Why UAE's 'golden visa' is popular among millionaires globally
What's the story
The UAE has become a hot spot for high-net-worth individuals, courtesy of its alluring 'golden visa' program.
The residency-by-investment scheme has gained significant popularity because of the lavish lifestyle and low-tax ecosystem it provides.
However, it must be noted that it doesn't offer a pathway to citizenship as it is strictly a residency permit.
Global trend
Global trend: Golden visas for wealthy individuals
The 'golden visa' trend has picked up globally: countries are offering residency or citizenship in return for investments.
These programs aim to attract the rich looking for more global mobility, diversification of assets, better lifestyle options, and long-term security.
The US is also mulling a Gold Card visa initiative, offering US citizenship to those investing $5 million (around ₹44 crore), a move aimed to attract wealthy foreigners.
Popular choice
UAE's golden visa: A preferred choice for millionaires
According to Henley & Partners, an investment migration consultancy, the UAE's Golden Visa is among the top 10 globally.
By the end of 2024, an estimated 6,700 millionaires are set to move to the UAE.
This is far higher than the US, which saw inflows of more than 3,800 millionaires last year.
Key factors
Factors driving the popularity of UAE's golden visa
There are several reasons for the attractiveness of UAE's Golden Visa.
As per Rohit Bhardwaj, Country Head India at Henley & Partners, "The UAE's economic resilience, favorable tax policies, world-class infrastructure...has made it an ideal destination for global wealth and investment."
Gaurav Nalawade of RIF Trust says Dubai's luxury lifestyle amenities are another reason for the magnetism.
Visa benefits
Tax benefits and lifestyle attractions
UAE's Golden Visa comes with tax benefits that are hard to resist for high-net-worth individuals.
It has no personal income tax, capital gains tax, or inheritance tax. This means one can keep much more of their wealth than in other countries, including India.
On top of that, Dubai's luxury lifestyle amenities, including high-end residential communities and excellent healthcare facilities, make this residency program all the more attractive.
Use
A long-term residency permit
The UAE's Golden Visa is a long-term residency permit, usually 5-10 years, and renewable. It doesn't require sponsorship of a UAE national or company.
Visa holders can sponsor immediate family members and invest in property without ownership restrictions in select areas.
However, unlike some European or Caribbean programs that offer a direct route to citizenship, the UAE's Golden Visa doesn't, except in exceptional circumstances.