Investment Migration: A Diversification Strategy for Affluent Investors

In today’s increasingly uncertain and volatile world, securing the freedom to choose where you and your family live, study, invest, conduct business, and retire has become a top priority. As instability grows, so does the appeal of investment migration programs. Over the past two decades, these programs have steadily gained popularity, and the demand for additional residence and citizenship options continues to rise.

A growing number of affluent individuals are turning to residence and citizenship by investment programs to mitigate the risks that threaten their wealth, lifestyles, and legacies, as well as to create new opportunities for themselves and their families across destinations and jurisdictions worldwide.

Domicile diversification for residence optionality

In the past, one of the primary reasons high-net-worth investors sought alternative residence and citizenship options was to enhance their global mobility, by investing in a country with a stronger passport that would enable them to travel more freely and without the need for acquiring visas. In this evolving world order, with a changing global playing field, ubiquitous conflict, and daily severe weather events, interesting new ‘push’ and ‘pull’ factors are arising. Talented and affluent investors and their families need not limit their lives and business operations to one country or jurisdiction alone. This realization is seeing growing numbers of high-net-worth investors across the globe diversifying their domicile options through investing in one or more investment migration programs, according to their families’ unique requirements and global outlook.

Having the option to change residence to a country with more opportunities is an increasingly important aspect of international planning for private clients. There is a wide range of attractive programs in some of the world’s most sought-after places in terms of business environment, quality of life, access to top-tier tertiary education institutions and private hospitals, and even resilience to climate change. A growing number of investors are seeking out alternative residence options in jurisdictions that are welcoming to digital asset investors. If the residence by investment path is chosen, many programs include the possibility of acquiring citizenship after a stipulated period of legal residence, among other eligibility requirements.

Navigating a changing world

In the 2020s, four major forces have driven the rising demand for residence and citizenship by investment: conflict, climate change, crypto-friendliness, and the pursuit of efficient governance. These factors reflect a global shift in priorities, as affluent individuals seek greater stability, resilience, and opportunity in a rapidly evolving world. This trend aligns with insights from AlphaGeo and FutureMap founder Dr. Parag Khanna, who has highlighted the growing appeal of well-governed nations offering superior healthcare and proactive solutions to global challenges

In terms of conflict, the polarization and fragmentation that are evident across many of the world’s nations are eroding social cohesion, fueling a rising sense of unease. The Global Peace Index 2024 revealed that the highest number of countries are engaged in conflict since World War II — concerning evidence that we are living through turbulent times worldwide. Warfare, political instability, and violence feature in our daily newsfeeds. In this context, having an alternative place to call home may in some circumstances even be a matter of life and death.

Turning to the accelerating climate crisis, new research shows that global warming of 1.6° C is now the best-case scenario, and the world needs to prepare. This is one of the biggest challenges of our time with repercussions for almost every aspect of our lives, society, and environment. Global investors seeking to improve their resilience to the impacts of the climate crisis can explore investment migration program options and make strategic, data-driven choices about where best to live, study, conduct business, invest, and retire — now and for future generations.

Meanwhile, as the cryptocurrency rollercoaster ride continues, the market has demonstrated resilience, bouncing back strongly after the approval of Bitcoin Spot Exchange Traded Funds by the U.S. Securities and Exchange Commission and again after the election. As the number of crypto millionaires rises, interest continues to grow among this cohort of investors investigating crypto-friendly jurisdictions.

Another factor that continues to increase demand for investment migration, leading some wealthy families to consider moving abroad, is regulatory and tax changes such as the UK’s scheduled abolition of its non-domicile regime, concerns over higher taxes on the wealthy in France, the global minimum tax backed by all G20 countries, and the proposed minimum tax on billionaires.

Investment migration options now a ‘must-have’

In 2024, six of the top ten countries in terms of investment migration enquiries Henley & Partners received were G20 members. American client numbers have skyrocketed, showing an astonishing increase of over 1,000% in the past five years, and Americans once again rank as the top nationality in terms of applications the firm received in 2024. Interest also remains high in the UK, Canada, and Australia, with all three countries experiencing record demand for another consecutive year.

The investment migration sector has enjoyed steady growth for over two decades. Today, more than 100 countries have investment migration legislation in place, and there are over 60 active programs globally, with about 30 attracting the majority of applicants. Astute investors now increasingly view these programs as integral to their wealth planning and legacy management strategies. By incorporating investment migration, they can accelerate the transition to new lives in countries that provide greater comfort, security, and a future that aligns with their long-term aspirations — not just for themselves, but for generations to come.

Expanding global demand and new markets

As global uncertainty continues, the demand for residence optionality and dual citizenship is rising and investment migration continues to draw attention from emerging wealth markets.

Over the past six years, there has been a notable increase in enquiries, including a growing number from citizens of developing economies in the Global South. Growth in these regions is expected to remain strong, especially as emerging markets are forecast to experience faster wealth expansion than developed economies over the next five years. This trend is likely to further propel demand for alternative residence and citizenship, leading to a more diverse and dynamic global market.

The growing appeal of multiple alternatives

Faced with unprecedented volatility, investors and wealthy families are adopting a strategy of geopolitical arbitrage to acquire additional residence and/or citizenship options to hedge against jurisdictional risk and leverage differences in legal, economic, political, and social conditions across countries and optimize their personal, financial, and lifestyle outcomes. Through investment migration, affluent investors can overcome the limitation of being restricted to a single jurisdiction. 

For ultra-high-net-worth investors, a single alternative residence or citizenship will always create value, but strategic yield can be created only through strategic advisory, and a portfolio investment approach to investment migration. To cover all eventualities, an integrated portfolio of complementary investment migration options will create optimal value, by permitting wealthy individuals and their families to live, work, and invest in a suite of locations worldwide, thereby hedging manifold levels of volatility and creating enhanced yield.

Alternative revenue streams in times of crisis

When catastrophes such as wars or pandemics strike, and in the wake of severe climate events and natural disasters that occur with greater frequency each year, the countries that host investment migration programs can rely on program inflows to recover their economies, build capacity, reduce debt, and make capital investments. Residence and citizenship by investment programs are designed by sovereign states as an alternative, debt-free, capital-raising platform to diversify their economies, thereby creating societal and sovereign value, or what Henley & Partners refers to as ‘sovereign equity’.

Invaluable to investors and sovereign states

In the high-stakes competition for global wealth, investment migration is a powerful tool for countries seeking to attract and retain capital and sought-after talent. These programs offer a mutually beneficial exchange: for investors, they furnish a golden key to a new life of stability and opportunity; for host nations, they supply a vital injection of capital and talent to boost economic dynamism.

Dominic Volek, CA(SA), FIMC, is Group Head of Private Clients at Henley & Partners and a member of the Executive Committee. Originally from South Africa, he now divides his time between the firm's global offices across the Americas, Asia Pacific, Europe, the Middle East, and Africa, leading the private client team globally and advising ultra-high-net-worth individuals, their families, and their advisors worldwide. Volek’s work targets countries that are deemed most attractive to wealthy individuals in terms of mobility, security, privacy, personal tax, estate planning, and lifestyle. He is also a member of Henley & Partners’ Government Advisory practice, providing strategic advice to governments on the design, implementation, and promotion of successful investment migration programs. 

Volek is a certified Chartered Accountant CA(SA), holding both a Bachelor of Commerce in Accounting with Honors and a Bachelor of Arts in Corporate Communication, and is a Fellow of the Investment Migration Council. Prior to joining Henley & Partners, he had a successful career as part of the senior management team in one of the big four accounting and advisory firms in Singapore, South Africa, and the USA. Volek is frequently sought after as a speaker and thought leader on residence and citizenship planning, and he regularly provides commentary on the Henley Passport Index. He has been interviewed by top-tier media such as the BBC, Bloomberg, CNBC, and Quartz.