Wealthy Asians acquiring commercial property in Canary Wharf and Russians buying mansions in Belgravia have been forced to rethink where they will domicile their assets – and themselves – thanks to changes to the U.K.'s immigration policies effective from April 1, 2019.

An End to the £2 Million Visas

The new regulations will impact the so-called «£2 million visas» or «golden visas» that accord tier-one investor visas. Whilst the legacy policy required investors to prove they controlled £2 million in liquid assets for a period of 90 days, the new norms require investors to prove control of at least £2 million for at least two years.

Investing in gilts, a route that had been particularly popular in the past, is now excluded and investors will have to prove investments into U.K. businesses. «Shell companies holding financial instruments or investment assets,» will no longer qualify according to one banker catering to international clients.

Looking for Alternatives

For the truly wealthy, proving control of £2 million in assets is unlikely to be a problem but they are «reading the tea leaves» according to the banker who has had conversations with clients about finding alternatives. «Switzerland is a natural choice,» he said. Several factors make it so.

«Much of what was appealing about London is now being offered by Zurich or Geneva,» he said. Quality of life, rule of law, political stability and a high quality of education as well as the widespread use of English are some «pull factors», he said.

But, as importantly, London's dubious reputation as the «money laundering capital of the world» was a significant push factor. An estimated $3 billion has been brought into the U.K. since 2015 according to anti-corruption charity Transparency International.

Swiss Revival

Although Switzerland has long been a favorite for «safe money» or investors looking to offshore assets to hedge against domestic uncertainty, this is the first time «it is topping the list of places where the wealthy want to live», the banker said.

He makes a distinction between the merely rich and the uber wealthy. The latter have always «felt at home in Switzerland» he explained, but for the former the country is, for the first time, an option for themselves and their children.

Whilst much of this revival can be attributed to the increasingly cosmopolitan life clients believe they can have in Switzerland, but some of it stems from a lack of too many other options. «What is the alternative?» he asked, «a bolt hole in New Zealand or an estate in Cyprus?». He thinks it unlikely his clients would be keen on either.