In response to a rapidly changing global landscape, with the relocation of business and talent on the rise for a multitude of factors – from the US-China trade wars to Covid-19 and remote work, and the G20’s proposal for a Global Minimum Corporate Income Tax – Henley & Partners, in partnership with Deep Knowledge Analytics, launched the Best Residence-by-Investment Cities for Business Index.
This unique new index ranks the top 25 capitals and cities around the world in which international entrepreneurs, business owners, professionals and high net worth individuals can acquire residency through investment migration programs. Using an interactive tool, users can select the different factors that matter most to them in order to make data-driven strategic decisions about the best location for their head office, leaders, employees, as well as for themselves and their families in today’s and post-pandemic landscape.
This collaboration between Deep Knowledge Analytics, a subsidiary of Deep Knowledge Group that produces advanced analytics to deliver insightful market insights and pragmatic forecasts, and Henley & Partners – the global leader in residency and citizenship by investment – s’ draws on multiple datasets, including Deep Knowledge Analytics ‘Covid-19 City Safety Ranking and Henley & Partners’ Global Residence Program Index, published in Investment Migration Programs 2021.
A useful, data-driven tool for making strategic relocation decisions
Covering five regions, the Best Cities by Investment for Business Index leverages over 1,000 data points and over 40 different metrics and sub-parameters to categorize cities into 10 main categories that represent the most pressing resettlement considerations. : lifestyle, taxes, education, real estate, healthcare, security, infrastructure and stability, as well as Covid security and the corresponding investment migration program.
Dr Parag Khanna, founder of FutureMap and author of the upcoming MOVE book: The Forces Uprooting Us says that at a time when nations are plagued by great disparities in wealth and culture, the focus on big cities rather than countries is welcome. “Technological connectivity creates new vectors of mobility for millions of people. While we are moving towards a world where more and more work is done in the cloud, management and employees always need to be out there, and given the various risks businesses face from pandemics to conflict on the go. by climate change, they have to think very carefully about where to expand or relocate, looking for hubs that offer a high degree of reliability in their ability to continue business in various scenarios.
Diversify your home portfolio
CEO of Henley & Partners Dr Juerg Steffen, who has published benchmarks on the offshoring of wealthy people in Austria and Switzerland, says the index is invaluable for those who view investment migration as a way to create an option in terms of where they and their families can live, work, study and invest. “Residency-by-investment programs provide a channel for building a migration portfolio of several complementary residency and citizenship options to protect against volatility and take advantage of new opportunities in the pandemic world order.”
Dmitry Kaminskiy, co-founder and managing partner of Deep Knowledge Group and the author of a forthcoming book on the politics of longevity adds that the paradigm of ‘health as new wealth’ and the realization that healthy longevity is a fundamentally new and valuable asset class is prompting investors to reorganize their portfolios. “An increasing number of governments are also planning and executing strategies to develop their longevity industries. Soon, “age-friendly” cities will be replaced by “longevity-friendly” valleys where you can stay active professionally, mentally, socially and economically for as long as possible. “
London reigns supreme overall
The top five cities in the index – London, New York, Sydney, Singapore and Zurich – indicate the wide geographic range of residency-by-investment program options available. In 1st place with the highest score with an impressive margin is London. With good results in many parameters, the three highest scores for financial capital are in the areas of education, security and stability. The UK Investor Immigration Program introduced in 1994 is one of the oldest and most established investment residency options, providing access to a vibrant business environment and world-class education.
New York – Great for business and education
Education, security and stability are New York’s main assets, galvanizing it in 2nd place. World center for finance and commerce, the big apple provides access to no less than 130 higher education institutions and achieves the best overall scores in the education index. The U.S. EB-5 Immigrant Investor program was established in 1990 to stimulate the economy by allowing foreign entrepreneurs to permanently reside in the United States after investing in a U.S. business. Alternatively, participants in citizenship by investment programs from Grenada, Montenegro, or Turkey are then eligible to apply for the E-2 investor visa, which allows applicants to live, work, and study in America.
Sydney, Singapore, Zurich – Safe, stable, sustainable
Sydney, Singapore and Zurich, in 3rd, 4th and 5th place respectively, all have the highest scores for security, infrastructure and stability, with Sydney taking first place overall for security. Australia has strived to attract the brightest and best to strengthen its economy and develop its forward-looking sectors. Successful entrepreneurs can apply for any of Australia’s investment residency options to gain permanent residency, while the Global Talent Visa has been specially designed to attract dynamic and highly skilled people in the tech field to their business. to settle on the safe coasts of Australia.
Singapore, the powerhouse of Southeast Asia, has the highest overall score in terms of security, lifestyle and infrastructure from Covid. Known for its low crime rate and ease of doing business, the city-state is home to the headquarters of more than 35,000 global companies and recorded $ 24 billion in real estate sales in the first six months of 2021.
As far as Europe is concerned, with its high standard of living and booming healthcare sector, the capital of Switzerland, Zurich, is the best performing city of residence by investment in terms of health and stability. value of investors and entrepreneurs.
Vienna and Lisbon – The best residency programs
Vienna and Lisbon are the first in terms of residency-by-investment offerings from Austria and Portugal, both of which also score high in terms of security and stability, increasingly important drivers for migration of people. investments and business relocation. The two European cities are popular choices for multinational companies to establish their headquarters – Vienna’s appeal lies in its highly skilled workforce and excellent levels of productivity, while Lisbon has a thriving technology sector thanks to Portugal’s policies favorable to companies and to the best talents emerging from its universities. . Rome and Zurich rank second thanks to the attractive residency programs of Italy and Switzerland, while Athens ranks third, with the Golden Visa program for Greece being a particularly popular option.
Dubai, Riga, Limassol, Athens, Bangkok and Port Louis – Tax-efficient, affordable and high-living options
While narrowly missing the Top 10, Dubai in 11th place is not to be overlooked. The pioneering capital of the Middle Eastern emirate achieved the highest overall score in the tax index, thanks to its zero corporate tax, as well as 2nd in Covid security.
The relative smallness and historical charm of the Latvian capital Riga (17th) compared to other major European cities increasingly attracts foreign investors and wealthy families, with its favorable business environment and attractive tax breaks.
Limassol (19th), the cosmopolitan and dynamic port city of Cyprus, has become a leading regional financial center, with an attractive tax regime and excellent infrastructure, in addition to benefiting from Cyprus’ membership of the EU. Cyprus has one of the lowest corporate tax rates in the EU and its government is business friendly.
Europe’s oldest capital, Athens (20th) offers a more relaxed and less bureaucratic business environment, with plenty of tax cuts and other incentives for foreign investors. Safe, affordable, welcoming and exceptionally beautiful, Greece is hard to beat when it comes to lifestyle and is quickly gaining ground as a desirable investment destination.
The bustling city of Bangkok (23rd) is a profitable gateway to Asia with a stable economy, and Thailand offers many government incentives to foreign business owners, including tax exemptions and concession fees. import.
And finally, Port Louis (24th) in Mauritius is an attractive, secure, well-governed, politically stable African hub, perfectly positioned between Asia and Europe, with attractive tax incentives. As a leading exclusive economic zone, the presence of numerous multinational companies makes Port Louis an excellent location for business.
Cities that welcome foreign workers and investors will succeed
The pandemic-era population decline seen in global capitals was less a consequence of the flight of residents than of the absence of new migrants to replace them, according to Greg Lindsay, Director of Applied Research at NewCities.
“The health and wealth of cities are inextricably linked to the migration and security policies of their federal governments – as New York, London and Hong Kong have all recently discovered to their dismay. In a world that is gradually shifting from a pandemic to what the Intergovernmental Panel on Climate Change predicts as decades of escalating climate disasters, safe havens will be precious. “
Dominic Volek, Group Head of Private Clients at Henley & Partners, says the main takeaway from the Best Cities by Investment Index for Businesses is that there are plenty of opportunities for wealthy and talented people who are considering relocating. “In addition to looking for new home options for their families, more and more investors are considering relocating their businesses. This trend started before the pandemic, but it is accelerating. The 25 cities proactively welcome foreign investors, and while some are clearly ahead of the pack, each has its own strengths and appeal. “