Residency guide. 4th edition

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1 Residency guide 4th edition

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3 Coming to the UK This is a concise and practical guide for non-uk individuals who require advice on how to: Enter the UK whether to and how to acquire an investor visa for entry to the UK and whether to move to the UK on a more permanent basis, and how this can be achieved. Manage exposure to UK tax understand the rules which apply to determine UK tax residence, and the taxation consequences of becoming UK resident. Consider alternative jurisdictions briefly compare options for obtaining an investor visa in a number of other jurisdictions. 3

4 Taylor Wessing is a full-service international law firm, working with clients in the world s most dynamic industries. We take a single-minded approach to advising our clients, helping them succeed by thinking innovatively about their business issues. Our focus on the industries of tomorrow has enabled us to develop market-leading expertise in: uu uu uu uu Private Wealth Technology, Media and Communications Life Sciences Energy At Taylor Wessing we are proud of our reputation as a forward-thinking firm. We support clients wherever they want to do business. Our 33 offices around the world are not token presences they blend the best of local commercial, industry and cultural knowledge with international experience to provide proactive, integrated solution for our clients. They have a fantastic team the quality of the work eye-watering. Chambers & Partners

5 Contents Coming to the UK UK residency and taxation Alternative jurisdictions...27 About Taylor Wessing...48 Key Contacts... 51

6 All non-european citizens, regardless of their nationality, need a visa to live and/or work in the UK on a long-term basis (i.e. six months or more). Some non-european citizens also need a visa to come to the UK for under six months. It is important to distinguish between the time that a person is required to spend in the UK in connection with their visa (whether to activate the visa following their arrival in the UK or to preserve their rights to apply for permanent residency in the future), and tax residency; as the two concepts operate independently of each other and it is possible to be UK tax resident without qualifying for permanent residency. See page 14 on UK tax residency for more on this. Both immigration and tax rules can change with little or no notice. We recommend you speak to us before progressing with your application. 02

7 Coming to the UK

8 How do I apply for a UK visa? A UK visa application from outside the UK usually involves an application to the British diplomatic post in your country of nationality (or country of residence, if different). All documents submitted with a visa application must be original and, if necessary, translated into English. Visa processing times depend on which country the application is submitted in and the type of application. Usually, long-term visa applications can be processed within one month from the date of submission, although it may take longer in peak seasons. If you have any non-european family members (spouse/ long-term cohabiting unmarried partner and children under 18) they may be eligible for dependant visas, based on their relationship with you. You and any accompanying spouse/ partner will be able to work for any UK employer (except as a doctor or dentist in training or a professional sportsperson) although in both cases work is optional and your children will be able to be educated in the UK. 04

9 Coming to the UK Tier 1 Investor visas background The Tier 1 Investor visa route is the most common type of UK visa for high net worth non-european citizens and their families. There has been a significant annual increase in the number of investor visa approvals in recent years, which reflects how drawn investors are to the UK. There are various reasons for this, including the UK s high quality education sector, relative political and economic stability and robust legal system. New Tier 1 Investor visa applicants need at least 2 million to apply for the visa (the minimum investment threshold doubled to 2 million as a result of a rule change on 6 November 2014). In order to comply with the Tier 1 Investor conditions and to be able to extend the visa or apply for permanent residency at a later date, those funds must be invested in the UK within three months after your arrival to the UK under the Tier 1 Investor visa. There is no requirement under the Tier 1 Investor route for the investor to reside in the UK in order to maintain a visa. It will allow you and/or your family to travel to or live in the UK without needing any time commitment on UK stay. Under current rules, this visa route also allows an unlimited number of visa extensions provided that the requisite UK investment is maintained. Therefore, the Tier 1 Investor visa may be a useful emergency tool, enabling you or your family to travel to and reside in the UK at short notice. 05

10 06 If you and your family intend to apply for settlement (permanent residency), the main investor must not have absences from the UK of more than 180 days in each 12 month period counting back from the date of the permanent residency application. The minimum qualifying period for permanent residency is five years continuous stay with a 2 million investment, although this can be accelerated to two or three years with an investment of 10 million or 5 million respectively.

11 Coming to the UK Level of investment To apply for this visa you must have at least 2 million under your control, which can be transferred to the UK and which is held in a regulated financial institution (anywhere in the world). Unlike the rules applying before 6 November 2014, you will not be able to rely on a loan from a UK bank to source the investment funds. Whilst the UK Government regularly reviews the Investor visa route, currently the funds must be invested in UK Government bonds (gilts), or alternatively in share capital or loan capital in active and trading UK registered companies, other than those principally engaged in property investment, property management or property development. You will need to invest the entire minimum 2 million investment in this way, so an investment in UK assets such as your UK home or by holding cash on deposit at a UK bank will not qualify under the visa rules. The funds must be invested within the later of: uu uu Three months of the investor s arrival in the UK (if there is evidence of this date), or Where there is no evidence of UK entry date, within three months of the visa approval date. 07

12 Unlike applicants under previous rules, you will not need to top up the value of the minimum 2 million investment. Applicants are instead required to maintain all of their original capital within their investment portfolios. Trading of capital will be permitted provided the investor does not withdraw any capital and re-invests any proceeds of the sale of investments into qualifying investments (whether or not they are sold at a gain or at a loss). Applicants will also have more time to arrange this until the end of the next reporting period, or within six months of the sale date, whichever is sooner. Under the new rules it is important at the outset to invest more than the minimum threshold so that the surplus can cover any portfolio management fees, transaction costs and tax on the investments, as these costs cannot be paid from the minimum qualifying investment. Prior to submitting the initial visa application the applicant must now set up a bank account with a UK bank regulated by the Financial Conduct Authority for the purposes of accepting deposits. The account must have been opened for the purpose of investing not less than the mandatory 2 million in the UK. From 1 September 2015 investors and adult dependants are required to submit up to date criminal record certificates covering the previous 10 years with their applications. The process to be followed will depend on the country of residence. 08

13 Coming to the UK Why choose the UK? The Tier 1 Investor visa allows for flexible investment opportunities in the UK. Investors can choose the risk profile of their investment portfolio, depending on their risk appetite. Tier 1 Investors are not required to spend any time in the UK unless they want to achieve permanent settlement here. Dependent family members can also reside in the UK to attend school or to work. We have summarised the conditions for the Tier 1 Investor visas in the following pages. 09

14 Visa length Rule Requirement Benefit / Comment Applying from overseas visa for 3 years and 4 months which can be extended for further 2 year periods. Nature of investment If the visa is approved, this visa period will always be issued. There is no cap or limit on the number of Tier 1 Investor visas that can be granted. Certainty for visa holder. Rule Requirement Benefit / Comment 100% of the investment must be made in approved investments within a strict 3 month limit. Residency requirement Investment in UK Government bonds, share capital or loan capital in active and trading UK registered companies, other than those principally engaged in property investment, property management or property development. The types of qualifying investments may be subject to future change as the Government wants to increase the economic benefit to the UK. Rule Requirement Benefit / Comment The investor can spend up to 180 days in each 12 month period outside the UK, and still be eligible for permanent residency. Consider the implications for UK tax residency. Beneficial for migrants with overseas interests. Rules on permitted UK absences in a subsequent British citizenship application are not quite so generous. 10

15 Coming to the UK Settlement (permanent residency) Rule Requirement Benefit / Comment Settlement after 5 years continuous stay. This is first step to British passport one year later (i.e. total of six years). Expedited settlement is possible: (a) after 3 years if at least 5m is invested in the UK; or (b) after 2 years, if at least 10m is invested in the UK. Absence limits (see above). n/a Suitable for long-term UK stay for main investor and family, as dependants will also be potentially eligible for settlement and British passports if they stay in the UK with the investor. Once permanent residency is achieved, there is no longer any requirement to maintain the investment. Although an investor can achieve expedited settlement there is no corresponding acceleration in achieving British citizenship. It still takes a minimum of 5 years to be eligible for a British passport, regardless of how fast permanent residency is obtained. Also, accelerated settlement is only available to the main investor, not to family members it will still take a minimum of 5 years for family members to qualify. 11

16 British passport? Rule Requirement Benefit / Comment Obtaining a British passport will take a minimum of 5 years (6 years with a 2m investment). Ability to work? Rule Requirement Benefit / Comment Investor does not have to work, but can choose to work for any UK business. Language requirement Rules on permitted UK absences are not as generous as for settlement. Framework permitted absence of 90 days per year, but there is discretion to allow a higher level of absence in some circumstances. Investor and adult dependants can work in any field except as a doctor or dentist in training or as a professional sports person/coach. A British passport provides access to the whole of Europe. Flexibility. Rule Requirement Benefit / Comment No English language requirement n/a This makes the visa application simpler and more attractive for applicants from non-english speaking countries. 12

17 Coming to the UK The UK compared to other jurisdictions Whilst other countries also offer investor visa options, the UK Tier 1 Investor visa route offers a stable investment prospect. A comparison of the UK investor route compared to a number of other jurisdictions can be found at the end of this booklet. We can arrange an introduction to firms that can advise on applying for those visas, or for visas in other countries if required. Why choose Taylor Wessing? Taylor Wessing s immigration team has significant experience in advising on and applying for both new investor visas and extensions of existing visas. In addition to Tier 1 Investor visas we can also advise you in relation to: uu uu uu uu uu Entrepreneur visas (for an investment of at least 200,000 into a new or existing UK business). Settlement (permanent residency). Applying for British nationality. Sponsor licences for UK family offices or business interests. Sponsored skilled worker visas and domestic worker visas. 13

18 A person may be UK tax resident regardless of the basis on which they are residing in the UK. Tax residency affects a person s exposure to UK direct taxes (namely Income Tax, Capital Gains Tax and Inheritance Tax). New statutory rules were introduced to determine a person s tax residence status in the UK, with effect from 6 April If you spent time in the UK prior to 6 April 2013, you will need to consider the old common law rules to determine whether you were UK tax resident during that time. If, on the other hand, you have only spent time in the UK from 6 April 2013, or are only planning to spend time or move to the UK now, you will, generally speaking, only need to refer to the new rules. A useful glossary of key terms used in this section can be found on page

19 UK residency and taxation 15

20 The Statutory Residency Test The Statutory Residency Test came into force on 6 April 2013 and clarified the law to determine if an individual is UK resident for tax purposes. If you moved to the UK before April 2013, different rules to determine UK residency up to 6 April 2013 apply and specific advice should be sought. Under the Statutory Residency Test you can be sure of being non-uk resident if you meet the automatic overseas test ; failing which, you may be UK tax resident if (a) you are automatically UK resident, or (b) you have sufficient ties or connections to the UK. The rules apply differently according to whether you have or have not been UK tax resident in the last three years (i.e. whether you are classified as a leaver or an arriver ). A day is generally counted if you are in the UK at midnight (although there are exceptions to this rule such as when you are in transit through the UK or when your presence in the UK is due to exceptional circumstances beyond your control). 16

21 UK residency and taxation Automatic Overseas Test You will be conclusively non-uk resident for a tax year if: uu uu uu you are an arriver and you spend fewer than 46 days in the UK; or you are a leaver and you spend fewer than 16 days in the UK in the relevant tax year; or you have a full-time contract of employment overseas and you spend fewer than 31 days working in the UK and fewer than 91 days generally (working and otherwise) in the UK. Automatic UK Residence Test You will be conclusively UK resident for a tax year if: uu uu you spend 183 days or more in the UK in the tax year; or you satisfy the UK home test (which has various limbs but which in very broad terms will be satisfied if: (i) you have a UK home for more than 90 days in the relevant tax year and; (ii) you are present in that home for at least 30 days in the relevant tax year and; (iii) whilst you have that home, you either have no overseas home, or you spend less than 30 days in your overseas home, in the relevant tax year). 17

22 Sufficient Ties Test If you are not conclusively UK resident under the automatic UK residence test, you may be UK resident in a tax year if you have sufficient ties to the UK. The following ties with the UK will be taken into account: uu uu uu uu u u UK resident family; Accommodation in the UK; Substantive work in the UK (whether employment or self-employment); UK presence in the previous tax years (i.e. spending more than 90 days in the UK in either of the previous two tax years); and (if you are a leaver) more time in the UK than any other single country. The legislation includes detailed provisions on each of these ties which we would be happy to consider further with you if that would be helpful in the light of your specific set of circumstances. The number of ties that you have with the UK and whether you are an arriver or leaver will govern the number of days spent in the UK that will cause you to be UK resident in the relevant tax year. The following tables illustrate the link between the ties and days spent in the UK, for both arrivers and leavers. 18

23 UK residency and taxation Arrivers Days spent in the UK Fewer than 46 days Impact of ties on residence status Non-UK resident days Resident if four ties (otherwise non UK resident) Resident if three or more ties (otherwise non UK resident) Resident if two or more ties (otherwise non UK resident) 183 days or more UK-resident regardless of ties Leavers Days spent in the UK Fewer than 16 days Impact of ties on residence status Non-UK resident days Resident if four ties (otherwise non UK resident) days Resident if three or more ties (otherwise non UK resident) days Resident if two or more ties (otherwise non UK resident) days Resident if one or more ties (otherwise non UK resident) 183 days or more UK-resident regardless of ties 19

24 Split Year Normally, if you are UK tax resident for any part of the UK tax year, then you will be taxed as a UK resident for the whole of that tax year. However, if in certain circumstances you become UK tax resident or you cease to be UK tax resident part way through a year, that tax year may be split into the overseas part and the UK part, and you will only be taxed on income and gains arising during the UK part. Formal advice on this aspect should be sought if you are likely to be caught by this. The UK tax year runs from 6 April to 5 April. 20

25 UK residency and taxation The remittance basis You will have access to a favourable tax regime, known as the remittance basis of taxation, even if you do become resident in the UK, provided that you are (and remain) domiciled outside the UK. Domicile is an important concept under English law and it is independent to residence. Domicile is not defined in UK tax legislation. A person does not need to have a domicile which is the same as his place of residence or citizenship. Generally your domicile will be connected to the country where you intend to reside permanently or indefinitely. The determination of a person s domicile can be complex in certain circumstances and therefore it would be prudent to obtain specific English law advice on your position, if you intend to move to the UK. Under the remittance basis of taxation, you are only taxed on income and gains which arise to you in the UK, plus any non-uk income and gains which are remitted into the UK. This is more favourable than the alternative arising basis of taxation first, because it permits an indefinite tax deferral on non-uk income and gains so long as the funds are kept outside the UK; second, because there is some (limited) scope to bring such funds into the UK without incurring tax; and third, because there is no need to report your unremitted non-uk income and gains to HM Revenue & Customs. 21

26 Generally speaking, you would need to claim to be taxed on the remittance basis for a particular year (otherwise you will be taxed on the arising basis). If you do elect to be taxed on the remittance basis, you forfeit the benefit of the normal tax free bands for income and capital gains arising in or remitted into the UK. The income tax free band is currently 10,000 per annum, and the capital gains tax free allowance is currently 11,000 per annum. This is effectively a cost of using the remittance basis. Once you have been resident in the UK for 7 out of the previous 9 tax years, you will need to pay an annual levy, according to the number of tax years in which you have been UK resident as follows: Number of years of UK residency 7 out of the previous 9 tax years 30, or more of the previous 14 tax years 17 or more of the previous 20 tax years Remittance basis charge 60,000 90,000* *However, assuming the changes outlined below come into effect, you will only be able to claim the remittance basis after 6 April 2017, if you have been resident in the UK for less than 15 out of the last 20 tax years. Therefore, from 6 April 2017, the 90,000 charge will no longer be relevant. 22

27 UK residency and taxation From an inheritance tax perspective, at present a UK resident foreign domiciliary will only be subject to inheritance tax on UK situated assets on his death (in the absence of any available reliefs) until he becomes deemed domiciled (i.e. once he has been UK resident for 17 out of the previous 20 tax years). Once a foreign domiciliary is deemed domiciled, his UK and non-uk assets will be subject to inheritance tax on death (in the absence of any available reliefs). The current rate of inheritance tax is 40%. 23

28 Proposed changes to UK taxation of foreign domiciliaries In July 2015, the UK Government announced a number of significant reforms to the tax rules applying to long term UK residents domiciled outside of the UK. 24

29 UK residency and taxation It is proposed that, from 6 April 2017, a foreign domiciliary who has been resident in the UK for more than 15 out of the past 20 tax years will be treated as deemed domiciled in the UK for all UK tax purposes; with the result that: a) he will be unable to claim the remittance basis of taxation (and will instead be charged income tax and capital gains tax on an arising basis); b) he will be exposed to inheritance tax in respect of his worldwide assets (in the absence of any available reliefs) from that time; and c) he will only be able to lose his deemed domicile once he has spent more than 5 years outside of the UK. Other tax reforms are also proposed which will affect the UK tax treatment of any benefits received by such long term UK residents from non-uk structures, such as non-uk resident trusts. We are expecting further information (and draft legislation) on these significant tax reforms to be released by the UK Government later this year (albeit that the future of these tax reforms remains unclear at present following the outcome of the EU referendum in the UK on 24 June 2016). 25

30 Glossary Arriver: a person who has not been UK tax resident in any of the last three tax years. Domicile: an English law concept which means, very broadly, the country or state that you consider to be your permanent home. Leaver: a person who has been UK tax resident in at least one of the last three tax years. Remittance basis: a UK tax regime, by which a UK resident but non-uk domiciled individual is only liable to UK tax on his UK source income and gains and such non-uk income and gains as are remitted to the UK. Tax year: for UK tax purposes means a period running from 6 April to 5 April of the following year. 26

31 Alternative jurisdictions 27

32 United Kingdom What do they offer? Temporary residence visa with prospect of permanent residence after 2 to 5 years. Main advantages No minimum stay requirements. Can apply for permanent residency within 2 to 5 years depending on investment level. Unlimited extensions permitted. No specific job required and no restriction on work that can be undertaken. No language requirements. Key conditions in practice Investment of 2 million to be made within three months in a qualifying investment. Language requirement No (until permanent residency application made). Mandatory interview No (at discretion of visa officers). Application time frame 2-6 weeks (depending on country of application). 28

33 Validity & renewability of residence permit Valid for 3 years, unlimited 2 year extensions. Ability to apply for permanent residency? After 5, 3 or 2 years depending on level of investment made. Required legal presence ( day counting ) No residency or minimum stay requirements. To apply for permanent residency must spend no more than 180 days outside the UK in each 12 month period. Access to EU/Schengen countries Yes to EU. No to Schengen only countries. 29

34 Antigua and Barbuda What do they offer? Citizenship through investment. Key conditions in practice Investing in one of the following: US$400,000 into an approved real estate project; or US$1,500,000 into an eligible business; or Contribution of US$200,000 to the National Development Fund ( NDF ). Language requirement No. Quotas on number of issued residence permits? No. Mandatory interview No, but stringent due diligence. Application time frame 3-4 months. Validity & renewability of residence permit Passport valid for 5 years and can be renewed thereafter. Ability to apply for permanent residency? Yes, citizenship at outset. 30

35 Required legal presence ( day counting ) Minimum 5 days in Antigua and Barbuda in the first 5 years for passport renewal. Dual citizenship permitted Yes. Access to EU/Schengen countries Yes: Schengen countries only. 31

36 Cyprus What do they offer? Citizenship through investment. Key conditions in practice Cypriot residence worth at least 500,000; and either: 5,000,000 investment in one or more of the following for a minimum of 3 years: Cyprus government bonds; Bonds or debentures registered and issued by Cypriot companies, businesses or organisations; Cypriot real estate development projects; Acquisition, incorporation or participation in Cypriot business; Cash deposit in Cypriot bank(s); or 2,500,000 investment in an approved Cypriot collective investment (where the total collective investment is worth at least 12,500,000); or 3,000,000 in impaired deposits with Popular Bank Public Company Ltd. Language requirement No. Quotas on number of issued residence permits No information available. 32

37 Mandatory interview No. Application time frame 3-4 months. Validity & renewability of residence permit Once the passport is issued the applicant is a citizen for life and can renew the passport thereafter. Ability to apply for permanent residency? Yes, citizenship at outset. Required legal presence ( day counting )? No residency requirement Dual citizenship permitted Yes. Access to EU/Schengen countries EU: Yes Schengen: Yes, there is a visa concession. 33

38 Ireland What do they offer? Temporary residence permit. Key conditions in practice A minimum donation of 500,000 to a public project benefiting the arts, sports, health, culture, or education; or A minimum investment of 500,000 into a new or existing Irish business for at least 3 years; or A minimum of 1,000,000 investment in a 0% interest 5-year immigrant investor bond; or A mixed investment of 450,000 in real estate and 500,000 in immigrant investor bonds; A minimum investment of 500,000 in a managed fund which would invest in Irish businesses and projects; A minimum investment of 2,000,000 in any Irish Real Estate Investment Trust listed on the Irish Stock Exchange. Language requirement No information available. Quotas on number of issued residence permits No information available. Mandatory interview No. 34

39 Application time frame 3-4 months. Validity & renewability of residence permit An initial residence permit is granted for 2 years and a further period of 3 years is granted following a review. After the initial 5 year period, the investor can apply for residence in 5 year tranches. Ability to apply for permanent residency? Investors can apply for naturalisation to obtain citizenship after 5 years residency. Required legal presence ( day counting )? The applicant must visit Ireland at least once a year in order to qualify for the temporary residence permit. Dual citizenship permitted Yes. Access to EU/Schengen countries EU: Yes Schengen: No. 35

40 Malta What do they offer? Citizenship through investment (or, in the alternative, residency visa). Key conditions in practice Individual Investor Programme ( IIP ) (for citizenship): Pay a non-refundable contribution of 650,000 (additional charges for family members); and Purchase a residential property worth 350,000 (or rent one for 16,000 pa for a minimum of 5 years); and Invest 150,000 in Maltese bonds or shares for 5 years. Global Residence Programme ( GRP ) (for residence): Purchase a property in Malta worth 275,000 (reduced to 220,000 for properties situated in the Southern Region of Malta and in Gozo); or Rent real estate for at least 12 months for 9,600 (reduced to 8,750 in the Southern Region of Malta and in Gozo). Language requirement IIP: no. GRP: the applicant must be fluent in either English or Maltese. Quotas on IIP or GRP permits? IIP: Maximum 1,800 IIP citizenships (main applicant). GRP: No limit. 36

41 Mandatory interview IIP: Yes. GRP: No. Application time frame IIP: 4-12 months. GRP: no information available. Validity & renewability of residence permit IIP: citizen for life. GRP: conditional on continuing to meet key conditions and legal presence requirements. Ability to apply for permanent residency? Citizen for life through the IIP. Required legal presence ( day counting )? IIP: No. Although applicants must demonstrate a genuine link to Malta, which can be satisfied by the ownership or the renting of a residence in Malta (see section: key conditions in practice) for at least 1 year and a visit to Malta during that period. GRP: Maximum 183 days absence from Malta. Dual citizenship permitted Yes. Access to EU/Schengen countries Yes, both. 37

42 Monaco What do they offer? Residency visa. Key conditions in practice 1,000,000 investment of which: 500,000 must be put towards the purchase of a property; and 500,000 must be deposited and kept in a Monaco bank. Applicant must prove that he has sufficient bank funds to provide for his residence in the country and the means to procure adequate accommodation. Language requirement No. Quotas on number of issued residence permits? No. Mandatory interview Yes. Application time frame EU Citizens: 1 month All others: 3 months. 38

43 Validity & renewability of residence permit From 1 year to 10 years with renewal. Ability to apply for permanent residency? Can apply for citizenship after 10 years of residency (or simply renew residency permit maximum 10 years validity at one time). Required legal presence ( day counting )? Minimum of 3 months presence, increasing to a minimum of 6 months for 10 year residency permits. Dual citizenship permitted No. Access to EU/Schengen countries Limited: borderless access to France. 39

44 Portugal What do they offer? Temporary residence permit with prospect of permanent residence after 5 years. Key conditions in practice Real estate investment (commercial or residential) of 500,000 for at least 5 years; or Investment of 1,000,000 in any Portuguese business, company, or for at least 5 years; or Creation of 10 jobs in Portugal. Language requirement Basic knowledge of Portuguese needed for permanent residence. Quotas on number of issued residence permits Information not available. Mandatory interview Yes. Application time frame Application processed in 1-2 weeks, following which there is an appointment to collect signatures and fingerprints. 40

45 Validity & renewability of residence permit The temporary residence permit is valid for 1 year, and may be renewed for successive periods of 2 years if the conditions are still satisfied. After 5 years of temporary residence, permanent residence is granted. Ability to apply for permanent residency? Portuguese citizenship is available after 6 years (5 years of temporary residence plus 1 year with permanent status). Required legal presence ( day counting ) 7 days in the first year and 14 days in each subsequent 2-year periods. Dual citizenship permitted No. Access to EU/Schengen countries Yes, both. 41

46 Spain What do they offer? Temporary residence permit with prospect of permanent residence after 5 years. Key conditions in practice Investing in any of the following: 2,000,000 in Spanish treasury bonds; or 1,000,000 in shares of publicly trading Spanish companies or non-trading ones; or Depositing 1,000,000 in Spanish bank accounts; or Acquisition of Spanish real estate worth at least 500,000; or Major business investment with either meaningful job creation, significant socio-economic impact in the region or technological or scientific impact. Investment activity must be continued for a period of 5 years. Language requirement No, only for citizenship. Quotas on number of issued residence permits? No information available. Mandatory interview No information available. 42

47 Application timeframe 3 months. Validity & renewability of residence permit Residency visa entitles an investor to live in Spain for up to 1 year. Residence permit can be requested at the end of the visa, which is valid for two years and renewable for a further 2 years. Ability to apply for permanent residency? Yes, following the residence permit route (NB the applicant s main business interests must be in Spain) after 5 years of temporary residence. After 10 years of residence, Spanish citizenship can be requested (as long as at least 6 months presence in Spain is evidenced). Required legal presence ( day counting ) No minimum period of residence. However, to attain permanent residency, the applicant must have evidence of at least one trip to Spain during the first two years, and once more in the three subsequent years. Dual citizenship permitted Only with limited Latin countries. Access to EU/Schengen countries Yes, both. 43

48 St Kitts What do they offer? Citizenship through investment. Key conditions in practice Designated recoverable real estate investment of US$400,000 plus real estate fees; or Non-refundable donation of US$250,000 to government Sugar Investment Diversification Fund and payment of processing fees. Language requirement No. Quotas on number of issued residence permits Yes quota of real estate available for investment. Mandatory interview No. Application time frame 4 to 6 months after application and investment made. Validity & renewability of residence permit Passport valid for 10 years and can be renewed thereafter. Ability to apply for permanent residency? Yes, citizenship at outset. Required legal presence ( day counting ) No presence in the country required. 44

49 Dual citizenship permitted Yes. Access to EU/Schengen countries Yes, both. 45

50 Switzerland What do they offer? Temporary residence permit. Key conditions in practice Constitution of a company with a minimum authorised share capital of CHF 100,000 or CHF 200,000 (for AG/ SA or GmbH (Sarl) corporations respectively); or Lump-sum taxation: an annual tax ranging from CHF150,000 to CHF 1,000,000 (depending on the canton). Language requirement Depends on canton. Quotas on number of issued residence permits Main EU: No. Eastern Europe: 500 per quarter for B Permits (no quota for 1 year L Permits). Others: Yes: L Permit: 5,000 p.a. B Permit: 3,500 p.a. Quotas reviewed annually. Mandatory interview Yes. 46

51 Application time frame EU Citizens: 2-4 weeks. Others: 3-4 months. Validity & renewability of residence permit EU Citizens: 5 years. Non-EU citizens: L Permit: 1 year. B Permit: 1 year. Ability to apply for permanent residency? C Permit (permanent residency) can be applied for after 10 years of residency. Increasingly difficult to get Swiss citizenship, but can apply after years residency in Switzerland. Required legal presence ( day counting ) No legal requirement, but in practice spending not more than 183 days in another jurisdiction is recommended. Dual citizenship permitted Yes. Access to EU/Schengen countries Yes, both. 47

52 About Taylor Wessing Taylor Wessing is a leading international law firm in Europe, Asia and the Middle East. Our clients include leading financial institutions, major corporations, public sector bodies and wealthy individuals and families. What makes us different is our forward-thinking approach to serving clients. We think creatively about business issues and are constantly looking for new and better ways to add value. By doing this, we come up with truly innovative solutions that help to grow our clients businesses. Our focus for the future is set firmly on those sectors that we believe are the industries of tomorrow: uu uu uu uu Private Wealth Technology, Media and Communications; Life Sciences; and Energy. 48

53 About Taylor Wessing Our Private Wealth Group Our international Private Wealth group is highly experienced in advising international families, private banks and fiduciary groups. We have particular expertise in advising royal families, wealthy entrepreneurs and members of the finance industry, as well as landed estates and trading dynasties. Our Private Wealth group provides a full range of legal services to our high net worth clients. Those services include traditional private client services, corporate/m&a, commercial contracts, finance, employment, real estate (residential and non-residential), dispute resolution, reputation management, construction, IP protection & brand management. To elaborate further, for example: uu uu uu uu uu uu Private Client and Personal Tax: on overall global wealth structuring for fiscal, succession and wealth protection purposes. Corporate: on the acquisition and disposal of family companies, corporate governance, families, regulatory requirements. Real Estate: on the acquisition and disposal of residential and commercial investments across a number of jurisdictions. Finance: on financing family businesses, property portfolios or other unusual assets. Reputation Management: managing the profile of the individuals for fiscal and political reasons. Employment: recruitment, management and dismissal of senior family executives. 49

54 Awards The Private Wealth group has received some excellent accolades in recent years, reflecting the hard work and success of the growing team. We have been nominated for every single mainstream Private Client award over the last three years. Listed below is a selection of the awards the Private Wealth group has won or been nominated for recently. They are technically superb lawyers and are a pleasure to deal with. Chambers & Partners 50

55 About Taylor Wessing Key Contacts Nick Warr Head of Private Wealth Group +44 (0) Mustafa Hussain Partner, Corporate +44 (0) Sanjvee Shah Partner, Private Client +44 (0) Nyree Craig Senior Associate, Private Client +44 (0) Vikki Wiberg Senior Counsel, Employment +44 (0) Charlie Pring Senior Counsel, Employment +44 (0) Nick Warr is a first-rate guy. He is adaptable, flexible and pragmatic. I have no hesitation in putting him in front of a client. Chambers & Partners Sanjvee Shah is really an iron fist in a velvet glove. She has terrific empathy with clients and is amazingly well read and intelligent. Chambers & Partners Please contact us for further information or to arrange a confidential meeting tailored to your particular circumstances. 51

56 Alternative jurisdictions comparison chart (non-european applicants) Country United Kingdom Antigua and Barbuda Investment Min 2 million Min US$400,000 into an approved real estate project, minimum US$1,500,000 into an eligible business, or minimum contribution to the NDF of US$200,000 Language requirement Cyprus Ireland Malta (IIP) Cypriot residence worth at least 500,000 and investment in either 5 million of direct Cyprus holdings, or 3 million of impaired deposits with Popular Bank Public Company Ltd, or Between 500,000 and 1 million, depending on choice of investment No No No No information available Non-refundable contribution of 650,000, purchase a residential property worth 350,000 (or rent one for 16,000 p.a. for a minimum of 5 years) and invest 150,000 in Maltese bonds or shares for 5 years No Quotas on issued residence permits No No No information available No information available Yes maximum 1,800 IIP citizenships Mandatory interview No No, but stringent due diligence No No Yes Application time frame Up to 3 weeks 3-4 months 3-4 months 3-4 months 4-12 months Validity & renewability of permit Ability to apply for permanent residency? 3 years (unlimited 2 year extensions) Yes Passport valid for 5 years and can be renewed thereafter Yes, citizenship at outset Citizen for life Yes, citizenship at outset 2 years (renewable initially for 3 years and subsequently for 5 year periods) Yes, naturalisation an option after 5 years residency Citizen for life Yes, citizenship at outset Required legal presence Dual citizenship permitted Access to EU/ Schengen countries? No minimum residency requirements Minimum 5 days in Antigua and Barbuda in the first Applicant must visit Cyprus at least once 1 day per year No. Applicants must demonstrate a genuine link to Malta Yes Yes Yes Yes Yes Yes: EU only Yes: Schengen countries only Yes, both Yes: EU only Yes, both More details? Page 28 Page 30 Page 32 Page 34 Page 36

57 The below is intended to provide a summary and comparison of the applicable investor rules in a number of jurisdictions. Specific legal advice should be taken on any application. Monaco Portugal Spain St Kitt's Switzerland Min 1 million ( 500,000 property, 500,000 deposited in a Monaco bank) and evidence of means Min 500,000 in real estate, 1 million in any Portuguese business, company or bank, or creation of 10 new jobs in Portugal Between 500,000 and 2 million, depending on choice of investment Min US$400,000 in designated real estate, or donation of US$250,000 to the Sugar Investment Diversification Fund Constitution of a company (and minimum investment in such company), or lump-sum taxation from CHF150,000 to CHF 1 million (depending on the canton) No Yes basic knowledge of Portuguese No No Depends on canton No No information available No information available Yes quota of real estate?available for investment Yes for non EU citizens Yes Yes No information available No Yes 1-3 months 1-2 weeks 3 months 4-6 months Up to 3-4 months 1 year to 10 years (with option to renew) 1 year (unlimited two year extensions) 2 years (renewable for two successive periods of two years) 10 year passport with option to renew 1-5 years depending if applicant is EU or non-eu citizen Yes, after 10 years of residency Min 3 months presence (or min 6 months for 10 year residency permits) Yes, after 5 years residency. Citizenship an option after 6 years residency 7 days in the first year, and 14 days over the subsequent two years Yes. Citizenship also an option after 10 years of residence (PR after 5 years) No No Only with limited Latin countries Yes, citizenship at outset Yes, after 10 years residence. Citizenship maybe an option after years residence No No No (although good practice recommends max absence of 183 days per year) Yes Yes Limited: borderless access to France Yes, both Yes, both Yes, both Yes: Both Page 38 Page 40 Page 42 Page 44 Page 46 53

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60 Europe > Middle East > Asia taylorwessing.com Taylor Wessing LLP 2016 This publication is intended for general public guidance and to highlight issues. It is not intended to apply to specific circumstances or to constitute legal advice. Taylor Wessing s international offices offer clients integrated international solutions. Though our offices are established as distinct legal entities and registered as separate law practices, we are able to help our clients succeed by providing clear and precise solutions with high-level legal and commercial insights. For further information about our offices and the regulatory regimes that apply to them, please refer to taylorwessing.com/regulatory.html and rhtlawtaylorwessing.com. TW_001448_08.16