Tier 1 investor visa interest rises following COVID-19 slump

Interest in the UK Tier 1 investor visa is slowly starting to rise following a slump at the height of the coronavirus pandemic. According to a report published by Wealth Briefing, figures suggest that ‘post-Brexit and geo-political shifts’ mean that more Tier 1 visa applications are being made by applicants from France, Switzerland and the US.

According to the Wealth Briefing report, the market for UK citizenship and permanent residency through investment is ‘shifting toward a more mainstream model of affluent business people applying for the Tier 1 investor visa while moving away from a more controversial, ultra-wealthy model’.

In recent years, the Tier 1 investor visa system has undergone significant changes amid allegations of bribery, corruption and money laundering. Meanwhile, the visa program – often described as the ‘golden visa route’ – has been seen as highly controversial by many as a means for rich people to ‘buy their way into Britain’.

Coronavirus pandemic

However, the coronavirus pandemic saw applicant numbers plummet, with even the wealthiest people unable to travel. 

But in recent weeks, the number of applicants, and those granted a Tier 1 investor visa, have risen steadily. According to official Home Office data, 100 Tier 1 investor visas were issued in the third quarter of 2021, up from a pandemic-hit 66 and 45 for the second and first quarters of this year.

In 2020, a total of 216 Tier 1 investor visas were issued, with 23 of those issued to Chinese nationals, followed by Russia with 12, the United States with 10, Canada with 8, Hong Kong with 5, Switzerland with 2 and France with 1. The fact that a few applicants were from countries within Europe has been described as ‘surprising’.

With the visa program seemingly stabilising, it’s now showing signs of recovery. Meanwhile, perceptions of such visa schemes are reportedly starting to change because the type of people applying for them are no longer just the so-called ‘mega-rich’, but more affluent (rather than ultra-rich entrepreneurs) and professional people such as scientists who are seeking a better life.

China, China, China

One commentator said: “20 years ago, it was mostly Middle Eastern migrants; 10 years ago it was families from the former Soviet bloc moving to the UK then it was…. China, China, and China.”

However, there has seemingly been a shift in demand for UK investor visas from around the world, with people from the US and France showing more interest, meaning that it’s not just people fleeing political persecution or economic pressure applying.

Following the release of third-quarter figures, it was noted that this was the first quarter that the UK had eased most COVID-19 restrictions, but the entire world had not yet fully opened, which was why China and Hong Kong, while still the top nationality of origin, only accounted for 28 per cent – around half of normal levels.

Britain’s exit from the European Union has sparked a rise in the number of EU nationals applying for UK visas, including the investor visa, with applications from Cyprus, France and Switzerland showing a significant increase.

Farzin Yazdi of Shard Capital commented: “Whilst the Q3 ‘21 headline net migration numbers fell considerably; the statistics show that investor visa applications are back to pre-pandemic levels. This is the first quarter where the UK removed most COVID restrictions, but the entire world has not fully opened which is why China & Hong Kong, whilst still the top nationality of origin, only account for 28% which is around half of normal levels. Americans continue the trend with 10%, after Russians with 12% of applications issued.

“From an investment perspective, the UK is still attractive to HNW migrants. In addition to takeovers, the daily news of investments into start-ups, early-stage, and scale-up capital continued to amaze most market participants.

“As a result of Brexit, European Investor applications are materialising from France, Cyprus, and Switzerland. In a post-Brexit world, you are limited to the time spent in a European destination before having to navigate your way through their immigration system. The UK has become a new market to those countries in the same way Europeans have for the UK’s Investor Visa.”

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