Vol. 4, No. 3 ▪ June 2014 Feature Article ENTREPRENEURS AND INVESTORS: A COUNTRY-BY-COUNTRY OVERVIEW – This article provides an overview of how various countries attract entrepreneurs and what types of immigrant investment programs exist. A link to an international comparison chart is included. Country Updates: CANADA – A new permanent residence cap opened May 1, 2014, for 50 occupations. FRANCE – The European Parliament and the Council of the European Union have adopted a directive, with implications for France, that provides for an EU-wide immigration status for posting assignees from affiliates outside the EU to affiliates within EU. GERMANY – Various developments have been announced. ITALY – Various developments have been announced. RUSSIA – Online applications for foreign labor are now available; changes are effective for processing of visa extension applications. SOUTH AFRICA – There have been major changes in South African immigration law and regulations. UNITED KINGDOM – Various developments have been announced. Also In This Issue: New Publications and Items of Interest Member News Back to Top Feature Article ENTREPRENEURS AND INVESTORS: A COUNTRY-BY-COUNTRY OVERVIEW This article provides an overview of how various countries attract entrepreneurs and what types of immigrant investment programs exist. An international comparison chart is available at http://www.abil.com/articles/International_Comparison_Chart_of_Investor_Immigration_Program s_(Henley).pdf. The authors thank Henley & Partners for allowing ABIL to reprint its chart. Belgium Belgium does not have specific immigrant investment programs. As a general rule, entrepreneurs and investors need a permit before starting business activities in Belgium, as either an employee (work permit) or self-employed (professional card). However, some individuals planning to make a significant investment in Belgium may benefit from a preferential application procedure. This informal and discretionary process, which is not in the regulations, implies that some investors may be exempt from obtaining a work permit before applying for a temporary resident visa for up to 8 months, with the possibility to extend. These investors still need a work permit or professional card, but can complete the procedure to obtain the required permit in Belgium. Brazil An investor visa may be granted to a foreign national who wants to come to Brazil to invest his or her own foreign capital in Brazil in productive activities. The foreign national must prove the investment of a minimum of the equivalent, in foreign currency, of R$ 150,000.00. In special situations, if the investment is lower than the equivalent of R$ 150,000.00, the National Council of Immigration will analyze the application. That agency has the authority to assess the importance and social relevance of the project and may, based on such analysis, render a decision granting a visa to the foreign national. In either case, the candidate must submit an Investment Plan, with a detailed and clear account of the use of the invested resources, including: Business definition: Business sector and location Description of intended services Investment objectives and date of beginning of operations Investment objectives: Business sector and location Related technology and services Government programs and locations Current partners, if any Operational market Business development strategy Creation of jobs and revenue: Employment plan for the first three years of operation (number of employees and positions) Intended salaries Planned investment for training and qualification of employees Financial plan: Description of the investment plan The most important of the topics to be included in the Investment Plan is the creation of jobs and revenue. The creation of jobs must occur during the first year after the work permit is approved. Although indirect jobs may be counted, the company where the direct investment will be made must create direct jobs. Other topics—increase in productivity, assimilation of new technology, and fund-raising for specific sectors—are criteria that complement job generation. Other points considered in the analysis of the Investment Plan are its consistency (i.e., the lack of any incoherence, diverging or non-confirmed information, or contradictory assertions) and the candidate's curriculum vitae (special attention is given to the candidate's professional experience in relation to the intended investment). The visa is conditional for the initial three years. Renewal of the RNE (Registro Nacional de Estrangeiros) and an unconditional permanent visa can be obtained provided that the foreign national proves at the end of such term that he or she remains as a foreign investor, the investment plan was complied with, and the project generated the job positions for Brazilians that were projected in the original visa application. Canada On February 11, 2014, Canada's Economic Action Plan (EAP) announced the government's intent to terminate both the Federal Immigrant Investor Program (IIP) and Federal Entrepreneur Program (EN). In doing so, it plans to eliminate several thousand backlogged applications. The IIP and EN programs have been cornerstones of Canada's business-oriented immigration programs. In 2011, approximately 10,000 immigrants entered Canada through the IIP, while almost 1,000 entered through the EN. Although the programs have been longstanding business immigration programs, in recent years they suffered from significant backlogs in processing. Investors, for instance, had to wait at least 54 months for visa issuance, while many entrepreneurs faced even longer processing times. The current inventory of backlogged applications for the IIP stands at 65,000. Citizenship and Immigration Canada (CIC) anticipates that it would take more than six years to process these cases. To move forward with programs that will more accurately capture the types of investors needed in Canada, CIC has decided to eliminate many of the files currently in the backlog. However, to date, no official announcement has been made as to which applications will be processed and which applications will be returned to the applicants. CIC pointed out in its press release that the minimum investment amount for IIP applicants, which is $800,000, is significantly lower than that of investor programs in countries such as the United Kingdom, Australia, and New Zealand. It also noted that investors who arrive in Canada are likely to pay lower taxes than immigrants who come to Canada through programs such as the Federal Skilled Worker Program. In its backgrounder, CIC explained: The existing IIP is of limited economic benefit to Canada. There is very little "new" money coming into Canada. Almost all initial investments made through the program come from loans from Canadian banks to provincial governments. The amount of IIP capital actively invested in economic development initiatives has been disappointing. The requirement for provinces to guarantee repayment of IIP investments after five years limits their ability to invest funds into more high-risk initiatives that tend to reap greater rewards for Canada in terms of true innovation and job creation. Fifteen years after provinces and territories were factored into the equation, less than half of the funds are actively invested. By doing away with the current IIP and EN programs, the government will "pave the way for new pilot programs that will actually meet Canada's labour market and economic needs." These pilot programs will enable Canada to remain competitive in the global economy. The pilot programs will complement the Start-Up Visa program, a former pilot program that is now a permanent part of Canada's immigration system. This program links immigrant entrepreneurs with experienced private sector organizations who are experts in working with start-ups. Two additional programs have already been mentioned as replacements for the IIP and EN streams. One will be a new Immigrant Investor Venture Capital Fund and the other a new Business Skills Program. Details of the new pilots will be announced in the coming months. Most Canadian provinces have created provincial nomination programs (PNPs) as a means of attracting applicants who are likely to make an immediate economic contribution to the province. These programs are tailored to respond to the economic needs of a given province. To apply for permanent residence under a PNP, an applicant must first be nominated by a province or territory. Each province and territory has established its own requirements and nomination procedures. In general, each of the provinces and territories seek to attract applicants who have skills, education, and work experience that will contribute to the economy of that province or territory. The Canadian province of Québec manages its own Investor Program, which requires net assets of at least CAD $1.6 million legally acquired, management experience, and a no- interest loan of CAD $800,000 made to Québec for a five-year period. The Québec Investor Program remains open to French-speaking applicants who have an advanced intermediate level of French as evidenced by a recognized French test. France France offers permanent residence to international investors who invest at least €10 million in productive assets, or create at least 50 new jobs or save 50 jobs in danger.. Productive assets are those assets that produce work and other human activity. These assets cannot be stocks, bonds, or other investment vehicles producing