A growing number of wealthy Indians are reportedly seeking to switch their citizenships to havens that offer tax benefits, safety, better lifestyle options, and fewer regulations. A recent report by Henley & Partners, a global leader in residence and citizenship by investment, claims that nearly 4,300 Indian millionaires are expected to leave the country in 2024.

This exodus, if true, will put India in the third position of net millionaire outflow list, after China (15,200) and the UK (9,500). The report states that both “China and India are seeing high net outflows because of the success of their sizeable economies in generating new millionaires, although slowing wealth growth in China in recent years could mean sustained losses become more damaging over time.”.

Indian millionaires often depart the sub-continent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services, the report added.

So, where could they be heading? Several countries offer citizenship in exchange for investment. Here are some destinations:

Vanuatu: This small Pacific island nation offers a fast-track citizenship process. Vanuatu’s programme, known for its speedy application processing, has attracted many seeking to avoid taxes on global income or hide undisclosed offshore wealth. With an investment of roughly ₹1 crore, the Vanuatu passport offers visa-free access to over 55 countries and visa-on-arrival in 34 more, although its visa waiver program with the EU was suspended in 2023.

Antigua: Another popular destination, citizenship can be obtained with a non-refundable donation of around ₹1 crore or by investing in real estate with an initial amount of approximately ₹1.66 crore. The investment grants visa-free access to over 140 countries, including the EU and UK. Antigua also requires citizens to spend at least five days in the country within the first five years.

Grenada: It offers a similar deal, with citizenship available through a non-refundable donation of around ₹1.24 crore or a real estate investment of ₹1.83 crore. Grenada’s Citizenship by Investment Program allows for a fast relocation route to the US through the USA E-2 Investor Visa and provides visa-free access to 144 countries, including the EU and UK.

Dominica: Citizenship can be secured with a non-refundable donation of close to ₹83 lakh or by investing around ₹1.6 crore in real estate. This program offers visa-free access to over 140 countries and an attractive tax regime with no tax on income, wealth, or inheritance.

The Bahamas: A tax haven in the West Indies where citizenship isn’t mandatory to enjoy a tax-free life. Permanent residency can be obtained with a minimum stay of 90 days and owning a residence worth more than ₹6 crore. The Bahamas has no income, capital gains, inheritance, or gift taxes, relying instead on VAT and stamp tax revenue.

Panama and the Cayman Islands:  They stand out as prime destinations for those seeking to minimize tax obligations and maintain financial privacy. Panama offers attractive tax laws and financial secrecy regulations, benefiting offshore companies with no income, corporate, or estate taxes, and the absence of exchange control laws or tax treaties. Similarly, the Cayman Islands, a renowned tax haven, imposes no income, payroll, capital gains, or withholding taxes, making it a preferred choice for multinational companies, despite its high cost of living and significant investment requirements for long-term residency.

Saint Kitts and Nevis, Malta, and Dubai:  These countries also offer options for the richie rich. Saint Kitts and Nevis provides a strong passport with visa-free access to over 156 countries and substantial tax benefits, including no taxes on capital gains, inheritance, or wealth. Malta features competitive tax rates through its expat resident programs, with a flat 15% tax rate on foreign income remitted to Malta and tax-free non-remitted capital.

Additionally, Malta offers the only EU citizenship by investment programme. Dubai, part of the UAE, is renowned for its tax-friendly environment, with no personal or corporate taxes for most businesses, although it does impose VAT, excise taxes, and customs duties on imports.