More than three years after the UK scrapped its Tier 1 Investor Visa for wealthy foreigners, reports say the Starmer administration is considering a new programme to entice those who want to invest into important sectors. It shows how the "golden visa" market remains in flux.

While some jurisdictions are retiring “golden visas” or being ordered to do so, the UK is reportedly considering a programme for foreigners who invest significant sums in the country.

This week, Bloomberg reported on the possible development, noting that UK Prime Minister Sir Keir Starmer’s government wants to offset the economic blow from recent tax hikes and wider curbs on work permits.

Sometimes controversial, citizenship/residency-by-investment programmes have arisen, and sometimes been retired, in dozens of jurisdictions. US President Donald Trump plans to introduce a “golden card” visa open to those who pay $5 million as a route to citizenship. In late April, by contrast, the European Union’s top court condemned Malta for allegedly commercialising citizenship, a position that could cast a shadow over other programmes in the EU bloc.

The report on the UK said ministers are considering proposals for an investor visa which would be open to people willing to fund sectors seen as strategically important by Starmer’s administration, such as artificial intelligence, clean energy and life sciences, according to people familiar with the matter. The visa plans are at an early stage, subject to change, and being considered alongside making existing visa routes easier for investors.

The latest development comes at a time when the UK has acquired a new, unenviable reputation for being hostile to holders of significant wealth. It has axed its centuries-old resident non-dom regime, replacing it with a new scheme; inheritance tax has been extended to family businesses and agriculture, and private pensions. Economists have warned that billions of pounds in revenue will be lost as HNW individuals leave the UK. Being outside the European Union, the UK has more latitude, arguably, than its European neighbours in experimenting with such visa schemes in light of the EU top court's criticism of Malta.

The old Tier 1 Investor Visa regime, open to those investing at least £2 million ($2.65 million), was axed in February 2022 after Russia invaded Ukraine – Russians had been among the most enthusiastic purchasers of these visas, seen at the time as a potential weak link in barriers to money launderers.

Spain has retired its scheme; Portugal has narrowed its scope and other countries, such as Canada, have at times put their programmes on hold. Often, a cause for complaint is how these visas inflate domestic property markets, incurring the wrath of local citizens. 

Defenders of this golden visa industry, such as the Investment Migration Council, deny that these programmes represent a threat to financial good conduct, arguing that they often provide small nations with important sources of revenue. The IMC also says that these programmes are meant to be temporary – once they have reached a certain level of inflow, it is normal for them to end.

Advising on these progammes is a money spinner. A cluster of specialist consultancies have been operating as demand grows. Examples include Bartra Wealth Advisors, Henley & Partners and Apex Capital Partners.