Ireland Golden Visa Program 2021: Ultimate Investor Guide
Looking to obtain Irish residency by investment in 2020? The Ireland Golden Visa Program, formally known as the Ireland Immigrant Investor Program, offers non-EEA nationals the ability to settle in the Emerald Isle on the basis of making a significant investment. With eligible investments starting from €1 million, and donation-based applications priced from €500,000, the program is not cheap, but given that it opens the doors to legally settling in Ireland, an increasing number of foreign investors have been applying for the program since 2019.
Find out more about the Irish Golden Visa Program below, or contact us now for more information.
Overview of the Irish Investor Visa
The Ireland Immigrant Investor Program was launched in 2012, providing wealthy foreign individuals and their families hailing from outside the European Union to obtain Irish residency by investment on the basis of making a meaningful contribution to the Irish economy. The key objective of the program is to facilitate Irish job creation.
While the program does not offer a property-based investment option, it does offer investors a range of business and fund based investment options to cater for a range of investor risk appetites. The various investment options are discussed in more detail below.
It is important to note that Ireland does not offer a citizenship by investment program, nor any fast track investment programs for obtaining Irish residency. The Immigrant Investor Program is a Stamp 4 type visa, which can be indefinitely renewed, provided that the applicant continues to maintain the relevant program requirements, and continues maintain impeccable international standing.
The program does offer a clear path to permanent settlement, however this requires the Golden Visa holder to maintain their residency status and full-time in-country settlement for a minimum period of 5 years. Price wise, the program competes favourably with the UK Tier 1 Investor Program as well as the US EB-5 Investor Visa.
Program Investment Options (2020 / 2021)
The Irish Immigrant Investor Program offers foreign investors the following investment options for obtaining Irish residency:
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Irish Real Estate Investment Trust (REIT) investments: €2 million: A REIT is a listed company that houses rental properties in a way that reduces investor risk and avoids double taxation. Eligible REITs must either be listed on the Irish Stock Exchange (ISE), or have already applied for listing and given notice of this to the Revenue Commissioners.
REITs typically invest in a range of diverse properties with a view to minimize risk, and distributes the lion’s share of its profits on an annual basis. Under the Irish Golden Visa Program, applicants must invest €2 million for a minimum period of 3 years, even if the value of the investment appreciates beyond the €2 million threshold during this time. After 3 years, the investor can reduce their shareholding by a maximum of 50%. After 4 years, they are allowed to divest an additional 25%, and after 5 years they may divest fully while still being eligible to retain their residency status.
NB: Be sure to seek approval from Immigration Ireland before you invest in any REITs, as investments made without approval will not be eligible to serve as the basis for an Irish Golden Visa application.
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Irish Enterprise Investments: €1 million: A minimum qualifying Irish enterprise investment, maintained for a minimum period of 3 years, can serve as the basis upon which an Irish Investor Visa is obtained. The enterprise being invested in can be a new or existing Irish business, however it must be registered and headquartered in Ireland. Furthermore, the potential for sustainable job creation is a key consideration in terms of getting your application approved by the Irish immigration authorities.
Qualifying enterprise investments must be made in the applicant’s own name, i.e. not within a company, corporation or trust). In addition, investments in publicly traded shares and buy-to-let property are not eligible under the Ireland Golden Visa Program.
Prospective applicants have the option of pooling their investment capital, provided that each individual applicant still meets the individual program investment criteria. Similarly, applicants can invest in multiple qualifying enterprises, provided that the minimum investment threshold is met in total.
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Approved Investment Fund Investments: €1 million: Depending on your choice of investment fund, the minimum investment period is 3 to 5 years (e.g. in the case of IDLF investments). Irish Golden Visa applicants are only allowed to invest in funds that have been pre-approved for the program by Immigration Ireland. All qualifying funds must focus on venture capital (VC) and private equity for small and medium sized enterprises (SMEs). Qualifying funds must also have a minimum target size of €20 million.
Any enterprise shares purchased by the funds must be within Irish registered businesses whose shares are not publicly tradable. In addition, the funds and their managers must be regulated by the Irish Central Bank, and only seasoned fund managers located within Ireland are eligible for approval under the Golden Visa Program.
A key criterion for fund approval is the potential for meaningful and sustainable job creation, not the potential for creating meaningful value for the investor. It is also vital to note that the Irish Naturalisation and Immigration Service (INIS) does not recommend or guarantee the performance of funds that have been pre-approved under the program. It is therefore highly advisable to consult a suitably qualified Irish immigration lawyer before any securities are purchased with a view to obtain Irish residency under the Irish golden residency program.
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Philanthropic Project Endowments (Donation Option): €500,000: A non-refundable donation to a qualifying project in the arts, healthcare, sports, educational or sports spheres can serve as the basis for an Irish Golden Visa application. Where 4 or more applicants donate in concert, the minimum eligible donation amount is reduced to €400,000 per applicant. It is important to note that investors are not allowed to receive any financial return on investment based on their investment for this investment residency option. (In light of the fact that this is a non-refundable donation, no minimum lock-in period applies.)