Christmas Webinar: UK Immigration

Christmas webinar: UK immigration Anthony Michael and Kathryn Crane | Deloitte | 18 December 2018 UK Tier 1 (Investor) Visa For high net worth individuals who wish to make a minimum investment of £2 million GBP in the UK

Criteria In order to qualify for the Tier 1 (Investor) route, applicants must meet the following criteria: • Be over the age of 18 years old; • Demonstrate access to a minimum of £2 million GBP for investment in the UK; • Open a bank an account with a financial institution regulated by the Financial Conduct Authority in the UK for the purpose of making the investment; and • If applying from outside the UK, applicants and any dependants over the age of 18 must provide a criminal record certificate for any country in which they have spent a cumulative period of 12 months or more in the 10 years preceding the submission of their application.

Requirements The following requirements apply on approval of the application: • Within three months, applicants must invest the full £2 million GBP in UK Government or Corporate bonds or in qualifying active and trading UK registered companies. The investment must be in the applicant’s own name and not be invested through an offshore company or trust. Investment in property investment, property management or property development is prohibited. • There is no longer a need to maintain the value of the investment. However, if the applicant sells any part of their investment, they must re-invest the gross proceeds from the sale in qualifying investments before the end of the next reporting period or within six months of the date of the completion of the sale, whichever is sooner.

Eligible dependants • Spouse/civil partner/unmarried partner/same-sex partner; and • Unmarried dependent children under 18 years of age.

Duration of stay Applicants are granted entry clearance for a period of up to three years and four months (if applying outside the UK) or leave to remain for a period of up to three years (if applying from inside the UK). Applicants may extend their leave for a further period of two years provided they meet the requirements. After a continuous period of five years in the UK as a Tier 1 (Investor), applicants may apply for indefinite leave to remain in the UK (ILR), provided they meet the requirements which includes the residency requirement. Applicants and their dependent spouse/partner must not be absent from the UK for more than 180 days in any 12 month period throughout the five years.

Criteria In order to qualify for the Tier 1 (Entrepreneur) route, applicants must meet the following criteria: • Be over the age of 16 years old; • Demonstrate access to a minimum of £200,000 GBP of their own funds or £50,000 GBP from a UK entrepreneurial seed funding competition endorsed by the Department for International Trade, a UK Government department making funds available for investment in or the expansion of a UK business or a venture capital firm registered with the Financial Conduct Authority in the UK; • Satisfy the genuine entrepreneur test and provide a detailed business plan and CV in support of their application; • Demonstrate proficiency in English language in all four components: listening, reading, speaking and writing to level B1 of the Common European Framework for Reference for Languages; • If applying from outside the UK, applicants and any dependants over the age of 18 must provide a criminal record certificate for any country in which they have spent a cumulative period of 12 months or more in the 10 years preceding the submission of their application; and • Be able to support themselves, and any dependants applying with them, during their stay.

Requirements The following requirements apply on approval of the application: • The applicant must register with HM Revenue and Customs (HMRC) as self-employed or as a Director of the company with UK Companies House within six months. • Applicants must create a minimum of two full time positions for settled workers (UK or EEA nationals or individuals in the UK with settled status) in the UK business. • Applicants must invest the funds in the business. Entrepreneurial Team An applicant can form an ‘entrepreneurial team’ with one other applicant and share the same investment funds. Eligible Dependants: • Spouse/civil partner/unmarried partner/same-sex partner; and • Unmarried dependent children under 18 years of age. Duration of stay Applicants are granted entry clearance for a period of up to three years and four months (if applying outside the UK) or leave to remain for a period of up to three years (if applying from inside the UK). Applicants may extend their leave for a further period of two years provided they meet the requirements. After a continuous period of five years in the UK as a Tier 1 (Investor), applicants may apply for indefinite leave to remain in the UK (ILR), provided they meet the requirements which includes the residency requirement. Applicants and their dependent spouse/partner must not be absent from the UK for more than 180 days in any 12 month period throughout the five years.

Timeline: Tier 1 (Investor) and Tier 1 (Entrepreneur)

Accelerated ILR There is also an accelerated route to ILR available for under the Tier 1 (Investor) and Tier 1 (Entrepreneur) routes. Please note that only the main applicant may apply for accelerated ILR and any dependants will still need to wait for five years in order to qualify for ILR. Tier 1 (Investor) • Applicants who invest £5 million GPB may qualify for ILR after a period of three years. • Applicants who invest £10 million GBP may qualify for ILR after a period of two years. Tier 1 (Entrepreneur) Applicants may qualify for ILR after a period of three years if they meet one of the following criteria: • They create 10 or more full-time jobs for settled workers. • The UK business generates an income of £5 million GBP.

Timeline – Accelerated ILR:

Tier 1 (Investor)

Tier 1 (Entrepreneur) Comparison of economic residence and economic citizenship programmes

Investment Real Route to Citizenship Time to Language Dependent Dual Estate (Passport) Citizenship Requirement applicants citizenship included allowed

United Investment of at No The main applicant must first obtain 6 years Yes Yes Yes Kingdom least £2 million for Indefinite Leave to Remain (ILR) after 5 Tier 1 Investor years of continuous residence in the UK. Dependent partner and children may Investment of at apply for ILR at the same time as the least £50,000 or main applicant. £200,000 for Tier 1 Entrepreneur Citizenship can be obtained after holding ILR status for 12 months, therefore the total minimum period is 6 years. Applicants over the age of 18 can apply for citizenship in their own right without the need for main applicant applying.

Cyprus Investment of at Yes Residency is not required. 3 months No Yes Yes least 2 million EUR Purchase of a The main applicant can obtain citizenship residential within 3 months of submitting an property with a application. price of at least Children under the age of 18 can apply for 500,000 EUR citizenship once the main applicant has obtained it. Applicants over the age of 18 can apply for citizenship in their own right by investing their own funds.

Malta Contribution of Yes The main applicant can apply for 12 months No Yes Yes 650,000 EUR Purchase of a citizenship after 12 months of residency in Malta. AND residential property with a Children under the age of 18 and up to Investment of price of at least the age of 27 can apply for citizenship at 150,000 EUR in 350,000 EUR or the same time as the main applicant. Government bonds rent a property Parents of applicants are eligible to apply for at least 16,000 EUR per annum

Investment Real Route to Citizenship Time to Language Dependent Dual Estate (Passport) Citizenship Requirement applicants citizenship included allowed

Portugal Transfer of capital of No additional The main applicant can apply for 6 years Yes Yes Yes 1 million EUR; requirement citizenship after 6 years of residency OR in Portugal. Children under the age of 18 can apply Acquisition of real for citizenship once the main applicant has estate with a min obtained it. value of 500,000 EUR Applicants over the age of 18 can apply for citizenship in their own right by OR investing their own funds. Creation of at least 10 new jobs

Spain Investment of at No additional The main applicant can apply for 10 years No Yes Yes least 500,000 EUR in requirement citizenship after 10 years of residency real estate in Spain. Children under the age of 18 can apply for citizenship once the main applicant has obtained it. Applicants over the age of 18 can apply for citizenship in their own right by investing their own funds.

Applicants may obtain Maltese citizenship under the Malta Individual Investor Programme 12 months after Applicants may obtain Cypriot citizenship under the Cypriot citizenship by exception programme 6 months after obtaining their Malta Residence Permit (MRP). The MRP card permits visa free travel in the Schengen area and obtaining a Permanent Residence (PR) permit. once Maltese citizenship is granted, the holder will be entitled to freedom of movement throughout the European Economic Area.

Investment Investment Investment must be made in the following: Investment of at least 2 million EUR, which must be maintained for a period of 3 years in: • Non-refundable contributions to the Malta National Development & Social Fund/ 1. Real estate, land development and infrastructure projects; or Consolidated Fund of 650,000 EUR; and 2. Financial assets of Cypriot companies or organisations; or • Investment of 150,000 EUR in Malta Government bonds, to be maintained for a period 3. Alternative Investment Funds based in Cyprus, or financial assets of Cypriot companies, or Cypriot companies of 5 years; and licensed by the Cyprus Securities and Exchange Commission; or • The purchase of a residential property with a minimum value of 350,000 EUR to be kept for a period of 5 years 4. Collective investments: a combination of the above options to the value of at least 2 million EUR. This option or a residential lease with an annual value of at least 16,000 EUR to be maintained for 5 years. may include the purchase of Cypriot government bonds to the value of 500,000 EUR. Applicants who make an investment in options 2-4 are also required to purchase a property with a minimum value of 500,000 EUR. Please note that a residential property in Cyprus with a minimum value of 500,000 EUR must be kept for the lifetime of the main applicant.

Citizenship Citizenship Applicants must first apply for an MRP card which is usually issued within 5 working days of the application. Applicants must first apply for a PR permit in Cyprus, which is usually issued within 7 days of the application. Applicants must then complete a minimum residence period of 12 months, spending a minimum of 15 days in Applicants must then complete a minimum residence period of 6 months prior to acquiring Cypriot citizenship. Malta before they can acquire Maltese Citizenship. Applicants are only required to visit Cyprus once, at the beginning of the process to enroll their biometric information.

Dependants Dependants The following dependants of the main applicant may also apply: The following dependants of the main applicant may also apply: • Spouse/Partner • Spouse/Partner • Children under the age of 18 • Children under the age of 18 • Unmarried children between the ages • Adult children up to the age of 28 of 18 and 27 who are attending an institution of • Dependent parent over 55 years of age higher education aiming to obtain a diploma or an undergraduate or a master’s degree • Parents of the main applicant may apply with the requirement to purchase a residential property in Cyprus with a minimum value of 500,000 EUR

Language Requirements Language Requirements There are no language requirements. There are no language requirements.

Applicants may obtain a Maltese Residence Certificate/Card under the Malta Residence and Visa Programme Applicants may obtain a Residence Permit under the Portugal Golden Residence Permit (GRP). The GRP offers (MRVP). The MRVP offers visa-free travel within the Schengen area and the right to reside indefinitely in Malta. visa-free travel within the Schengen area and the right to live, work and study in Portugal. Applicants may obtain The MRVP does not however lead to citizenship. citizenship after 6 years of residence in Portugal.

Investment Investment Investment in one of the following options: Investment must be made in the following: • Capital investment of 1 million EUR into a Portuguese bank account on deposit, or specific approved investment • Investment of 250,000 EUR in Malta Government bonds, to be maintained for a period of 5 years; and option; or • • Non-refundable Government contribution of 30,000 EUR; and Non refundable donation of 350,000 EUR to research activities approved by the National Scientific and Technological system; or • Purchase of a property of either 270,000 EUR in Gozo/South Malta or 320,000 EUR in the rest of Malta, or a • residential lease of a property of either 10,000 EUR per annum in Gozo/South Malta, or 12,000 EUR per annum Non refundable donation of 250,000 to support artistic production or the recovery or maintenance of national cultural heritage; or in the rest of Malta. • Investment of 350,000 EUR in venture capital funds dedicated to the capitalization of small and medium-sized companies (awaiting approval from Government); or • Property acquisition with a minimum value of 500,000 EUR or 350,000 EUR in the case of real estate located in urban regeneration areas or 400,000 EUR for real estate located in sparsely populated territories; or • Corporate investment in Portugal leading to the creation of a minimum of 10 new jobs. Residency

The main applicant and dependants will be issued with a Residency Certificate/Card which will allow them to Residency reside, settle or stay indefinitely in Malta. This Certificate/Card is renewable every 5 years. There are no minimum residency requirement for this programme. The main applicant and dependants will be issued with a temporary residence permit for 1 year, which can be renewed for periods of 2 years. They are required to spend 7 days (consecutive or individual) in Portugal during the first year, and 14 days (consecutive or individual) in every 2 year period thereafter. Dependants The following dependants of the main applicant may also apply: Dependants • Spouse/Partner The following dependants of the main applicant may also apply: • Children under the age of 18 • Spouse/Partner • Unmarried children between the ages of 18 and 26 who are wholly supported by the main applicant • Children under the age of 18 • Children over 18 who are physically • Children over the age of 18 who are single, dependent on their parents and studying or mentally challenged • Parents who are dependent on the investor • Dependent parent over 55 years of age

Language Requirements Language Requirements There are no language requirements. There are no language requirements for PR; only for citizenship.

Jurga McCluskey Anthony Michael

Partner and Head of Director and Head of Private Immigration Client Immigration Services (Europe and Middle East) Deloitte LLP Deloitte LLP T: +44 20 7007 4370 T: +44 20 7007 7668 E: [email protected] E: [email protected]

Kathryn Crane

Associate Director Deloitte LLP T: +44 20 7303 2572 E: [email protected]

Aytan Gasimova Myra Khan

Consultant Deloitte LLP Analyst Deloitte LLP T: +44 20 7303 7063 T: +44 20 7007 6683 E: [email protected] E: [email protected]

© 2018 Deloitte LLP. All rights reserved. Presentation title 9 This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte LLP accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. Deloitte LLP is the United Kingdom affiliate of Deloitte NWE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NWE LLP do not provide services to clients. Please see www.deloitte.com/ about to learn more about our global network of member firms. © 2018 Deloitte LLP. All rights reserved.