Speculation of Britain’s exit from the European Union is likely to hurt demand for the country’s investment immigration program. Despite reiterating its commitment to facilitate easy entry of skilled immigrants, repeated tinkering with the UK Tier 1 Investor Visa has resulted in a sharp fall in demand in recent times.
In November 2014, the minimum investment requirement was doubled from £1 million to £2 million. Further, real estate was no longer a permissible investment under the investment immigration program. These changes saw a drastic fall in the number of Tier 1 Investor visas issued in 2015. In 2014, the UK had issued 1172 Investor Visas. In 2015, this figure fell to just 192. A quarter-wise breakup reveals that demand remained low throughout the year.
Another cause for uncertainty is the Immigration Bill amendment tabled in the House of Lords seeking to end the program itself. Despite rigorous due diligence checks, the investment immigration program is being criticized for allowing criminals to enter the UK. While the program may not be terminated, applicants are wary of proceeding until the uncertainty ends.
Additionally, proposed changes to tax laws may make residence in the UK unattractive for wealthy individuals. Investment immigrants always prefer programs that allow them to enjoy a lower tax burden. Applicants are also wary of the possibility of Britain’s exit from the EU, which will impact the visa-free travel privileges that investment immigrants in the UK currently enjoy.
The UK has also recently announced an increase in application fees for its various immigration programs. While the application fee was hiked by just 2%, there has been a 25% increase in settlement and nationality application fees and a 33% increase in fees for fast-track processing services.
Finally, the UK’s investment immigration program has been hit by economic troubles in Russia and China, which are the two nations contributing the highest number of applicants for the Investor Visa. Investors from Russia, China, and other countries are looking to other EU nations offering cheaper and more convenient options for residence or citizenship.
While 2014 may have witnessed high demand from those seeking to avoid the hike in minimum investment limit, the fact that demand has remained low throughout 2015 indicates that investors continue to shy away from the UK’s investment immigration program.
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