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Category: Insights

Invest in the Future – Ireland, Europe’s Fintech Hub

Posted on by bwa

Migrating to Ireland is becoming an increasingly attractive option for families, not only because of the quality-assured education system, but also the strong bounce-back in business, proving the economy’s robustness and agility. Ireland’s economic strength, coupled with its emerging focus on tech industries, offers many career opportunities for children as they look to the future.

In our previous blog Ireland’s Job Market – Which professional sectors are in high demand?, we introduced the country’s booming job market and its leading employment sectors. Our Marketing Director Jay Cheung recently spoke to Derek Kenny, Co-Founder and Managing Director of CGP Group, which specialises in recruitment and human resources, for the latest episode of Immigration Insights with Bartra Wealth Advisors. Watch the interview to understand what makes Ireland and its job market special and why would-be immigrants should consider it, particularly for their children’s future careers.

Fintech Evolution Centre

Ireland is rapidly transforming into a European tech hub with steady growth in employment driven by tech companies recruiting new talent. One of the country’s major tech sectors is fintech.        

Many people may not be aware that Ireland is Europe’s leading financial centre, with half of the world’s top 50 banks boasting branches in Ireland and many financial service providers having relocated staff and operations to Ireland following Brexit. Ireland is also known as the “Silicon Valley of Europe” with global tech giants such as Apple, Microsoft, and Google all having set up European headquarters in Ireland. By taking advantage of the well-established financial services and technology sectors, which boast talent from the US, the UK and all over the world, the country has emerged as a growing international fintech hub providing great opportunities for graduates and young people.

Joe Morley, CEO for TrueLayer Ireland and GM Europe, commented that Ireland has become the EU’s fintech centre of choice for some of the top fintech companies in the world, including the likes of Coinbase, Stripe, Remitly and Square. With the recent boom in fintech, Ireland has successfully seized the opportunity and become a leading innovation hub for fintech’s key players.

Square, the financial services and digital payments group supported by the Irish Government through IDA Ireland, launched in Ireland in May 2021. As an NYSE-listed company, Square is just one of the many fintech companies that have huge confidence in Ireland and chose the country as the location for its new headquarters, demonstrating that Ireland is an excellent place to accelerate fintech development in the long run.

Minister of State at the Department of Finance of Ireland Sean Fleming said: “This rapidly growing sector offers exciting opportunities for experienced executives and graduates across the country and an environment in which they can thrive. The development of the fintech sector is one of my priorities in Ireland for finance strategy.”

These developments in Ireland have allowed experienced talent and graduates who are interested in working in finance and technology to exchange insights. Other than gaining a broader field of vision, graduates in Ireland can be exposed to worldwide fintech enthusiasts without going abroad as their hometown offers one of Europe’s most fintech-favourable environments.

Rapidly-growing fintech start-ups that have set up their European headquarters in Ireland include:

  • Stripe: Fintech unicorn with a $95B valuation as of March 2021; approaching “hectocorn” status
  • Coinbase: The largest cryptocurrency exchange in the United States by trading volume as of March 2021

▲ A snapshot of the international fintech industry in Ireland (Source: A&L Goodbody)


4 Factors Kickstarting Fintech Breakthroughs in Ireland

Governmental factors

Known as a place where finance and technology come together, the Irish government is dedicated to cementing Ireland’s reputation as a hub for the fintech industry. In 2015, the Irish government launched IFS2020, a five-year strategy to develop Ireland’s International Financial Services sector.

IFS2020 identified three key actions to implement concerning fintech:

1. Enhance international financial services, and information and communications technology
2. Source funding for fintech
3. Support fintech accelerators through partnerships with Enterprise Ireland.

The above, coupled with the synergy created from collaboration with large multinational enterprises, has contributed to the employment of approximately 40,000 people in financial services and more than 100,000 in technology, and these numbers are only going to grow going forward.

Apart from fund sourcing, another key element of IFS2020 is the partnership with Enterprise Ireland, a governmental organisation responsible for the development and growth of Irish enterprises in world markets. It has a fintech team in Dublin that supports more than 220 companies with business strategies that are internationally focused.

With the aim of identifying worldwide business opportunities, Enterprise Ireland has embarked on the coordination of several fintech trade missions in the US, connecting European-based fintech start-ups with technical talent in North America. Immigrants in Ireland, especially those interested in fintech and its associated sectors such as crowdfunding and blockchain, have found this connection helpful, particularly when it comes to career development and capital flow home. Frequent capital flow fuels the further development of fintech through various means including knowledge research and nurturing talent.

Collaborative factors

The collaboration between fintech talent, world-class business, technology companies and research programmes has created advantages for Ireland that are allowing it to thrive in the fintech sector, which strengthens its position as a fintech hub in Europe.

Ireland is full of world-class talent; eight of the top 10 global software companies have European headquarters in the country. In terms of research and development, FinTech Fusion, a new fintech research programme in Ireland, has been a major catalyst in encouraging breakthroughs in payment (PayTech), regulation (RegTech), and insurance (InsureTech) technologies, according to Science Foundation Ireland. This has helped accelerate scientific progress and enable data-driven research for fintech people thereby helping to retain talent in the country.

FinTech Fusion’s research programme integrates businesses and technology across various dimensions, including AI, cloud computing and big data analytics. The programme’s academic researchers work together with companies such as Deutsche Börse, Fidelity Investments, Microsoft and Zurich, to develop fintech innovations that will have the potential to impact markets and individuals. This assists in worldwide talent acquisition and retention.

The strength of Ireland’s talent pool has had a long-term positive impact on the country’s culture, growth, and success by creating an engaged and committed workforce.  It is also far-reaching. Few know that many US businessmen are Irish by descent. According to Irish America magazine, Irish-Americans control many of the most powerful companies in the US, such as Intel and Motorola, and leading Irish-American business figures have built connections between the two fintech centres, encouraging exclusive business partnerships.

Political factors

Ireland is a committed member of the European Union (EU). As a result of Brexit, a number of high-profile fintech companies have made plans to relocate to Ireland in order to continue business cooperation in the EU.

Following Brexit, there are greater barriers for capital transfer between the EU and the UK, which raise the cost of business partnerships for fintech start-ups and unicorns.

Legal factors

Under the Irish legal system, commercial disputes valued over €1 million can be dealt with through the fast-tracked Commercial Court, which is a division of the High Court. Ireland is also a ‘common law’ jurisdiction, similar to the UK and the US. Common law consists of a series of principles and rules developed by judges over many centuries. It involves courts deciding cases by following the principles laid down in earlier cases and written judgments. This operates in tandem with legislation introduced by the Government to regulate specific areas, such as the financial services, data protection, the environment and criminal law, but this legislation is always subject to judicial interpretation.

English speaking, pro-business and with an efficient Commercial Court, Ireland is positioned to take advantage of its status as a common law jurisdiction integrated into the EU, which further strengthens its position as a fintech hub.

Summary

Are you looking for the best place for your kids to create, explore and invent? With the proliferation and sustainability of fintech start-ups, Ireland offers you and your family the most innovative and secure residency.

Immigrating to Ireland is an optimal option for the next generation to explore diverse and promising career opportunities. Contact us now to begin the journey to a bright future for you and your family.

3 questions to ask before choosing an immigration programme

Posted on by bwa

There are many reasons to move abroad – education quality, work opportunities, economic stability, to name a few. But before applying for any immigration programme, it’s best to look into the programme details and compare the requirements. Choosing the programme that suits you and your family best is key to a positive immigration journey. But the question is, how do you know whether a programme is a good fit for you and your family?

To explain the differences between immigration programmes, we spoke to our immigration partner Willie Hu, Director of John Hu Migration Consulting, for our Immigration Insights with Bartra Wealth Advisors series. Having worked in the immigration industry for years, Willie is experienced in suggesting the most suitable programme according to a client’s needs and immigration objectives. Watch the latest episode of Immigration Insights, where Willie talks to our Regional Director Jeffrey Ling about the different immigration programmes and provides some advice for families considering moving abroad.

Immigration Options

Moving to another country is exciting and life-changing, but it takes a lot of evaluation and a concrete action plan to make it happen. To start with, you need to understand different immigration programmes and what each require. While there is a variety of immigration programmes in the market, they can be categorised into three main types:

1. Skilled migration
2. Business/entrepreneur migration
3. Investment migration

Skilled migration

Skilled migration programmes are designed to attract migrants who can potentially make a significant contribution to the country’s economy. As skilled migrants have a high participation rate in the workforce, they serve as a driving force of economic growth, which results in the creation of more jobs. Skilled migration programmes are typically points-based and the points assessment is based on age, qualifications, English proficiency, and years of working experience.

Popular countries offering skilled migration programmes include Australia, Canada and New Zealand where occupations such as health workers, engineers and IT professionals are preferred.

Business/entrepreneur migration

Business/entrepreneur migration programmes are designed to attract entrepreneurial talents and foreign direct investment (FDI). They are positioned to target migrants that have a demonstrated history of success in innovation, investment and business. These programmes require the applicant to make a certain amount of investment and to create new jobs in the target country, which in turn contribute to the country’s economic growth and workforce.

A wide variety of countries offer business/entrepreneur migration programmes including Australia, Canada, Japan, Portugal, Singapore and the UK.

Investment migration

Investment migration programmes allow individuals to obtain residency status in return for investment in their host countries, and some may ultimately lead to citizenship. Investment options and programme frameworks vary depending on the needs of the country, but the investments are usually in the form of real estate purchases, endowments to national projects or business investments.

Both investment migration and business/entrepreneur migration require investments in the target country. The biggest difference is that the former is passive in nature, meaning individuals are not required to establish or actively manage a business.

How to choose an immigration programme

On gaining an understanding of the different types of immigration programmes, there are three questions to ask when selecting the most suitable programme for you and your family:

1. How much risk are you willing to take?

For professionals, skilled migration is undoubtedly the safest option. However, being typically points-based, age, qualifications and language proficiency will all be taken into account during application. It is worth noting that your occupation score also differs from country to country based on national needs. Therefore, success is not guaranteed when it comes to skilled migration, and it is essential to study the scoring criteria carefully prior to application.

If you are interested in running a business and are confident in your entrepreneurial skills, then business/entrepreneur migration might be a good choice. Nevertheless, running any business is a task in risk management. Risks arise from uncertainty about various aspects of the business, from customer preferences to competition and economic performance. The entrepreneur needs to be aware of the risk that one might confront when running the business. If your business fails, it might also affect your resident status. “Applicants need to understand the local market. Even if a person is a successful business person in a certain country, this doesn’t mean they will succeed overseas,” says Willie.

For investment migration, applicants can generally obtain resident status by providing capital funds for designated investments. If the investment is in equity, it is key to understand the underlying assets and associated downside risks and payoff. As for debt investment, it’s all about credit risk. The risk profile can be evaluated through due diligence; for example, what are the backgrounds of the management team? What is their track record? Is the debt collateralised or uncollateralised? What is the seniority ranking of the debt?

Aside from financial risks, there are a number of other risk factors common to immigration programmes. We have put together a list of some of these in our blog “How to assess risks of immigration investor programmes?”.

2. Do you want to eventually become a permanent resident or citizen? 

There are generally three types of resident status: temporary residents, permanent residents and citizens. The most significant difference between temporary residents and permanent residents is the duration of stay. Temporary resident visa holders are permitted to reside for a limited period of time with restricted working conditions, meaning they are required to either leave the country or apply for another visa before the expiration date, while permanent resident visas provide more rights to the visa holder, such as residency, medical, education, etc. Citizens of a certain country have the right to vote and are eligible for a passport.

If your ultimate goal is to become a permanent resident or citizen of the target country, then you are advised to pay attention to the visa or permit types that different programmes offer, as some may be issued in the form of a temporary resident visa without the right to access local benefits.

3. Do you want to become a tax resident in the target country?

Hong Kong is known for its simple, low-rate tax system where no tax is levied on profits arising abroad, even if they are remitted to Hong Kong. In contrast, the tax regimes of the major immigration destinations, such as the UK and Canada, are often considerably more complicated and the rates are generally much higher. Compared to Hong Kong, where the tax code is a mere 276 pages long, the UK tax code spans more than 17,000 pages. Therefore, it is crucial to plan early to keep your tax affairs in order.

In most countries, the tax liability of an individual is determined by their period of stay and whether they are domiciled. Taking Ireland as an example, you are considered a resident for tax purposes and become liable to Irish taxes only if you stay in the country for a total of 183 days or more in a tax year. Therefore, Investment migration programmes are popular amongst high-net-worth individuals as they often offer greater flexibility around residency requirements.

Under the Irish Immigrant Investor Programme (IIP), the minimum stay is only one day per year. Investors can decide whether to become a tax resident in Ireland depending on their situation and maintain resident status without moving to Ireland.

Check out more Irish tax planning tips in our blog “Practical tips on Irish tax to get your finances in order before moving to Ireland“.

Summary

Fully understanding your immigration options and thoroughly evaluating the risk factors of a programme are very important prior to making any decisions. Before you begin navigating all the different visas available, make sure you are clear about what your immigration objective is and seek professional advice.

At Bartra Wealth Advisors we pride ourselves on delivering streamlined, in-group, end-to-end Irish immigration services. For any questions about Irish immigration, click here to contact our advisors.

Ireland’s Innovation Economy – a world leader in innovation and research

Posted on by bwa

When it comes to immigration, it’s important to consider the future of the country you are moving to and the opportunities it can offer you and your family. In a healthy ecosystem, new immigrants and their offspring can benefit from economic growth and social protection, while the nation can take advantage of the increased output and productivity that immigrants bring, both in the short- and medium-term.

Ireland’s future is bright in many respects, and it offers ample opportunities for immigrants and their children, particularly as it seeks to pivot to an Innovation Economy.

The Innovation Economy is an economic theory that has been gaining traction among business leaders and scholars in recent years and is based on the idea of entrepreneurship and that individuals, institutions and technological change drive economic growth.

Innovation is key to maintaining Ireland’s competitiveness in global markets. The world’s geopolitical, social, environmental, economic and technological challenges, and particularly the decision of the United Kingdom to leave the European Union, have forced Ireland to be more active in promoting its interests and finding new markets and opportunities to deepen and renew relationships and alliances, both in Europe and beyond.

A number of initiatives have been introduced by the Government to encourage Ireland to become an innovative and internationally competitive enterprise base for growing employment, sales and exports.

Global Ireland 2025

▲ Taoiseach launches Global Ireland: Ireland’s Global Footprint to 2025. Image source: merrionstreet.ie

Global Ireland 2025 is the Government’s ambitious strategy for doubling the scope and impact of Ireland’s global footprint. Its aims are manifold, seeking to diversify and grow Ireland’s exports and encourage inward investment and tourism, particularly in response to the challenges posed by the UK’s departure from the EU. There is also a desire to strengthen Ireland’s engagement with its 70 million-strong diaspora, to bring Irish culture to the wider world; and to support Ireland’s foreign policy objectives.

Building strong connectivity with important major cities around the globe is key. The Department of Transport, Tourism and Sport, alongside Tourism Ireland, are working closely with airports and airlines to actively pursue routes of strategic importance. While decisions on direct flights are largely driven by commercial considerations, Ireland is seeking to encourage direct links with a number of regions, thereby maximising the potential for increased tourism and trade from those locations. The first-ever direct commercial flights between the Asia-Pacific region and Ireland are now in operation, with scheduled flights from Dublin to Beijing and Hong Kong.

ireland airline

Under the Global Ireland 2025 Initiative, Ireland’s target is for 15% of its student population to be international students. Expanding the Government of Ireland Scholarship scheme; increasing in-country promotion of Ireland in new and emerging markets (such as Vietnam, Thailand, South Korea, Africa and South America); expanding the Academic Mobility Fund; and achieving greater impact in terms of international research collaborations and partnerships are some of the ways in which it hopes to achieve this goal.

One of the Global Ireland 2025 strategies worth highlighting is The Creative Ireland Programme, which was established in 2017. It aims to deliver a compelling proposition for Ireland, based on its culture and creativity, to enhance its international reputation and increase its influence in the world. The programme is built around key themes: Creative Youth, Creative Communities, Creative Places and Creative Nation.

Ireland’s Industry 4.0 Strategy

▲ Image credit Codico Coding and Marketing Solutions

Through the Industry 4.0 Strategy, the Government is responding to the transformation resulting from the advance of digital technology with a plan to help ensure that by 2025 Ireland will be at the forefront of the fourth industrial revolution and Industry 4.0 adoption.

The term ‘Industry 4.0’ refers to the convergence of information communication technologies (ICT), which include cloud computing, Internet of Things (IoT), high-performing computing, machine learning, big data and analytics, robotics and digital fabrication, to enable the ubiquitous digital connection of machines, workpieces and IT systems.

From a macroeconomic perspective, Industry 4.0 offers the potential for significant economic growth, with estimates that digitalisation of manufacturing could add €110 billion per year to Europe’s industry base. For Ireland, it is estimated that there will be positive workforce growth in the manufacturing sector through the adoption of digital technologies between 2019 and 2023.

As process innovation built on digital technologies can lead to more efficient and flexible production processes with increased resource efficiency, Industry 4.0 adoption should also contribute to the climate action agenda set out in Ireland’s Climate Action Plan 2019, while also benefiting industries such as Pharmaceuticals and Chemicals, Food and Drinks, Computer and Electronics and Engineering.

Development Within Ireland

Steps are also being taken for internal improvement in Ireland, from the government to education sectors, with a number of initiatives to support social and economic growth:

Government

▲ Image credit Eolas Magazine

Project Ireland 2040 Project

This is the Government’s initiative to make Ireland a better country for all of its people. It is expected that by 2040, there will be an additional one million people living in Ireland (currently it has a population of around 5 million), which will put pressure on infrastructure and services: more people will be travelling to work, school and universities, more buildings will be required to accommodate them, clean water will be needed for homes, farms and industry, and more and better care facilities will be necessary for the elderly. Project Ireland 2040 therefore consists of a National Planning Framework, which sets out a spatial strategy to accommodate these demographic changes.

The initiative seeks to achieve ten strategic outcomes, one of which is to have a strong economy, supported by Enterprise, Innovation and Skills.

Ireland has been very successful in attracting major foreign investment, and generating high quality, large-scale employment. While aiming to retain its competitiveness in mobile international investment, it will now also give equal priority to its local enterprise economy. The focus will be on boosting regional growth potential, increasing research, development and innovation, and investing in higher education and further education and training. A new €500m Disruptive Technologies Innovation Fund will drive collaboration between the research, education and enterprise sectors.

Future Jobs Ireland

Future Jobs Ireland seeks to put the country’s economy in a better place to withstand shocks, as and when they appear. It involves a deliberate policy shift to increase quality jobs that allow for better living standards, but also sustainable jobs, which will be less vulnerable. The strategy will focus on five pillars: embracing innovation and technological change; improving SME productivity; enhancing skills and developing and attracting talent; increasing participation in the labour force; and transitioning to a low carbon economy.

Education and Universities

Education, government initiatives and economic development are all closely linked. The Irish Government sees education as strategically interlinked with national planning and has successfully developed programmes with schools and universities at all levels to establish Ireland as an international base for technology, science and financial services.

Trinity College Dublin – Trinity encourages an entrepreneurial spirit, providing incubation programmes for student-led companies, and has been named Europe’s leading university two years in a row for producing venture-backed entrepreneurs. Its programmes support early-stage start-ups and entrepreneurs by offering them the opportunity to participate in its accelerator programmes and providing funding, co-working space on campus, access to expert mentors, and a structured programme of workshops and fireside chats.

Dublin has an extraordinary cluster of technology and life science companies. Image credit Trinity College Dublin

Technological University Dublin and CeADAR – There is a major collaborative project across Europe to design a new Master’s programme in Artificial Intelligence that addresses human and ethical issues around the topic. The total cost is expected to be €3million and the project is to be delivered at universities in Ireland, The Netherlands, Italy and Hungary. Ireland is front and centre of the initiative thanks to Technological University Dublin and CeADAR, Ireland’s national centre for Applied Data Analytics & AI based at University College Dublin.

Company Movement

Ireland is becoming an international tech and innovation hub – Dublin ranks the third best European ‘tech city of the future’ – with companies from the US, UK and China, among many others, moving to Europe’s ‘Silicon Valley’, which serves as a gateway to the European market. MedTech, FinTech and DataTech are booming, which provides strong economic growth and increases Ireland’s appeal.

Following the use of Ireland as a data centre and operations hub by major technology companies including Amazon, Facebook and Alphabet Inc, TikTok, which is owned by China’s ByteDance, plans to open its first European data centre in Ireland with an investment of about €420 million euros. It will also open a new cybersecurity centre there as part of its efforts to “stay ahead of next-generation security threats”.

Additionally, 12 players in the Irish insurance sector joined forces to promote the country as an EU hub for the growing InsurTech industry, including AA Ireland, AXA, ALD Re, Allianz, Greenlight Re, Insurance Ireland, Irish Life, Laya Healthcare, New Ireland Assurance, Unum, SCOR and William Fry.

Other tech applications include Google and Dublin City Council’s “Air View Dublin” innovative partnership. This will see Google’s Street View car take to the streets of Dublin to measure air quality across the city.

Fun facts

  • Ireland ranks number one worldwide for immunology
  • Ireland ranks number one worldwide for animal and dairy science
  • Ireland ranks number two worldwide for nanotechnology and agricultural science
  • Ireland ranks number two worldwide for molecular biology and genetics

Summary

The future is bright for Ireland. A global tech hub in its own right, it continues to attract global talent, companies, entrepreneurs and investors, thereby providing employment and sustainable growth in the Irish economy.

Immigrating to Ireland is an optimal option for the next generation as a place for young talent to flourish. Contact us now to obtain Irish residency for you and your family.

Practical tips on Irish tax to get your finances in order before moving to Ireland

Posted on by bwa

Compared to many English-speaking countries, Ireland has comparatively favourable tax regimes for immigrants, but the key to tax efficiency is always good planning to ensure your finances are in order before you arrive in the country.

In our previous blog Tax 101 – a simple tax guide for immigrants to Ireland, we went through the major Irish taxes that IIP investors should be aware of. To help you further understand the tax implications that might accompany a move to Ireland, our Marketing Director, Jay Cheung, spoke to Gabriel Ho, Director of People Services at KPMG for the latest episode of Immigration Insights with Bartra Wealth Advisors. Watch the video for insights on tax-related considerations and actions to take before moving to Ireland.

Residence for Tax Purposes

“As a starting point, consider the amount of time you anticipate spending in Ireland and plan your finances before moving to Ireland. This can significantly impact your Ireland tax position and tax liabilities,” says Gabriel.

The tax liability of an individual in Ireland is determined by whether they are resident in the country and whether they are domiciled in Ireland. According to the Revenue Commissioners, the Irish Tax and Customs agency, your tax residence status depends on the number of days you are present in Ireland during a tax year (the period from 1 January to 31 December). You are resident in Ireland for tax purposes if you are in Ireland for a total of:

  • 183 days or more in a tax year, or
  • 280 days or more in Ireland over two consecutive tax years, with a minimum of 30 days in each year

Tax residence is taken into account for several taxes including income tax, inheritance tax and capital gains tax (CGT). It is worth noting that you will become ordinarily resident if you have been resident in Ireland for 3 consecutive tax years. An individual who is ordinarily resident in Ireland is liable to Irish taxes regardless of the number of days spent in Ireland, until being non-resident for another 3 consecutive tax years.

The Irish Immigrant Investor Programme (IIP) offers extensive flexibility to its investors as the minimum stay is only one day per year. Investors can decide whether to become a tax resident in Ireland depending on their situation.

calendar

Remittance Basis

The remittance basis of tax is advantageous to people coming into Ireland if non-domiciled. If not an Irish national, then any investment income is only taxable if you bring it into Ireland.

The remittance basis is very attractive in bringing people to Ireland, as for most IIP applicants, their income is in overseas investments. There are very few countries that offer this favourable tax treatment.

It is important to understand what constitutes an Irish source of income and what is not an Irish source of income. For instance, investors might bring their income into Ireland before they arrive, so-called ‘clean capital’ that is income earned while not resident in Ireland. This money has generally already been taxed overseas and is not from an Irish source. “In general, if you would like to dispose of assets before you move, we suggest you do so at least one year before becoming tax residents in Ireland. The gain should not be subject to Ireland tax even if you remit the proceeds to Ireland at a later time,” says Gabriel.

For example, if an individual who will move to and become tax resident in Ireland in 2022 disposes assets on or before 31 December 2021, the gain should not be subject to Ireland tax even if they remit the proceeds to their Ireland bank account in 2021 or later. If you earn overseas investment income while resident in Ireland, as long as you do not bring the funds into Ireland then Irish Revenue will not seek to tax it.

There is also the Special Assignee Relief Programme (SARP), which is a tax incentive used to attract talent from outside Ireland to work in Ireland. If a person meets the conditions of SARP they enjoy a preferential tax rate on employment income where the income tax rate that applies is 28%.

Tax family

Planning Ahead

It is crucial to plan early to achieve the best tax benefits. Try to create a clear list of your assets and investment portfolio that you disclose to your financial or tax advisor in order to assess whether it will be considered clean capital and if it is possible to remit it to Ireland without incurring any additional Irish taxes.

It is also important to document the income that is brought into Ireland and have any backup information to hand in the event of any enquiries from Irish Revenue. By not planning correctly regarding the source of the income you bring into Ireland or the timing of when you bring in this income you may become liable to additional taxes or scrutiny from Irish Revenue.

Gabriel says individuals may also consider having separate bank accounts in Ireland. “For example, one account for holding funds remitted to Ireland which should not be subject to tax, and another account for holding funds remitted to Ireland which may be subject to tax. This should help ring-fence income and gains which should not be subject to Ireland tax.”

Summary

Tax implication varies from family to family, and it is affected by a myriad of factors. However, IIP’s flexibility allows plenty of time for investors to properly plan their finances before relocating to Ireland. We hope that investors can mitigate unwanted tax spending after understanding how the Irish tax regime works.

Bartra Wealth Advisors prides itself on delivering streamlined, end-to-end services. Our unique business model supports clients throughout their investment and immigration journey, from immigration advisory and government-backed IIP projects through to exit executions. Contact us if you have any questions regarding Ireland’s tax regime or the IIP.

Disclaimer: Information correct as of 27 August 2021. Bartra Wealth Advisors and its affiliates provide individualised services to immigration. All information provided to investors and clients is with such purpose in mind. Should investors have any enquiries about any specific legal, tax or financial planning matter relating to their personal circumstances, Bartra Wealth Advisors recommends that investors seek independent professional advice. Although every care has been taken to ensure the accuracy of the information and contents of the materials, which are obtained from sources believed to be reliable, Bartra Wealth Advisors does not represent, warrant or guarantee the accuracy, completeness, timeliness, reliability or suitability of the information or contents for any particular purpose.

How to choose the right Irish Immigrant Investor Programme

Posted on by bwa

Obtaining Irish permanent residency status through the Immigrant Investor Programme (IIP) has become increasingly popular among affluent individuals and families. According to the Department of Justice in Ireland, more than 260 people pledged a total of €185.6 million to secure residency status through the IIP in 2020, which brought the total investment up to more than €1 billion since the IIP’s official launch in 2012.

The IIP is fast, simple and exceptionally flexible. It only takes 4-6 months for applicants to receive approval and there are no language or level of education requirements, nor is there an upper age limit. It also only requires investment after approval is received. Additionally, the residency requirement, meaning the required time to stay in Ireland to maintain residency status, is only one day per calendar year, which allows investors to obtain residency without moving to Ireland or becoming a tax resident there. All this explains why hundreds of high net worth individuals are applying for Ireland’s investment visas.

In our recent blog How to assess risks of immigration investor programmes, we listed some of the most prevalent risk factors from a broad perspective. If you have decided to go for the Irish IIP, here are some extra tips to guide you through the risks of each investment option and different IIP projects.

Understand Your IIP Investment Options

According to the Department of Justice, the IIP offers the following investment options:

  • Enterprise Investment: a minimum of €1 million invested in an Irish enterprise for at least three years
  • Investment Fund: a minimum of €1 million invested in an approved investment fund for at least three years. Such funds must be approved and regulated by the Central Bank
  • Real Estate Investment Trusts (REITs): a minimum of €2 million in any Irish REIT that is listed on the Irish Stock Exchange, for at least three years
  • Endowment: a minimum of €500,000 (or €400,000 where five or more applications are received) philanthropic donation to a project of public benefit to the arts, sports, health, culture or education in Ireland

While all four investment options qualify for residency status, their cost and risk vary.

The endowment route is safe as no further financial obligation is required once the donation is made and it has the lowest investment amount. However, it’s important to remember that the investment is a charitable donation and cannot be recovered by the investor at a later date – there is no return on investment (ROI). Additionally, investors should be cautious that the donation is approved by the local authority or qualifies for the IIP by being of benefit to arts, sports, health, culture or education in Ireland. Recently it was reported that the Department of Justice is investigating claims of serious irregularities in IIP donations where funds earmarked for charity projects were diverted elsewhere.

IIP risk factors_volatility

Investing in real estate investment trusts (REITs) and investment funds can both be profitable. However, the former requires an investment of €2 million. Repayment to fund investors is dependent on market conditions and fund performance, while management charges are also a consideration. Investors should understand what assets and sectors the fund invests in, and the fund’s performance either on asset value or profit. After all, market volatility is inevitable, and there are economic variations and regulatory changes, thus return is not always guaranteed. Investors should note that the Irish government has no responsibility for the performance of the investment, which is regarded as a private matter.

Enterprise investment is the preferred investment option as it has a clear-cut exit strategy and some projects provide a considerable ROI. In 2019, 70% of the total IIP approvals were via the enterprise investment option.

Unlike investing in REITs or investment funds, the €1 million enterprise investment into Bartra will be fully returned at maturity, regardless of market conditions, and the projects that derive income from the government are more resilient and more risk averse. Bartra’s nursing home projects also offer a guaranteed 4% interest per year. At maturity of the 5-year investment period, nursing home investors will receive an additional €200,000 on top of the €1 million investment. The programme offers a secure path to Irish residency within 4-6 months along with extra returns.

Click here to learn more about Bartra’s enterprise investment options.

Choose The Right Projects For Enterprise Investment

The IIP is designed to facilitate productive investment into Ireland. Therefore, the Department of Justice has specified that investments in commercial property for leasing or renting will not be considered eligible under the enterprise investment option. Particular preference will be given to investments in social infrastructure such as social housing and nursing homes. As Ireland is on course to become an immigration hotspot for HNWIs, the market is flooded with immigration companies offering Irish immigration services as well as enterprise investment projects, for which social housing projects are the majority. When considering enterprise investment for real estate projects, mitigating risk can be done by asking a few simple questions:

  • Who is the developer of the projects and what is the scale of their portfolio?
  • Do they have a successful project completion track record and experience running social housing and nursing homes?

To mitigate risk, investors should perform due diligence to solidly evaluate the developer. Again, the Irish government has no responsibility for the investment performance. Investors will suffer losses if the developer or enterprise defaults or fails to fulfil their contractual commitments. A proven track record also indicates a developers’ ability to manage their business during economic downturns and adversity.

  • How do these IIP projects derive income?
  • If the projects offer high annual interest, do the figures make sense given the nature of the business?

Investors need to understand that the objective of IIP-funded projects is to provide more social infrastructure; they are not high profit-driven businesses, therefore investors should not expect to receive a high return on investment. For social housing, for example, the majority of income is derived from the Irish State, which can be in the form of a Long Term Social Housing Leasing Scheme or other leasing schemes. For nursing homes, although they are privately run and subsidised by the government, operation costs plus the business nature mean such initiatives are not highly profitable commercial setups and an investment return from such projects of between 0-4% would make sense. For any rates higher than that, investors should be cautious.

  • Are these projects located in much-needed areas, such as Dublin?
  • Are these properties new-build, second hand, converted or refurbished developments?

Aside from operation profits and government subventions, understanding the value of the asset is equally important. Valuations vary across developments, with new-builds in much-needed areas having the highest value.

Investors should review the assumptions in a project’s exit plan, such as the anticipated sale price. By cross-referencing with a market study or other available data, it’s easy to see whether assumptions are reasonable.

Bartra Group is the on-the-ground team in Ireland responsible for sourcing and delivering successful investment projects for our IIP investors. We target areas where we believe there is the least risk to our investors. Bartra’s latest social housing project, Poplar Row commenced construction in July 2020 in a city centre location which offers excellent public transport links. Our social housing projects have signed a 25-year Enhanced Lease Agreement with the local authority at 95% of market rent. Click here to view our IIP portfolio.

Bartra has all the skills in-house needed to complete these complex developments, including legal, financing, construction, taxation and planning, removing almost all risks to our IIP investors. Our skill set also includes the operational skills required for nursing homes and social housing from clinical care to property management.

Summary

Immigration is a once-in-a-lifetime decision that should be carefully considered and diligently prepared for. Proper risk management is what leads to profitable investing and an enjoyable immigration process.

We pride ourselves in our streamlined services, quality projects and success rate in helping clients obtain residency. To date, Bartra has helped hundreds of families immigrate to Ireland while maintaining an application approval rate of 100% and a 100% renewal rate. Contact us now to learn more about our programme.

Start building a bright future for your children: an Irish university graduate’s personal story

Posted on by bwa

In an increasingly globalised world, having a global vision has become essential. It is common to see parents send their children to study abroad to broaden their horizons. From building global connections to honing language skills and experiencing a new culture, the benefits of overseas education are invaluable.

According to UNESCO data, there are currently 36,420 Hong Kong students studying abroad. The United Kingdom is the top destination (44.7%), followed by Australia (26.5%) and the United States (19.1%). With the rapid development of the Irish economy and job market, Ireland has become another popular choice in recent years. Data from the Irish International Education Center (IIEC) shows that an increasing number of Hong Kong parents are keen to send their children to study in Ireland. To date, more than 6,000 Hong Kong students have graduated from Irish universities.

Gallen Leung, who was born and raised in Hong Kong, is one of those 6,000. He went to Trinity College Dublin in 2013 and obtained a Bachelor’s degree in Economic and Social Studies in 2018 followed by a Master’s degree in Marketing one year later. He is now based in Ireland where he works for an Irish digital agency. Due to the recent national lockdown in Ireland, Gallen returned to Hong Kong where is working remotely – a true work-from-‘home’ set-up.

We had the opportunity to interview Gallen to understand more about what it is like to study and live in Ireland. Having resided there for more than eight years, he describes his journey as an eye-opening experience. Watch episode one of the second series of Immigration Insights, where Gallen talks to our Regional Director Jeffrey Ling about life at school and shares his challenges and some advice for those planning to study in Ireland.

Why study abroad in Ireland?

“When I was about to take the HKDSE exams, I decided I didn’t like the examination system, so I made the decision to study abroad. My parents picked Ireland because the residents are mainly Irish; there are not many Asians. I could immerse myself in Irish culture and become more comfortable with people from different backgrounds,” Gallen recalls. Unlike Australia and Canada, where the Chinese community makes up 5.6% and 5.1% of the population respectively, or the US where it is about 1.5% Chinese, the main ethnic group in Ireland is White Irish (82.2%), followed by other white (9.5%), Asian (2.1%) and black (1.4%), with just 0.4% Chinese, a figure lower than that in the UK (0.7%).

Parents who value the English education system often choose Ireland as an alternative to the UK. “Ireland has the third-best education system in Europe, which is a good place to study overall,” Gallen says. Aspiring entrepreneurs and students wanting to pursue degrees in business administration or management in particular will be hard-pressed to find a better destination for study than Ireland; the country is becoming the new Silicon Valley as more behemoths of the business world move their headquarters to Ireland.

Higher education institutes such as University College Cork, University College Dublin, and Trinity College Dublin are some of the best in the world. Trinity, in particular, specialises in entrepreneurship, and boasts the largest number of start-ups and new businesses to be developed by students in all of Europe.

While academic success is extremely important, it is worth noting that the primary goal of the Irish education system is to provide an all-round education thanks to the broad spectrum of cultural, artistic, sports, psychological and spiritual development offered on top of preparation for academia. “I really enjoyed my undergraduate study in Ireland and I wanted to further my education in this amazing country. I have been living in Ireland for nearly nine years now, and I see myself as Irish and want to stay here for the rest of my life,” says Gallen, who also showed his gratitude to his teacher, “I am very grateful to have met the professor in my Master’s degree. He helped me from beginning to end, gave me a lot of suggestions and most importantly we became friends. He was one of the factors that made me enjoy my Master’s.”

Landing in Ireland

“I was shocked when I first arrived in Ireland because I was used to living in a city and had never been to a country with no tall buildings. The nation is covered in lush green grass and rolling hills, which is very different from Hong Kong,” he says. “Apart from the resplendent greenery, it was also surprising to see how nice the drivers are in Ireland. Unlike those in Hong Kong, they let you pass the crossroad first even when it’s a green light for them. You can cross the road in Ireland with your eyes closed!”

Quality of living is another key reason that people choose to study and live in Ireland. Its residents benefit from the natural environment. As an island on the edge of Europe, its low-rise cities provide exceptionally pure air and water quality, and green rolling countryside is within minutes drive of anywhere in the country. Ireland is also globally renowned as a high-quality food producer and is mostly self sufficient in this respect. It is also one of the most talked-about food destinations in Europe – see our previous blog for more information.

“Ireland has a slower pace of living than Hong Kong, with high quality of life. Irish agriculture is well developed, the quality of food is high but at an affordable price. Also, it’s really easy to travel around Europe from Ireland with cheap flights. I am a big football fan and it takes just HKD 200 to go over to England to watch a game. My summer is always like a European tour,” Gallen added.

Social inclusion is one of the most talked-about topics among expatriates during settlement. Ireland is a friendly, safe country, which is why international students get so much out of the Irish experience. A study by the World Economic Forum (WEF) found that Ireland ranks 9th on a global list of the attitude of its native population to visitors.

When we asked Gallen how he felt about making friends, he replied, “it is not challenging at all; most Irish are nice and friendly. You can easily make friends after one pint of Guinness! I got along with a group of boys during my undergraduate studies. We were close in those four years and we still gather now even though we have started working. Our tradition is to come out every Christmas to do a Secret Santa and 12 pubs challenge.”

“The country is very inclusive. The Irish are friendly to foreigners and are generally casual and nice. As one of few Asian students in the school, I never felt left out in class,” he adds.

Gallen has a few tips for newbies. “The main thing is don’t be shy. Just don’t be afraid to speak; don’t be afraid to make friends.” To help settle in, he said, “try to get a part-time job during your studies. That’s what I did to overcome these challenges. I worked in a department store, which helped me to understand the culture, and also improved my speaking and listening skills.”

Tips for choosing schools and things you need to know

Similar to universities in the UK, academic results in Hong Kong are recognised by Irish universities, which means students can apply for undergraduate programmes directly based on the requirements. Some universities also offer scholarships for international students who study abroad in Ireland.

Commenting on the difficulty of applying to Irish universities, Gallen says, “It depends. If you are applying to average universities, it is not that difficult. However, for top universities such as Trinity College Dublin (TCD) or University College Dublin (UCD), then you have to get good grades and a minimum of 6.5 overall in IELTS. Medicine and accounting are both popular subjects in Ireland. One tip is to do your research before applying to any university. The ranking of the university doesn’t reflect the subject rankings.”

When asked about the challenges he has encountered when he was new to the country, he says, “One of the biggest challenges was living alone in a brand new environment. The most difficult moments had to be the first three months in Ireland, when I lived without my family. Homesickness is the worst thing in the world.” Also, embracing cultural differences was important, “Irish English is not difficult to understand, but the cultural difference was a big factor, where I had to take some time to adapt to the lifestyle. Unlike in Hong Kong, people in Ireland don’t have much to do after sunset, mostly just go to a pub or club, or go to the gym.”

The future of studying and working in Ireland

The Irish Government sees education as strategically interlinked with national planning and has successfully developed programmes at all levels to establish Ireland as an international base for technology, science and the financial services. Gallen can see the opportunity in Ireland. “As the economy is booming in Ireland, the Irish job market is very prosperous at the moment, especially sectors like IT, finance and pharmaceuticals. Also, with Brexit, the future of Ireland can only get better and better. Many big companies’ headquarters are moving io Ireland, which means more opportunities for us to work for big, well-known firms. And many large infrastructure projects are under development, such as railways and underground.”

The education and job markets are closely linked – read our recent article on Ireland’s labour market: “Ireland’s Job Market – Which professional sectors are in high demand?”

The interview closed with a typical question – if you could choose again, would you study in Hong Kong or Ireland? “I would still choose Ireland without a doubt. Studying abroad widened my horizons and broadened my mind. I would not have got to where I am now if I hadn’t studied in Ireland.”

Summary

Studying abroad can be a life-changing experience, and Ireland is certainly one of the top destinations to consider for your children’s education. With its inclusiveness, well-developed education system, thriving economy and booming job market, it ticks all the boxes. In 2019, the Organisation for Economic Co-operation and Development (OECD) noted that Irish graduates are the most productive employees in the world among international companies, which further affirms the quality of the nation’s education.

Through the Ireland Immigrant Investor Programme (IIP), your children can obtain Irish permanent residency status in four to six months and will be eligible for Irish citizenship through naturalisation when they are aged 18 or over and have been residents in the state for at least five years. Once your children become Irish citizens, they are entitled to live and work in Ireland, EU member states and the UK. Contact us now to learn more about our IIP Programme.

Why social housing in Ireland became popular for investors

Posted on by bwa

When it comes to major types of real estate investment, the obvious contenders are residential property and commercial real estate. Therefore, it might come as a surprise that social housing has actually become one of the most popular investment options in Ireland in recent years.

Although it is difficult for individual investors to participate, there is the opportunity to participate in Bartra’s social housing projects through the Immigrant Investor Programme (IIP). At maturity of your three-year investment period, your total €1 million investment will be returned, along with Permanent Residency status for you and your family.

According to CBRE’s Ireland Bi-Monthly Research Report published in May 2021, the Irish social housing market continues to record large transactions, including the recent sale by Ardstone Capital of a portfolio of five multifamily and single-family assets for €450 million, and the acquisition of 39 units leased to Dublin City Council at Blackhall Street in Dublin 7 for €20 million. The report also noted that several annuity funds and impact funds are now specifically targeting opportunities in this sector, and the social housing market is expected to thrive going forward. So, why are so many institutional investors keen to invest in this sector?

Data published in November 2020 showed that there were 61,880 households on the housing list in Ireland, while only 9,028 social homes are currently onsite. The social housing supply falls far short of demand, not to mention that last year’s pandemic battered global construction sectors with Ireland being no exception. The likelihood is that the housing list is now considerably longer than the data published.

Ireland social housing delivery vs housing need

The undersupply of social housing did not happen overnight. A significant legacy of the 2008 financial crisis was substantial under-investment in Ireland’s real estate projects, causing the real estate supply to plummet.

Ireland’s economy has regained its momentum in recent years and maintained the highest economic growth rate in Europe for six consecutive years. Thousands of migrants are flooding into this new European financial centre, especially Dublin, and this has further encouraged a rise in rent and demand for private and social housing.

Long Term Social Housing Leasing Scheme

To accelerate social housing delivery, the Irish government has committed more than €6 billion under the “Rebuilding Ireland” campaign. Under Rebuilding Ireland, one of the targets is to deliver 50,000 social housing units by 2021, of which 33,500 units will be exclusively built as social housing, 6,500 units will be acquired from the market, and the remaining 10,000 units will be secured via lease agreements. In other words, the Irish government is encouraging property developers to build properties and lease them to the government.

Social housing_Rebuild Ireland

The standard leasing scheme offers a lease term of 10-25 years. The Irish government (the lessee) will pay 80-85% of an agreed market rent which will be reviewed every three years and is linked to the Harmonised Index of Consumer Prices (HICP), an indicator of inflation harmonised across EU countries.

In 2018, the Irish government launched the Enhanced Long Term Social Housing Leasing Scheme as an addition to the existing leasing arrangements. The enhanced scheme offers a 25-year lease term with up to 95% of the agreed market rent, but in return, each proposal has to include a minimum of 20 property units, and the lessor (developer) is obliged to provide management services.

Bartra was interviewed on RTÉ One, Ireland’s national broadcaster about Government long term leasing of social housing

Backed by the Irish government, the leasing scheme provides high investment stability for social housing investment.

Bartra’s Social Housing Projects

As one of the leading developers in Ireland, Bartra is committed to providing high-quality social housing for families in need. All of our social housing projects are located in Dublin and are constructed by seasoned professionals including architects, planners, quantity surveyors, and construction companies. Majority of our projects will be leased to the Irish government for 25 years, therefore the income is guaranteed.

Social Housing Process

Bartra’s latest social housing development is Colmcille House, in Stoneybatter, Dublin 7. Completed in April 2021, the development is located in a prime area of Dublin, within walking distance of Smithfield LUAS stop, and offers a total of 23 apartments situated less than 2km from the city centre. It has wonderful views over the city. At Bartra, we believe that every resident deserves a high quality of life, so every unit in Colmcille House is beautifully designed and 15-20% larger than most apartments in the area.

Bartra’s complex in Stoneybatter was funded by the IIP

Contact us to learn more about our social housing projects and the IIP programme.

How to assess risks of immigration investor programmes?

Posted on by bwa

Thoroughly evaluating the risk profile of an immigration investor programme or investor residence scheme can seem daunting, as every programme and scheme has immigration and financial risks. Once committed, risks can change through the various stages of the process. It is imperative that project owners and investors have candid conversations about risk. To help guide those conversations, we have put together a list of some of the most prevalent risk factors and an explanation of the asset types which are commonly seen under immigration investor programmes as the underlying assets.

Risk Factor 1: The Programmes

Irish passport

Immigration, and investment immigration in particular, can be a key driver of a country’s economic growth. The inflow of investments and population mobility help a country to gain talent, high-net-worth families and capital. Immigrant investor programmes or investor resident schemes usually have higher asset and investment requirements with greater flexibility around travel and physical presence when compared to other lower-tier immigration programmes or quota-based skilled professional immigrant programmes. Most of these programmes aim to support local infrastructure, boost certain financial or commercial sectors or enhance community living through job creation and recreation. However, not all the programmes and schemes create a positive result for the country. For example, over-investment in the residential market can create a housing bubble where locals cannot afford to buy property in a reasonable timeframe with their salary and income. Other schemes may lead to a range of other risks particularly around security, money laundering, corruption and tax evasion. Some programmes may change due to political influences.

Travel and settling requirements, and the right of residency status are aspects that investors need to pay attention to. Most English-speaking countries will require actual residency for a minimum of five years. With regard to residency status, investors are advised to pay attention to the visa or permit types, as some may be issued in the form of a Temporary Resident Visa without the right to access local benefits, and may require investors to pass a language test, a medical test or to apply within a certain age bracket to obtain permanent residence.

Additionally, it’s important if holding a dual residency to check the country’s residence rules and when the tax year starts and ends. Staying in a country for more than 183 days in a tax year, may make an investor liable for taxation if the country has a global tax law, meaning that the investor’s overseas income is taxable to the country.

Risk Factor 2: The Projects

Construction Projects in Ireland

Investing in a good project in a stable market is the best way to mitigate market risk. This involves evaluating the market conditions in a particular geographic area, including demand, competition and financials.

To scope out the market conditions, investors and their advisors should thoroughly review a project’s market study. Independent research is required to look for indicators that the market is stable, shows strong signs of growth, and that the project will benefit from various drivers that will continue to push demand for the project. For example, a hotel would benefit from being located near a university, an attraction or an international airport, since these all have a broad base of users frequently looking for hotels. The market study, in addition to the business plan, should also discuss the competition. Look for signs that the project has a reasonable plan regarding how it will compete. It is also advised that investors understand the operational financial information and assumptions in the project’s business plan. For example, if a market study determines a hotel in a location will have an expected occupancy rate of x and an average daily rate of y, make sure those are the same figures used by the project. If not, run a stress test on the financials to see how it performs at these determined market rates.

The investor should assess a developer to see if they are creditworthy. Look for developers and operators with a trusted and extended track record. This helps show they can manage their business both when times are good and also during downturns.

A wider market assessment should also take into account the current pandemic situation, where some sectors, such as hotels, hospitality services and student accommodation, have been severely affected in a way that may affect a project’s financial stability.

Risk Factor 3: Liquidity and Return of Principal

Liquidity and Return of Principal

A looming concern for most investors is the return of their investment. Working with their advisor, investors should run financial models to see if a refinancing event or sale of the project would generate enough cash to pay back existing debt and investors. Assumptions in the project’s exit plan, such as the anticipated sale price or cap rate, should be cross-referenced with a market study or other available data to ensure it is reasonable.

Some projects are easy to exit, for example those where terms and repayment are specified in the Loan Agreement, while some may be affected by market performance when redeeming the investment such as funds or bonds. Some may have to sell the asset where, in the case of residential property for instance, the return of the capital would depend on the secondary market and market value. If it’s a business, it may depend on the valuation of the business entity, the tangible and intangible assets.

Understanding Asset Types and Their Values

To assist you on your journey, these are some of the most common types of investments an investor may encounter when researching immigration investor programmes:

Asset Types and Their Values

Funds

Closed-end funds are pooled money investments that have a primary focus. Investors need to understand how the fund is managed, whether the fund is approved and regulated by the local monetary and financial authority, what assets the fund invests in, and the fund’s performance either on asset value or profit. Repayment to investors would be dependent on the market condition and fund performance while management charges are also a consideration.

Bonds

Some investor visas can be obtained by investing in Government Bonds or Corporate Bonds. Government Bonds are considered low-risk investments since the government backs them. Corporate Bonds can be share capital and/or loan capital in active and trading registered companies. Since these are equity market-linked, the value can be affected by a company’s credit rating, price volatility is higher and the risk level is also relatively higher.

Start-up and Entrepreneur

Start-up and Entrepreneur visas have expanded rapidly since 2012 as many governments like to encourage foreign capital to run businesses in the country to support the economy and employment development. Some programmes require applicants to have experience in business planning, management and control of financial resources on top of the investment requirement. There are many factors to consider including hiring and domestic competition. Exiting a business is also not a straightforward process and the value of the business depends on its tangible and intangible assets, which will all affect the return of the invested capital.

Real Estate – Residential

Lisbon-Portugal-skyline

The most common investor residence schemes and investor citizenship schemes in the EU are residential property investments where the amount of money required usually does not exceed €500,000.

Although the entry point of these “Golden Visa” schemes is lower than many immigrant investor programmes, a spike of people investing in the private residential market is causing housing pressure in local metropolitan areas, with some programmes putting an end to it, including Lisbon and Porto in Portugal. Also, when buying residential properties, some investors may have concerns around the secondary market where it may not be easy to resell or exit from their investments.

Real Estate – Social Infrastructure

There are many advantages to investing in social infrastructure projects. They are tangible fixed assets and the programmes are often supported by governments to help local communities and increase capital inflow. These assets can be government-backed, either with a long lease signed with the government or with subsidies from government funds. Furthermore, due to the nature of population growth and ageing populations, and as a result of the financial crisis in 2008 and the 2020 global pandemic, there is a shortage in social housing and nursing home supply, while demand for these assets is strong, something that is true globally and not only specific to Ireland.

To learn more, read Impact Investing – The potential of Social Housing and Nursing Homes in Ireland.

Beaumont & Stoneybatter

As one of the largest property developers in Ireland and with a proven track record, Bartra is here to help you understand the value of nursing homes and social housing projects in Ireland and to mitigate your immigration risk.

Nursing home and social housing investments are under the IIP Enterprise Investment option. Before committing to any IIP Enterprise Investment, below are some of the questions investors would have to ask:

  • Who is the developer of the project and what is the scale of their portfolio?
  • Do they have a successful project completion track record and experience in running these types of projects?
  • Are these projects located in much-needed areas, such as Dublin?
  • Are these properties new-build, second hand, converted or refurbished developments? Valuations vary across developments, with new-builds having the highest value.
  • Do these projects qualify for immigrant investor programmes where the government’s initiative is to increase the supply of infrastructure?
  • What is the connection between the selling company and the developer, and where is the company registered?

Due to the IIP’s flexibility and its investment safety, Ireland is increasingly becoming an immigration hotspot, and more immigration companies have entered the market. By understanding the risks and asset types, we hope that investors can choose suitable immigration programmes and will be able to work with project owners collaboratively to increase the overall likelihood of success. We are proud of our services, our projects and our 100% success rate of helping our clients to obtain residency.