It is common knowledge that being wealthy in countries facing social and economic difficulties is dangerous. In fact, there are cities in large countries such as Brazil where wealth must be concealed and hidden to a degree that is truly very stressful. And it is understandable that, in certain environments characterised by poverty and social hardship, a moderately affluent lifestyle can dangerously attract the attention of the less well-off, putting the safety of the members of those wealthy families at risk.
That is one of the reasons why it is becoming increasingly common to see families in certain parts of the world seeking to relocate, either partially or entirely, their financial interests and their personal and family quality of life. This applies both to traditional fortunes and to sudden fortunes – such as those of people who, overnight, win the lottery or receive a substantial inheritance.
When such lottery winnings, large unexpected inheritances or traditional business fortunes are found in countries facing economic, social and/or political difficulties (as is the case with some of those mentioned), the more level-headed of the lucky recipients often wish not only to protect their families from the widespread crime in their city, but also to diversify their country risk in investments. In other words, in most cases it is highly advisable to channel at least part of that wealth into investments in first-world countries, where all manner of documentary guarantees and legal, financial and political safeguards do indeed exist. Indeed, many families blessed with such sudden wealth follow the example of many others who have taken the same path with fortunes built up through the hard work of entire generations – that is to say, both those with sudden fortunes and traditionally wealthy families. Social problems, public insecurity, the absence of legal, documentary or political safeguards, or simply the desire to take advantage of the opportunities for financial and family relocation afforded by a substantial fortune, are the compelling reasons behind the decision to broaden the geopolitical and economic horizons for the family’s wealth. Many of these families turn to advisory firms, consultancy firms and multi-family offices to help them with the complex process of shifting family investments and interests to Europe and the rest of the developed world.
Indeed, it is no easy task to relocate a family’s assets, either in full or in part, to distant countries, even though speaking the same language makes the process much easier. And it must be carried out in collaboration with specialist firms that can guarantee the correct full or partial relocation of those assets. This relocation of assets and investments can also include obtaining European Union residence permits and passports for family members who so wish: Whether this is for the education of the younger generations, helping them to settle in Europe to complete their studies; or simply because the whole family wishes to acquire Spanish nationality or that of any other EU country. Thus, what is a difficult task for any immigrant arriving in Europe in search of work is far more feasible for a wealthy family that relocates its financial and personal interests, either partially or in full, with the help of a family office specialised European firm. In fact, not only do we provide direct support to families throughout this process, but some of the leading legal and financial advisory firms in Latin America (Latam) are also already collaborating with family offices Spanish and European firms, committed to handling the transfer of their clients’ financial and family interests with the utmost discretion and professional rigour.
In certain parts of the world, simply possessing significant wealth or assets is not enough without the necessary international wealth management advice. Being wealthy in the right place is vital to being able to enjoy that wealth to the full, but so too is ensuring it is managed professionally and internationally, so that it can be passed on to future generations and to take advantage of a globalised investment landscape.