UK considers new £5m investor visa with path to citizenship in five years

The United Kingdom (UK) government is considering introducing a new investor visa that would require applicants to invest £5 million (about $6.6 million) in British businesses, potentially making them eligible for British citizenship within five years.

The investment exempts residential or commercial property, plus access to the visa would be by invitation only.

The proposal re-ignites the debate over whether wealthy migrants can help drive economic growth while avoiding the problems that led to the previous scheme being scrapped.

According to reports, the Cabinet Office held a private meeting on June 10 with tax advisers, economists, professional services firms and anti-corruption organisations to discuss the proposal under confidentiality.

Peter Kyle, UK’s Business Secretary has emerged as the proposal’s strongest supporter, arguing that Britain is engaged in a “brutal fight for global talent”.

However, the proposal has not received unanimous backing across Whitehall. The Home Office and the Treasury are said to have reservations, with Treasury officials questioning whether the scheme would generate meaningful economic growth. A government insider noted that the proposal “isn’t going anywhere”.

Despite the political uncertainty, some industry experts remain optimistic.

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Farzin Yazdi, head of Investor Visa at Shard Capital, believes there is still a strong possibility that the UK will revive the scheme.

“I believe there is a 70 percent chance of the UK re-introducing the Investor Visa,” he said.

Yazdi argued that the concerns surrounding the previous scheme could be addressed through careful policy design.

“There are ways to formulate a visa that addresses concerns and has a real economic impact on the country, which is quantifiable and palatable,” he said.

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How the proposed scheme would work

The proposed £5 million investment threshold represents a significant change from the former Tier 1 (Investor) visa.

When the scheme was introduced in 2008, applicants needed to invest £1 million. This later increased to £2 million before the visa was closed. Under the previous system, a £5 million investment simply allowed applicants to qualify for permanent settlement after three years instead of five.

Under the new proposal, however, the £5 million investment would become the minimum entry requirement, removing the lower investment options altogether.

Eligible investments would be directed towards priority sectors of the economy, particularly fast-growing British businesses, rather than property. Excluding real estate is intended to avoid the criticism that the previous scheme mainly fuelled London’s luxury property market instead of supporting productive investment.

The government has also indicated that tougher due diligence checks would form part of the new programme to prevent abuse and distance it from the previous scheme.