IM Yearbook 2020/21

Covid-19 is upending the
investment migration industry
as it unfolds through 2020 and
beyond. Although investment migration
programmes have found increased
relevance in the pandemic, the worldwide
health crisis will undoubtedly
cause the industry landscape to reshuffle.
Like no other event before, Covid-19 is
shining a spotlight on the strengths and
weaknesses of the industry – many of
which existed long before the pandemic.
The coronavirus’ impact on travel
and mobility has been dramatic, and
although travel restrictions and border
closures were mostly temporary
measures, they are calling into question
investment migration’s primary role as
a tool to gain greater travel freedom.
The twin forces of lockdown and
health crisis will likely speed up a
positive evolution of the investment
migration product, which could
ultimately strengthen investor migrants’
connections with and contributions
to their host countries. In fact, many
in the industry believe the pandemic
can be a catalyst for change that
could lead to the development of new
programmes and financing tools, which
have the power and potential to endow
investment migration with a greater and
more sustainable economic impact.
Immediate Fallout
As the Covid-19 virus spread throughout
the world, governments across the globe
shut their borders or restricted travel
to try and quell the spread. However,
almost unanimously, the
investment migration
industry confirmed
that the immediate
fallout was limited.
While there might
have been some
early connectivity
challenges in
working remotely for
employees, for the most
part clients were looked
Eric
Major
after and advisors stayed busy.
Although applications were delayed,
most RBI and CBI units “quickly adjusted
to the pandemic. All of them now have
online platforms and have digitized the
process even more, which is a positive
development,” says Eric Major, CEO of
Latitude Consultancy Limited. Besides, he
says, the fact that there is currently very
little travelling going on, means many
busy entrepreneurs and investors finally
take the time to develop their ‘Plan B’.
Rise in Interest
Covid-19 provided a boost to the
investment migration industry, with many
businesses reporting a surge in enquiries.
“Following the initial shock, people
started looking for a second residency or
citizenship more actively than before. We
now receive many
requests from
people who are
in such a hurry
to get a golden
visa that they
would like to
conclude the
transaction
Alexander
Varnavas
‘yesterday’,
but the new
Covid-19 reality
has rendered the
process a little bit more difficult in terms of
time required,” says Alexander Varnavas,
a Partner at Varnavas Law Firm 1978 and a
Member of the IMC Advisory Committee.
Ron Klasko of Klasko Immigration Law
Partners in the US shares this view. While
he points out that many clients postponed
their migration plans during
the pandemic largely due
to travel restrictions,
he is convinced that
“the medium and
long-term future will
see an increase in
investment migration”.
For many in the
industry, investment
migration is among a
select number of sectors that
benefited from the pandemic.
Juerg Steffen, CEO of Henley &
Partners, says that the “the massive
volatility driven by Covid-19
has certainly pushed what we
considered a relatively steady
industry growth into overdrive”.
Changing Market Dynamics
Although the industry will likely
continue to enjoy significant growth,
Covid-19 is shaking up investment
migration’s long-established market
dynamics. Investment
migration has
ballooned in
popularity
in countries
which did not
handle the
pandemic well,
with agents
and service
Juerg
Steffen
Ron
Klasko
providers pointing to a growing client
base of first-world millionaires from
countries such as the US and the UK.
Many high-net-worth individuals have
added healthcare to their list of reasons why
they consider economic migration, says David
Borg, Advisory Partner of ARQ in Malta.
“Countries that have dealt with the situation
efficiently and can also prove that they have a
first-class medical infrastructure could stand
to benefit,” he says. However, Borg also points
out that given the speed with which the virus
took hold and crossed from one country
to the next, some
investor migrants
may wish to
remain close
to family and
economic
interests.
While
Covid-19
lockdowns
may be easing,
uncertainty about
the future is intensifying.
International experts argue that global
mobility might be more restricted and
unpredictable in the longer term. Some
are even concerned that governments
might use fears of a future pandemic
and other epidemiological
issues in order to impose new
immigration restrictions.
Although we can assume
that much of what is felt today is
temporary, if Covid-19 has taught
the industry anything, it’s that
global mobility cannot be taken for
granted. Besides, when the coronavirus
broke out, very few people thought it
would take so long, and it has left some to
wonder where best to live in times of crisis.
The Real Plan B
David
Borg
In the pre-Covid-19-
world, very few
applicants actually
moved to their
new country of
citizenship or
residence and
instead sought to
primarily benefit
from visa-free
travel opportunities.
However, during the
Savvas
Poyiadjis
pandemic, medium- and long-term
strategic relocations have gained in
importance. For many the Covid-19
crisis, says Savvas Poyiadjis, Managing
Director of Fides Corp, “has highlighted
even further the necessity or luxury of
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