FOREWORD | OUR RESEARCH | 2020 AND COVID-19 | 1. TRANSPARENCY | 2. RELOCATION | 3. FAMILY & GENERATIONAL WEALTH | 4. THE ADVISER OF THE FUTURE | ABOUT BDO
COMPETING CONCERNS | NAVIGATING PUBLIC POLICY AND POLITICAL UNREST | LONGER TERMTRAJECTORY, SHORT TERM DISRUPTION | CONCLUSION
COMPETING CONCERNS RELOCATION
HOW IMPORTANT ARE THE FOLLOWING TO HNWIS IF ANDWHEN SELECTING A NEW JURISDICTIONTO RELOCATE TO? PLEASE SELECT A MAXIMUM OF THREE ANSWERS. GRAPHIC 6:
The mix of decision-making drivers for physical and capital relocation has always been complex and contingent upon personal preference, cultural nuance, risk appetite, and lifestyle priorities. Acknowledging what is going on in the wider world is relevant now more than ever, and in the new wealth paradigm, our research identifies that stability remains the most influential of the many factors driving behaviour. Local ties and national identity can dictate a lack of movement for some; lifestyle priorities may lie behind a single relocation; while those that choose to move for business opportunities or tax advantages which are less predictable and can change year-on-year, may be in a constant state of relocation. The consensus view is that taxation is always one consideration, with 64.8% of survey respondents identifying the domestic tax landscape as an influencing factor (Graphic 6). But rarely, if ever, is it the main consideration.
investment opportunities 23%
personal reputational factors 9%
100%
50%
25%
political stability 80%
lifestyle and culture 72%
domestic tax landscape 65%
0%
20%
other 4%
education system
‘OTHER’ FACTORS INCLUDE:
“Stability trumps low rates,” explains one legal adviser, while another asset manager warns that “if you move purely for tax, you might well find yourself moving back again before long”.
Beyond broad agreement on stability (identified in Graphic 6 by 79.6% of respondents as a key factor to consider if selecting a new jurisdiction), context is king. Those with children will typically value strong education, with a stable socio-political environment.
X Don’t have experience of this X Not planning to move X Ability to travel X No inclination to change jurisdiction at all
X Location of kids and friends X Health Care systems in place X International Tax meaning how does the domestic tax regime ‘look’ on an international level
WORLD OF PRIVATE CLIENTS | NOVEMBER 2020 12
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