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Christmas webinarImmigration Anthony Michael and Kathryn Crane | Deloitte | 04 December 2019
Contents
UK Innovator
Updates to UK immigration rules for HNWIs
UK Tier 1 (Investor)
Citizenship and residence by investment programmes
Brexit: EU Settlement Scheme
Updates to UK immigration rules for HNWIs
Updates to UK immigration rules for HNWIs
Overview
The most popular routes for HNWIs to enter the UK have been the Tier 1 (Investor) and Tier 1 (Entrepreneur) immigration categories. On 29 March 2019 both categories changed significantly, with the changes impacting all new applicants.
There have been substantial changes to the Tier 1 (Investor) category, whilst the Tier 1 (Entrepreneur) category is now closed to new applicants and has been replaced with the new Innovator route.
The Tier 1 (Graduate Entrepreneur) immigration category has also closed and is replaced by the Start-up category. Under the Start-up route, applicants are no longer required to be graduates and do not need funding. This category does not lead to settlement however, applicants may progress into the Innovator category if they meet the requirements.
Transitional period
Transitional arrangements apply for those who applied in the Tier 1 (Investor) and the Tier 1 (Entrepreneur) categories prior to 29 March 2019.
For the Tier 1 (Entrepreneur) category, extension applications will remain open until 05 April 2023, and settlement applications until 05 April 2025. After this time, the category will completely close.
For the Tier 1 (Investor) route, initial applications made before 29 March 2019 will continue under the previous rules, until 05 April 2023, and settlement applications until 05 April 2025.
For applicants who entered the Tier 1 (Investor) category under the rules in place before 06 November 2014, these arrangements will close from 06 April 2022.
For high net worth individuals who wish to make a minimum investment of £2 million GBP in the UK
UK Tier 1 (Investor) Visa
Criteria
In order to qualify for the Tier 1 (Investor) route, applicants must meet the following criteria:• Be over the age of 18 years old;• Demonstrate access to a minimum of £2 million GBP of their own funds for investment in the UK;• Open an account with a financial institution regulated by the Financial Conduct Authority (FCA) in the UK for
the purpose of making the investment; and• If applying from outside the UK, applicants and any dependants over the age of 18 must provide a criminal
record certificate for any country in which they have spent a cumulative period of 12 months or more in the 10 years preceding the submission of their application.
Changes
1. Applicants now need to evidence they have held their funds of £2million for two full consecutive years. If the applicant has not held the funds for two years consecutively before the date of the application, they must provide evidence of the source of funds.
2. The letter from the UK financial institution confirming the account opened for the purpose of investing must now also state the institution has carried out all due diligence checks and KYC enquiries, and confirm that these have been done.
3. Investment in UK government bonds are now excluded. 4. Any intermediary vehicle used must also be regulated by the FCA.5. Investment made into UK active and trading companies must now provide additional evidence such as:
1. Registered with Companies House in the UK;2. Registered with HMRC for corporation tax and PAYE;3. Have accounts and UK business bank account, both showing regular trading; and4. Have at least two UK-based employees who are not its directors.
6. Price of the investment means the price the applicant paid for the investment, not the face value.7. Investment can be made into pooled investments which also receive funding from a UK or devolved
government department or one of its agencies, such as the British Business Bank and the Scottish Investment Bank.
For experienced business people seeking to establish a business in the UK with a business idea that is supported by an approved endorsing body – replaces the Tier 1 Entrepreneur category
UK Innovator Visa
Criteria
In order to qualify for the Innovator route, applicants must meet the following criteria:
• Access to a minimum of £50,000 GBP;
• Endorsement letter confirming the business venture meets the innovation, viability and scalability requirement, which include:
the applicant has a genuine original business plan that meets new or existing market needs;
the applicant has the necessary skill, knowledge, experience and market awareness to successfully run the business; and
there is evidence of structured planning and of potential for job creation and growth into national and international markets.
• The endorsing body must be satisfied that the applicant will spend his/her entire working time in the UK on developing business ventures.
• Meet the English language requirement.
• Provide a criminal record certificate for any country in which they have spent a cumulative period of 12 months or more in the 10 years preceding the submission of their application.
• If successful, the endorsing body will stay in contact with the applicant’s business at checkpoints six, 12 and 24 months, to assess if reasonable progress has been made and the applicant is not pursuing a new business.
• The Innovator visa is valid for three years.
• It is possible for the £50,000 to be waived if the applicant switches from the Start-up category to the Innovator.
Changes
• The Tier 1 (Entrepreneur) required £200,000 worth of investable capital in order to be able to start a UK business. The new Innovator visa has a considerably lower investment of £50,000 in order to get the business started.
• The Innovator visa makes an introduction to an endorsement model. The endorsement model ensures that businesses are assessed by accredited organisations. The Tier 1 (Entrepreneur) category relied on UK Visas & Immigration staff to assess the quality and viability of a business idea.
Brexit
Brexit
EU Settlement Scheme
Qualification based on proof of identity to show EU national or family member,
proof of residency, and no serious criminal convictions. five years’
continuous residence equals “Settled”. Less than five years equals “Pre-Settled”.
It is a “light touch” registration process using an online interface and app to upload documents. UK Visas & Immigration have committed to focus on approvals and should seek additional documents rather than refuse.
The new Scheme has introduced both, a Pre-Settled and a Settled Status. Applications are
free of charge.
The EU Settlement Scheme was launched on 30 March 2019 with the aim to replace the current system in the UK, governed by the EEA Regulations.
31 December 2020: free movement ends. EU arrivals from 1 January 2021 expected to be subject to new immigration system.
31 June 2021: deadline for qualifying EU migrants to register their status under the EU Settlement Scheme.
Citizenship and Residence by Investment Programmes
Cyprus
Investment
Contribution of 150,000 EUR (exceptions applies)
AND
Investment of at least 2 million EUR
Real Estate
Yes:
Purchase of a residential property with a minimum value of 500,000 EUR
Route to Citizenship (Passport)
Residency is not required.
The main applicant can obtain citizenship provided they have been holding a valid Permanent Residence (PR) for a minimum period of six months.
Time to Citizenship
nine-12 months
Language Requirement
Dependent applicants included
Dual citizenship
allowed
Malta Contribution of 650,000 EUR
AND
Investment of 150,000 EUR in Government bonds
Yes:
Purchase of a residential property with a minimum value of 350,000 EUR OR rent a property for a minimum rental fee of 16,000 EUR per annum
The main applicant can apply for citizenship 12 months after obtaining their Malta Residence Permit (MRP).
12 months
No
No
Yes
Spouse or partner
Children under 28
Dependent parents
Yes
Spouse or partner
Children under 27
Dependent parents
Yes
Yes
Popular Citizenship by Investment Programmes
Moldova
Investment
Contribution of at least 100,000 EUR
Real Estate
No additional requirement
Route to Citizenship (Passport)
Residency is not required.
Time to Citizenship
Three to four
months
Language Requirement
Dependent applicants included
Dual citizenship
allowed
Montenegro
Contribution of at least 100,000 EUR
AND
Investment of at least 250,000 EUR
No additional requirement
The main applicant may obtain citizenship within six months of submission date.
Six months
No
No
Yes
Spouse or partner
Children under 29
Dependent parents
Yes
Spouse or partner
Children under 28
Dependent parents
Yes
Yes
New Citizenship by Investment Programmes
Portugal
Investment
Transfer of capital of 1 million EUR
OR
Acquisition of real estate with a min value of 500,000 EUR
OR
Creation of at least 10 new jobs
Real Estate
No additional requirement
Route to Citizenship (Passport)
The main applicant can apply for citizenship after six years of residency in Portugal.
Time to Citizenship
Six years
Language Requirement
Dependent applicants included
Dual citizenship
allowed
Spain Investment of at least 500,000 EUR in real estate
No additional requirement
The main applicant can apply for citizenship after 10 years of residency in Spain.
10 years
Yes
No
Yes
Spouse or partner
Children under 18
Dependent parents
Yes
Spouse or partner
Children under 18
Dependent parents
Yes
Yes
Popular Residence by Investment Programmes
Jurga McCluskey
Partner and Head of Immigration (Europe and Middle East) Deloitte LLP
T: +44 20 7007 7668
Anthony Michael
Director and Head of Private Client Immigration Services Deloitte LLP
T: +44 20 7007 4370
Kathryn Crane
Associate Director Deloitte LLP
T: +44 20 7303 2572
Aytan Gasimova
Consultant Deloitte LLP
T: +44 20 7303 7063
Zahra Rasool
Consultant Deloitte LLP
T: +44 20 3741 2901
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