The COVID-19 pandemic has significantly affected several world economies. A significant shift in the first-world economies is apparent from the recent quarterly economic growth data.
From brand-new restrictions on foreign students to the alterations of the asylum policies, certain substantial changes are observable in the regulation policies. Along similar lines, the investor domain has undergone critical changes. The Investor Immigration experts at SmartMove Immigration will take you through the investor visa market trends so far in 2020.
Investor Visa Trends:
- A fee hike has been announced by the authorities for several applications; including the EB-5 (employment-based fifth preference) investor visas. The advances are to be countered by possible preliminary injunctions and lawsuits.
- The minimum investment amount has been increased from $500,000 to $900,000. Another proposed policy is said to promote investments in the rural sector.
- East Asian countries have shown promising signs of considerable growth in the investment sphere. South Korea and Vietnam have emerged as big players lately.
- Chinese capital influx can enter stagnant waters owing to the COVID-19 crisis – however the reaction of the countries to Chinese investment will remain to be seen. The European market has seen a boom in the investment from Chinese HNWIs.
- South Africa has shown favorable prospects for investor visa stakeholders.
- The situation in the Latin American market has been plagued by the circumstances of the pandemic and local currency issues. Thus, most EB-5 investors have been turning away from the market for quite a year now.
- Investors from South Asia particularly from India are showing keen interest in investor visas to countries like Portugal and Turkey in addition to traditional preferences like USA, Canada and UK.
Long-term Impact of The New EB-5 Policies
As the fee hike increased the investment amount for investors in November 2019, a decrease in the number of EB-5 investors is evident. EB-5 supporters will be encouraged by the regulations to steer for advantageous legislation in Congress. Further, owing to the diminished numbers of EB-5 stakeholders, a more robust framework is needed to safeguard the interests of the minority. Due diligence and protections are becoming something of a worry for investors.
The increased investment amounts and tighter standards will also result, not only in a more prosperous market for investments but also in a more advanced one. And this increased degree of complexity extends with fewer investors to do more business.
It may be worth to consider the L1 visa route for investors seeking to start a business in USA. An increasing section of investors is also considering the E2 Treaty visa route to enter the USA.
High-Net-Worth Individuals (HNWIs) Reflecting on Relocation
The pandemic has forced several of the high-net-worth individuals to reconsider their alternative residency options in the times of a crisis such as the present pandemic.
It is driven by the support of the governments to the individuals and businesses during the pandemic and also the measures taken by the governments to mitigate the spread of the pandemic in their respective boundaries.
Read Updates on Covid-19
Passive investor routes like the EB5 (USA), Portugal Golden Visa, Greek Golden residency are attractive options, in addition to citizenship by investment in Grenada, Turkey, Dominica or even European destinations like Bulgaria, Malta and Cyprus.
What to Look For in Markets Now?
The investment market volatility is subject to fluctuations over the next few months, according to global analysts. On such occasions, SmartMove Immigration suggests making the following considerations while evaluating the risk from the financial perspective:
- Stability of the economic market you plan to invest in. This is a crucial consideration while looking for investment markets post the change in regulations and COVID-19.
- Job creation and financing capital from diverse sources
- Capital preservation during these times.
- Focus on how the hosting government plans to safeguard your interest and the funds.
- An extensive comprehension of how certain sectors have been impacted by the pandemic, hospitality, for example.
- The socioeconomic setting of the investment market.
What is The Outlook Like?
- International experts allude to the aggravation of the US’s reputation concerning immigration laws. With a hostile environment and unflattering immigration regulations, America is gradually losing its long enjoyed position as the preeminent investment market.
- As the USA EB-5 Immigration Investor Visa is losing its charm as the largest residence-by-investment program, countries like UK, Canada, Bulgaria, Portugal, Grenada are appearing as staunch competitors.
- There is growing interest in Start-up visas and visas offered to Innovators in Ireland, UK, Germany and Canada.
Understand New Start-up Visa UK
The worldwide economic fallout, along with the revisiting investor guidelines show that Influential families and HNWIs no longer eye the US as the premier settlement destination.
Following Brexit, the European market has seen a sudden boom in the increased investments in countries like Ireland. But the UK still boasts the highest investments by international investors and HNWIs. Furthermore, in a matter of a few years, such trends will offer more clarity and the winter session brings with it new possibilities for the investor visa sector.