The competition among global cities to attract high-net-worth individuals (HNWIs) has intensified significantly. Wealthy families are increasingly comparing factors such as personal safety, taxation, and investment regimes across various hubs. Despite predictions from the latest Henley & Partners report indicating a potential net loss of millionaire entrepreneurs and investors in the UK by 2024, the country continues to be a magnet for those seeking to establish a new home for themselves and their families.
To understand why the UK remains an attractive destination for HNWIs and to explore the best immigration routes, we talked to Fyodor Goldman, the founder of Goldman Solutions, a UK firm specializing in business migration and immigration for HNWIs.
Key Factors That Make the UK an Attractive Immigration Destination
Financial Stability and Asset Protection
Britain has a long-standing reputation as a country steeped in tradition, which is evident in both its way of life and legislative structure. According to Goldman Solutions, one of the primary attractions for HNWIs considering relocation is the stability that the UK offers. Those moving to the UK can be confident that the regulations and rules in place upon their arrival are likely to remain consistent, allowing them to maintain their long-term plans. When changes do occur, the government tends to notify residents well in advance, enabling them to prepare adequately.
For HNWIs, asset protection is a top priority. The UK’s legal system, grounded in centuries of tradition, provides reliable frameworks for property rights and financial transactions. The country’s reputation for upholding the rule of law enhances the confidence of wealthy individuals in safeguarding their investments.
Furthermore, the UK’s status as a global financial hub offers access to a vast array of financial services, including wealth management, investment opportunities, and tax planning strategies. The presence of leading financial institutions, coupled with favorable regulatory conditions, makes the UK an attractive location for managing and growing wealth.
World-Class Education for Wealthy Families
Goldman states that one of the reasons HNWI clients choose to relocate to the UK is the education system, which is regarded as one of the best in the world. Higher education institutions in the UK maintain strong ties to various industries, ensuring that diplomas from these institutions are widely recognized globally. This aspect opens up numerous opportunities for HNWI families, making the UK an attractive choice alongside countries like the US, Austria, and Switzerland.
The UK’s education system is renowned for its comprehensive approach, allowing students to engage in sports and creative activities alongside their academic studies.
Broad Opportunities for Investment and Business Financing
The UK remains one of the world’s leading financial centers, offering substantial investment opportunities for both startups and established businesses. In recent years, the UK has ranked first among European nations and second globally in terms of startup investments. This robust investment climate has resulted in record-high funding levels for British startups, with many funding rounds exceeding $100 million.
Goldman Solutions believes that these conditions create a promising environment for HNWIs looking to invest in or start new ventures, further enhancing the UK’s appeal as a relocation destination.
Global Center for Business and Family Travel
Most HNWIs are individuals with a global mindset, and the UK boasts one of the most developed transport networks in Europe, enabling quick and comfortable travel both across the country and to neighboring nations. According to Goldman Solutions, this infrastructure is particularly beneficial for HNWIs who frequently travel for business or leisure.
With various modes of transport, including air, rail, and water, individuals can easily navigate the country. High-speed rail services like Eurostar connect the UK with major cities across Europe, further enhancing its appeal.
Blend of Business Excellence and Elite Society
The UK stands out as a premier relocation destination for HNWIs due to its highly developed business network and vibrant high society. With over two million businesses operating across the country, the UK is home to a rich ecosystem of entrepreneurs, investors, and professionals, fostering valuable connections and opportunities. According to a report from Knight Frank, London alone accounts for a significant proportion of the world’s wealthy individuals, emphasizing the city’s status as a global financial hub.
Additionally, the UK’s extensive network of elite social clubs and organizations provides HNWIs with access to influential circles, enhancing both their personal and professional lives. Goldman Solutions emphasizes that this combination of a robust business environment and a sophisticated social scene makes the UK an attractive choice for those looking to establish themselves in a dynamic and supportive community.
What Is the Most Reliable Visa Route for HNWI Relocation?
Fyodor Goldman explains, “For HNWIs looking to relocate to the UK, the Innovator Founder Visa stands out as the most attractive option. This visa is tailored for those who wish to establish a business in the UK and have an innovative, viable, and scalable business idea.”
Here’s why Goldman Solutions recommends the Innovator Founder visa as the best route for business and investment migration:
Opportunity to Build an Innovative Long Lasting Venture
The Innovator Founder visa offers a unique opportunity for entrepreneurs to establish innovative, long-lasting ventures in a supportive environment. With access to funding and a network of like-minded innovators, founders can navigate the complexities of starting a business.
Moreover, the emphasis on sustainability and originality ensures that ventures not only thrive in the market but also contribute positively to the economy and society. By fostering creativity and resilience, the Innovator Founder visa paves the way for lasting entrepreneurial success.
Bringing Dependents
The Innovator Founder Visa allows applicants to bring their dependents (partners and children under 18) to the UK. This feature is essential for maintaining family unity during the relocation process.
Flexibility in Travel
Holders of this visa can travel abroad without restrictions, enabling them to effectively manage international business opportunities.
Pathway to Permanent Residency and British Citizenship
The Innovator Founder Visa provides a clear pathway to UK permanent residency or Indefinite Leave to Remain (ILR) after three years. Once granted ILR, holders can apply for British citizenship.
Ability to Work Outside the Business (certain rules apply)
Visa holders can engage in other skilled work while running their business. This flexibility allows them to diversify income streams as they establish their ventures.
There’s an important requirement to consider, though. Applicants must demonstrate their active contribution to the business idea throughout the visa validity period. As mentioned earlier, the Innovator Founder Visa is valid for three years and can lead directly to Indefinite Leave to Remain (ILR), providing a long-term solution for those looking to settle in the UK while pursuing their entrepreneurial goals.
Watch Out for Changes
As the UK government approaches its first Budget on October 30, public anticipation grows regarding potential changes. Goldman Solutions advises that adjustments in the tax system could impact wealthy individuals, emphasizing the importance of staying informed and consulting with immigration and tax planning experts. This proactive approach ensures that HNWIs can optimize their tax strategies when relocating.
Will a possible tax increase deter business people from coming to the UK and establishing new businesses?
In a recent Forbes article, Andy Fishburn, Managing Director at Virgin Startup, stated that while “tax calculations might influence decisions regarding investment, hiring, and long-term strategy,” most founders are motivated by “opportunity, innovation, and the desire to build something meaningful.” Thus, he believes that tax policy is unlikely to dissuade new ventures.
Despite facing challenges, the United Kingdom continues to be a top destination for high-net-worth individuals. With its stability, world-class education, advanced transport infrastructure, and appealing investment and financing opportunities, the UK remains an attractive choice for those seeking a comfortable lifestyle while protecting their assets. The Innovator Founder Visa stands out as the most reliable route for HNWIs looking to make this transition, offering numerous advantages that facilitate successful relocation.
