The escalating crisis in Hong Kong has seen the UK government take the unusual step of threatening to extend visa rights to and to provide a pathway to citizenship for persons holding British National (Overseas) passports
The Chinese government’s increasingly tight grip on Hong Kong is undermining the former British colony’s position as a regional financial hub popular for its relaxed approach to corporate taxation and use of English common law, and has created waves throughout the business sector already nervous about Beijing’s widening control.
The political uncertainties in Hong Kong have caught the attention of those British Overseas Territories with substantial offshore financial business sectors like the British Virgin Islands, the Cayman Islands and Bermuda. These jurisdictions historically have close ties to Asia and the recent instability in Hong Kong has caused many of these territories to actively seek to raise their profiles in the region.
Many British Overseas Territories share similar characteristics in terms of their relative political stability, their common law legal systems, and proximity to the UK, the US and Canada, therefore as a way of differentiating themselves and as a way to stimulate the economy post-pandemic, some businessmen in Bermuda have proposed the granting of a special immigration status to high net worth individuals from Hong Kong and China to encourage them to relocate.
As part of a public forum put on by the Bermuda government insurance executive William Pollett suggested the creation of a special class of permanent residence for wealthy individuals (“PRC2”) with a pathway to British Overseas Territories, Bermuda citizenship. Mr Pollett suggested that the criteria for successful applicants could include a minimum investment of $10 million in Bermuda dollar government bonds, the payment of a $250,000 a year tax to maintain PRC2 status, having a permanent address on the island and the maintenance of a minimum period of residence in Bermuda for at least 30 days per year.
It is hoped that these high net worth Hong Kong citizens and other wealthy, displaced persons will create jobs, stimulate the island’s property market and spend money locally.
