Why Immigration by investment should be part of Financial advisory? Speaker: Adv. Prashant Ajmera B.Sc. LL.B. ( India) ICSA (UK) @ prashant@ajmeralaw.com www.ajmeralaw.com

Why Immigration by investment should be part of Financial advisory? Today’s Master Class (a) Economic Liberalization, rise of HNI & LRS (b) Out Bound remittance and trends (c) Indian migration history, present trend and future trend for Immigration by Investment (d) New Opportunity for Financial advisors

Economic Liberalization in India Period – 1947 to 1993 – Pre Liberalization Period – 1993- 2007 – Inbound Investments Period 2007 – Present- Inbound & Out-Bound Inv Currency Restrictions – RBI - FEMA 1988 – $500 US per foreign trip 2019 – $250,000 US per person / per year 2007 – HNIs in India 152 ,000 2015 – HNIs in India 236,000 2018 – HNIs in India 430,000 2023 – HNIs in India 860,000

Out Bound Investment 2007.. Investment made Out side India - US$ Millions 2006-07 – 72.8 millions 2007-08 – 440 2008-09 – 808 2009-10 – 983 2010-11 – 1153 2011-12 – 1001 2012-13 – 1206 2013-14 – 1093 2014-15 – 1325 2015-16 – 4642 2016-17 – 8107 2017-18 – 11333 2018-19 – 13876 Investment in 2017-18 Deposits - 414.9 Property – 89.6 Debt / equity - 441.8 Gift – 1169.7 Donations - 8.5 Travel - 4022.1 Close Relative – 2939.4 Medical - 27.5 Study - 2021.4 Others – 200.6 China - 2017: $ 158 B –Financial $ 120 B-Non Fin.

student loan repayments and credit card payments. Out Bound Investment 2007.. Remittance made Out side India - US$ Millions Outward Remittances under the Liberalized Remittance Scheme (LRS) for Resident Individuals IN US$ Item 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1 Outward Remittances under the LRS 1,206.4 1,093.9 1,325.80 4,642.6 8,170.7 11,333.6 13,787.6 1.1 Deposit 20.1 31.6 51.4 109.9 283.8 414.9 455.9 1.2 Purchase of immovable property 77.7 58.7 45.5 90.8 92.9 89.6 84.5 1.3 Investment in equity/debt 236.9 165.5 195.5 317.9 443.6 441.8 422.9 1.4 Gift 261.6 267.1 403.5 533.0 749.5 1,169.7 1,370.2 1.5 Donations 4.5 2.0 3.2 3.9 8.8 8.5 8.7 1.6 Travel 44.8 15.9 11 651.4 2,568.0 4,022.1 4,803.8 1.7 Maintenance of close relatives 226.6 173.9 174.4 1,372.1 2,169.5 2,937.4 2,800.9 1.8 Medical Treatment 4.9 4.7 7.2 17.2 17.3 27.5 28.6 1.9 Studies Abroad 124.7 159.3 277.1 1,200.0 1,536.4 2,021.4 3,569.9 1.10 Others 204.1 215.3 157.1 346.4 300.8 200.6 242.2 Note : 1.10: Include items such as subscription to journals, maintenance of investment abroad, student loan repayments and credit card payments.

Indian HNI – Life style change Before 2007 …. After 2007 Home 2 Wheeler or 1 car Investment – India Holiday in India Children Education – India and only Master abroad 2nd Home – India Wedding – India Destination Business -National& Inbound Home + Decorated Two Four wheelers Investment - International Holiday –International Children education – after 12th abroad 2nd Home – International Wedding – Inter. Destination Business Global & outbound

Indian Migration History Migration to Africa and North America - before and after II World War mostly for work 1960-70 – For higher studies in USA, UK and Europe Large migration of workers to UAE & other Gulf countries in early 70’s Migration Act of 1984 Canada immigration and immigration programs of other countries become stricter. Introduction of IELTS 2008 onwards - Huge rise in student visa consultants Immigration consultants – Not regulated and hence frauds are wide spread - More than 5000 Study Abroad and settled abroad become a way

Sudden rise in EB-5 from India?

Present Options for settling abroad HNI kids and Study Abroad Study in India - - 12th 3 years Bachelor 4 years bachelor Master Abroad study 1-2 years college None Cost of Study 15,000 $ per year None + 3 ys Exp   4 Univeristy 2 years University Master Degree 100,000 $ 50,000 $ 30000 $ 7,000 $ Cost Most expensive Expensive Reasonable Most economical Immigration USA 15 years 12 years 10 years Canada 7-8 years 5-6 years 70% 100% No one is looking at Residency and Citizenship by Investment a long term plan

Immigration By Investment Non-Immigrant Visas Immigrant Visas (1) Tourist visa (2) Student visa (3) Work Permit Family sponsorship Refugees & H & C Grounds Economic migration Professionals Business Immigration Investment based – Passive: Project, Bond, Real estate Entrepreneur – Active in a business: New, Purchased or Joint Venture Start-Up – Active business

Immigration By Investment Swiss Knife Multi Tool

Immigration By Investment Residency & Citizenship by Investment

Opportunities Ahead … 1. Indian HNIs want children to study abroad Early planning can save 80% in tuition fees and many other benefits 2. International Properties London is new Lonawala & Madrid is new Mahableshwar 3. Businessmen – Exporter and his advantage

Challenges Ahead … Professionals do not take interest Limited and basic advice from immigration consultants and visa agents HNIs perception – Migration is for the economically deprived Misconception - Student visa is the only way to settle abroad Lack of knowledge and trust No professionals with real expertise and know-how USA visa rules become the general applicability

Countries which offer Immigration By Investment Residency to Citizenship: USA, Canada, UK, Australia, New Zealand Direct Citizenship: Caribbean Islands –> St. Kitts & Nevis, St. Lucia, Antigua & Barbuda, Grenada, Dominica Residency: Europe Portugal, Spain, Malta, Cyprus, Greece, Bulgaria Citizenship: Europe Cyprus, Malta, Bulgaria, Moldova

Where Millionaires Are Moving? CNBC -Here are the places where millionaires are moving HUFFPOST - Thousands of millionaires are moving to THIS Country — and leaving another CNN Money - Where millionaires are moving: Australia tops the list Times of India - Countries where the world’s millionaires want to move to Investopedia - Where Millionaires Are Moving (and Why)

Where Millionaires Are Moving?

Millionaires On The Move Thank you for your time Q & A www.ajmeralaw.com prashant@ajmeralaw.com