The benefits of secondary residency for ultra wealthy individuals

Secondary residency involves an economic contribution to the host country or a real estate purchase in exchange for residency rights.

There are residency by investment programmes, also known as Golden Visas, all over the world, but the most popular ones in UHNWI circles are in Europe, West Asia, and North America.

In Europe, established residency by investment programmes include the Greek Golden Visa (€250,000 minimum investment). There’s also the Malta Permanent Residence Programme (requiring UHNWIs to invest at least €150,000). Along with the Portuguese Golden Visa (available for a minimum investment of €500,000).

Portugal’s Iberian neighbour, Spain, offers the Spanish Golden Visa (also for an investment of at least €500,000). Geographically European, but not politically, the UK provides another secondary residency option. This is in the form of the £200,000 Innovator Founder Visa.

Elsewhere, West Asia is home to the UAE Golden Visa, which requires a minimum investment of $550,000. One particular benefit of this second residence is that UNHWIs can include domestic staff, along with family, on their application.

Finally, North America is the birthplace of residency by investment, with US EB-5 Investor Visa (with a minimum $800,000 price tag). Let’s get into what benefits UNHWIs gain from secondary residency options.

Also Read: How to obtain a Dubai Golden Visa through real estate investment

Secondary residency helps formulate a plan B

The year 2024 is famously the year of elections. There is more electoral activity than at any other time in history. A second residence offers the chance of a second base in a new place.

UHNWIs can escape the turbulent political landscape of their home country. Also, imagine the onset of a new pandemic. If you found the 21-day nationwide lockdown restriction in India excessive, there’s a chance to move you and your family into your more relaxed second residence, albeit only temporarily.

Also Read: A complete guide to digital visas: Streamline your international travel

Give your children a better start in life

For Indian students aspiring to study abroad, the Oxbridge Spires of the UK, seemed further away following the restrictions after Brexit. Adding them to your Innovator Founder Visa can help their dreams become a reality.

The Times Higher Education World University Rankings collates the scores of 1,907 universities across 108 countries and regions. Its 2024 list includes seven American universities in the top 10. The EB-5 helps your children apply as residents rather than foreign students, boosting their chances of getting into the top schools.

Access the world’s best healthcare

Picture being able to make a medical appointment at the leading global hospitals. In a life-and-death situation, you want to be close to the healthcare practitioners with the finest reputations. If your needs are more cosmetic, you increase the range of surgeons you can use with a second residency.

Protect your assets and diversify your portfolio

A residency by investment is a foreign direct investment. Besides residency, you can receive returns on a real estate investment with the potential for your property to increase in value. Wherever you invest in the US through an EB-5, it doesn’t determine where you live, and you can choose to reside in tax-friendly states such as Florida, New Hampshire, and Texas.

Enhance your global mobility

European residency by investment programmes appeal because they allow you to travel freely across the 29 countries making up the EU Schengen area. Access to this area will become more complicated with the impending arrival of the EU entry/exit system (EES) and the European Travel Information and Authorization Services (ETIAS). Avoid visa delays with a European residency card.

Also Read| How you can retire in Europe with Portugal’s passive income visa

Follow a route to citizenship

With the exception of Malta, which offers its own Citizenship by Investment programme, and the UAE, residency can lead to becoming a national of the country you invest in. This is another way to become more mobile. You become eligible for a passport offering greater visa-free access than the Indian one.

Build a legacy

If you become a citizen via naturalization, you are securing financial and strategic benefits for yourself and future generations. Countries like Canada, Portugal, and the US offer citizenship after five years of residency, while Greece and Spain require seven and ten years, respectively.

The decision to pursue secondary residency should not be made lightly. It’s essential to research thoroughly and seek expert advice. Many programmes don’t allow direct applications and you may need to go through a trusted residency by investment intermediary.

David Regueiro is the chief operating officer of RIF Trust