High-net-worth Europeans turn to investment migration amid security fears

Wealthy Europeans are investing in alternative citizenship and residency rights to secure global mobility and a Plan B amid rising security concerns, debates over conscription, and Europe’s shifting defence landscape, writes Dr Juerg Steffen

The foundation of European security, which has kept the continent stable and at peace since NATO’s establishment in 1949, faces a decisive turning point. As transatlantic relationships fracture and existing security frameworks come under strain, wealthy Europeans are increasingly exploring residence and citizenship by investment opportunities in other regions to mitigate continental risks and secure their families’ future.

This strategic reassessment comes amid broader discussions about European defence autonomy and the potential return of mandatory military service across several nations. The continental mood reflects a growing recognition that Europe needs to enhance its independent security capabilities while maintaining strategic partnerships globally following Washington’s dramatic foreign policy shift under U.S. President Donald Trump and the fracturing of the transatlantic alliance.

Whilst most European countries abandoned enlistment in the 2000s, these same countries are now debating the return of conscription en masse. This reflects a stark new reality of continental defence self-reliance, marking what some analysts view as the most significant rupture in NATO’s 75-year history, fundamentally altering the security calculus for European states.

Recent data from Henley & Partners highlights this shift in sentiment, particularly among German nationals. Applications for alternative residence and citizenship from Germans have surged over the past six months to record highs and they now sit in the top 20 globally out of the nearly 100 different nationalities our firm has advised over the past year. This spike coincides with Germany’s June 2024 legislative change allowing dual citizenship and demonstrates a fundamental change in how Europeans are assessing their global mobility and risk mitigation options.

More broadly, European enquiries received by Henley & Partners are up 60% compared to last year, with affluent individuals on the continent actively looking for ‘plan B’ options through acquiring alternative residence or citizenship rights. Many factors are driving this heightened interest. While renewed discussions about mandatory military service amid heightening security fears contribute to this heightened interest, viewing this as the main catalyst would oversimplify matters. In many respects, investors and wealthy families are adopting a geopolitical arbitrage strategy to acquire additional residence and/or citizenship options to hedge against jurisdictional risk and leverage the opportunity differences in legal, economic, political, and social conditions across countries to optimize their personal, financial, and lifestyle outcomes.

The distinctive feature of today’s investment migration surge lies in its considered nature. Most European investors aim to establish geographic or location flexibility — the capacity to move or relocate swiftly, when necessary, by establishing personal access rights to multiple jurisdictions. This strategy reflects sophisticated wealth protection that goes beyond traditional asset diversification to include residence and citizenship possibilities.

The Caribbean has emerged as a leading destination for European investors seeking citizenship alternatives, with Antigua and Barbuda, Grenada, and St. Kitts and Nevis’s programs the most enquired about by German nationals, offering stable, neutral platforms for global mobility while remaining outside major geopolitical tensions.

Investment migration destinations gaining the most traction usually combine governmental stability, financial prospects, and geographic variety. Canadian authorities have seen particular interest in their Start-Up Visa Program from European entrepreneurs wanting North American opportunities. Asia-Pacific options also remain popular. Singapore’s Global Investor Program welcomes experienced entrepreneurs and investors into one of the leading financial hubs, while Australian options offer lifestyle advantages and business opportunities.

In terms of the Middle East, the United Arab Emirates (UAE) has held first place as the world’s leading wealth magnet for three years running, according to the Henley Private Wealth Migration Dashboard, a data tool that measures millionaire migration. Record-breaking numbers of moneyed migrants from Europe and the UK continue to make the Emirates their home, thanks in part to the UAE Residence by Investment initiative, which offers long-term residence to foreign investors, entrepreneurs, and talented individuals.

This movement toward investment migration shouldn’t be misconstrued as a financial or tax-related exodus or as a shift of European values. Rather, it demonstrates prudent risk management in our increasingly unpredictable world. Just as financial advisors advocate for varied asset allocations, leveraging geographic diversification through investment migration to build a portfolio of residence and citizenship options has become essential for comprehensive wealth preservation.

Our projections suggest 142,000 high-net-worth individuals will shift residencies globally in 2025 — over twice as many as 10 years ago. This represents the most significant wealth migration wave ever documented and reflects fundamental changes in how affluent individuals approach geographic and financial planning.

The very concept of citizenship is becoming more fluid, with investment migration programs evolving to meet the needs of a more mobile and digitally connected world. Likewise, the profile of our clients continues to diversify. While historically dominated by investors from emerging economies seeking enhanced global access, we now see unprecedented demand from citizens of highly developed democratic nations.

For European wealth holders, investment migration has certainly shifted from luxury to necessity, becoming a strategic tool ensuring family security and multi-generational wealth preservation. As Europe navigates the current security challenges, the ability to access worldwide opportunities while maintaining European connections is proving increasingly attractive and valuable.