- The Bond option is no longer available and the mixed investment/bond option is also no longer available.
- The Enterprise Investment of €500,000 in an Irish Enterprise for 3 years is probably the easiest option to secure for most applicants, subject to an acceptable business plan.
- The Minister for Justice and Equality has confirmed certain Funds as being acceptable for the purpose of the "Investment Fund" category.
Immigrant Investor Programme
The Irish Government has recently introduced changes to its Immigrant Investor Programme (IIP) which allows investors to be granted full residency in Ireland along with their nominated family members. These changes makes the Irish Investment Programme a very attractive alternative to the Investor Residency plans being offered in other countries such as Canada, Australia, Singapore or the UK.
Stanley and Company Solicitors is a specialist Immigration Law practice. with over 15 years experience. We have helped over 1500 people get residency in Ireland. We would be delighted to give you some more information if you would be interested. We can arrange Skype consultations to discuss any of the details.
We look after all the paperwork in Ireland. paperwork can be signed in Ireland or we can travel to meet you in Hong Kong or in China if you require. Stanley & Co. Solicitors would be more than happy to assist persons who wish to apply for residency in Ireland under the Irish IIP.
We believe that there is considerable value in this programme, given the recent and intended changes to the law to similar programmes in other jurisdictions such as Canada, Singapore and Australia where much larger sums of money are required in order to qualify under these schemes.
Ireland is a full member of the EU. Residency under the Immigrant Investor Programme extends to all nominated family members. Ireland is a stable democracy with an envied economic growth rate.
The Irish State has over a hundred daily flights to and from London and other major cities in the United Kingdom. Visas can easily be facilitated by the British home office for candidates who have been successful in being granted residency in Ireland.
Other EU States have also introduced similar programmes but the Irish IIP (Immigrant Investor Plan) has certain advantages over the others.
What makes the Irish opportunity different?
Investment may be made through 6 different options.
- 1.Immigrant Investor Bond- NO LONGER AVAILABLE
- 2.Enterprise Investment
- 3.Investment Fund
- 4. Real Estate Investment Trusts ( REIT)
- 5.Mixed Investment-NO LONGER AVAILABLE
- 6. Endowment
Immigrant Investor Bond- NO LONGER AVAILABLE
This is the most popular option. An investment of €1 million Euros is made in a Irish Government Bond which the investor holds for 5 years. There is a 0% Interest rate payable on the Bond. This method of investment is by far the easiest as it is a relatively simple transaction which is risk neutral. The Bond is issued by Ireland acting through the National Treasury Management Agency ( NTMA) and is risk neutral. Given the recent low rates of interests payable on Irish bonds, this is not much of a sacrifice to make given the huge benefits which accrued from residency in the Irish State. The international money markets are very happy with the Irish economy and recent Government Bond auctions have seen rates as low as 5% (correct as of 19.12.14). See todays prices for Irish Bonds here http://www.ise.ie/Market-Data-Announcements/
In our experience most Chinese Investors are not particularly interested in taking up an Irish passport. What the Chinese Investor is looking for is a safe long term or permanent residency within the EU. This is a very real prospect for an investor with as little as 1 million euros to invest in a Government Bond issued by a AA rated EU State. Remember the residency also extends to spouses and children, even adult children in some cases. There is no strict prior turnover figures for investors as in other jurisdictions.
The new Australian IIP by comparison will require an investment of $15 million Australian dollars.
The UK IIP Tier 1 Investor programme requires an investment of £2 million UK sterling pounds.
The Singapore Global Investor programme requires an investment of $2.5 million S. dollars.
Create a new business or invest in an existing one. Minimum investment of €500K Euros and investment to be held for a period of 3 years.
The Minister for Justice and Equality on the 8th of February 2017 responded to a written question in Parliament in relation to these funds.
"I have been informed by the Irish Naturalisation and Immigration Service of my Department that currently there are three Funds approved by the Central Bank from which applications will be accepted to the Immigrant Investor Programme (IIP). The Funds are the Kylin Investment Fund, the Irish Diaspora Loan Fund and the Bartra Capital Property ICAV. All applications received from these three Funds to date have been accepted and approved by the independent evaluation committee.
The Deputy may wish to note that a minimum investment of €1.0 million in an Approved Investment Fund is required for an application to the IIP. The money invested in the fund must be committed for a minimum of three yearsand 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 have to 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 to conduct business in Ireland."
The detail on these Funds is still a little sketchy with little or no confirmation from the Department of Justice in relation to same. Contact us for an up to date position.
Real Estate Investment Trusts
This might be an alternative for an Investor who is seeking an annual return on his investment.
The Real Estate Investment Trust or RIET is a Irish Stock Market listed company which is used to hold rental investment properties. There are three major REITs available on the Irish stock exchange and should an investor wish to invest in REIT, a minimum investment of 2€ million euro is required.
The REIT investment may be spread across a number of different REITs and the full REIT investment must be held for three years from the date of purchase. The downside of the REIT is that it is a floating value unit which might lose some of its value if the property market which it is tied to loses value.
After three years from the date of purchase the investor can sell no more than 50% of the shares purchased for the IIP. The investor may, after four years from the date of purchase, sell no more than a further 25% of the shares purchased for the IIP. After five years from the date of purchase the investor is free to withdraw from the REIT by selling the balance of his units.
Mixed Investment -NO LONGER AVAILABLE
A mixed investment comprises of a purchase of a residential property in Ireland with a minimum value of €450K combined with an investment of €500K in the Immigrant Investor Bond.
A minimum €500K philanthropic to a project in Ireland which is of public benefit to the Arts, Sports, Health, Cultural or Educational fields.
This is what the Department of Justice say about the program.
a) The purpose of the Immigrant Investor Programme is to enable non-EEA nationals and their families who commit to an approved investment in Ireland to acquire a secure residency status in Ireland. The programme was established by the Irish Government in 2012 to stimulate productive investment in Ireland and to offer residency in Ireland with its associated advantage to dynamic business professional with a proven record of success.
b) A non-EEA national may apply for residency status as an individual, or he/she may also apply for residency status for themselves and their spouse/partner and children under the age of 18. Where family members are granted residency under the Immigrant Investor Programme, as long as the applicant fulfills the criteria for residency status under the Programme, that status will automatically be maintained on their spouse. partner and minor children living in Ireland.
c) These Guidelines detail the terms for conferring, maintaining and withdrawing residency status in relation to non-EEA nationals and their families legally residing within the State on the basis of the residency permission granted by the Minister for Justice and Equality under the terms of this Immigrant Investor Programme.
2. Why invest in Ireland?
Ireland is probably the most open economy in the developed world. Being open means Ireland benefits from the boom in world trade; equally it means it must adapt quickly to changing market conditions. Foreign Direct Investment (FDI) is not new to Ireland. The national drive to encourage overseas companies to locate here began back in the middle of the 20th century. Today, success is measured by Ireland’s continuing ability to attract cutting-edge Foreign Direct Investment as US, European and Asia-Pacific countries demonstrate their growing confidence in locating their world brands - have placed Ireland at the hub of their European networks because of the combination of winning factors Ireland offers. Overseas business and entrepreneurs from abroad find a welcome home in Ireland.
Foreign Direct investment is central to Ireland’s future prosperity. Ireland’s strong pro-business environment results in Ireland being ranked first in the 2009 Global Innovation Survey, for Foreign Direct Investment, and in the Doing the Business 2010 Report Ireland is ranked seventh globally as the best place in the world to do business. Ireland’s favourably tax regime and financial support systems for research and development underline the Government’s determination to continually enhance the country’s attractiveness to overseas companies.
Ireland is a small country that has re-invented itself over the last forty years through the combined force of sheer determination and growing, vibrant ambition. Its young, highly educated workforce has seized the opportunity provided by Foreign Direct Investment and continues to transform Ireland into a dynamic, knowledge based economy for the 21st century.
The 2008-2012 Business Environment Ranking of the Economist Intelligence Unit placed Ireland 11th globally out of 82 countries, naming it as one of the most attractive business locations in the world. Furthermore, Forbes 2011 named Ireland as the best country in Europe in which to do business.
The key features of Ireland’s Tax Regime
- Corporate tax rate of 12.5% for active business.
- 25% Research & Development (R&D) Tax Credit which may be refundable over a three year period.
Application for Immigrant Investor Programme
- An intellectual Property (IP) regime which provides a tax write-off for broadly defined IP acquisitions.
Ireland’s Tax Regime also offers:
- An attractive holding company regime, including participation exemption from capital gains tax on disposal of shares in subsidiaries.
- An effective zero tax rate for foreign dividends (12.5% tax rate on qualifying foreign dividends, with flexible onshore pooling of foreign tax credits).
- An EU-approved stable tax regime, with access to extensive treaty network and EU Directive.
- Generous domestic law withholding tax exemptions.
These features all go to make Ireland one of the top global investment locations.
Irish and U.S. qualifications.
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