With the COVID-19 pandemic waning, how will demand for investment immigration programs like Portugal’s golden visa, the US EB-5 or St. Kitts’ citizenship by investment program change?
The battle against the pandemic is on the last lap, but its economic and social impact will be felt for a long time ahead. And investment immigration is always popular during troubled and uncertain times.
The virus may have been tamed but its aftermath will have a significant impact on how wealthy individuals think. Further, the golden visa industry is facing significant changes and challenges both in the EU and the US.
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Inflation and Economic Worries
Countries all over the world have resorted to deficit financing to combat the pandemic. The economic cost of the surge in debt will be felt for a long time to come. For investors, developed economies offer greater protection from economic problems like inflation, volatility in exchange rates, demand and supply-side pressures, and recession.
Emerging economies always experience greater wealth destruction during economic crises and also tend to recover later as compared to developed countries. This means the cost of a golden visa or an investment immigration permit can be a valuable investment for the global investor.
Geopolitical Concerns
Mounting economic problems invariably contribute to increased geopolitical and security concerns, which means individuals, especially wealthy residents of such troubled areas and regions, will have greater incentive to move to safer havens.
Residents of the Baltic states are likely to fuel demand for golden visas in response to Russia’s invasion of Ukraine. Wealthy Russians may also to seek friendlier destinations to minimize the impact of economic sanctions.
Unlike conventional humanitarian immigration options, investment immigration offers a stable and certain pathway to a safer life. The investor brings in valuable foreign capital to the country and can actually pick and choose the best and safest destination for the entire family.
The Pandemic
The COVID-19 pandemic has highlighted the stark difference in battling the virus in a crowded city in India or Philippines as compared to the US, the UK, or Canada.
With stronger public health infrastructure, quality healthcare and nursing facilities, and easier access to vaccines, the choice between an emerging and developed country can, literally, mean a choice between life and death.
A professional or entrepreneur with a second passport in hand can enjoy greater flexibility in complying with vaccine passport requirements that seem inevitable and unavoidable in the years ahead.
A second passport or a permanent residence in another country is excellent insurance against a wide range of risks. For those who can afford it, the cost of getting a second citizenship or a golden visa will far outweigh the risks involved in getting caught in another pandemic.