World’s the stage for India’s super rich
One In 7 Ultra High Net Worth Individuals Globally Is An Indian
Kounteya Sinha TNN
London:Rich Indians – defined as those with a net worth of $30 million and above — have now become one of the largest populations based abroad.
The practice of acquiring ‘global citizenship’ — a second citizenship or place of residence — is becoming popular among the world’s ultra-wealthy and an increasing number of super-rich from China and India are likely to trend this path in the coming years, says a Wealth-X report.
Among Indian billionaires, L N Mittal is based in the UK while Pallonji Mistry holds an Irish citizenship.
Asia is expected to drive global growth and be the largest UHNW region in the world within 20 years.
One in every seven ultra high net worth (UHNW) individuals in the world —almost 27,000 out of a total of 200,000 — is now an Indian or a Chinese.
At the average population growth rate of 5.9% that is predicted for all of Asia, these four groups of UHNW individuals (non-resident Chinese, NRIs, China and India’s UHNW individuals) would grow by 33% in the next five years. This amounts to an additional 8,935 UHNW individuals, greater than the current UHNW population of Switzerland and Italy combined, being created in the next five years alone. India and
China already have some of the largest populations based abroad, with 5,380 NRIs and 3,020 NRCs. “It is highly likely that we will see an increasing number of UHNW individuals from Asia’s two giants, China and India, seeking global citizenship in the coming years,” Wealth X said.
The average net worth of someone who applies for a second citizenship is above $205 million, 47% above the global average for UNHW individuals of $139 million. About 32% of their net worth is in liquid assets, equal to over $66 million per individual.
In absolute terms, this is nearly double the global average of $35 million, and is also higher as a proportion of wealth, compared to the global average liquidity of 25%. UHNW individuals with a second citizenship have an average age of 57, just below the global average of 58 years. This average age includes two different clusters that both move for family reasons. One group moves to provide their children with increased education opportunities, and many of these individuals opt to relocate to the US and UK.
The second cluster is elderly UHNW individuals planning on transferring their wealth to the next generation, who apply to more tax-friendly countries, including the Caribbean countries of Antigua and Dominica.
Interestingly, Pakistan, Lebanon and Egypt have the highest number of UHNW second citizenship applicants, with nearly 40% of all applicants worldwide coming from these three countries. The US and Russia are fifth and sixth on the list of countries with the most applicants. Europe is the most popular region in terms of UHNW second citizenship applications, accounting for nearly half of the total number of applications. The savings gained through participation in these schemes can be immense. For example, a UHNW individual moving from the US to Dubai can save nearly $1 million on capital gains tax alone.
Also, billionaires are five times more likely to apply for second citizenship than an average UHNW individual.
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