The Immigrant Investor Programme is being scrapped from 15 February 2023, justice minister Simon Harris has announced.

Since its inception, the so-called 'Golden Visa' programme has approved investment of almost €1.25 billion that has benefitted many private and social enterprises.

The Immigrant Investor Programme (IIP) was a pathway for non-EEA nationals, mostly Chnese, to secure an immigration permission in Ireland on the basis of long-term investment.

According to law firm Philip Lee, 2022 saw a significant increase in the number of applications made under the IIP.

In 2021, there were 243 applications from Chinese nationals. To mid-December 2022, this figure increased to 785 applications.

In Association with

Partner Anna Hickey attributed the increase to concern among potential future applicants that a formal review of the programme that concluded last year would lead to significant changes to the programme in the future.

Applicants were required to be high net worth individuals with a personal wealth of at least €2m. The IIP required applicants to invest a minimum of €1m for a minimum of three years or €500,000 as part of an endowment.

The IIP offered four investment options for potential investors:

+ Enterprise Investment: A minimum of €1m invested in an Irish enterprise for a period of at least three years.

+ Investment Fund: A minimum of €1m invested in an approved investment fund for a period of at least three years.

+ Real Estate Investment Trust: A minimum investment of €2m in any listed Irish REIT for a period of at least three years.

+ Endowment: A minimum €500,000 philanthropic donation to a project which is of public benefit to the arts, sports, health, culture or education in Ireland.

Harris said the IIP was established during a time of economic difficulty with the objective of stimulating investment in Ireland.

“Since its inception the programme has brought significant investment to Ireland and has been operated by my department to the highest professional standards,” Harris added.

“However, it is important that we keep all programmes under review, including any implications for wider public policy such as the continuing appropriateness and suitability of this programme for cultural, social and economic use.

“We have also taken on board a number of reports and findings from international bodies such as the EU Commission, Council of Europe and OECD on similar investment programmes.

“Taking all of this into account, and informed by both internal and external reviews, I have recommended that it is now timely to close this programme to new applications.”

On hand applications

The minister clarified that closure of the programme will not affect existing projects or individuals already approved under the programme. Current applications ‘on hand’, of which there are c.1,500  at the time of closure, will continue to be considered.

IIP applications on hand at “close of business” on 15 February 2023 which are awaiting a decision may relate to either previously approved projects or recently submitted new projects.

DoJ stated that this includes applications relating to a number of projects where a decision has been deferred by the evaluation committee to allow for further consideration of certain matters.

According to the department, there are a number of projects where an application has not been formally submitted but which have been "significantly developed" following contact with the IIP unit of the Department of Justice.

“It is proposed that such projects be given a period of three months in which to finalise and submit their applications,” said a department statement.

A number of investment funds are also approved under the IIP, and some may not have reached its minimum target size or be fully subscribed yet.

“In the interest of fairness managers of these funds will be given a three-month period for any further IIP applications to be made in respect of these funds,” the department stated.

The Start-up Entrepreneur Programme (STEP), which was established in 2012, as a way for entrepreneurs with an innovative idea to apply for residence permission in Ireland, will continue.

The closure of the IIP will not affect existing projects already approved under the programme. Existing approved projects will also continue to be able to source any new investors required to complete the funding of projects already approved.