Political stability, predictable economic policies, and increased economic cooperation with other countries – Brexit negated all that made it a popular destination for foreign investors.
Even so, UK Tier-1 Investor Visa data shows a clear and marked surge in demand among wealthy investors from the BRICS nations: Brazil, Russia, India, China and South Africa.
Between 2016 and 2019, Indian demand for the UK’s golden visa rose by more than 50 percent (9 to 14), while demand from China, (59 to 193), rose by more than 300 percent.
This is a significant jump considering the UK Tier-1 Investor Visa comes with a hefty price tag ranging between £2 million and £10 million, depending on how long the investor is ready to wait for leave to settle in the UK.
The UK will be hoping for continued interest from ultra-high net worth candidates to assist its economic recovery from the ongoing coronavirus crisis.
Forget Brexit, BRICS is the key
The BRICS nations account for more than six out of every 10 Tier-1 Investor Visa application received by the UK.
Demand from the BRICS has remained steady despite a prolonged and messy Brexit, which lasted for more than three years, involved multiple Prime Ministers, and featured negotiations involving unyielding stances and harsh political and economic rhetoric.
In the midst of all this, a total of 58 wealthy investors from India sought permanent residence in the UK.
About the Tier-1 Investor Visa
Immigration is a very sensitive topic in developed countries and the UK is no exception to calls to restrict the inflow of foreign immigrants and refugees.
Yet, like most developed countries, the UK is keen to welcome wealthy individuals prepared to invest large sums as a prerequisite for fast-track permanent residence.
The Tier-1 Investor Visa allows investors bringing in £2 million to apply for leave to settle after five years of residence. An investment of £5 million reduces this period to three years while a £10 million investment can result in permanent residence in the UK in just two years.
With no requirements related to skills, qualifications, or work experience, the investor’s net worth is his/her most important qualification. Of course, unlike other immigrants, the applicant undergoes thorough vetting including detailed due diligence on source of funds being invested in the UK.
Inside the BRICS: Dominant China
From the US EB-5 visa and Australia’s Significant Investor Visa to Portugal’s Golden Visa, China is the world’s dominant source of demand for investment immigration programs.
And the UK is no exception. Within the BRICS, China contributes the biggest chunk of applicants.
The share of BRICS nations in the Tier-1 Investor Visa could be much higher were it not for the rejection rate for applicants from this group.
The overall refusal rate for Tier-1 Investor Visa applicants fell from 11.5 per cent in 2015 to just four per cent in 2019. Yet BRIC applicants accounted for 40 per cent of total rejections in 2019.
The Way Ahead
Easy mobility within the EU is one of the biggest plus points of golden visa programs offered by Portugal, Spain, Greece and other countries.
Despite Brexit’s obvious impact on access to the EU, investor interest in the UK’s golden visa program remains high, especially among investors from emerging countries.