Latest news with #ArmandArton
Arabian Business
10-07-2025
- Business
- Arabian Business
Trump's $5mn Gold Card in question as hefty price tag, tax burden may deter wealthy investors
The Trump administration's proposed $5 million 'Gold Card' residency programme has hit significant hurdles before even launching, with no legislation drafted and experts warning that worldwide taxation requirements could be a 'deal-breaker' for potential wealthy applicants. 'Worldwide taxation is the deal-breaker. Full stop,' Jeffrey Henseler, CEO of Passport Legacy Group, told Arabian Business in an interview. 'For many high-net-worth individuals, especially in the Gulf and Asia, the US is seen as a high-risk tax jurisdiction.' The programme, announced by US President Donald Trump in May, would require applicants to make a non-refundable $5 million contribution to the US government—twenty times higher than some European alternatives that start at just $270,000 (€250,000). Armand Arton, founder of Arton Capital and an advisor to governments on investment migration programmes, confirmed to Arabian Business that despite marketing buzz, the programme is nowhere near implementation. 'I can confirm that it's not yet [launched]. Nothing sold. There's no legislation which is drafted,' said Arton, who has been in contact with Republican senators working on the initiative. He expects more details after meetings with US officials next week. The ' Gold Card ' scheme would require applicants to make a non-refundable contribution unlike the existing EB-5 visa programme, which requires a $1 million investment in job-creating ventures. The Gold Card payment would help 'replace and cancel debt of the government,' according to Arton. However, the programme faces steep competition from established European alternatives. Tax issues, European competition 'The most important question is, are you going to become taxable on worldwide income as a permanent resident of the United States?' Arton said. 'The tax exemption must be there.' European residency programmes offer significant advantages, starting at investment levels as low as $270,000 (€250,000) compared to the $5 million donation required for the Gold Card, Arton noted. He highlighted Italy's programme as particularly competitive, offering a flat tax rate of $216,000 (€200,000) per year for 15 years regardless of worldwide income. 'Even if you take that 15 years of $216,000, that's $3.24 million,' Arton explained. 'People will prefer to say that they're paying $3.24 million over 15 years and they're not taxed for 15 years and have access to a European lifestyle, than paying $5 million to get access only to the US and then being taxable on worldwide income.' Henseler echoed these concerns about the price differential in a separate interview with Arabian Business. 'The US is requesting an investment 20 times bigger than what we know from the EU,' Henseler said. 'A $270,000 (€250,000) investment for a European residency gives access to the EU lifestyle, business climate, and family benefits. Compare that to a $5 million non-refundable contribution – not even an investment – and it becomes clear that this programme is targeting a very specific niche.' Both experts identified worldwide taxation as potentially the most significant obstacle to the programme's success. 'Worldwide taxation is the deal-breaker. Full stop,' Henseler said. 'For many high-net-worth individuals, especially in the Gulf and Asia, the US is seen as a high-risk tax jurisdiction. FATCA compliance, global asset disclosure, and aggressive IRS enforcement don't sit well with families trying to diversify or protect generational wealth.' According to Henseler, the programme would need to 'avoid automatic tax residency' and 'limit or remove global reporting requirements' to be competitive. Ultra-wealthy appeal According to Arton, only individuals with a net worth exceeding $100 million would likely consider the programme, as the $5 million contribution would represent 5 per cent of their personal wealth. 'I don't believe that people with 30 million, 40 million and 50 million will risk, not risk, but will kind of lose 10 to 20 per cent of their personal network just to go to America,' he said. Interest has primarily come from ultra-high-net-worth individuals in Asia, particularly Singapore, India, Indonesia, and Malaysia, many of whom already have investments in the US or children studying at American universities. 'We have received interest from 70 millionaires,' Arton said, referring to individuals worth more than $100 million. These potential applicants are mainly 'Southeast Asian wealthy families that have kids in the US, have already some investments in the US.' Middle Eastern families with political connections might also apply 'just to please' Trump, Arton suggested. Programme status remains unclear Despite reports that cards have already been sold, Arton, who is in contact with Republican senators working on the legislation, confirmed that the programme has not yet launched and no cards have been issued. 'I can confirm that it's not yet [launched]. Nothing sold. There's no legislation which is drafted,' he said, adding that he expects more information in the coming months. The proposed Gold Card would offer permanent residency rights, similar to a Green Card, with a streamlined six-month application process compared to the years-long waits under the EB-5 programme. However, the path to citizenship remains unclear, including whether physical presence requirements would be waived. Both experts noted the apparent contradiction in right-wing immigration policies. 'It's a very interesting rhetoric that extreme right politicians are going that way—anti-migration, but at the same time very open to the idea of wealthy migrants coming and helping their economic agenda,' Arton said. Henseler offered a similar assessment: 'The right wing wants to attract the wealthy, the left wing wants to attract the poor. Right-wing governments are pragmatic when it comes to capital inflow. They understand that billionaires don't take jobs; they create them.' Gold Card vs. European RBIs According to a comparative analysis of investment migration programmes, the Gold Card faces several structural disadvantages beyond just price. European residency-by-investment programmes start at approximately $270,000 (€250,000) in Greece and around $540,000 (€500,000) in Portugal and Spain, compared to the $5 million non-refundable contribution proposed for the Gold Card. Global taxation represents another significant difference. European programmes typically don't trigger automatic worldwide taxation unless applicants stay more than 183 days per year in the country. By contrast, US permanent residents face taxation on their worldwide income regardless of physical presence. Annual stay requirements also differ dramatically. While some European programmes require as little as zero to seven days per year of physical presence, US residency status typically requires substantial time in-country or risks being lost. Exit options present another contrast. European programmes generally allow investors to easily drop or switch programmes, while the US imposes an exit tax for high-net-worth individuals renouncing residency. Privacy and reporting requirements also differ substantially. European jurisdictions offer varying levels of confidentiality, while the US system requires extensive financial disclosures through FBAR and FATCA compliance. The comparison highlights what Henseler describes as the 'deal-breaker' of worldwide taxation. European programmes like Italy's offer optional flat tax regimes ($108,000 or €100,000 per year) on global income, while the US system offers no such exemptions and requires extensive reporting. Despite the competitive challenges, Arton believes the Gold Card is 'great news for the industry' of investment migration, as it represents a major endorsement from 'the biggest economy in the world.' The comments came amid a global boom in residency and citizenship by investment programmes, which Arton says is growing at approximately 20 per cent annually. He attributes this growth to political uncertainty, the COVID-19 pandemic, and geopolitical conflicts like the Russia-Ukraine war, which have prompted wealthy individuals to seek 'Plan B' residency options. 'The demand is always increasing by 20 per cent every year,' Arton said. 'I don't see that slowing down anytime soon.'
Khaleej Times
01-07-2025
- Business
- Khaleej Times
Trump's Gold Card: 50% applications may come from Middle East millionaires, says expert
There is 'significant interest' from Middle Eastern millionaires in the US President Donald Trump's newly announced Gold Card residency programme, according to Armand Arton, CEO of leading immigration investment firm Arton Capital. Speaking to Khaleej Times, Arton said that individuals in the region are 'very curious,' and that genuine interest has already emerged from potential applicants. On June 12, Trump announced that his administration is accepting applications for the so-called 'Trump Card,' which offers permanent US residency in exchange for a $5 million (Dh18.35 million) non-refundable contribution. A dedicated website was launched to register interest, with over 70,000 people reportedly signing up in just a few days. 'I don't think we'll see strong uptake from Europeans or Africans — perhaps a few Nigerians,' Arton said. 'There are wealthy individuals in CIS countries like Kazakhstan, Uzbekistan, and Azerbaijan who might be interested, but their countries don't allow dual citizenship, similar to India and the Gulf." "The real concentration of centi-millionaires and millionaires is in the UAE, Saudi Arabia, Singapore, China, and Hong Kong. I expect around 50 per cent of applicants will come from the Middle East — mainly non-GCC countries — because they tend to be more pro-Trump than many Asians or Europeans.' Arton noted that individuals from countries currently banned from entering the US — including Afghanistan, Myanmar, Chad, Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan, and Yemen — are unlikely to be eligible for the programme. He added that the Trump team is still finalising the legal framework, developing the application system, selecting a vetting agency, and determining payment procedures. 'I expect it will take longer than 2 to 3 weeks to launch. Some requirements could involve deeper constitutional changes,' Arton said, predicting that the programme may officially roll out in the last quarter of the year. Residency, not direct citizenship According to Arton, the $5 million is a donation rather than an investment, unlike many European residency programmes, which typically involve purchasing real estate, bonds, or shares. 'This will be more like Caribbean programmes, where applicants make a non-refundable contribution to the state,' he explained. In return, applicants may receive expedited US residency, which could make the programme appealing, especially when compared to the current EB-5 programme, which is slower and backlogged with thousands of applications. Trump had earlier also said that the card could be "a path" to eventual US citizenship. However, several critical questions remain unanswered. 'Will applicants be required to reside in the US for a certain period? And most importantly, will they be taxed on their worldwide income from the moment they become residents? That's a trillion-dollar question,' said Arton. 'If residency triggers worldwide taxation immediately, demand will be very low. I'd estimate fewer than 1,000 applicants globally.' World's most expensive residency Arton described the Trump Gold Card as the most expensive residency programme. 'Other programmes may cost $5 million, but those were structured as investments; money you get back in a few years,' he said. In contrast, the Trump programme involves a permanent, non-refundable donation. Applicants will also incur standard, small due diligence and legal processing fees. Importantly, all candidates will undergo thorough vetting to confirm their source of wealth and background. 'You'll need to prove not just the ability to donate $5 million, but also provide clear documentation showing where the money comes from. That's standard in all legitimate residency or citizenship programmes – funds must be clean, taxed, and not connected to any illicit activities.' Family inclusion Under current US immigration law, the primary applicant's spouse and dependent children under 18 are typically eligible for residency. Arton expects the Trump Card to follow this precedent. Asked whether a future US administration could revoke residency obtained through the programme, Arton was confident that such status would remain secure, provided no fraud is involved. 'Western governments don't revoke residency or citizenship granted under valid laws, unless the applicant has lied or submitted fraudulent documents. If they discover that, they can revoke your status, even decades later,' he said. 'But if the programme is legally terminated by a new administration, it would only affect future applicants. Existing residents would not be affected,' he concluded.
Yahoo
30-06-2025
- Business
- Yahoo
Plan B for the Ultra-Rich: Why Global Citizenship Is Now a Strategic Asset
The ultra-wealthy are seeking more than just financial diversification, they want freedom, security, and control over their futures. Increasingly, that means investing in a second passport which is now considered a necessity among the ultra-wealthy. According to Armand Arton, CEO of global advisory firm Arton Capital, second residencies or passports are no longer simply lifestyle upgrades, they're strategic investments. 'A second residency or citizenship has become one of the most coveted assets among the ultra-wealthy,' Arton explains. 'It's driven by ambitions for improved mobility, security, and futureproofing. For many, it's a hedge against uncertainty.' Once the domain of jetsetters seeking easier travel, second citizenship has evolved into a powerful tool of geopolitical insurance. But mobility is only one piece of the puzzle. 'Acquiring a European Golden Visa, for example, grants access to the Schengen Zone and Europe's most dynamic markets. This empowers high-net-worth individuals to expand their businesses, explore new opportunities, and enjoy unrestricted travel,' says Arton. But the motivations go deeper. Security, both personal and financial has become paramount. 'Elections, pandemics, and the climate crisis serve as a stark reminder of how quickly freedoms can be revoked and situations can change,' he adds. 'Second residencies and citizenships now act as a crucial hedge against geopolitical uncertainty and economic instability.' Over the past ten years, demand for second citizenships has surged, particularly in response to crises. 'Each year, interest in Golden Visa and Citizenship by Investment Programmes grows by around 15–20%,' Arton notes. 'The conflict in Ukraine and the outbreak of Covid-19 were major catalysts. And we're likely to see a similar uptick in response to tensions currently gripping the Middle East.' What's more, the industry itself has evolved. 'It has matured. Programmes are becoming more tailored to each country's needs. There are a large number available investors are spoilt for choice.' Arton predicts similar trends will follow in response to rising tensions in the Middle East and elsewhere. 'Savvy investors are always looking ahead. When uncertainty spikes, demand for second citizenship rises with it.' While financial advantages are often cited, Arton stresses that wealth migration isn't solely about reducing tax burdens. 'There's a common misconception that taxation is the main driver. In reality, clients are usually motivated by freedom, security, or a lifestyle upgrade.' Still, taxation can play a role, especially in countries where citizenship programmes offer favourable treatment. 'Latvia, for example, has a 20% capital gains tax and no wealth tax for non-residents. Italy offers a flat-tax option on foreign income,' says Arton. 'But benefits vary based on an investor's home country. American citizens, for instance, are still taxed on their worldwide income, no matter where they live.' As the investment migration industry matures, it's also integrating more deeply into wealth management strategies. No longer seen as a fringe add-on, global citizenship is now a pillar of high-net-worth planning. 'It complements traditional financial planning by offering geographical diversification, market access, and personal security,' Arton explains. Clients often invest in real estate or government funds to qualify. 'These investments not only diversify portfolios but also shield assets from economic volatility. Perhaps most importantly, they provide long-term benefits for family members from access to healthcare and education, to global mobility.' This isn't just about protecting money, it's about preserving legacy. Arton Capital positions itself not just as a facilitator, but as a thought leader. 'We've advised over 13 governments on citizenship and visa policy. We want investment migration to benefit both our clients and the host countries,' says Arton. That level of influence means Arton Capital has a hand in shaping how programmes are designed and how they function ensuring they benefit both investors and host countries. He notes, 'We want to be at the forefront of this evolution.' The real power of second citizenship becomes most visible in moments of crisis. Arton recalls one case from recent years: 'During the political unrest in Hong Kong, where protestors clashed with police and uncertainty loomed, we helped a client gain citizenship in Antigua. With his new passport, he relocated almost immediately, avoided the fallout, and continued operating his business from a stable environment.' That kind of agility, the ability to move, adapt, and safeguard your family or business is the ultimate utility of investment migration. One of Arton Capital's most recent initiatives saw the firm collaborate with Techcombank Private, one of Vietnam's largest banks, on a series of 'Wealth Management and Global Investment Opportunity' seminars. 'We were selected as their exclusive strategic adviser,' says Arton. 'Vietnam's HNWIs are increasingly looking for global diversification, and we helped educate their teams on how second citizenship fits into that strategy.' With most of Vietnam's wealthy banking through Techcombank, the partnership made sense. 'They're seeing major growth in their foreign exchange business VND 100bn last year, aiming for 500bn in 2025, and 1,00bn by 2026. These citizenship services are key drivers in that FX growth.' Looking ahead, Arton Capital is turning its focus toward other fast-growing Asian markets. 'We're especially interested in Thailand, Cambodia, and Malaysia,' Arton says. 'These countries have a growing upper-middle class and high-net-worth population. Many are now seeking outbound mobility.' At the same time, these countries are developing their own inbound residency programmes like Thailand's Elite Visa and Malaysia's 'My Second Home' scheme, suggesting strong potential both for incoming and outgoing investment. More broadly, the forces driving demand for second citizenship show no signs of slowing. 'With a geopolitical crisis unfolding in the Middle East, economic uncertainty across global markets, and ongoing political turmoil, the demand for a 'Plan B' has never been greater,' Arton concludes. "Plan B for the Ultra-Rich: Why Global Citizenship Is Now a Strategic Asset" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
23-06-2025
- Business
- Time of India
UAE safest hub for parking money, to attract more millionaires despite Israel-Iran conflict, say immigration experts
The United Arab Emirates will attract more millionaires and continue to remain a paradise for high-net-worth individuals despite the tensions prevailing in the Middle East following the Israel-Iran war. Several international migration consultants and wealth managers believe that despite the conflict, the Emirates is still the safest country to park money and has always been a stronger magnet in a time of crisis in the Gulf region. In an interview to The Khaleej Times, Armand Arton, CEO of leading immigration investment firm Arton Capital, claimed that he is hopeful the UAE will continue attracting even more millionaires than it had in the last five years. He said that the Emirates has always been the safest hub because of the infrastructure, the safety nets, the rule of law, the quality of life and the low tax. Citing the Russia-Ukraine war and Donald Trump's return to power in the US, Arton said that the conflict between Moscow and Kyiv was the last big wave of wealth that came in. He further stated that the taxation in the UK and the politics of Europe created a second wave of Europeans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Build Your Dream Villa Near Bengaluru Airport Sumadhura Group Learn More Undo Talking about the third wave of Americans, the Arton Capital CEO said that it came after US President Trump was elected, as a lot of Democrats and others moved to the UAE. 'We see that very high profile of people coming in and asking for the Golden Visa,' he added. UAE attracted around 13,000 new millionaires in 2024, says report Live Events Armand Arton's claim was strongly backed by the UBS Global Wealth Report 2025, which came out on Wednesday, June 18, 2025, stating that the Emirates attracted around 13,000 new millionaires in 2024, which is a 5.8 per cent increase. The rise brings the total number of high-net-worth individuals in the country to 240,343. The millionaires in the UAE command approximately $785 billion (2.88 trillion) in wealth, according to The Khaleej Times. 'War always comes with a very high human cost, but a localised conflict like the current situation is likely to have a very limited macroeconomic effect. Unless there is a major escalation, we would not see this as significantly changing global macro trends, including migration,' said Paul Donovan, chief economist at UBS Global Wealth Management. Iran-Israel war 'will create a new wave of people, says Arton The Arton Capital CEO said that the Iran-Israel conflict, which escalated sharply after the US struck three nuclear sites in Iran on Sunday (June 22, 2025), 'will create a new wave of people from the neighbouring country who will come to the UAE and who are still considering that this is the safest place to park their money and family.'
Khaleej Times
22-06-2025
- Business
- Khaleej Times
UAE will attract more millionaires as Emirates remains safest country despite regional war
The UAE will continue to attract high net-worth individuals despite the regional Israel-Iran war as the Emirates is still the safest country to park money, according to international migration consultants and wealth managers. 'I have seen how UAE becomes always a stronger magnet in a time of crisis in the region and geopolitically around the world because of the infrastructure, the safety nets, the rule of law, the quality of life and low tax. I think that in case of any regional problems, the UAE will benefit as the best and safest hub,' said Armand Arton, CEO of leading immigration investment firm Arton Capital. In an interview with Khaleej Times, he stated that he expected the UAE to continue attracting even more millionaires than it had in the last five years. 'The Russia-Ukraine war was the last big wave of wealth that came in. After that, the taxation in the UK and the politics of Europe created a second wave of Europeans. We had the third wave of Americans after US President Donald Trump was elected, as a lot of Democrats and others moved to UAE. We see that very high profile of people coming in and asking for the Golden Visa,' he added. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Abu Dhabi and Dubai have consistently been rated among the safest cities in the world. The UAE has been a magnet for millionaires from around the world in the post-pandemic period. On Wednesday, the UBS Global Wealth Report 2025 stated that the UAE attracted approximately 13,000 new millionaires in 2024, representing a 5.8 per cent increase, and bringing the total number of high-net-worth individuals in the country to 240,343. The millionaires in the UAE command approximately $785 billion (2.88 trillion) in wealth. In April, property consultancy Knight Frank reported, citing data from Henley & Partners, that the UAE attracted 7,200 millionaires in 2022, a 53 per cent increase over the previous year, bringing the total number of high-net-worth individuals (HNWIs) in the country to 130,500. 'War always comes with a very high human cost, but a localised conflict like the current situation is likely to have a very limited macroeconomic effect. Unless there is a major escalation, we would not see this as significantly changing global macro trends, including migration,' said Paul Donovan, chief economist at UBS Global Wealth Management. Armand Arton said that the Iran-Israel war 'will create a new wave of people from the neighbouring country that will come to UAE who are still considering that this the safest place to park their money and family.' Arton Capital has placed the UAE passport as the strongest in the world, placing it in the first position in its 205 index. Armand added that the UAE's passport ranking has increased from 35 to number 1, and no other country in the world has achieved such rapid growth. 'This is because of having the leadership decision and the execution to sign as many visa-free as necessary in order to open the world to the Emirati citizens,' he added.
