Another country's investor visa regime has been taken off the shelf in response, so it appears, to pressure from the European Union and the OECD club of industrialised nations.

Ireland, a European Union member state, has shut its “golden visa” investor programme for high net worth individuals about a year after the UK closed a similar scheme amidst widespread sanctions on Russians. 

The Irish programme had been open to those investing at least €1 million ($1.08 million), Reuters (14 February) and others reported. The scheme had brought in more than €1.2 billion over a decade, reports quoted Justice Minister Simon Harris as saying.

After Russia invaded Ukraine on 24 February last year, the UK shut its programme that had required applicants to invest at least £2 million ($2.4 million). Russians were among the most enthusiastic applicants. Advisors said the move was disproportionate because it applied to everyone, not just Russians. The US, EU, Switzerland, the UK and certain other powers have slapped sanctions on designated Russians.

In recent years “golden visas” have been attacked, for example by the European Commission, for helping money launderers. Defenders of these programmes, such as the Investment Migration Council, a pan-industry group, say these fears are misplaced and argue that smaller countries, for example, can obtain important revenues. They also argue that rich people being persecuted for their wealth and business need an escape route – as demonstrated by attacks on various groups over the centuries.

A number of schemes have come and gone. In 2014, Canada mothballed such a programme. Last September, the European Commission legally challenged Malta’s programme (the Mediterranean island has witnessed a number of financial corruption scandals). Spain and Portugal offer such programmes, as does Dubai.

The IMC said Ireland’s move was a surprise and an example of “colonial” thinking by the EU and other bodies such as the Organisation for Economic Cooperation and Development. 

“Given how successful the IIP has been in contributing to UN SDGs benefiting many communities across Ireland through debt-free capital injections into the economy, it’s very surprising that the government would close it so abruptly,” Bruno L’ecuyer, CEO of the IMC, told this news service. “This sudden closure without any stakeholder consultation seems to point to political pressure from supranational bodies who still have a very misguided lack of understanding of what benefits these programmes have.”

“This [move] clearly demonstrates the influence over investment and immigration policy that Brussels and the OECD have with smaller sovereign states. It’s a colonial approach to globalisation on an unprecedented scale; the statement by the minister yesterday stopped me dead in my tracks,” he added.

Frictions
Ironically, this isn’t the first time Ireland, or other jurisdictions that attract wealthy foreigners, have been attacked by the EU. Policymakers in Brussels have occasionally scolded the government in Dublin for its relatively low corporate tax rates – often lower than those of the continent. (The Irish rate, which is as low as 12.5 per cent, is slated to rise to 15 per cent in 2024.)

"The closure of the [Irish] programme will not affect existing projects that have been approved by the government. For these, we can continue to source the investors required to complete funding and we will continue to be monitored by the Department of Justice in relation to the delivery of the projects and for compliance purposes," Daniel Hinds, COO of Bartra Wealth Advisors, said in a note about the change. "Investors who have already been approved by the Irish Naturalisation and Immigration Service (INIS) will not be affected by the closure of the programme, and all future visa renewals will be granted as long as the requirements are fulfilled."

James Hartshorn, CEO and co-founder of Bartra Wealth Advisors, added: "Since last year, we have been advising our clients who were considering the IIP but had not yet made up their minds to take action and be proactive as policy changes could happen at any time. Ireland in particular offers a great quality of life and a strong economy, as well as world-class healthcare and educational systems making it an easy place for foreigners to immigrate to." (Bartra Wealth Advisors is a subsidiary of Ireland’s Bartra Group.)

(Editor’s note: While these visa programmes are controversial, they are also an example of globalisation and the increased freedoms to move around that HNW individuals and families had taken for granted in recent years. The geopolitical and security fears that have prompted many wealthy people, for entirely legitimate reasons, to seek a second home in a country such as the UK, Ireland or Spain haven’t gone away. A question that arises is whether the immigration systems of liberal democracies, as they apply to people of all wealth levels, need to be overhauled so they are fair and politically palatable.)