuing to grow amongst Ulta High Net Worth Individuals (UHNWI’s) according to residential and commercial property consultancy Knight Frank. In its latest Wealth Report for 2018 its survey reveals a strong demand for second passports in an industry that has grown rapidly in recent years to reach an estimated $2 billion per year.

The number of UHNWs worldwide is growing strongly. In China they are expected to double in the next five years. India, Indonesia and Malaysia are expected to see growth over 60%. At La Vida we already see strong demand from these regions for investment in citizenship.

Data from the Attitudes Survey revealed that 34% of UHNWIs already hold a second citizenship and passport. A stagering 29%, or nearly half of all HNWI’s without a second passport are planning to invest to obtain one. Taking it a step further, 21% are considering emigrating permanently. This demand has fuelled a bidding war between many countries who have now entered the market to offer citizenship for sale. We have seen over the last 12 months for instance, countries such as St. Kitts and St. Lucia slashing their required investment levels and the likes of Vanuatu launching their programme. The Middle East sees the strongest demand for second citizenship with 35% of HNWI’s considering investing for a second passport.

Desire for privacy among UHNWIs appears to be a factor driving demand. At the moment the Common Reporting Standard (CRS) approved by the OECD for cross border sharing of financial information on individuals does not apply to property. Many programmes are possible through real estate investment and the fact that applicants are also gaining residency and potentially shifting their residence for tax purposes could be seen as a benefit for many investors.

The full Knight Frank report can be read here.