“What’s Going to Happen is Tax Armageddon”: Investment Migration People in the News This Week

Investment migration people in the news this week included:

• David Lesperance of Lesperance & Associates
• Anurag Manakikar of Henley & Partners
• Rajwinder Pal Singh of Baaz Immigration
• Varun Singh of XIPHIAS Immigration
• Leptos Estates
• Emilio Zhong of Eticasa Servicios Inmobiliarios
• Héctor Pérez of Seiler Abogados
• Urusa Imran of Samana Group
• Iñigo De Luna of Citizenship Invest

The Telegraph – What Kamala Harris didn’t tell you in her speech: She’s planning a ‘tax armageddon’

David Lesperance, a financial adviser who works with high net worth Americans, said many of his clients were transferring their assets to their children under the current rules, fearing tougher policies under a Harris administration.

[…]

“Everybody’s gifting like crazy right now,” he told The Telegraph. “What’s going to happen is tax armageddon. Every financial adviser right now is saying that you have to use it or lose it. Don’t wait until you die.”

Euro News – Where are Europe’s top tax havens – and how are they attracting the rich?

“Italy is very popular,” David Lesperance, a tax and immigration consultant, told Euronews Business.

[…]

“When the flat rate was €100,000, one of my clients told me that was the amount he paid his accountant every year. It’s important to remember that with the flat rate tax, there are no compliance costs for tax planning.”

City AM – The ultra rich exodus has made an exit tax tempting. Would it work?

According to Henley & Partners’ 2024 Private Wealth Migration Report, Mullins will be one of 9,500 millionaires to leave the UK this year, making the country second only to China when it comes to high net worth emigration. And City A.M. has reported on several high-profile tax lawyers and wealth advisors warning they are already receiving record inbound enquiries about the idea of moving abroad.

[…]

But amid the wealth exodus warnings, and the need to raise revenue, some believe the proposal could be an alluring one for Reeves to stem the tide. “I can see them bringing in an exit tax,” David Lesperance, a founding partner at the wealth advisory Lesperance and Associates tells City A.M. “Because Reeves can point to it and say, ‘hey, they made this money – this increase in value – while they were resident here, and they should pay their tax on it here.’

[…]

And relative to other taxes on society’s most moneyed, there is more precedent for it generating tax receipts than other fashionable but impractical suggestions. “[Labour] can easily argue that an exit tax has worked for all these other countries for decades. It’s not like a wealth tax, which a lot of countries have tried and dropped because it was ineffective,” Lesperance says. “I can see the allure.”

Bloomberg – London’s Ultra-Rich Flee the Threat of Rising Taxes

The relative overpopulation of wealth is about to start correcting itself. The UK is on track to lose 9,500 millionaires this year, the most in any country except China and more than double the number that left the country in 2023, according to Henley & Partners, which advises rich clients on migration. Their financial clout means that even a small number of the ultra-rich leaving rather than paying more tax has the potential to upset the government’s revenue projections on their new policies.

Bloomberg – Africa’s Richest Person Plans to Open a Family Office in Dubai

The United Arab Emirates, of which Dubai is a part, is poised to be the top destination for relocating millionaires this year, according to a report from migration advisory firm Henley & Partners. To cash in, Dubai’s finance hub has made a concerted push to attract family offices, the private investment vehicles of the extremely affluent.

The Tribune India – Fewer job offers in Australia, Canada push students towards Europe

Rajwinder Pal Singh, an immigration expert with 15 years of experience, emphasised that Canada once saw an influx of up to 9,00,000 student visa applications annually from India. However, applications have dropped by 55%, with Germany emerging as the top choice for STEM students and Eastern Europe for unskilled visa applicants. According to Singh, 44,000 Indian students are currently enrolled in German institutions, and that number is expected to increase in 2024-25.

[…]

Anurag Manakikar, Associate Director at Henley and Partners Immigration Services, highlighted the high cost of living and tuition fees in the US as barriers to mass migration. In contrast, European countries like the Netherlands offer student-friendly policies, such as rental allowances and scholarships, making them increasingly attractive for students pursuing management and finance programmes. However, most European countries still have a limited annual intake of around 6,000–7,000 international students.

Business Standard – Greece Golden Visa: Investors now need Rs 8 cr for property in major cities

If you were planning to get a Greece Golden Visa in major cities at a reasonable price, you’ve missed the bus. As of September 1, Greece has raised its foreign investment threshold from €500,000 to €800,000 in prime locations like Athens, Mykonos, and Santorini. “The increase in property investment is a major setback for Indian investors, as it now amounts to around Rs 8 crore,” said Varun Singh, managing director at XIPHIAS Immigration, an immigration consultancy, told Business Standard.

[…]

“The Greece Golden Visa has been appealing due to its affordable property options near beaches, and the freedom of movement across Europe with minimal stay requirements. Until recently, Greece was the cheapest option in Europe for such a visa, making it attractive to Indian investors,” says Singh.

[…]

Indian investors were quick to act before the price hike, snapping up properties in Greece at a record pace. According to Cyprus-based Leptos Estates, property purchases by Indians surged by 37 per cent between July and August, as many rushed to secure permanent residency ahead of the changes, according to the Greek government.

EL PAIS – Mrs. Deng is on the hunt for Spain’s last ‘golden visas’

Emilio Zhong, the executive director of the realtor Eticasa Servicios Inmobiliarios, who arrived in Spain at the age of 12 with his parents from the coastal city of Quingdao (eastern China), says that these days they are working full tilt, as if the tap “was going to be turned off tomorrow.” Ever since Sánchez announced the end of the program, demand from Chinese investors has tripled, says Zhong from the heart of Usera, Madrid’s Chinatown district. “We no longer need to go looking for clients, they come to us. Both buyers and sellers. The urgency is noticeable,” he explains.

[…]

Sales have not increased to the same extent due to the lack of supply of homes to sell in the capital, but the procedure to acquire a property has been reduced “to the bare minimum.” “Negotiation no longer exists, there is no time for it. They know that there is a line of people waiting behind them. Investors who were looking for advice for a future purchase in two or three years are now in a hurry to buy. This makes it much easier to close a deal,” says the real estate agent. In search of speed, real estate agencies working with foreign investors are rushing to buy properties that are free of mortgages or other forms of debt. “We need to do it as soon as possible,” adds Zhong.

[…]

For Héctor Pérez, from the law firm Seiler Abogados, “the elimination of the golden visa program in Spain is not as worrying as it would be to eliminate the special tax regime for foreign workers, commonly known as the Beckham Law [so named after the soccer player] That’s where the business lies.” He acknowledges that there has been an upturn. Of the 14,000 golden visas issued in 10 years, 3,500 have been granted between 2022 and 2023. But he doubts that the measure will alleviate housing prices. “The elimination of the golden visas is not going to stop straining the market. “We can already see what happened in Portugal, where the results are totally disappointing,” he notes, referring to similar measures that the neighboring country undertook months ago.

[…]

“The problem with this golden visa is that people with a lot of money come here to enjoy themselves, but not to work in Spain,” Pérez continues. “What they do is live here and continue to maintain their businesses in their countries of origin. This happens especially with Latin Americans , who have found their own Paris in cities like Madrid, Barcelona or Valencia. That is why the centers of these cities are under pressure, because high net worth individuals have been living here for 10 or 15 years off the money they earn in their own countries,” he concludes.

Khaleej Times – Second passport: UAE residents switching to Schengen region as Caribbean nations raise rates

Urusa Imran, director for business development management at Samana Group, said some Caribbean countries have more than doubled the cost of their citizenship through investment programmes.

[…]

“The biggest reason for people wanting a second passport was visa-free access. People wanted a Caribbean passport – which can be obtained in six months – as it allowed them to travel visa-free to all of Europe and Schengen countries. For European passports, people were spending a high amount and waiting 5-7 years. Now the point has come where the investment amount is somewhat equivalent to investing in countries like Portugal and Spain for their passport. When you have to invest so much, clients are calibrating investing the same amount and wait a couple of years and get a European passport, which has a lot more benefits,” said Imran.

[…]

Iñigo De Luna, CEO of Citizenship Invest, said the recent price increase has had minimal impact on high-net-worth individuals (HNWIs) seeking citizenship by investment. For investors focused on strategic planning, the Caribbean remains a highly sought-after and accessible option, even with the adjusted pricing.

[…]

“Since the announcement in March 2024, there has been a surge in applications, including from UAE residents, leading up to the deadline which was expected. With over 40 years of demonstrated resilience and staying power, the Caribbean CBI programmes continue to play a significant and enduring role in the global investment landscape.”