Citizenship within the Republic of Ireland is highly desirable due to its membership in the European Union. As with any other EU member state, holding an Irish passport grants citizens the ability to live, work, and study throughout the entirety of the EU. These attractive benefits, though, can make such citizenship quite difficult to obtain.
However, one alternative method that provides a streamlined path to Irish residency is the Immigrant Investor Programme (IIP). This initiative introduced by the Irish Government in 2012 grants wealthy foreign investors the opportunity of Irish immigration via long-term investment. The IIP seeks to create domestic business and employment opportunities through funds from outside the European Economic Area (EEA).
This program is also known as the Irish Golden Visa and is similar to the Golden Visa programs offered by several other EU countries. Because there is no cap on annual applications, the IIP is becoming increasingly popular and has raised over €800 million in investments from nearly 1,200 resident investors.
Investment Requirements
There are four different investment options that IIP applicants can choose from:
- Enterprise Investment: €1 million invested in an Irish enterprise for at least three years
- Investment Fund: €1 million invested in an approved fund for at least three years
- Real Estate Investment Trusts: €2 million in any Irish REIT listed on the Irish Stock Exchange, kept for at least three years
- Endowment: €500,000 donated to a project of public benefit to Ireland
Investors should remember that the Irish Government has no responsibility for the performance of any investment. Furthermore, approval of an IIP application is not an endorsement of a particular project by the Irish Government.
Enterprise Investment
The required €1 million investment can be made into a new or existing Irish enterprise registered and headquartered in Ireland, including a business the applicant plans to create. The investor can also choose to invest in multiple enterprises, so long as the total investment satisfies the €1 million threshold. Additional criteria include:
- The applicant must make all investments as an individual, not a corporation.
- Publicly traded securities are not included as an investment option.
- Investments cannot be made in commercial real estate to lease or rent it out.
- Investments can be made in social housing and primary care centers.
Investment Fund
Applicants can choose to invest €1 million in a low-risk investment fund commissioned and regulated by the Central Bank of Ireland. The investment must be kept for three years, managed by a fund manager in Ireland, and represent equity stakes in Irish registered companies that aren’t quoted on the Irish Stock Exchange.
While the Central Bank of Ireland is liable to approve the fund and its manager, applicants should do their due diligence.
Real Estate Investment Trusts
An eligible REIT is a company listed on the Irish Stock Exchange that holds rental investment properties. While direct investment in commercial real estate cannot be made, REIT investment is approved. Benefits of REIT investment include:
- A regular income stream via annual profit distribution.
- Exemption from corporation tax on qualifying profits.
- The option is to divest 50 percent of shares after three years, an additional 25 percent after four years, and the remaining 25 percent after five years while still maintaining residency status.
Endowment
An endowment provides an alternative to investment, allowing applicants to donate €500,000 to the public benefit of Ireland. As this option is not an investment, it will offer no financial return and remain non-refundable. However, once the endowment is made, the applicant will no longer have any financial obligation under IIP.
This option requires that the donation is visible to the public and beneficial to the community. While approval is up to the discretion of an independent evaluation committee, they should support one of the following public goods:
- The arts
- Sports
- Health
- Culture
- Education
The minimum endowment can also be reduced in the case of multiple applicants. When five or more applicants combine their funds for an endowment project, the minimum can be reduced to €400,000.
Who is Eligible?
Beyond the minimum investment or endowment, only investors who meet the following criteria are eligible for IIP approval:
- At least 18 years of age
- Non-EEA national
- Clean criminal record
- A net worth of €2 million
Applicants must also provide evidence that they have the funds to make such an investment and are of good character. Evidence of good character most often includes a statement from a legal authority. Such a statement must be obtained from each country the applicant has lived in longer than six months during the ten years before the IIP application.
Application Process
After preparing an application that includes the required supporting documents, a non-refundable application fee of 1,500 must be made via electronic funds transfer. The application will then be received by an independent evaluation committee of senior public and civil servants. This committee, which meets at least four times per year, will then make a recommendation to the Minister of Justice.
The required documents that must be included with all applications include:
- An original passport with a photocopy
- Two passport photos
- Original and certified copy of applicant’s birth certificate (if applicable)
- Original and certified copy of applicant’s marriage certificate (if applicable)
- Proof of net wealth
- Evidence that the applicant has sufficient funds to make the minimum investment
- Evidence of the source of funds, including, but not limited to, business and investment statements, deeds of sale, inheritance, or divorce settlements.
- Proof of a clean criminal record.
- Application fee receipt.
- Proof of private medical insurance.
- Proof of income.
- Statements of any loans.
- Evidence of relationships with other family members.
Further documents are required depending on the type of investment chosen by the applicant. For example, application by way of enterprise investment will require such supporting documents as a business plan, a detailed scheme of job creation, and audited accounts of the proposed business (if it already exists).
Decisions are usually made within four to six months.
Benefits of IIP
The IIP has many benefits that make it an attractive option for non-EEA investors. Benefits include:
- Ability to apply for residency on behalf of spouse and children under the age of 18 (and children between 18-24, provided they are dependents and full-time students)
- Qualification for Irish citizenship after five years of residency
- Ability to keep original citizenship
- Minimum stay requirement of only one day per year to maintain residency and remain eligible for citizenship
IIP Limitations
It should be noted that the IIP differs from other Golden Visas offered by different EU countries. For example, the Portugal Golden Visa allows travel throughout the Schengen Area. This negates the need for non-EU travelers to obtain ETIAS upon its implementation. The IIP, however, does not offer this benefit. This is because Ireland is not a part of the Schengen Area.
A further limitation includes the inability of IIP applicants to have their parents. Golden Visas in other EU countries allow such an addition. On top of that, real estate acquisitions do not count as an investment option.
IIP Path to Citizenship
The IIP is a residency program and is not a direct track to residency in and of itself. However, it allows its participants to establish residency to become later eligible for citizenship. Most IIP participants will become eligible for citizenship by naturalization.
While IIP investors can retain their residency by visiting Ireland just one day per year, greater residency requirements must be met to become later eligible for citizenship. Reckonable residence refers to the conditions under which residency was accrued; however, all days spent in Ireland under the IIP count as reckonable residence.
This includes 365 days (one year) of continuous reckonable residence in Ireland immediately before the date of application. The applicant must have had 1,460 days (four years) of total reckonable residence for the eight years before that.
Want to know more about European travel? Check out the ETIAS website for more information.
Sources:
I want to invest in Ireland | immigration.ie
European Economic Area (EEA) / Relations with the EU | EFTA
Guide to European Golden Visas | ETIAS
Ireland Immigrant Investor Program: The Ultimate Guide 2022 | Get Golden Visa
Good Character in Citizenship/Naturalisation Cases | Sinnott Solicitors