citizenship and residence planning presentation to the...

Citizenship and Residence PlanningPresentation to The Belgrade Wealth Forum

September 28-29, 2017

The Agenda

Henley & Partners — Residence and Citizenship Insight Session 2017Henley & Partners — Residence and Citizenship Insight Session 2017

1. Henley & Partners and the Industry

2. Serbia- Facts and Citizenship Program

3. Top Citizenship-by-Investment Programs

4. Helping Clients Make Informed Decisions

5. Questions and Answers

Contents

Henley & Partners — Residence and Citizenship Insight Session 2017

Track Record

Over 20 years’ industry experience

Investment migration pioneers

Reach

Over 25 offices around the world

Global presence

Focus

Residence and citizenshipplanning

Program development for countries

Clients

High net worth individuals anand their families

Governments worldwide

About Henley & Partners


Antigua and Barbuda

Australia

Austria

Canada

Croatia

Cyprus

Dubai (UAE)

Grenada

Hong Kong

Jersey

Latvia

Lebanon

Malaysia

Malta

Philippines

Portugal

Singapore

South Africa

South Korea

St. Kitts and NevisSt. LuciaSwitzerlandThailandTurkey

United Kingdom

Vietnam

Global Presence


Henley & Partners is the leading firm worldwide advising governments on residence and citizenship programs

Its assignments range from strategic consulting to assistancein the design, set-up and operation of residence- and

citizenship-by-investment programs

Unique Track Record in Government Advisory


The Difference Between Residence and Citizenship Programs

Citizenship• The right to vote• Ability to pass citizenship on to future generations

• Allows international travel• Affords protection from the state

Residence• The right to live, work, travel and study in a country

• Usually comes with conditions or requirements

• May give some travel rights• Can be withdrawn• Is likely to affect tax status


Ideal place of residence

• High quality of life

• Good education for children

• Access to modern and reliablemedical facilities

• Financial privacy

• High level of legal and physicalsecurity

• Low-tax jurisdictions orjurisdiction with special taxregimes for foreign investors


Publications and Research from Henley & Partners

Global Residence and Citizenship Programs 2016 Report

Contains two indexes, reports on the industry, and provides an overview of 26 programs in total

Global Residence and Citizenship Handbook

New edition released annually — 700-page book covering the industry and the programs in great detail


Henley & Partners — Global Events

Annual Global Residence and Citizenship Conference

Early November each year, 2015 in Dubai

2016 in London2017 in Hong Kong

Global Citizenship Seminar

Various locations worldwide on an annual basis


Portugal• In 2015 , EUR 3 Billions + have been invested in the local economy,

since the Golden Visa program inception (mostly through capitaltransfer or real estate property purchase)

• More than 5,000 resident permits issued, mainly to Chinese andBrazilian applicants.

Greece• 1,684 resident permits issued since the program inception, mainly to

Chinese, Russian, Turkish & Egyptian applicants.

United Kingdom• During 2015 & 2016 more than 2,000 visas issued combined among

the entrepreneur and investor visa programs, with main interestderived from Chinese and Russian applicants.

Relocation – Facts & Statistics

Relocation Trends

Millionaire relocating

Remarks:

In 2015, 2.6 M + people have been commuting / changing residence within the EU among

popular destinations such as United kingdom , Poland Germany, Italy & France (In Number of

applications)


HNWI relocation trends

There has been an increase in the number of HWNI relocating, 64,000 in 2015 , 82,000 in 2016.

Migratory Outflow

Migratory Inflow

• France• China• Brazil• India• Turkey

• Australia• USA• Canada• UAE.

Main motivations for Relocation

• Personal safety (geopolitical context or due to the AEOI)• Visa Free travel (especially within the EU)• Tax optimization

Remarks:

In 2017, we noticed an significant demand for relocation from clients coming from the Middle

East , Latin America, France & China

Most popular programs in 2017: EU citizenship (Malta, Cyprus), Caribbean Islands and Portugal

Residence

About Serbia


• Strategic geopolitical position, sharing borders with several countries

• The Danube, which is the most important river in Europe, flows through Serbia at a

length of 588 km

• Highly educated people, and skilled labor force available at competitive cost

• One of the lowest corporate tax rates in Europe of 15%

Serbia – An Attractive Country

Visa Restrictions first page

Henley & Partners Visa Restrictions Index V170327

7 Australia

Korea (Republic of,South)

170

8 Iceland 169

9 Czech Republic 16816710 Hungary

Malta

11 Lithuania 166

16512 Latvia

Liechtenstein

Slovakia

Slovenia

16413 Estonia

Malaysia

14 Poland 162

15 Monaco 160

16 Cyprus 158

17 Chile 157

18 Brazil 156

19 Andorra

San Marino

155

20 Argentina 154

Finland 22 Hong Kong (SARChina) 152

Italy 23 Brunei Darussalam 151

Spain 24 Israel 148

United States 25 Barbados 143

4 Austria 173 26 Mexico 142

Belgium 27 Bahamas 141

France 28 Uruguay 138

Luxembourg 29 Seychelles 137

Netherlands

Norway

30 Antigua and Barbuda

St. Kitts and Nevis

136

Singapore

United Kingdom

31 Taiwan

Costa Rica

134

5 Ireland (Republic of) 172 VaticanCity

Japan 32 Trinidad and Tobago 132

NewZealand 33 Mauritius 131

6 Canada 171 34 Venezuela 129

Greece 35 Paraguay 128

Portugal

Switzerland

36 Macao (SAR China)

Panama

127

St.Lucia

St. Vincent and the

Grenadines

Montenegro

51 Micronesia(Federated

106States of)

Russian Federation

52 Palau

Turkey

105

53 Bosnia Herzegovina 103

54 Moldova 102

55 Albania 98

SouthAfrica

56 Belize 95

57 Ecuador 83

Timor-Leste

58 Ukraine

82

59 Guyana

81

60 Kuwait

80

Maldives

Nauru61 Fiji 79

7862 Jamaica

Qatar

63 Papua New Guinea 76

64 Bolivia 75

65 Botswana 74

Suriname

37 Grenada 124 66 Bahrain 73

38 Honduras 121 67 Kazakhstan 71

United ArabEmirates Namibia

39 El Salvador 120 Thailand

40 Dominica 119 68 Georgia 69

Guatemala Kenya

41 Peru 118 Oman

42 Solomon Islands 116 69 Saudi Arabia 68

43 Serbia 115 70 Belarus 67

44 Samoa 114 Lesotho

45 Vanuatu 113 Malawi

46 Marshall Islands 112 71 Gambia 66

Nicaragua Swaziland

47 Tonga 111 72 Tanzania 65

48 Macedonia (FYROM) 110 73 Cape Verde 63

Tuvalu Tunisia

49 Kiribati 109 Zambia

50 Colombia 107 74 Azerbaijan 62

75 Philippines 61

1 Germany 176 Bulgaria

2 Sweden 175 21 Croatia 153

3 Denmark 174 Romania

Rank Citizenship/Passport Score

Benefits of a Serbian Citizenship

Serbia is ranked 43, according to the citizenship/passport source, allowing to travelvisa free to 115 countries


Serbia Citizenship

Three ways to obtain citizenship:

Detailed information can be found at: http://www.mfa.gov.rs/en/consular-affairs/citizenship

A - By origin (if both or one parent is a national of the Republic)

B - By admission (if you are a foreigner who has a residence permit, shows that you will give up

your citizenship to get the Serbian one or if you are married to a Serbian national, you can also

express your desire to get Serbian citizenship

C- Serbians from the diaspora can get Serbian citizenship under the Article 23 of the Law (A

member of the Serbian nation who does not have residential status on the territory of the Republic

of Serbia can be granted citizenship of the Republic of Serbia if he/she is 18 years old or more, has

not been deprived of legal capacity, and submits a written statement that the Republic of Serbia is

his/her state’)

http://www.mfa.gov.rs/en/consular-affairs/citizenship


• The country suffered from important economic sanctions and achallenging political situation

• An average salary in Serbia is around €450 per month• An unemployment rate at about 14% with prices not significantly

lower than in the rest of Europe

Emigration trend is on constant rise

Outflow of population to mainly

• Germany• Canada• Switzerland• England or the US

According to the World Report on operations, Serbia is the second in the world to lose highlyintellectual citizens in proportion to its population, and those usually leaving are electricalengineers, doctors, dentists and economists

The consequences of the civil war

Leading Citizenship-by-Investment Programs


Citizenship-by-Investment Programs

There are currently only seven countries which offer citizenship programs that

provide a direct legal route to citizenship based on capital contribution and which

have passed Henley & Partners’ country due diligence

Other countries have similar provisions. However, in those countries there is no

established or clear practice and/or the programs are not transparent

St. Kitts & Nevis

Antigua & Barbuda

Grenada

St. Lucia

Cyprus

Austria

Malta


Malta

Individual Investor Program


• Launched in March 2014, over 1,400 applications in progress

• EUR 1 billion has been added to Malta’s Foreign Direct Investment pipeline

• High level of due diligence; only highly reputable applicants admitted

• Citizenship is granted to reputable applicants who pass due diligence and make

a significant economic and social contribution to the country

• The program has been designed by Henley & Partners and is managed together with

the Government of Malta

The Malta Individual Investor Program (MIIP)


Main Requirements

• EUR 650,000 for main applicant• EUR 25,000 for spouse• EUR 25,000 for each dependent under 18 years• EUR 50,000 for each dependent over 18 years

Contribution to the National Economic and Social Development Fund

Contributions to approved financial instruments

• EUR 150,000 into bonds for at least five years

A residence in Malta for at least five years

• Lease a property: annual rent over EUR 16,000; or• Purchase of a property: value over EUR 350,000


Cyprus

Citizenship-by-Investment Program


• EUR 2 million — Real estate purchase option• EUR 2 million — Local business activities option• EUR 2 million — Participation in alternative investment funds

Main Requirements

Qualifying options; real estate or financial structure*

Due diligence and government fees

• EUR 7,820 per applicant over the age of 18• VAT and other taxes depending on selection

A residence in Cyprus forever** • EUR 500,000 in private residence if a ‘residential real estate’was not the qualifying investment property

*You may select a combination of any of the above qualifying options amounting to at least EUR 2 million. This combination may include a maximum contribution of EUR 500,000 in special government bonds of the Republic of Cyprus (excluding those on secondary market)**If qualifying by a EUR 2 million private residence purchase, you may liquidate after three years and replace your private residence with a EUR 500,000 property


Summary — The Difference between Cyprus and Malta

Con: Good Health RequiredPeople with certain illnesses will not be able to acquire citizenship

Pro: Recoverable CapitalThe majority of capital is recoverable.

EUR 500,000 is locked in property but can be rented out

Pro: FlexibleApplication process may allow more

flexibility than other programs

Pro: Due DiligenceThe Government of Malta has engaged

Henley & Partners Government Advisory and implemented our

recommended due diligence standards

Pro: International TravelYou may travel to 167 countries, including

the US and other key destinations, visa-free with a Maltese passport

Con: Requires More CapitalMinimum requirement of EUR 2 million with the entire contribution being held for three years

Con: Due DiligenceThe government of Cyprus has not worked with Henley & Partners Government Advisory team nor implemented our recommended due diligence standards

Pro: Future SpousesNew wives may acquire citizenship in Malta after five years of legal residence


Grenada



• A contribution to the National Transformation Fund of USD 200,000 (for an applicant and up to three dependents)

• A purchase of government approved and designated real estate with a value of at least USD 350,000

To qualify for citizenship, applicants have two options:

An additional flat government fee of USD 50,000 applies for the real estate option. Additional due diligence fees of USD 5,000 apply for both options.

Additional government processing fees of USD 1,500 apply for both options. Government application and passport fees of USD 1,750 apply for both options.

Grenada — Citizenship-by-Investment


• Fast processing time

• Relatively inexpensive

• Visa-free travel to 124 countries including China

• E-2 Investor Visa Treaty

• St. George’s University (American offshore)

• No wealth, gift, inheritance, foreign income or capital gains tax

• Citizenship by descent

Grenada — Citizenship-by-Investment Program


St. Kitts and Nevis



• A contribution to the Sugar Industry Diversification

Foundation of USD 250,000 (for a single applicant)

• A purchase of government approved and designated real estate

with a value of at least USD 400,000

St. Kitts and Nevis — Citizenship-by-Investment Program

Additional due-diligence fees of USD 7,500 apply for both options and government fees of USD 50,000

apply for the real estate option

One of the world’s most

successful programs

To qualify for

citizenship, applicants

have two options:


St. Lucia



• A contribution to the St. Lucia National Economic Fund of

USD 100,000

• Purchase of an approved real estate project with minimum

value of USD 300,000

• A contribution to an approved Enterprise Project with

minimum value of USD 3.5 million

St. Lucia — Citizenship-by-Investment Program

Due diligence and government fees are charged on all options

To qualify for citizenship,

applicants have four options:


Antigua and Barbuda



• USD 200,000 for single applicant;

+USD 100,000 for a family of two, three or four

If family is larger than four people:

• +USD 25,000 per additional dependent under 18

• +USD 50,000 per additional dependent over 18

Contribution to the National Development Fund (NDF)

Real estate acquisition

• USD 400,000 property purchase

Additional government fees applicable as follows:

• USD 50,000 for main applicant

• USD 50,000 for spouse, and dependents over 18

• USD 25,000 per dependent under 18

or

Due diligence fees:

USD 7,500 for main applicant, USD 4,000 for dependents over 18, USD 2,000 for dependents 12–17 years

Antigua and Barbuda — Citizenship-by-Investment Program Requirements


Marios RafailHead of Geneva Office

Henley & Partners Switzerland AG Quai des Bergues 231204 Geneve Switzerland

Telephone +41 44 266 22 22 Facsimile +41 44 266 22 23

[email protected]

citizenship and residence planning presentation to the...

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