- Monday, April 29, 2024
By: Radhakrishna N S
By Nadeem Badshah
IT HAS become the latest status symbol among the wealthy to add to the yacht, collection of supercars and expensive art.
The pandemic and Brexit have led to rich Indians looking to get second passports and overseas citizenships, figures show.
Enquiries have surged by more than 50 per cent year-on-year, mainly from high-net-worth individuals from the US, India and countries in the Middle East, according to research by financial advisory firm deVere Group.
It said the trend for an additional passport and residency in Europe and the Commonwealth had been sparked by national lockdowns, closed borders and Covid-19 travel restrictions.
Jaffer Kapasi OBE, who runs an accountants and business advisory firm in Leicestershire, said there has been an increased demand, especially from business people who travel frequently.
He told Eastern Eye: “With the recent economic downturn and uncertainty [caused by] Brexit and Covid-19, businesses are looking for a level-playing field, fewer regulations, tax optimisation and people want to travel hassle free for business opportunities abroad.
“Some also seek a warmer climate, coupled with education for their young ones.
“At one time this process was for high net worth people. Nowadays, young entrepreneurs are also looking for the same freedom. Brexit means closed doors to a number of countries.”
Every country has different criteria for granting citizenship, including time spent there and providing the legal source of funds to support onself.
Experts said more nations are also running citizenship-by-investment programmes, where applicants invest at least €250,000 in sponsoring a country’s infrastructure in exchange for permanent residency or citizenship.
Kishan Devani, vice-chairman of the Lib Dems in Business group, told Eastern Eye: “This is not surprising at all, in an increasingly global world, where nations should be looking to work together on international issues.
“Having a European passport allows you to do business and work across 26 countries, access to a 500-million strong market. Why would they not want that?”
Devani, who is also associate lecturer of politics, international relations and diplomacy at London Metropolitan University, added: “Britain under this Brexit-fixated government are doing the opposite. Far from being internationalist, this government has become an inward-looking nationalist regime, which is why they are taking us down the path of a no-deal Brexit.”
His comments come after Boris Johnson held last-ditch talks with Ursula von der Leyen, the European commission president, last week about a trade deal with the EU. The Brexit transition period ends on December 31.
Senior company executives are among travellers now exempt from Covid-19 quarantine restrictions for international arrivals in England, the government announced earlier this month.
It means they do not have to self-isolate for up to 14 days, along with recently signed elite sportspeople, performing arts professionals, TV production staff and journalists if arriving from a country outside of England’s travel corridor.
Amjad Malik, an immigration and family solicitor in Greater Manchester, said entrepreneurs obtaining citizenship can access free healthcare in countries such as England and Spain. But he said the UK has imposed tougher restrictions in the application process and eligibility for citizenship, such as the EU Settlement Scheme.
Malik added: “As a result of Covid-19, the demand for secondary passports and citizenship has increased.
“Each country during the pandemic offers different support to businesses, with some countries providing more monetary support. Investors are seeking where best to place their money and take advantage of various benefits to suit their interests including trouble-free travelling.
“It seems apparent that some countries, such as the UK, will offer a vaccine before many other countries, which presents another reason as to why people are trying to ascertain another citizenship or passport.
“They will have greater access to health benefits and having access to a vaccine for coronavirus seems a priority for business owners who need to continuously travel for their business to thrive.”
Nigel Green, CEO of the deVere Group, said a second passport or residency was previously regarded by many as a status symbol like yachts, supercars and original artwork.
He added: “While this still remains the case, there’s also been a shift due to the pandemic.
“Now, a second citizenship or overseas residency are increasingly becoming not just a ‘nice to have accessory’ but a ‘must have’.
“Whether it be for personal reasons, such as to remain with loved ones overseas or be able to visit them, or for business reasons, a growing number of people are seeking ways to secure freedom of movement as they have faced travel restrictions which are, typically, based on their citizenship.”
