Li Ka-shing, Jack Ma, why HNWIs are allocating Plan B?

According to the Global Private Wealth Migration Report 2023 published by Henley & Partners, 122,000 HNWIs are expected to be migrating globally in 2023 And it is expected thatThe number of high net worth immigrants will continue to grow in 2024, reaching about 128,000 immigrants.

Among the world's high-net-worth immigrants, theChinese High Net Worth IndividualsThe number of immigrants may be the highest in the world, with an estimated 13,500 wealthy people moving overseas.

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Security PLAN B

In fact, configuring a second identity has long been a consensus among high net worth individuals. A decade ago, a boom in emigration of the rich was already underway, and the number of subsequent immigrants is expected to grow steadily.

For example, we are familiar with theSir Li Ka-shing (1928-), Hong Kong businessmanHe has Canadian nationality, but because he has lived and resided in Hong Kong for a long time, he is considered a tax resident of Hong Kong.

As Hong Kong only taxes income derived from sources within Hong Kong, Li Ka-shing has "converted" his tax residency status through long-term residence, thus enjoying the high Canadian welfare benefits while enjoying Hong Kong's low taxes.

Also in order to take advantage of the low tax rate, there areZhang Yong, the owner of HaidilaoIn September 2018, Haidilao went public in Hong Kong, and shortly thereafter, Zhang Yong and his wife Shu Ping got a PR status in Singapore, a non-global taxing country, and through the new status of the enjoyment of the new tax policy.

In addition to enjoying low tax rates and high benefits, the status configuration can also facilitate their travel between countries. For example, the famousJack Ma, Founder of AlibabaThere are just two passports, a Chinese passport and a United Nations passport.

What is the United Nations passport? It is not the average person can get a passport, nominally does not belong to any country of a special passport, but is able to visa-free 220 countries, enjoy certain diplomatic immunity rights, is the highest level of the United Nations within the international passport. It is said that there are only three celebrities in modern China who have taken this passport, namely Jack Ma, Jet Li and Leon Lai.

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What are high net worth individuals thinking about?

★ Hedging instruments to safeguard the future

Regardless of the industry, in today's internationalized environment, market and policy risks are difficult to transition through a nationality, and the future security of oneself and one's family is an important reason why many people need to consider preparing a "second identity" in advance.

Preparing a second identity and a passport in this situation will be an important means of protecting yourself and your family in the future and realizing the role of a safe haven.

★ Visa-free travel around the world

Passport status, led by Japan as well as Singapore and the European Union region, allows visa-free access to nearly 200 countries around the world, and the European Union region occupies most of the places on the list of the number of passport visa-free countries.

Nationality of origin can severely limit personal travel and global business travel, and a second passport status with a high travel value can help break down these limitations. Realize personal portable travel, global business travel to expand business efficiently.

★ Decentralized risk identity segregation

With the advancement of CRS, more and more HNWIs are considering the need to plan their assets and future taxes wisely. Shifting tax residency from high tax jurisdictions to low tax jurisdictions is the primary objective.

The story of "don't put your eggs in one basket" tells us that in real life, many people fail to assess risk and concentrate all their investments in one basket, with the result that if they fail, there is no room for recovery.

This shows the importance of diversification of investments, especially now that the dramatic market volatility is indirectly telling investors that the eggs should be separated.

★ Offshore structure to reduce costs

We know that well-known domestic companies such as Youku, Alibaba and Sina have opened offshore companies in Bermuda, the Cayman Islands and the British Virgin Islands, and this offshore structure is now becoming more and more normalized.

Offshore companies can be opened in offshore financial centers where no tax is payable. Therefore, offshore companies have the three major advantages of high confidentiality, reduced tax burden and no foreign exchange control.

★ Quality of life and educational needs

As their wealth grows, HNWIs' demand for quality of life and education also increases. They may prefer to live in countries or regions with beautiful environments, social stability, healthy medical care and rich educational resources.

For example, countries such as Australia and Singapore, with safe and livable environments and world-class quality of education, are popular destinations attracting the inflow of Chinese HNWIs to provide their children with better educational opportunities and receive internationalized education and culture.

The future of the world is full of turbulence and uncertainty, so more and more high net worth families are motivated byAsset safety and livelihood securityand other reasons for thePlanning for identity, assets, etc.and to deal with a challenging future.