The Golden Visa Scheme has recently been brought to an end. The scheme was initiated in 2012 during the financial crisis and was intended to bring outside investment into the Irish economy.
The scheme was brought to an abrupt end on February 15th 2023. The end came as a shock to many as ending the scheme 24 hours after the announcement is almost unprecedented; in this article, we look at why the golden visa incentive was ended.
What was the scheme?
The Golden Visa Scheme, also known as the Immigrant Investor Programme (IIP), was introduced by the Irish Government in 2012 to attract non-EEA nationals willing to invest in the Irish economy. The scheme provided a pathway for investors and their families to obtain Irish residency and citizenship.
Under the IIP, non-EEA nationals could obtain a residency permit for Ireland by investing a minimum of €1 million in an Irish enterprise or endowment. Alternatively, they could invest €2 million in an Irish Real Estate Investment Trust (REIT) or €500,000 in a pooled investment fund focused on Irish businesses for at least three years.
In addition to the investment requirement, applicants had to meet specific criteria such as good character, a clean criminal record, and a minimum net worth of €2 million. Successful applicants were granted a residence permit initially for two years, which could be extended for another three years and then indefinitely.
The Golden Visa Scheme was widely popular among investors from China, Russia, and the Middle East, who saw it as an attractive option to gain access to the EU and benefit from the favourable tax regime in Ireland. The scheme was also viewed as a tool to boost foreign direct investment and create job opportunities in Ireland.
However, the scheme also faced criticism for its lack of transparency and potential risks associated with money laundering and corruption. As a result, the Irish Government tightened the rules for the scheme in 2021, including increased due diligence checks and mandatory disclosure of the source of funds.
Overall, the Golden Visa Scheme in Ireland was a significant initiative that attracted foreign investment and talent. While the scheme has changed, it remains an integral part of Ireland’s economic policy and global engagement strategy.
Why did the Government shut down the program?
The Government’s move to abruptly shut down a scheme providing “golden” visas for millionaire immigrants came after a warning that a phased closure could prompt a flood of last-minute applications.
Amid concern in the Department of Justice about a surge in applicants from China to the Immigrant Investor Programme (IIP), the Cabinet took the unusual step on Tuesday of scrapping it with only one day’s notice.
“I have landed at the view that it is no longer appropriate to keep this scheme open,” Minister for Justice Simon Harris told the Seanad.
The decision came amid anxiety about the suitability of wealthy people with “no significant links” to the State apart from the visa scheme providing money for cultural, social and economic use.
When will the program be officially closed?
The program has been closed since the 15th of February, 2023 but does allow a 4-week grace period for pending applications.
How many applications have there been?
There were 1,316 applications for the apt name “Golden Visa” scheme; all but 41 were from Chinese nationals.
How many applications were granted?
Last year, the department approved a total of 306 applications, with the majority of them (282) coming from China, while only 10 were from the US and the remaining 14 from other parts of the world. In the preceding year, the department granted 251 applications from China and a mere 13 from other countries.
Property Investment Dublin
If you own property and want to realise its maximum investment potential, KPM can help.
We have helped thousands of landlords escape the day-to-day management of their properties.
Let KPM be your property expert, from finding the right tenant to collecting rent and everything. Contact us today to speak with a member of the team.
