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On Tuesday 14 February, the Irish government announced the closure of the Immigrant Investor Programme (IIP). IIP applications via approved projects may be granted a grace period of three months to submit the finalised application. Any interest in IIP is the last chance and would have to apply on an urgent and immediate basis or the programme will no longer be available. Contact us now.

Month: December 2020

2020 Review: Recognising Accomplishments in an Unprecedented Year

Posted on by bwa

2020 has been a challenging year. It has forced people to adapt to a new reality. But at Bartra, we remain optimistic. We have seen our teams thrive on change. And our ever-present desire and drive to share ideas, to collaborate, create and innovate, and to continue making progress, is undeniable. This year has not altered our fundamental belief that great investments require three things: great locations, great people, and the right opportunities. Bartra prides itself on consistently delivering all three for clients and investors and we are grateful that we have been able to help many of our clients achieve their goals, while also being recognised by the industry for our efforts.

As another year comes to a close and we look to the year ahead, we would like to share some of our achievements and to thank everyone – clients, business partners and our staff – for contributing to our strength and success.

Accomplishments: 

  • 2 IIP project completions (Northwood, Beaumont)
  • Close to 100 IIP applications
  • 4 awards

A little throwback to Bartra’s highlights from the last 12 months.

January

Co-living

James-02

“I am proud that the ISIF has invested in our business. This is testament to both the quality of Bartra’s projects and the expertise of the personnel putting those projects together. Our development projects support local housing requirements: co-living projects offer accommodation for young professionals; nursing homes provide critically needed care for the elderly and vulnerable; social housing caters to those on housing lists. As the investment immigration arm of Bartra Group, with offices in Hong Kong and multiple cities across Mainland China, Bartra Wealth Advisors has seen increased demand for investment in the social housing and healthcare sectors, with international investors keen to acquire these government-backed asset types. We offer investors direct access to our social housing and nursing home projects, which are good, safe investment opportunities that support the local community and are also IIP-qualifying for obtaining Irish residency.”

James Hartshorn, CEO and Co-founder of Bartra Wealth Advisors.

February

Northwood Nursing Home

  • Northwood Phase II, Bartra’s Nursing Home project, completed on time and within budget.
  • The year’s first batch of Stamp 4 visas arrived on 14 February as a Valentine’s Day gift for our clients.

March / April

May

Healthcare CEO

  • Declan Carlyle was appointed CEO of Bartra Healthcare.
  • Bartra received renewal approvals for applicants from January and February, with a 100% success rate.
  • Clients who invested in our Social Housing project phase II and received pre-approval in April were granted Stamp 4 visas.

June / July

Poplar Row

August / September 

October

HK PR

  • Bartra held its first press conference in Hong Kong, which saw more than 30 news platforms report on Bartra over two days.
  • Jeffrey Ling, Hong Kong Regional Manager, was featured on Apple Daily’s news and video platforms, and hosted a webinar with a tax partner to discuss Ireland immigration.
  • Bartra won Uglobal Immigration Magazine’s Top 25 Developers Award.
  • Bartra received 50 applications from Hong Kong clients.

November

November2020

December

  • Bartra Homes launched a new luxury residential project, Glensavage, Blackrock, comprised of 8 contemporary homes and 14 apartments.
  • Bartra secured planning permission for our €25 million co-living scheme on Merrion Road.
  • Bartra was named Innovator of the Year – Real Estate at the HKB Management Excellence Awards.

In the past year, Ireland has ranked among the best-performing economies in the western world, with GDP growth of 3.4% (ESRI). Looking ahead, export-driven growth of 5.3% in 2021 is forecast (Ibec).

With regard to the IIP, we believe that interest in the programme will steadily increase as businesses and affluent individuals recognise the personal and professional advantages of maintaining a foothold in Europe. We foresee strong demand from China, Hong Kong, Vietnam, India and the UAE, as well as interest from South Africa, Canada and the UK.

As a company, we are excited to welcome 2021 and will continue to deliver our world-class services and products to investors and clients. In the spirit of the tagline of our Immigration Insight video series – Joy of Living – we’d like to take this opportunity to wish everyone a joyous, prosperous and healthy New Year!

Ireland’s property market – a worthwhile investment

Posted on by bwa

The hottest property markets for Hongkongers include London, Sydney, Vancouver, New York, Japan, Bangkok, Lisbon, and many more, but with a large number of multinational companies have established their European headquarters in Ireland (many more are planning to) and the IIP providing the opportunity for immigration to Ireland, its cities are looking increasingly attractive. And there are other benefits to be had, too.

Ireland’s property market has enjoyed steady growth over the last decade, particularly in the nation’s capital, Dublin and its surrounding commuter areas. This growth has been driven by a strong economy (see our blog on ‘Ireland’s Economy’) and high employment levels; GDP growth in 2018 was 5.6%, the second highest in Europe, and in the same year full-time employment grew 2.7%. This year, Ireland is the only developed economy to experience growth in GDP, boosted by exports from the Pharma and tech sectors, the chief economist at Goodbody Stockbrokers said.

Dublin has experienced continued international investment, particularly in the technology sector; it is home to Twitter’s EMEA headquarters and Facebook and Google’s European headquarters. Ireland also boasts a burgeoning medical technology industry, which performed particularly well in 2020, and many of its giants are based out of the capital.

In addition, a limited supply of homes in Dublin’s prime locations, coupled with a growing population that is predicted to increase by nearly a third before 2036 taking it to 1.76m, contribute to a high demand for property in the capital. In 2019, PwC ranked Dublin third out of 31 European cities for real estate investment and development in its 2019 PwC/ULI Emerging Trends in Real Estate Europe report.

There is plenty, then, to attract international property investors. And with similar procedures for purchasing a property in place in Ireland as there are in the UK, where many Hongkongers have chosen to invest in property, good value and promising returns also add to the appeal.

Dublin, for example, is well priced compared to some of its European counterparts. Home prices start from €400-500,000 for a one-bedroom flat in prime residential areas, such as South Dublin, according to Mei Wong, Executive Director – Head of International Residential Sales at Knight Frank, which deals in both residential and commercial property consultancy, while family homes start from €1 million, though in super-prime areas can exceed €10 million.

Location matters and ownership

Ireland_01

Dublin’s most desirable areas to live in, particularly for a family home, are found in the South of the city, with Dublin 4, including Ballsbridge, Sandymount and Donnybrook, and Dublin 6, namely Ranelagh, Rathmines and Rathgar, holding greatest appeal. Each offers a range of housing options within easy reach of the city centre and is close to some of the city’s best schools including a number of those listed in The Sunday Times’ top 25 schools in Ireland in 2018. Blackrock, Monkstown, Dalkey and Killiney, also areas in south Dublin, are of growing interest thanks to their coastal locations offering attractive sea views.

Whether buyers are in search of houses or apartments, property titles are similar to those in the UK. Houses and townhouses are generally freehold, while flats, particularly new-build units, are likely to be leasehold (often 999 years). For those buying for investment, rental yields in and around Dublin are strong and have risen steadily since 2011, but vary according to the area.

Off-plan properties, which are often popular with Hongkongers, can offer attractive yields of between 4 and 6%, particularly in Greater Dublin where undersupply continues to drive growth and push up rental values. Apartments in Dublin 2, where a number of new developments are launching on the south quays, have particularly high rental yield potential, while property in more established areas of Dublin, such as Dublin 4 and Dublin 6, does not offer the same growth prospects.

Aside from Dublin, other areas worth considering include Cork, Ireland’s second most popular location for property investment; Limerick, which was named one of the Europe’s Cities of the Future in 2018/2019 by fDi Intelligence, a specialist division from The Financial Times Ltd.; and Galway, named European Capital of Culture 2020. These cities are attractive places to live, there are top schools, excellent medical facilities, and an array of lifestyle options such as golf courses, fishing and yachting.

There are a number of other elements to consider when purchasing overseas property, many of which set Ireland apart. Property taxes remain relatively low in Ireland. Stamp duty is 1% of the value of the property up to €1 million, then 2% on the balance over €1 million. Local property taxes are also modest, but vary according to location.

IIP investors will hold a Stamp 4 VISA, equivalent to a permanent residence permit, though there is currently no limit on the number of homes that can be purchased by a resident or non-resident, so prospective buyers and investors are able to purchase property at any stage of the residency process.

While most Hong Kong property buyers tend to be cash buyers, mortgages are available with an LTV of up to 70% with an interest rate of around 2.9%. Bartra works in partnership with EBS, one of Ireland’s largest financial institutions, to offer attractive and appropriate mortgages to its clients. For IIP program investors, it is worth bearing in mind that at maturity investors can expect around returns of €200,000 from a €1 million investment of Nursing Home projects, which could be put towards buying property.

Based on the resilience of property markets around the world, the global pandemic seems to have had little impact on buyers’ desires to purchase new homes. In fact, international investor enquiries have picked up as people have had time to consider new markets. And Ireland’s capital, set in an English-speaking country within the EU where residents enjoy high quality of life amidst a steadily growing economy, is a place where investors should feel confident in its potential.

If you are looking to invest in property in Ireland, watch our interview with Mei Wong, Executive Director – Head of International Residential Sales at Knight Frank, which is part of our “Immigration Insights with Bartra Wealth Advisors” video series. Mei and Jay Cheung, our Marketing Director, reveal some of Dublin’s most attractive areas for investors and considers the elements international buyers need to be aware of when contemplating property purchase in the Emerald Isle.

New launch – Glensavage, Avoca Road, Blackrock, by Bartra Homes

Glensavage_house

Apart from IIP projects, and as a leading property developer in Ireland, Bartra Group has diverse real estate portfolios. Bartra Homes has recently launched a premium residential development project, strategically located in a prestigious and highly sought after location in South Dublin, Blackrock. Glensavage is a beautiful hidden site of 2.49 acres (0.94 hectares) off Avoca Road in Blackrock.

You can visit the project website for specification details, layouts or simply contact us.

We also work with Knight Frank for other property investment opportunities.

Data source from Knight Frank’s residential property market reports.

An alternative to UK immigration after Brexit

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“By failing to prepare, you are preparing to fail” – Benjamin Franklin

We know how important making plans ahead of time can be, which is why we are publishing this piece now instead of waiting for the Brexit transition due to take place on 31 December. Here, we hope to share some insights with would-be immigrants currently looking at whether the United Kingdom should be their future home given the uncertainty surrounding Brexit and BN(O) citizenship.

Immigration is potentially the biggest decision that an individual or family will make in their life, and it’s complex. You need to understand your options, prepare and know what to expect on relocation.

The UK is considered a traditional immigration hotspot by Hongkongers. But is it the only option? The Republic of Ireland, Europe’s rising star, has been gaining traction internationally, with its capital, Dublin, an emerging financial centre and technology hub. In terms of GDP per capita, Ireland is ranked among the wealthiest countries in the Organisation for Economic Cooperation and Development (OECD) and the EU-27. It’s certainly a worthy contender for would-be immigrants to consider.

But first, a bit of background.

Strong Historical Links

For over a century and a half, from 1842 Hong Kong was a British colony before being handed back to China in 1997. And lasting legacies of this time endure in Hong Kong, particularly with regards to education, which is largely modelled on systems in the UK, specifically England.

As early as the 1100s, Ireland was ruled by the British, with some considering Ireland to be England’s first colony. Whatever its status, Ireland inherited much from the Brits, not least elements of its education system, which has evolved over the years and is now ranked 6th best in the world and is home to seven top-level universities.

Hong Kong people are, therefore, more familiar with Ireland than they might think. Hong Kong is also home to more than 6,000 graduates from Irish universities, and the education sector in Hong Kong has long-established Irish links; tens of thousands of people in Hong Kong have studied in Catholic schools run by Irish priests. Additionally, many of the colonial Governors of Hong Kong were born in Ireland or claimed Irish heritage, as were civil servants, police and judges from throughout Hong Kong’s colonial past. Today, many Irish business people, teachers and other professionals continue to build strong ties between Hong Kong and the Emerald Isle.

Education Matters

Education is of prime importance to parents, with early childhood education instrumental in a child’s social and intellectual development. In both the UK and Ireland, once residency is obtained children of applicants are able to enjoy free education and free choice of schools.

Some Hong Kong parents prefer that their children study in private schools where the student-to-teacher ratio is often lower, allowing teachers to spend more time on average with each student. However, with a smaller population in Ireland than in Hong Kong or the UK, both public and private schools offer small classes.

When it comes to comparing the ‘style’ of education, the Irish government pays more attention to personal development than schools in Hong Kong tend to, and students have less pressure when it comes to academic studies. However, Ireland believes that education is closely related to national planning, and vigorously promotes science, technology, engineering and mathematics education, with a vision to make Ireland an international centre for technology, science and financial services. Although some parents may send their children to top universities in the UK on completion of secondary education in Ireland, many have come to realise that Ireland has just as much to offer as England’s finest further education institutions such as Cambridge or Oxford. To learn more, take a look at our article on the many strengths of the Irish education system.

Trinity College, Dublin

Trinity College Dublin, the University of Dublin is Ireland’s leading university, ranked No. 1 in Ireland and 101st in the world

So what are the options for those considering immigration and what costs and requirements are involved?

UK BN(O), UK Investor Visa and Irish IIP

UK BN(O)

For a BN(O) visa application, there is no direct cost or investment amount required. Expenses will be based on the costs of living for the whole family for at least five years. It’s important to pay attention to the restrictions of this option, as the whole family is required to reside in the UK to maintain residency. Additionally, BN(O) residents in the UK are restricted from accessing public funds. In most circumstances, BN(O) residents will not be able to enjoy social benefits, but will still be liable to taxes and national insurance. It is also worth noting that the UK is reviewing its Capital Gains Tax, which may usher in higher taxes or cut tax exemption.

UK Investor Visa

HNWIs seeking a residency visa for the UK can consider the Tier 1 Investor visa. The investment entry level is GBP 2 million, which is comparatively lower than the investment fund required by similar programmes in, for example, Australia or New Zealand.

Successful applicants will be granted a Tier 1 Investor visa initially valid for 3 years. The Tier 1 Investor visa can be extended for an additional two years as long as the main applicant does not spend more than 180 days outside the UK per year. It can also lead to UK permanent residency if the holders are able to meet the annual residency requirement for five consecutive years and maintain the investment fund.

Irish IIP

The Irish IIP is a cost-minimised immigration approach to obtain a foreign residency. It requires a EUR 1 million investment into INIS-approved projects for a minimum 3-year investment period to receive a Residence Permit (in the form of a Stamp-4 visa) upon approval. There a number of options for investment, but the Enterprise Investment route is the most popular. Bartra offers two Enterprise Investment options, Social Housing and Nursing Homes, both of which are safe and government-backed. The Social Housing scheme has a 3-year investment period with 100% repayment and no interest offered, while the Nursing Homes scheme is a 5-year investment with a 4% annual return (paid on exit), and 100% capital protection. The income from these projects is derived from a Sovereign Government, which is often described as ‘recession-proof’, even when taking into account external factors such as Brexit or global recession.

Transferability and Recognition

The Irish IIP is a straightforward immigration approach where applicants can receive permanent residency in one step, unlike for other immigration programmes where visas are initially only granted for temporary stay. The IIP has no travel restrictions to maintain residency status – just one-day residency in Ireland per calendar year is necessary. It provides flexibility and allows people to have a residency without moving, so there is no necessity to give up current jobs or businesses. This residency is later transferred to citizenship through naturalisation, which can be started at any time.

The Irish passport is the joint sixth strongest in the world, based on the number of countries its holders can visit visa-free. Its ranking is ahead of the US, the UK, Belgium, Switzerland and Norway, and it is the only passport in the world to provide both EU citizenship and the right to reside and work in the UK.

Comparatively, the BN(O) Visa offers five-year temporary residency, while a minimum stay of six months per year in the UK is required to maintain this residency status and there is no guarantee of transferability to permanent residency or citizenship at a later stage. It is also worth mentioning that the Chinese government is considering a ban on the use of the BN(O) passport as a legal travel document.

Similarly, the Tier 1 Investor visa requires that the applicant spend no more than 180 days absent from the UK in any 12 month period for 5 consecutive years in addition to the GBP 2 million investment. With an investment of GBP 10 million, two consecutive years with the same annual residency requirement are required.

The IIP investor and his/her family will be granted a Stamp 4 Visa, which is top-class immigration status. The immigrant also benefits from the added flexibility of being able to hold this status and enjoy social welfare benefits without having to reside in Ireland. Stamp 4 Visa holders’ children can enjoy free primary and secondary education and will pay the same university school fees as locals.

The BN(O) Visa is simply a means to work and reside temporarily in the UK. These immigrants have no access to social welfare benefits and its holders are often described as second-class citizens, which is an important element to bear in mind as quality of life should be a key consideration when weighing up options.

A Client Case Study

Bartra Wealth Advisors has received more than 1,600 enquiries related to immigration to Ireland in the past three months. Since August 2019, we have helped more than 50 families from Hong Kong successfully apply for Irish residency.

Family

Jeffrey Ling, Regional Manager at Bartra Wealth Advisors in Hong Kong, shared one client story. Peter and May (both pseudonyms) are married with three children attending elementary school in Hong Kong. High-income, senior professionals, the couple had purchased properties in Hong Kong for investment purposes. They were keen to send their children (or go with their children) overseas to study, with a preference for an English-speaking country. However, their biggest concern regarding immigration was that they may not be able to find a job with a similar level of income after relocation, especially considering the current challenging times. The flexibility of the IIP was attractive, as it allows them to keep their jobs in Hong Kong while also obtaining residency overseas. In addition, due to its minimal residency requirement, they are considered non-Irish tax residents residing for fewer than 183 days a year, so there is no fear of double taxation. With its stable economic environment, strong legal system, world-class education, and accessibility to both the UK and EU, the couple felt that Ireland and the IIP fit their needs perfectly. The Advisory Agreement was signed with Bartra predominantly because the Enterprise Investment option we provide offers 100% capital protection with transparent and clear investment procedures. To find out more about the IIP and the projects we offer, start by reading our article The 4 Things You Must Know About the Ireland Immigrant Investor Programme.

In a recent webinar with South China Morning Post, we compared investment and immigration opportunities in the UK and in Ireland. Guest speakers included Liam Baily, Global Head of Research at Knight Frank; James Hartshorn, CEO and Co-Founder at Bartra; and Cheryl Arcibal, business and property journalist at South China Morning Post.

We hope this article provides you with the information you need to weigh up the available options and consider what works best for you and your families in terms of cost, requirements and quality of life.

Look out for upcoming articles where we’ll be comparing the economy and property markets in the UK and Ireland. If you have any questions or would like to find out more about the IIP, feel free to contact us directly.