Last week our Alfred Ip joined a panel at the Private Client Global Strategy Forum organised by Private Client Global Elite at the Gleneagles from 22nd to 24th January. He joined Joshua Rubenstein of Katten and Pedro Fernandez of Kinship on the topic of global mobility and jurisdiction shopping.
Given the seismic political and economic changes towards the end of 2024, to which jurisdictions are our clients ‘escaping’ to? What trends can we see will continue into 2025, and how can we be better prepared?
In today’s rapidly evolving global landscape, High-Net-Worth Individuals (HNWIs) are increasingly considering global mobility and jurisdiction shopping as viable strategies for optimising their financial and personal circumstances. These practices extend beyond mere relocation; they involve a careful examination of the legal, economic, and lifestyle advantages offered by various jurisdictions. As we explore these strategies, it becomes evident that while opportunities abound, meticulous navigation is essential.
The geopolitical climate of 2024: a catalyst for wealth movement
The political environment in 2024 and early 2025 is marked by significant geopolitical shifts. Tensions between the United States and China create ripples that reverberate globally, significantly impacting wealth movement. Conflicts in Europe, the Middle East, and Africa —exemplified by the ongoing ramifications of the Russian-Ukraine war — have intensified concerns about energy security and migration patterns.
Economic policies are also pivotal in this narrative. The UK’s high tax rates and looming tax hikes have prompted an exodus of millionaires seeking more favourable environments. Concurrently, tightening regulations in mainland China are driving wealth out, highlighting the interconnectedness of these dynamics.
The influence of economic shifts
Broader economic trends are reshaping the landscape for HNWIs. The rise of digital transformation opens new investment avenues, particularly in emerging markets like India, which offers significant opportunities for those willing to engage in its burgeoning sectors.
Changes in immigration policies present both opportunities and challenges. While destinations like Hong Kong and the UAE have adopted welcoming frameworks, the implications of such policies necessitate careful consideration based on specific circumstances related to private clients.
The allure of the most popular jurisdictions
As HNWIs navigate this complex terrain, certain jurisdictions stand out. Cities such as London, New York, and Dubai continue to attract attention, but Hong Kong, Singapore, the UAE, Australia, and Switzerland are increasingly becoming focal points for wealth migration.
- Hong Kong: a beacon of opportunity
Hong Kong continues to stand out as one of the best options for High-Net-Worth Individuals, offering a unique blend of low tax rates, a straightforward regulatory environment, and a vibrant financial services sector. As a leading financial hub, it provides affluent individuals with exceptional opportunities for wealth management and investment.
In recent years, the HKSAR Government has actively promoted the establishment of Family Offices, recognizing their importance in fostering long-term wealth management and investment strategies. This initiative not only enhances the city’s appeal but also provides tailored support for families looking to manage their assets effectively.
Hong Kong’s tax regime is particularly attractive, with no capital gains tax, no inheritance tax, and a low corporate tax rate, making it one of the most favourable jurisdictions for wealth preservation and growth. Its strategic location as a gateway to Asia offers unparalleled access to key markets, further enhancing its attractiveness for international business and investment.
Despite recent challenges, Hong Kong’s resilience and commitment to maintaining its status as a financial centre are commendable. The city’s robust infrastructure, exceptional connectivity, and cosmopolitan lifestyle contribute to a high quality of life that appeals to affluent residents. With ongoing efforts to adapt regulatory frameworks to meet the needs of global investors, along with a thriving cultural scene and world-class dining, shopping, and entertainment options, Hong Kong remains a compelling choice for those looking to preserve and grow their wealth in an exceptional environment.
- Singapore: a premier option
Singapore is widely regarded as a premier destination for High-Net-Worth Individuals, primarily due to its low tax rates and strong governance. The city-state offers a stable political environment, robust infrastructure, and a thriving economy, making it an attractive hub for business and investment.
While the cost of living has risen, particularly in the real estate market, many HNWIs view this as a reflection of Singapore’s desirability and growth potential. The government’s proactive approach to innovation and investment creates numerous opportunities across various sectors, including technology and finance.
Moreover, Singapore’s strategic location in Asia facilitates access to key markets, further enhancing its appeal. Although the regulatory landscape can be intricate, the overall benefits of residing in Singapore — including high-quality education, healthcare, and a vibrant cultural scene — make it a compelling choice for those seeking both financial advantages and an exceptional quality of life.
- The UAE: a new frontier?
The UAE, particularly Dubai and Abu Dhabi, has become increasingly popular among High-Net-Worth Individuals due to its vibrant, dynamic environments and tax-free benefits. Dubai stands out as a global trade hub, offering a luxurious lifestyle, world-class amenities, and a diverse cultural scene that appeals to affluent residents. Its rapid development and modern infrastructure provide an attractive backdrop for investment and business opportunities.
Abu Dhabi complements this with its rich cultural heritage and strong economic foundation, making it an ideal location for those seeking both leisure and business prospects.
While the regulatory landscape is evolving, with many new rules and regulations in the pipeline, some HNWIs express concerns about unpredictability and potential instability. However, the UAE’s commitment to fostering a business-friendly environment and its welcoming immigration policies for skilled professionals and investors create a robust framework for HNWIs. The blend of security, lifestyle, and economic potential positions Dubai and Abu Dhabi as leading destinations for wealth migration.
- Australia: a rising star
Australia is increasingly being recognised as a premier destination for HNWIs seeking stability and opportunity. With a stable and growing economy, Australia presents a wealth of investment opportunities across various sectors, including technology, real estate, and natural resources. The country’s stunning landscapes, excellent healthcare system, and advanced infrastructure contribute to a high quality of life that is highly appealing for affluent individuals.
However, one significant drawback is Australia’s relatively high tax rates, which can be a concern for HNWIs looking to maximise their wealth. While the political stability and low levels of corruption further enhance its attractiveness, these tax burdens may deter some from fully committing to residency. Nevertheless, the welcoming immigration policies, particularly for skilled professionals and investors, make it easier for wealthy individuals to establish residency and engage in business activities.
- Switzerland: the quintessential wealth haven
Switzerland remains a top choice for HNWIs, known for its favourable tax regimes and strong legal protections. The country’s long-standing tradition of political neutrality and stability reassures investors, making it a safe haven for wealth preservation.
With a highly developed economy and a robust financial sector, Switzerland offers ample opportunities for investment in finance, pharmaceuticals, and luxury goods. The quality of life is exceptional, with stunning landscapes, excellent healthcare, and prestigious educational institutions contributing to its status as one of the best places to live in the world.
Emerging trends: digital nomad visas and cryptocurrency regulations
The rise of remote work has led to the proliferation of digital nomad visas in various countries, catering to professionals seeking flexibility in their living arrangements. This trend not only enhances global mobility but also stimulates local economies.
On another front, HNWIs are increasingly attracted to jurisdictions with favourable cryptocurrency regulations. The tax incentives and clear legal frameworks in these regions create fertile ground for investment in digital assets, aligning with the preferences of many modern investors.
Client behaviour patterns: a new paradigm
As HNWIs assess their options, a noticeable shift in client behaviour is emerging. Many are establishing “backup residencies” in jurisdictions that can provide refuge should their primary locations become untenable. This strategy reflects a growing awareness of the need for asset diversification, both financially and geographically.
Furthermore, clients are becoming more discerning about their relocation choices, often prioritising jurisdictions that offer not only favourable tax conditions but also robust legal protections and quality of life. The desire for a stable political environment, coupled with strong healthcare systems and reputable educational institutions, is increasingly influencing their decisions.
HNWIs are also placing greater emphasis on personal and family considerations. The ability to access high-quality education for children, cultural amenities, and a supportive community plays a crucial role in their relocation decisions. As such, many clients are engaging in thorough research and consultations with advisors to assess the lifestyle implications of their potential new homes.
Moreover, the rise of remote work has led to a more flexible approach to residency. Clients are exploring opportunities to live in multiple jurisdictions throughout the year, allowing them to take advantage of different markets, climates, and lifestyle benefits. This trend not only enhances their quality of life but also provides strategic tax planning opportunities.
As clients navigate these complex considerations, the role of trusted advisors based in different global locations becomes paramount. Advisors must not only provide financial and legal guidance but also offer insights into local cultures, social dynamics, and the potential impact of geopolitical shifts on lifestyle and investment opportunities.
Preparing for the future: a strategic approach for advisors
For legal and financial advisors, staying ahead of these trends is paramount. A robust understanding of regulatory changes and a comprehensive compliance framework are essential in guiding clients through the complexities of global wealth migration.
Building a global network of advisors and specialists in international law will enhance the ability to offer tailored solutions that address clients’ unique needs. Moreover, investing in technology to streamline operations and ensure data security will become increasingly critical.
Educating clients about the implications of global mobility — ranging from tax considerations to legal frameworks — will empower them to make informed decisions.
Final thoughts
In an era where borders are becoming increasingly fluid, strategies of global mobility and jurisdiction shopping offer HNWIs a pathway to optimise their wealth and lifestyle. While opportunities abound, navigating this landscape requires astute planning and a deep understanding of the complexities involved.
Advisors play a critical role in guiding clients through these complexities, offering insights into tax implications, regulatory changes, and lifestyle considerations. As geopolitical dynamics continue to evolve, it is essential for advisors to stay abreast of trends that may impact client decisions, including emerging markets, digital transformation, and shifts in immigration policies.
The need for comprehensive strategies that encompass asset diversification, residency planning, and long-term investment opportunities is paramount. HNWIs must consider not only the financial advantages of potential jurisdictions but also the broader implications for their personal and family well-being.
Success in global wealth management for HNWIs requires a proactive and informed approach, leveraging expert advice to navigate an increasingly interconnected world. By doing so, clients can position themselves effectively
Hugill & Ip has extensive experience in dealing with Wealth and Estate Planning issues – so kindly get in touch to find out how our solicitors can help.
This article is for information purposes only. Its contents do not constitute legal advice and readers should not regard this article as a substitute for detailed advice in individual instances.
