Will the Regulations of the European Union on the Caribbean CBI Countries Affect the Decision Making of HNWI’s?

Tóth Sándor (2023) Will the Regulations of the European Union on the Caribbean CBI Countries Affect the Decision Making of HNWI’s? Pénzügyi és Számviteli Kar.

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Absztrakt (kivonat)

1. IntroductionThis thesis aims to focus on tax planning for high-net-worth individuals (HNWIs), particularly exploring the avenue of acquiring citizenship in Caribbean countries through Citizenship by Investment (CBI) programs. The Caribbean region, being the origin and popular segment for CBI programs, serves as the primary focus. The thesis proposes earning citizenship in a Caribbean country as the initial step in tax planning for HNWIs, delving into the associated fiscal advantages. It navigates through a concrete tax planning phase, highlighting benefits and potential drawbacks.The analysis extends to recent EU regulations designed to encourage high-net-worth-individuals to choose EU-based CBI schemes over Caribbean options. The thesis compares the CBI program of St Kitts and Nevis with the EU's scheme in Malta, aiming to uncover unique characteristics, advantages, and drawbacks. The conclusion discerns the EU's objectives in implementing these regulations and evaluates the likelihood of the EU's CBI scheme gaining prominence. Overall, the thesis contributes to understanding tax planning for HNWIs in the context of evolving global regulations and regional dynamics.2.CBI programs brief general backgroundAs to give a brief background information about the citizenship by investment program itself, I bring some insight into how the problem evolved in the Caribbean region, giving details about the primary objectives of the CBI program. The ways of gaining citizenship are listed and these are backed up by researchers. I elaborate the benefits of these schemes and stating who are the main target group for these programs, obviously leaving out those individuals who do not qualify as high-net-worth-individuals. I mention the key motivations of the pontential investors for seeking these investment opportunities. I generraly aim to demonstrate the portfolio of the HNWIs, how they allocate their wealth.There is a historical glimpse of the HNWIs, how they financial attributions evolved during the years and what factors are crucial for their decision making.3. Implications of the tax planGoing forward in my thesis I present the implications of the tax plan, including the tax efficiency, global income and reporting, double taxation treates etc.There will be a discussion of the potential for tax evasion, how the escaping of reporting duty comes to reality. Several ways are discussed about the avoidance of tax and these are supported by academic people. There is a comparison or debate between researchers on the role of the CBI applicants contributing to tax evasion and therefore to the economy of the choosen country.4.The unsustainable rise of the Caribbean programsIn this section I present the Caribbean CBI programs and its effects on the region's economy. I will go through the highs and lows, the benefits and drawbacks of the program and I target to describe these programs in a declining pattern. I mention the EU's intervention to these programs and how it has affected the popularity of the CBI schemes. I concretely choose one Caribbean program, the St Kitts and Nevis one.5. St Kitts and Nevis CBI programI start this section with the EU's impact on the country's CBI program and demonstrate how it has reached its today's profile, what are the investment requirements and what effects they have on the country's economy (impact on GDP, wages & salaries). Then I present the qualification thresholds to gain the citizenship.6. EU's regulations that leads to these changesWith articles and recent studies I try to demonstrate the real impact of the EU on the CBI programs in the Caribbean region, what is their motivation, how far they have managed to come, I am listing specific restrictions that have been implemented.7. The Maltese CBI programShifting to the EU's CBI program I present the Maltese CBI scheme and how the EU approve of and praise it. I tried to be critical about it and searched for figures that present the concerns of the ongoing of the program.8. Comparison of the 2 countriesFrom the benefits to the drawbacks, from the HNWIs tax planning point of view to the countries' economical consequences I attempt to compare the two countries' scheme.9. ExperimentI made an experiment with getting a tax plan from the official site of the immigrant programs, comparing the financial outcome of going through the citizenship by investment process. I went with the real estate option.10. Drawbacks of the CBI program on the country's economyAs I have previously mentioned, I tried to be critical and demonstrate the economical consequences of the program.11. InterviewI conducted an interview with a tax expert elaborating the thoughts on the 2 programs and of course touching the economical outcome of them.12. Conclusion and future predictionsAt the end of my thesis I try to draw a comprehensive conclusion and based on my researches I aim to give some future predictions regarding the citizenship by investment programs and the influences on the High Net Worth Individuals decision making.

Intézmény

Budapesti Gazdasági Egyetem

Kar

Pénzügyi és Számviteli Kar

Tanszék

Pénzügy Tanszék

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Pénzügy és Számvitel

Konzulens(ek)

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	CBI, drawbacks of the CBI on the economy, EU's regulations, HNWI, Malta, St Kitts and Nevis, Tax planning
SWORD Depositor:	Archive User
Felhasználói azonosító szám (ID):	Archive User
Rekord készítés dátuma:	2024. Jún. 28. 10:36
Utolsó módosítás:	2024. Jún. 28. 10:37

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