IMMIGRANT INVESTOR PROGRAMME
What is the IIP Programme (Immigrant Investor Programme)?
The IIP Programme (Ireland Immigrant Investor Programme) was introduced by the Irish Government in 2012 to encourage inward investment for the creation of business and employment opportunities in the State.
The Irish Golden Visa is designed to encourage investors and business professionals from outside the European Economic Area (EEA) to avail of opportunities of investing and locating their business interests in Ireland and acquire secure residency status in Ireland.
Applicants must be high net worth individuals with a personal wealth of at least €2 million.
Applications are reviewed by an Evaluation Committee, composed of senior civil and public servants from relevant Irish Government Departments and Agencies. The Committee will thereafter make a recommendation to the Minister for Justice. The decision to approve or reject is made by the Minister. The decision cannot be reviewed or appealed. An applicant may make a subsequent application.
Investment Option Categories for Investors that are Looking for the Irish Golden Visa
There are four investment option categories for potential investors.
1. Enterprise Investment
A minimum of €1 million invested in an Irish enterprise for a period of at least 3 years.
2. Investment Fund
A minimum of €1 million invested in an approved investment fund for a period of at least 3 years. Such funds must be approved and regulated by the Central Bank.
3. Real Estate Investment Trusts (REITs)
A minimum investment of €2 million in any Irish REIT that is listed on the Irish Stock Exchange, for a period of at least 3 years.
4. Endowment
A minimum €500,000 philanthropic donation to a project which is of public benefit to the arts, sports, health, culture or education in Ireland. This may potentially be reduced to €400,000 if part of a group of 5 or more.
Evidence of Net Worth for Ireland Golden Visa
In order to qualify for the threshold of €2 million, you must be the sole (or co-owner with spouse in the case of married persons) of the assets. Documentation on each bank account/shares/property holding must be provided.
Evidence of source of funds to be provided.
Under no circumstances will a loan provided to the applicant for the purposes of making an IIP application be considered an appropriate source of funding.
Stages of the IIP Programme Process
Make an application, without committing any investment funding, on the basis of one of the investment options
Application approved by the Minister for Justice
Make the investment in accordance with your approved application
Provide evidence that you have made the investment
Enterprise Investment Option for the Golden Visa in Ireland
The Enterprise Investment option is suitable for investors who wish to create a new enterprise or invest in an existing business in Ireland. This option will facilitate investors who have their own investment or business strategy and see the benefits of Ireland as a location.
Key features of the Enterprise Investment option are as follows:
A minimum investment of €1 million in an Irish enterprise for a minimum of 3 years.
The enterprise may be a start-up established by the investor or an existing business registered in Ireland. The enterprise must be registered and headquartered in Ireland and the investment must support the creation or maintenance of employment.
The investment may be in either a single Irish enterprise or spread over a number of Irish enterprises.
The investment must be made in the name of the individual seeking residence under the Programme.
A purely speculative investment aimed at increasing profits through reduction in staff or moving jobs offshore would not be acceptable for the purposes of the Programme.
An investment by a corporation, even where owned 100% by the applicant will not be acceptable. An investment that comprises the purchase of publicly traded securities will not be considered as an eligible investment under the enterprise option.
An investment in commercial property for the purposes of leasing or renting that property to tenants will not be considered as an eligible investment under the enterprise option.
Categories eligible for consideration include investments in social housing and primary care centres.
Investment Fund Option
The Investment Fund option allows investors to avail of the services of approved professional investment intermediaries to invest in the future potential of Ireland’s enterprise sector.
Key features of the Investment Fund option are as follows:
A minimum investment of €1 million in an approved Investment Fund for a minimum of 3 years.
The monies invested by the fund on behalf of applicants for Ireland Golden Visa must be invested in a manner consistent with the IIP Programme objectives (in other words relating to investments that would, if made by an individual applicant on their own behalf, be likely to qualify under the programme). All funds must be invested in Ireland and must represent equity stakes in Irish registered companies that are not quoted on any stock exchange.
The funds and fund managers must be regulated by the Central Bank of Ireland to conduct business in Ireland.
Only fund managers with an established record of managing regulated funds will be accepted to manage funds in Ireland.
Real Estate Investment Trust (REIT Option)
The Real Estate Investment Trust (REIT) option provides an investor with a lower-risk property investment model in which the investment is diversified into a pool of properties. The debt limits within the REIT reduce exposure to negative equity risk, and REITs are income producing investments which are required to distribute the majority of profits each year, and so generate a regular income stream for investors.
Key features of the REIT option are as follows:
A minimum investment of €2 million in any Irish REIT that is listed on the Irish Stock Exchange. The €2 million investment may be spread across a number of different Irish REITs.
The full REIT investment that has been approved for the Immigrant Investor Programme must be held for three years from the date of purchase. During this three-year period, the number of shares in the REIT approved for qualification under the IIP must be retained by the investor even if their value rises above the €2 million original investment.
After three years from the date of purchase, the investor may divest no more than 50% of the shares purchased for the IIP. Where an investor has divested shares during year three, the investor may, after four years from the date of purchase, divest no more than a further 25% of the shares purchased for the IIP. After five years from the date of purchase, no requirements on the retention of shares will apply to investors.
A REIT is a listed company, used to hold rental investment properties. It is a globally recognised standard for investment in rental property assets, already established in many developed economies including the US, Europe, Asia and Australia.
The aim of a REIT is to provide an after-tax return for investors similar to that of direct diversification. To eliminate the double layer of taxation that typically hinders the holding of property through a company, a REIT is exempt from corporation tax on qualifying profits from rental property. Instead, the company is required to distribute the vast majority of its profits to investors each year for taxation at the level of the investor.
The company must have a diverse ownership – no one person or group of connected persons can control the REIT.
The taxation provisions that permit REITs to operate in Ireland were provided for in the Finance Act 2013.
Only REITs that have a listing or have applied for a listing on the Irish Stock Exchange and which have given notice to the Revenue Commissioners under Section 705E of the Taxes Consolidation Act 1997 are eligible for the REIT investment option under the Immigrant Investor Programme.
The investor must declare an intention to invest in a REIT as part of the application process. The Evaluation Committee will make a recommendation to the Minister as to whether or not the person should be accepted under the programme prior to the investment.
Limits may be imposed by the Evaluation Committee at its absolute discretion on the number of REIT investments qualifying under the Immigrant Investor Programme if necessary, in order to prevent any perceived distortions in the Irish REIT market.
Endowment Option
The Endowment option will facilitate investors who wish to actively engage in philanthropy and who wish to champion projects that benefit the public at large. It is the most straightforward option and once the endowment is made no further financial obligation is required under the Immigrant Investor Programme.
Key features of the Endowment option are as follows:
A minimum endowment of €500,000 in a project of public benefit in the arts, sports, health, cultural or educational field.
The endowment should be regarded as a philanthropic contribution with a clear public benefit. Investors will receive no financial return or recoupment of the principal.
The endowment must not displace, or supplement current or capital expenditure as voted by the Oireachtas (the Irish parliament). It is important that the endowment is visible to the public and beneficial to the wider community.
Where a group of five or more investors wish to combine their philanthropic endowments to contribute to an appropriate project, a minimum investment of €400,000 per investor will qualify under the Programme.
Residing in Ireland – Successful Applicants
All successful candidates and their nominated family members will be granted a residence permission in Ireland under “Stamp 4” conditions. “Stamp 4” conditions permit foreign nationals to work, to study or to start their own businesses in Ireland.
The immigration permission is initially for two years. This may be renewed for a further three years subject to the following conditions being fulfilled:
The designated investment is still in place, or the philanthropic donation has been utilised by the registered charity.
The applicant has not become a financial burden on the Irish State.
The applicant has not been investigated, indicted or convicted in relation to any criminal offence in any jurisdiction.
Immigration permission can be renewed for further five-year periods subject to conditions 1 and 2 above.
Eligible Family Members
Residency status, on similar terms, to the principal applicant is also available for spouses/partners and minor children. (i.e., children under 18 years of age) for whom the principal applicant and/or their spouse or partner has legal guardianship.
In certain cases, children between the ages of 18 and 24 will be considered for residence under the IIP Programme where:
They are unmarried and do not have a life partner
They are financially dependent upon their parents (e.g., they are in full time education)
Discount for Educational Expenses
To facilitate investors who wish to educate themselves or their family members in Irish higher education institutions, an investor subject to certain conditions may avail of a discount on their investment of up to €50,000.
Naturalisation
The Immigrant Investor Programme does not provide for preferential access to naturalisation for successful applicants. Legislation requires applicants for Irish naturalisation to be physically resident in Ireland for the 12 months prior to application and to be physically resident in Ireland for four of the preceding eight years i.e., 5 years.
Nomination of legal/financial representative – Enhanced Due Diligence
Applicants may nominate a legal or financial representative to communicate with Immigration Service Delivery on their behalf. The nominated party must meet one of the following criteria:
The nominee is a practicing member of the Law Society of Ireland
The nominee is a practicing member of a prescribed accountancy body in Ireland
The nominee works for a financial services company that is regulated by the Central Bank of Ireland
We advise potential investors to engage with a representative who has experience submitting IIP applications on behalf of investors.
The IIP Programme application process from both the perspective of the investor and the project / investment / philanthropic endowment is rigorous owing in particular to the prescriptive nature of the application form and the documents required from both sides.
The Minister and Department of Justice reserve the right to introduce revised Guidelines, in any manner deemed necessary to ensure the most effective, accountable, and transparent operation of the Immigrant Investor Programme.
Applicants and sponsors should be aware that in June 2020, the Department of Justice enhanced the due diligence processes including:
Anti-Money Laundering (AML)
Know Your Client (KYC)
Politically Exposed Persons (PEPs)
Sanction checks
The process has become very strict in terms of the review of applications from both the investor and the project side. It is in the best interest of the investor and the fund / project to ensure a very robust application is prepared to minimize the risk that a given application will fail either on the investor or the project side in the case of enterprise or endowment projects.
Black Lion Ireland is happy to refer experienced immigration solicitors who have a successful track record in submitting IIP applications on behalf of potential investors and donors.
Application Windows
From June 2020, application windows no longer apply and applications for the IIP Programme (Immigrant Investor Programme) may be submitted at any time. Evaluation Committee meetings take place at least once a quarter.