There are risks and pitfalls in operating investment immigration programs, in which countries have often learned the painful way by making mistakes and facing scandals.
Such risks include misuse of programs for tax evasion, the moral and political implications of putting citizenship up for sale, and the possibility of lax regulation and due diligence leading to security risks.
This leads to the key factor that will determine the future of the investment immigration industry — effective due diligence.
Countries have responded to criticism with stricter checks, more comprehensive due diligence protocols, measures to prevent tax evasion and money laundering, and overall professionalization of the programs.
Others have increased processing fees to fund the establishment and maintenance of systemic safeguards.
While naysayers remain, the steady pace at which the investment immigration industry has grown across the world clearly shows that a balanced approach combining transparency and due diligence with investor-friendly policies will be key going ahead.
Why Investment Immigration?
Citizenship or permanent residence by investment programs allow wealthy individuals to manage their safety and wealth in ways that may be difficult or even impossible in their home countries.
From protecting wealth to securing the personal safety of families, a second passport or permanent residence in another country serves as a key protective option for wealthy individuals.
Through investment immigration, candidates can choose the best destination for work, play, education of their children, quality of living, or a combination of these factors.
Business-minded candidates prefer nations with sophisticated financial and economic infrastructures combined with a stable political system, access to diverse investment opportunities and a competitive environment.
Those seeking a better life for their children may consider access to domestic or foreign educational institutions, career prospects for children, along with ease of mobility.
Win-Win Setup for Investors and Countries
The disastrous impact of the 2008 recession compelled countries starved of foreign investments to seriously consider golden visa programs. Cyprus introduced its second passport program after the island nation received an economic bailout in 2013. Since then, the program has helped the country attract around €3.5 billion in foreign investment.
Further, high net-worth individuals settling in the country have brought invaluable expertise and experience in high-tech sectors like oil and gas and industrial agriculture.
The potential benefit of investments, financial and knowledge-based, in such key sectors of the Cypriot economy, will easily exceed the value of the sums paid to acquire Cypriot citizenship.
The Canada Start Up Visa Model
Canada’s Start-Up Visa Program offers Canadian permanent residence to qualified immigrant entrepreneurs.
The program targets innovative entrepreneurs and links them with private sector investors in Canada who will help establish their start-up business.
Candidates can initially come to Canada on a work permit supported by their designated Canada-based investor, before qualifying for permanent residence once their business is up and running.
The Start-Up Visa currently the only one providing non-conditional permanent residence, has been lauded, emulated by other countries, and held up as another example of Canada’s innovative and flexible approach to immigration.
The number of permanent resident admissions through the SUV doubled from 2018 to 2019 after increasing in each of the last five years.
The program has cemented a reputation for attracting high-calibre candidates with the skills and attributes for business success in Canada.
How Can Immigration.ca Help Start-Up Visa Candidates?
Through our Toronto-based facility, our firm works extensively with industry-acclaimed designated entities including Angel Investors in the Canadian start-up ecosystem.
We provide a range of hands-on business advisory services to help to intend entrepreneur immigrants and their start-up business concepts meet all industry and government requirements. This includes business project and concept management as well as securing financing for qualified start-up businesses.