India Budget 2024: Implications for High-Net-Worth Individuals

• Posted on Jul 31, 2024
• In Industry News, Hungary, Greece, United Arab Emirates

Critical Changes and Opportunities for Indian HNWIs in 2024

India Budget 2024 Overview

The Union Budget for 2024-25, unveiled by Finance Minister Nirmala Sitharaman, charts a path toward transforming India into a developed nation by 2047. This budget prioritizes key areas such as agriculture, employment, social justice, and infrastructure, aiming to foster inclusive growth and elevate the quality of life for all citizens.

Key Tax Reforms

The budget introduces notable tax reforms, including:

• Corporate Tax Adjustments: Reduction in the corporate tax rate for foreign companies from 40% to 35%, enhancing competitiveness.
• Angel Tax Abolition: Removal of the angel tax to stimulate foreign direct investment and support startups.
• Capital Gains Taxation: Simplified capital gains taxation with clearer holding periods for different asset classes.
• Income Tax Structure: Maintenance of current income tax slabs with a focus on improved compliance and reduced evasion.

India Budget 2024: Impact on HNWIs

For HNWIs, the 2024 budget presents significant changes that could impact their financial strategies. The requirement to clear all tax dues before relocating abroad may complicate financial planning. While the abolition of the angel tax is a boost for startup investments, new rules on capital gains taxation and increased compliance measures could heighten scrutiny. HNIs will need to navigate these changes meticulously to optimize their financial strategies.

Indian Passport and Global Mobility

According to the The Passport Index, the Indian passport has experienced a decline in its global ranking. In 2023, India fell six places to the 144th position out of 199 countries, with a mobility score of 70. This score reflects the passport’s ability to provide visa-free access and other travel privileges.
Currently, Indian passport holders can travel to 26 countries without a visa. Additionally, they can obtain a visa on arrival in 43 countries, while a visa is required in 125 countries.
Recent budget policies have raised concerns about the strength of the Indian passport in terms of global mobility. Many affluent Indians perceive increasing bureaucratic hurdles and tax liabilities, prompting them to seek alternatives for better global access. This has led to growing interest in securing foreign citizenship or residency to enhance mobility and financial freedom.

Residence-Through-Investment Programs

Considering recent budget changes, HNIs are turning to residence-through-investment programs. These programs provide residency in foreign countries through substantial financial investments, such as real estate or economic development funds. They offer greater financial stability, reduced tax burdens, and access to superior global opportunities, motivating HNIs to diversify their assets and secure more favorable environments for their wealth abroad.

Best Residence by Investment Programs for Indians

India’s ban on dual citizenship is leading wealthy Indians to explore residence-by-investment programs abroad. These programs offer global access and financial benefits while staying compliant with India’s legal restrictions.

Here are some premier residence-by-investment programs that are especially attractive to Indian nationals seeking global mobility and enhanced opportunities while retaining their Indian passports:

The Hungary Golden Visa program

• Minimum Investment: €250,000 in select authorized real estate funds.
• Benefits: A 10-year renewable residence permit for the investor and their family in a stable political and economic environment, with access to the Schengen Zone, enhancing travel opportunities across Europe.

Greece Golden Visa program

• Minimum Investment: €250,000 in real estate.
• Benefits: Residency in Greece with visa-free travel across the Schengen Area, family reunification, and a low investment threshold in a promising real estate market.

UAE Golden Visa Program

• Minimum Investment: AED 2,000,000 in real estate.
• Benefits: Long-term renewable residency in the UAE, visa-free travel to multiple countries, family reunification options, and investment in a dynamic real estate market with excellent growth potential.

These programs offer a gateway to enhanced global mobility, access to superior healthcare and education, and exciting business prospects. Each option presents unique advantages, so it is essential to evaluate your goals and consult with specialists to identify the best fit for your aspirations.

How can Arton Assist?

At Arton Capital, we are experts in simplifying complexities and specialize in guiding you through many of the available options, ensuring a personalized and seamless journey to global citizenship that fits your goals.
Connect with us to explore your best path forward.