Europe’s New Gateway for Indian HNWI
Published on 17 April, 2019
The UK has been one of the biggest recipients of migrating HNWIs over the past 30 years and a gateway to Europe especially for Indian HNWI. They hold a considerable 41% of their financial wealth in foreign countries. 13.4% of this international wealth is allocated in London. With regards to real estate, Indian property investments in central London accounted for 22% of all sales. However, this trend changed in 2017 when the country experienced its first major HNWI net outflow.
Possible reasons for the UK’s poor performance could be the new taxes on non-doms and foreigners. In fact, over-taxation has become a problem in most major European countries. In particular, inheritance taxes are very high in France and the UK. The rising crime levels and religious tensions, especially in London, could have also contributed to the change.
Malta as a sunnier and safer alternative for Indian HNWI
As the UK faces Brexit and rising crime levels, Malta has evolved into being one of the most sought after countries to relocate, especially for Indian HNWI. There is multiple reasons for that, like the climate, lifestyle, availability of high-end properties, advantageous economic and fiscal benefits. Last but not least the overall level of safety and English as the official language would be also attractive to Indian investors.
By obtaining residency and citizenship by investment, the investor’s children can enjoy reduced tuition fees at most universities and colleges. Tuition fees for permanent residents and citizens are significantly lower as compared to those paid by international students. In many cases, the amount to be invested by an investor is just a little higher than the tuition fees that have to be paid, especially if the investor has two or more children.
In other words, the investor can often recover the capital invested in citizenship or residency through the savings garnered from paying in-state – rather than international – tuition fees.
Quality of Life
The presence of a number of reputable firms that operate particularly in the financial services sector and the existence of high-end brands in a multitude of sectors also put Malta on the radar when it comes to relocation. Moreover, an upgrade of a number of high-end residencies and the registration of luxury yachts also compliments the list. All this contributed to the continuous additions of flight connections which make Malta a vibrant economy.
All that have translated themselves in an in-flow of investment of firms and individuals alike. The economic growth that the country has been going through can certainly attest to this.