Investment Migration Council

Author: Niu Ltd

  • Foreigners’ Interest in Housing Market Spurs Sales in Furniture Industry

    Turkey’s furniture sector has been boosted by a surge in home sales to foreigners thanks to the country’s program for getting citizenship through investment, according to sector observers.

    Home purchases by foreigners have risen sharply since last year, when Turkey eased conditions under the program.

    Under the changes, foreigners who invest $500,000 in Turkey, deposit $500,000 in Turkish banks or buy real estate worth $250,000 acquire the right to lifetime citizenship.

    It has been reported that the number of foreigners who obtained Turkish citizenship through investment reached 1,000 as of July.

    Turkish developers continue to enjoy increasing demand from foreign buyers in the housing market, and as a result, real estate sales to foreigners posted the highest-ever figures in the first seven months of the year.

    Foreigners became new owners of 24,144 houses in the January-July period, an increase of 64.5% year-on-year, according to Turkish Statistical Institute (TurkStat) data.

    Home sales to foreign buyers posted the highest-ever figures during each month since the beginning of this year. They acquired some 3,168 units in January, 3,321 units in February, 3,129 units in March, 3,720 units in April, 3,925 units in May, 2,689 units in June and 4,192 units in July with a year-on-year increase of 81.9%, 92.1%, 71.3%, 82.1%, 62.5%, 30.5% and 46.7%, respectively.

    Iraqis, Saudis top customers

    This skyrocketing rise has led to mobility in the furniture industry; in particular, buyers from Middle Eastern countries such as Iraq and Saudi Arabia have taken great interest in furniture produced by Turkish manufacturers.

    Iraqis maintained their position as top buyers in the housing market, acquiring some 4,071 houses in the first seven months, while Saudis acquired some 1,312 units.

    Nuri Gürcan, head of the Furniture Industry Businessmen Association (MOBSAD), said home sales to foreigners pushed up furniture sales by as much as 20%. Iraqi and Saudi nationals – the top foreign homebuyers – also show great interest in Turkish furniture, he told Anadolu Agency (AA).

    Turkish TV series, one of the country’s top cultural exports, enjoy popularity in countries across the world, including the Middle East.

    According to Gürcan, the fact that Turkish TV series are in demand abroad has led to a rise in demand for products used in these TV series. Foreigners take interest in such furniture when they visit Turkey.

    He said fluctuations in exchange rates have also helped make Turkish furniture a more attractive buy.

    Turkish furniture exports generated $2 billion in the first half of 2019, and the target for the year’s end is $3.7 billion, he said.

    Turkish TV shows spurring sales

    Turgay Terzi, the head of Istanbul-based furniture firm Art Design, said foreigners who acquired Turkish citizenship are behind around some 10% of all furniture sales in Turkey.

    “The impact of TV series on furniture sales is huge. They want to see the furniture in popular TV series at their own homes,” Terzi said.

    Demand for Turkish furniture is particularly high in the Middle East, he said, adding that Turkish TV series have helped fuel these sales.

    Middle Eastern people prefer handcrafted modern furniture, Terzi noted.

    “Since they do not consider furniture as a product alone, but consider the house as a concept, they prefer to buy ‘turnkey’ furniture where everything is completely renovated, rather than buying one piece of furniture,” he said.

    As for Europeans, Terzi highlighted that Europeans, particularly those who have acquired property on the south coast, opt for more basic designs that respond to everyday needs.

    Some 39,663 properties were sold to foreign investors last year, the highest number ever. In 2017, foreigners bought 22,234 units. Sector representatives expect sales to exceed 50,000 at the end of the year.

     

    Source: dailysabah.com
    Published: 2 September 2019

  • Citizenship List in Indian State Leaves Out Almost 2 Million

    Nearly 2 million people from the east Indian state of Assam were excluded Saturday from a final citizenship list that is intended to identify legal residents and weed out illegal immigrants, amid fears they could be rendered stateless.

    A total of 31.1 million people were included on the list, leaving out 1.9 million, according to a statement from the Assam government. Critics have viewed the exercise as an attempt to deport millions of minority Muslims, many of whom have entered India from neighboring Bangladesh.

    After hearing rumors that her name was not on the list, Sayera Begum, a 60-year-old woman from the district of Sonitpur in northern Assam, jumped into a well Saturday morning and later died, highlighting the list’s impact.

    “She was dragged out of the well and taken to the hospital, but she died,” said Mukesh Agarwal, a senior Assam police official.

    An hour later, when the final list was released, it was found that Begum, along with her husband and son, were not excluded.

    Assam police had earlier appealed to people not to spread rumors for fear of panic after many were accused of being “Bangladeshi infiltrators” by the Hindu nationalist-led government of Prime Minister Narendra Modi.

    The citizens’ list was updated after 68 years, ending four years of work and a 4-decade-old demand seeking detection of illegal immigrants.

    The list — known as the National Register of Citizens, or NRC — is unique to Assam and was first prepared in 1951. It includes those whose names appeared in the 1951 document and their descendants. The list also includes those who had been on India’s electoral rolls up to March 24, 1971, or in any other document approved by the central government.

    “The entire process of NRC update has been meticulously carried out in an objective and transparent manner,” the registry authorities said in a statement.

    Earlier Saturday, a steady trickle of people lined up to see if their names were on the list in Buraburi village outside one of the many offices that had been set up across Assam for residents to verify the status of their citizenship applications.

    Mijanur Rahman, a 47-year-old farmer, found himself, his 21-year-old son, and two of his daughters, aged 16 and 14, included on the list. However, his wife and his three other children — all under the age of 10 — were excluded.

    “I am really worried,” said a teary-eyed Rahman. “We will see what the government does now. Maybe they will offer some help.”

    Dipali Das, 42, clad in a saree, found herself, her husband and her four married daughters on the list. But Das was unhappy because her 23-year-old son, Rahul, was excluded. She said she will put in an application for his inclusion.

    Binoy Bhushan Sarkar, a frail man in his late 70s, said he has been voting since the age of 21, including in recent national elections. He was confused after finding his name on the online list but not on the hard copies available for public viewing. “I don’t know what to do,” he said.

    Retired army officer Mohammad Sanaullah, who grabbed the spotlight after being declared an illegal foreigner and was sent to a detention center last month, was also excluded from the list. Sanaullah, who had won a president’s medal, was declared a foreigner by the Foreigners Tribunal in 2018. He was sent to a detention camp in May before he was granted bail by a High Court.

    The government said it carried out the mammoth exercise to detect and deport undocumented immigrants from Bangladesh. But the final publication of the citizenship list has stoked fear of loss of citizenship and long periods of detention.

    It is unclear what happens next.

    The central and state governments, however, have clarified that those left off the final citizenship list won’t be declared foreigners.

    The options for those left off the list include appealing to the Foreigner Tribunals within 120 days of Saturday’s announcement. The tribunals must decide on the cases within six months. If an appeal fails, the consequences include punishment in detention centers that are currently being set up by the government.

    Amnesty International expressed concerns about the functioning of the Foreigners Tribunals. The rights group also urged the Assam government to ensure that “the Foreigners Tribunals function with utmost transparency and are in line with the fair trial standards guaranteed under national and international law.”

    Meanwhile, Assam Finance Minister Himanta Biswa Sarma, a senior leader with the Hindu nationalist Bharatiya Janata Party, said the final version of the citizenship list did not contain the names of many people who came to India from Bangladesh before 1971.

    The Indian Express newspaper quoted Sarma as saying that the list is “erroneous” as “more illegal migrants should have been excluded,” and that the party’s fight to “exclude every single foreigner” from the state will continue.

    A draft citizenship list that was published last year excluded more than 4 million people, after which many either fled the state or even took their lives in exasperation.

    India’s powerful home minister, Amit Shah, earlier called Bangladeshi migrants “infiltrators” and “termites.”

    The Modi-led government, which fully backs the citizenship project in Assam, has often vowed to roll out a similar plan nationwide.

    Earlier this summer, India’s Supreme Court criticized the central government and Assam’s government, saying thousands of people who had been declared foreigners over the years had disappeared.

    Assam, with a population of 33 million, was in a state of high alert and additional security forces were deployed in anticipation of possible violence following the publication of the list. There were no reports of unrest immediately after the list was made public.

     

    Source: abcnews.go.com
    Published: 31 August 2019

  • Citizenship Will No Longer Be Automatic For Children of Some US Military Members Living Overseas

    The Trump administration is making it more difficult for the children of some US service members and US government employees living abroad to automatically become US citizens, according to apolicy alert released Wednesday by US Citizenship and Immigration Services.

    The rule appears to primarily affect the children of naturalized US citizens serving in the armed forces who have not lived in the US for a required period of time, a relatively small number — estimated to be approximately 100 annually, according to a Defense Department official.

    It does not impact anyone born in the United States.

    US citizenship can be acquired a few ways, including being born in the country. Children born abroad can acquire citizenship through their US citizen parents either at birth or before the age of 18.

    While the latest policy guidance doesn’t make anyone ineligible for citizenship, it appears to narrow how children abroad can gain citizenship. President Donald Trump has occasionally voiced his support for ending birthright citizenship and said last week he was “seriously” considering ending it, though it’s unclear how he’d have the legal authority to do so. Acting USCIS Director Ken Cuccinelli said on Twitter that the new policy “does NOT impact birthright citizenship.”

    Still, the policy, which takes effect on October 29, sparked confusion among military and diplomatic groups who immediately denounced the alert, concerned that the rule change would place hurdles before children of federal employees and military workers serving abroad.

    “Military members already have enough to deal with, and the last thing that they should have to do when stationed overseas is go through hoops to ensure their children are US citizens,” said Modern Military Association of America Executive Director Andy Blevins.

    A Navy officer told CNN that the guidance was also injecting serious stress among military spouses. “You should go onto a spouse Facebook page and see the freakouts,” the officer said.

    A USCIS spokesperson, referring to a section of the immigration code about residence, said “the policy change explains that we will not consider children who live abroad with their parents to be residing in the United States even if their parents are US government employees or US service members stationed outside of the United States, and as a result, these children will no longer be considered to have acquired citizenship automatically.”

    “DOD has been working closely with our colleagues at DHS/USCIS regarding recent policy changes and understands the estimated impact of this particular change is small,” said a Pentagon spokesperson.

    The updated policy directly impacts US government employees and service members, many of whom are temporarily assigned to posts overseas for extended periods. The policy says children living abroad with a parent who is a US government employee or US service member will not be considered to be ” ‘residing in the United States’ for purposes of acquiring citizenship” under a section of immigration law.

    Previously, their children would be considered to be both living in and outside of the US for purposes of eventually gaining citizenship. By stripping the children of the former, the only way they can get citizenship is through a parent applying for them, whereas before it would’ve been automatic provided they meet certain requirements, said Cristobal Ramon, senior policy analyst at the Bipartisan Policy Center.

    USCIS says the policy could affect children of lawful permanent residents who naturalized after a child’s birth.

    The agency cited conflicts with the definition of “residence” in immigration law, as well as conflicts with State Department guidance, as reason for the change, according to the guidance.

    “Forcing (members) to go though (sic) bureaucratic hurdles for no apparent reason, just to get their children naturalized as American citizens, does a great disservice to people who have dedicated their lives to serving their country,” said American Foreign Service Association President Eric Rubin. “Frankly, it is hard to explain and deeply worrying.”

    Immigration attorneys also took issue with the change.

    “The fact that those of us who deal with immigration law all the time can read this memo and immediately point out plausible scenarios leads me to believe it’s going to impact some number of people. Impacting one person is too many,” said Martin Lester, chair of the American Immigration Lawyers Association’s Military Assistance Program, which provides pro bono immigration law services to US service members.


    Source: cnn.com
    Published: 29 August 2019

  • Senator Moves to Prevent EB-5 Price Hike on Nov 21st by Joint Resolution

    Republican Senator Rand Paul is asking his colleagues in the Senate to sign a Joint Resolution that would stop the EB-5 program’s planned price increase in November.

    Congress last month approved EB-5 Program Modernization regulations, which the Department of Homeland Security subsequently published in the Federal Register. Should nothing prevent the new rules from taking effect on November 21st, the minimum investment requirements would increase from $500,000 and $1 million to, respectively, $900,000 and $1.8 million.

    To stop the rule from coming into effect, Rand Paul needs 30 of his fellow senators to sign a petition, a simple majority in Congress, and a presidential signature.

    “By significantly raising the minimum investment levels required for foreign investors to become eligible petitioners under the EB-5 program, this rule may undermine the very purpose of the program, which is to create jobs and grow the economy,” said the senator. “Moreover, the rule would severely restrict the role of the states in determining the targeted employment areas.”

    Clare Lithgow, editor of EB-5 Daily, points out that although the senator’s move is a welcome step in the right direction, it does little to address the program’s chief predicament.

    “While keeping the minimum investment amount the same and maintaining states’ ability to decide targeted employment areas is helpful, the real issue that Congress should address is the EB-5 visa cap,” writes Lithgow, echoing a sentiment shared by many stakeholders.

    The United States Citizenship and Immigration Service (USCIS) has chosen to interpret the EB-5 program’s 10,000 visa cap as one applying to the number of individuals, while many EB-5 lawyers argue this is properly interpreted as applying to investors (main applicants).

    Should the USCIS change its reading of the rules to mean ‘individual’ visas, the program would effectively have room for three times as many investors, tripling the amount of FDI the program raises annually.

    To use a sports analogy, what needs increasing isn’t the ticket price, but rather the number of seats in the stadium.

    Lithgow explains some of the effects a change in interpretation would have on the program:

    If Congress only counted EB-5 investors toward the visa cap, three things could happen.

    1. It would help the visa backlog that currently affects Mainland China, Vietnam and India

    2. It would mean roughly 7,000 more EB-5 investors are contributing to the U.S. economy adding billions of dollars in investment capital and creating tens of thousands of jobs for U.S. workers

    3. It would prevent the number of EB-5 visa issued each FY from shrinking further. In the past the average amount of visas each investor received was about 3.3 (a spouse and one child). This was because most of the investors were from Mainland China where the one-child policy was in place. Now that Mainland China is facing retrogression, investors from other countries, where they are allowed to have more children, may take up more visas from the 10,000 visa cap.

    Senator Paul’s Joint Resolution approach is not the only hope for preventing a price-increase. As we’ve written before, should Congress re-authorize the EB-5 Regional Center program before September 30th (the date on which the program’s current extension expires) the new rules would never see the light of day.

     

    Source: imidaily.com
    Published: 28 August 2019

  • Greece Preparing Citizenship by Investment Programme Similar to Cyprus

    Local land developers but also service sector professionals are becoming concerned by reports that Greece’s new government is planning to launch a  citizenship by investment programme similar to that of Cyprus.

    The programme provided by Nicosia in recent years has substantially contributed to the recovery of the Mediterranean island’s economy.

    The new right-wing government under Kyriacos Mitsotakis is drafting its own citizenship by investment programme which resembles the Cypriot one and, thus, will be quite competitive, according to informed sources.

    One source told Phileleftheros that the new programme is expected to be implemented after the first quarter of 2020 and may involve investments of €2.5 million. Cyprus’ investment limit is €2 million, plus VAT. In the case of Greece, the plan is for VAT payment to be deferred for a period of three years. This basically means that at the time of the investment the cost will essentially be the same as that in Cyprus.

    Undoubtedly, the implementation of such a programme by Greece will create strong competition for Cyprus. Greece, as a brand name, is stronger and more versatile. So are some of its areas or islands as well. This means that far more investment opportunities will be on offer, especially in the sector of ​​land development. The areas that will fall under the programme’s criteria have not been disclosed yet.

    At the same time, as a larger country that has been in recession for many years it offers more investment opportunities, plus connectivity is also an important factor for foreign investors. Another advantage of Greece taken seriously in consideration by foreign investors is that one does not need a visa to travel to the US.

     

    Source: in-cyprus.com
    Published: 26 August 2019

  • Australia Sees Rush of Hong Kong Millionaires Amid Unrest

    Australia is seeing an increase in interest in its millionaires-only visa program from wealthy Hong Kong residents who are eyeing a safety net amid political turmoil in the Chinese-ruled territory, migration lawyers told Reuters.

    The New South Wales state migration department “has noticed a significant increase in applications” from Hong Kong in recent months, it said in a letter to agents this week, and seen by Reuters.

    The interest has coincided with the “beginning of the current unrest in Hong Kong”, the department said, referring to a A$5 million ($3.4 million) Significant Investor Visa (SIV) program that provides direct residency to applicants.

    Bill Fuggle, Sydney-based partner at law firm Baker & McKenzie, said there had been a rise in applicants for the A$5 million SIV program.

    “What I am hearing from my clients is there definitely has been an uptick in the number of SIV applications from Hong Kong,” Fuggle said.

    “Anybody who can make an alternate plan is trying to do so.”

    Protests in the former British colony erupted in early June over a now-suspended bill that would have allowed criminal suspects to be extradited to mainland China for trial.

    The unrest has been fueled by broader worries about what many say has been an erosion of freedoms guaranteed under the “one country, two systems” formula put in place when Hong Kong returned to China in 1997.

    Australia’s New South Wales treasury department confirmed that the immigration team’s letter was sent out to migration agents on Monday but declined to provide any further details, saying only that the increase was off a small base.

    In the letter, the department assured agents it was committed to providing “appropriate support” to help them discuss migration options with their clients.

    The SIV program used to be hugely popular with people from China, though recent strict investment requirements have somewhat dented its appeal.

    The SIV now requires at least 40 percent of the A$5 million to be invested in small-cap and venture capital (VC) funds while direct real estate investment is barred.

    “Money is also moving out but Australia is probably not your first choice to park wealth…it’s a high tax jurisdiction. I suspect we’ll get more people than money here,” Baker & McKenzie’s Fuggle said.

    Data on applications received or visas granted in recent months was not available as Australia publishes these figures only annually.

    According to the latest data, China accounted for 87% of the 2,022 SIV visas granted between November 2012 and June 2018 while Hong Kong stood a distant second at just 3.2%.

    Juwai.com, China’s largest international property website, had seen “some increase” in demand for Sydney property by Hong Kong buyers since the unrest began, Executive Chairman Georg Chmiel told Reuters in an email.

    “Purchasing real estate is not the first step in coming to this country. More important is to obtain legal residency,” Chmiel said.

    “Over the next two to five years, there could be a substantial impact on the property market as these individuals look to settle down and purchase, but for now, it is too early for that.”

     

    Source: reuters.com
    Published: 22 August 2019

  • UAE Nationals Now Exempt from Pre-Entry Visas to South Africa

    Emiratis holding diplomatic, special, mission and ordinary passports are now exempt from pre-entry visas to visit South Africa.

    The UAE has been added to South Africa’s visa waiver list, with the decision effective from Thursday, August 15, official news agency WAM reported.

    Emiratis will be allowed to stay for a period up to 90 days in the African country, according to the South African Department of Home Affairs.

    Ahmed Sari Al Mazrouei, under-secretary of the UAE’s ministry of Foreign Affairs and International Cooperation, said that the visa waiver decision by the South African government reflects the strong ties between the two countries, and the “prominent international status that the UAE has attained on the global scale”.

    The UAE ranks as having the 20th most powerful passport in the world, according to the latest Henley Passport Index, which periodically ranks passports on the the level of travel access that they offer.

    Citizens from the UAE have visa-free access to 167 destinations, the report found.

     

    Source: gulfbusiness.com
    Published: 15 August 2019

  • The Big Migration Debate: Finding the Missing Link

    The migration debate is complex and emotional. Investment migration only accounts for a small part of worldwide migration, yet the industry has the potential to help shape a more productive discussion.  

    Few issues excite controversy like migration, and when global especially when countries have to deal with a large inflow of mi- leaders in Europe, the US and other parts of the world, discuss migration, they usually talk about threats rather than opportunities.

    “But the reality is most countries around the world need migrants to fill vital gaps in their workforce and to keep their economies going”, says Khalid Koser, Executive Director of the Global Community Engagement and Resilience Fund (GCERF).

    While refugees might be the face of migration in the media and in public perception, the large majority of the world’s 258 million migrants have moved across borders voluntarily. What worries Koser most is that “we are quickly losing the space for a sensible, honest and informed debate about migration. There is a polarisation of views, between those who champion migrants and see all refugees as heroes, and those at the other end who believe all migrants, and especially wealthy migrants, are criminals. Of course, the truth is somewhere in between, and one of the key challenges is to overcome these generalisations”.

    Most voluntary migrants are working-age adults and can actively contribute to economic growth in their destination countries. For businesses, their different and complementary skills can positively influence innovation and enhance productivity. Research even shows that many times immigrants actually work harder than their native hosts. Obviously, Koser says, it would be hard to argue on a purely economic case for countries to take in migrants – there always will and has to be a humanitarian element. “But I think we need to cross the red line that has been somewhat drawn between humanitarian and economic arguments.”

    Migration of the Highly Skilled

    He stresses that there is a compelling case for countries to counter intolerance towards mi- grants, especially when it comes to attracting highly skilled migrants. “For them it is not all about salaries, they are mostly after higher living and working standards, including good healthcare, educational opportunities for their children and, most importantly, a safe living environment.” According to Koser, countries that cannot get on top of xenophobia will simply lose out on the global competition for talent, because the people that they want to attract will simply not want to live in an environment that is hostile towards foreigners of all shades.

    So what can governments do to bring their people along? Koser says the issue for politicians is that “the topic of migration is almost toxic. The downsides for them are greater than the upsides”. He sees the reason for this in the fact that migration certainly costs in the short term, especially when countries have to deal with a large inflow of migrants due to wars and economic crises. However, there is ample academic evidence that in the long term, migration, and the successful integration of migrants into the job market, pays off. ‘’The trouble is that politicians think in four or five year cycles, and there are easier ways to win votes than making a credible case for the long-term benefits of migration’’.

    According to Koser, it would be beneficial if corporates, business leaders and even immigrant investors openly champion the debate. ‘’ if they speak out and showcase why migration and a diverse workforce was beneficial for their businesses and the economy, I am sure people would listen.” The discussion also needs to move away from philosophies, such as multiculturalism and assimilation, and focus on the more practical aspects such as giving migrants the chance to get a job, which then translates into wider opportunities. This, he says, is particularly true for the 22.5 million refugees, who often spent many years in refugee camps where they are being cared for in terms of accommodation and food, but “what they really want is work”. Koser sees great opportunity for companies and institutions to utilise refugee skills to a much wider extent. This could include anything from manufactures tasking refugees with basic assembly jobs, to providing them with access to IT equipment and technology. This would allow them to carry out data processing, translation and online education jobs, and perhaps even writing code for companies around the world. “There is no end to what could be done, and this would also give refugees access to up-skilling initiatives and the opportunity for a better life.

    Making a Positive Impact

    Besides, more research is required about ways to influence politics and perceptions that are clearly misinformed. “My advice would be to look to other areas of public policy and countries where confidence plummeted after a crisis. Take Japan, which managed to re-build confidence in its economy after the nuclear disaster.” Then there are other ways to bridge the gap between humanitarian and economic arguments, between burden and benefit. “Investment migration just accounts for a small percentage of overall migration, but it generates significant funds, which in part could be used to address some of the causes of migration such as famine, poverty and climate change.” It is unrealistic to believe that migration can be stopped completely, according to Koser. Therefore, it is important that countries find ways to cope with it, and investment migration can become part of the solution.

    A Chat with Khalid Koser, Executive Director of the Global Community Engagement and Resilience Fund, Switzerland

    Source: IM Yearbook 2019/2020

  • Inside China’s Migration Industry: Too Big to be Ignored

    Chinese nationals are among the top applicants for residence programmes across the world; yet, they are encountering more barriers than ever to realising their emigration plans. Larry Wang, President of Well Trend, talks about the deregulation of immigration consultants in China, the EB-5 backlog, and what Chinese clients really want.

     

    How would you describe the current immigration market in China?

    The good news is that demand is still very strong, despite the fact that the Chinese economy is slowing down. December 2018 marked the 40th anniversary of China’s reform and opening- up policy, and the appetite to go abroad by those that got rich during the past decades continues unabated. The bad news is that the government has deregulated the market. From February 10th 2019, immigration consultants operating in China are no longer required to have a licence. My firm Well Trend has been around for 24 years, and we are now witnessing a massive influx of new start-ups.

    Why did China decide to drop the regulation at a time when most countries are moving towards regulating agents and service providers; and what effect will this have on the industry?

    I would really like to know the answer to that, but I can only guess that the Chinese Government wants to be seen as open. As I mentioned, we have seen a lot of new firms coming into this market. In one Chinese province we have seen almost 6,000 new immigration consultants starting to operate, and we estimate that in the whole of China close to 20,000 new immigration consultants entered the industry since the deregulation. Among them are wealth managers, real estate companies, and even travel agents who feel they have clients interested in migration products but don’t necessarily have the required knowledge and experience in this industry. I am pretty certain that a good number of these firms, prob- ably around 35% of the new entrants, will be gone in a few months, and the market will ultimately decide which firms are capable and therefore will survive. However, in the short term this means that clients need to choose carefully which immigration consultant they work with.

    How is the Chinese Government looking at the industry at the moment? There seems to have been a drive to get Chinese to invest at home rather than abroad.

    China is still encouraging people to go abroad, but the biggest challenge these people are currently facing are currency controls. It is not easy for Chinese high-net-worth individuals to transfer money abroad. Every Chinese individual is only allowed to transfer up to $50,000 per year out of China. Obviously, that is not enough for immigration purposes. Looking at the EB-5 Programme, they need to make an investment of $500,000. That means applicants would need to find 10 people who would pool in their annual quotas for moving money overseas, or use their international network to source the funds.

    What countries and programmes are high on the agenda of Chinese high-net-worth individuals?

    For 80% of our clients the two main drivers are securing visa-free travel for business and leisure, and better education for their children, whereby many families are seeking ‘native English education’. This also explains why the US and Canada are still the top two destinations for Chinese nationals. The issue with many other programmes, especially the European ones, is that they don’t provide English-speaking educational opportunities, and hence they are not as attractive. The fact that education is the main driver also means that the main applicants don’t necessarily want to go abroad themselves.

    What advice do you give them in relation to EB-5 given the long waiting time?

    In my opinion the EB-5 programme is not the best solution for many of our clients. As I mentioned, most Chinese just want to send their children to the US to study. Many of my clients are well-established and successful entrepreneurs who want to stay in China, and they also want their children to come back to China after completing their studies. We are also pointing out to our clients that once they have obtained their visa as part of EB-5, they have to live in the US, otherwise they might lose their status if they don’t apply for a leave of absence. So I think the EB-5 programme is not the ultimate solution, and depending on the circumstances, it makes more sense to apply for a student visa for their children.

    “December 2018 marked the 40th anniversary of China’s reform and opening- up policy, and the appetite to go abroad by those that got rich during the past decades continues unabated.”

    How attractive are programmes in Europe to your clients?

    It is increasingly becoming more difficult to enter the US and Canada, so our clients have no choice other than to consider other countries. Europe is becoming more and more popular in the Chinese market. The Greek programme is very price-competitive, and saw a lot of traction last year. However, I think a lot of agents have over-promoted the programme, and this year we will not see the same momentum as last year. The numbers will be lower. However, the investment of €250,000 is very attractive to the majority of people in China. In Beijing, real estate prices are excessively high, and for the price you need to pay for an entire house in Greece you would only be able to purchase a kitchen in Beijing. I also see Portugal, even though the investment requirement is double at €500,000, as an attractive market. Several years ago, there were some problems with the programme, but I hope to see the return of the Chinese in Portugal in 2019, especially with the US becoming more and more difficult. Given that it is English-speaking, Ireland is also becoming an attractive option. In my opinion, Malta and Cyprus need to stabilise their programmes, also vis-à-vis the European Union, in order for them to become more attractive. In Malta, the process is also very slow, and we have some clients who have been waiting for almost a year, which is very frustrating for them.

     

    What’s the acceptable timeframe for Chinese clients?

    That’s an interesting question, as most clients want to get their visa as soon as possible, even though they don’t want to go immediately. Once they have their visa, they often ask me when they have to be there at the latest for it not to expire. This is an issue of trust, and therefore, they want to hold the visa in their own hands as quickly as possible. I would say that three to four months is an acceptable processing time.

    Many programmes are coming up with different investment options. What is the preferred investment route of the Chinese?

    Well, I always advise clients that they first need to focus on the immigration aspect, and not on the return on their investment. While it is not impossible to achieve both, I always tell them to prioritise immigration. Overall, I am not a big fan of the equity option and programmes that require applicants to become a shareholder of a company. This route is too complicated for them. I think a loan option is a better way; it is much more straightforward and it is also a safer investment. In terms of real estate, I am not saying the opportunity in some countries is not good, but our time and energy is limited, and we need to focus on what makes most sense to our clients.

    What recommendation would you make to programme operators and agents seeking to market their programmes in China? 

    I would advise them to focus a bit more on the needs of the clients rather than their own. China is a very important market that should not be ignored. Due to the EB-5 backlog, some agents switched their attention to other markets, such as India and Vietnam, but even taken together, these markets are not as large as the Chinese market. I also feel that Chinese immigrants should be welcome wherever they go; they are very diligent, loyal and hard-working people. And I am pretty certain that the Chinese market is a lasting one that will be around for many years to come, although it is a bit difficult to ascertain which programmes will be popular in China over the coming five years.

    Interview with Larry Wang, President of Well Trend United, China

    Source: IM Yearbook 2019/2020

  • Why Strategy is Everything

    EB-5 has for many years been a runaway success. But with ever-increasing waiting times and long delays for some nationalities, defining the right strategy has become the most important exercise of the immigration process, says Edward Beshara, US Attorney at Law.

    The USA’s EB-5 Programme has long been considered the gold standard of residence- by-investment programmes in the world. However, to keep investor interest high, stability and predictability need to again become the hallmarks of the programme, says Edward Beshara of Beshara Global Migration Law Firm. “While there is definitely a need for new, modern legislation to ensure that EB-5 remains a competitive choice for high-net-worth investors now and in the future, there are also many other avenues that applicants can explore if they wish to enter the US. In fact, the EB-5 Programme might not always be the first or best choice,” he adds.

    Boom Years

    Although in existence since 1990, EB-5 experienced a boom in interest during the past 10 years following the 2008 financial crisis due to a com- bination of factors, says Beshara. With liquidity squeezed and banks refusing to lend, US developers started promoting the programme extensively in an effort to access low-cost EB-5 funds to secure financing for their projects. Another reason for the rise in applications was the co-occurrence of Canada’s decision to phase out its federal Immigrant Investor Program. The US suddenly became the preferred destination for wealthy foreign investors, predominantly mainland Chinese nationals, seeking both economic opportunities abroad, as well as educational opportunities for their children.

    Regaining Competitiveness

    “I think in some ways the EB-5 has become a victim of its own success,” says Beshara. “The waiting time for Chinese investors is just one example of this.” Due to the annual ceiling limit of 10,000 EB-5 Conditional Resident Visas for investors and their family members, and the presence of per country limits, Chinese investors today face an estimated waiting time of 14 years. He points out that applicants also need to take into account that the monthly State Department Bulletin for available visa numbers per EB-5 category is different than the actual or real time delays or retrogression. Beshara also mentions that in the early days of the programme, EB-5 petitions were approved in one to three months. As soon as the petitions were approved, investors could apply for their conditional residence visa. “In general, when we file a petition today, it takes about 24 months before the government comes back to us. Investors also need to factor in another five to six months until they receive their conditional green card. But as I mentioned previously, this timeframe is extended to 14 years before Chinese investors can apply for their Conditional Resident Visa.” Beshara believes that speeding up the petition and application process, as well as increasing the number of Conditional Resident Visas per year, would go a long way towards improving EB-5’s overall competitiveness.

    “We have to keep in mind that EB-5 is only one of many investment migration options avail- able in the global marketplace, and at times the investment opportunities offered in other countries might sound more appealing to investors,” says Beshara. “I always point out that the EB-5 investment is 100% at risk from a business perspective. Investors and their advisers need to do their homework and look into the projects they plan to invest in and their history of success. Businesses and projects can fail, and there cannot be a guarantee that investors will get their money back.” This also applies to projects associated with a Regional Centre licence. “While investment through the Regional Centre Programme can be an EB-5 compliant project for immigration purposes, it does not mean that the US Government is approving the business viability of the project.” 

     

    “The USA’s EB-5 Programme has long been considered the gold standard of residence- by-investment programmes in the world.”  

     

    A Plethora of Options

    Although new EB-5 legislation and/or US Immigration Regulations have yet to materialise, the US has not lost its appeal to wealthy investors. “However, it is essential to find the best strategy for each client,” says Beshara. In the past, Chinese nationals accounted for 85% of EB-5 investment volume and even though their numbers have dropped, they still are in the majority per year, according to Beshara. “The majority of investors are looking for relief from the quota backlogs and for greater certainty, and there are alternative US visas to the EB-5 Programme that can be more attractive, depending on the circumstances,” he says. Many of his clients are more interested in securing educational opportunities for their children rather than a new residence location for themselves. “In these cases, it makes a lot more sense to apply for a student visa.” Another option might be to apply for an E-2 treaty investor visa, which works for citizens of countries with bilateral investment treaties with the US. The E-2 visa may be obtained in a few months, for entry of the investor and their family.

    He also noticed a substantial increase in the volume of citizenship by investment applications in other countries, whereby the final goal remains to enter the US. “One solution involves obtaining citizenship in the Caribbean country of Grenada, a country that has both a citizenship by investment programme and a bilateral E-2 investment treaty with the US.” Once becoming a citizen, the new Grenada citizen is eligible to apply for an E-2 investor work visa for the US. This can be a solution to fill the gap until the investor is able to apply for US permanent residence, or it can be an option instead of the EB-5 visa scenario. Obtaining citizenship in Grenada may be the first choice compared to other E-2 treaty countries, given that high-net-worth investors can obtain citizenship in Grenada in three months.

    Despite these alternatives, Beshara believes that new EB-5 legislation is required sooner, rather than later. “The US remains a magnet for immigrants coming from all corners of the world, but in my opinion, Congress must act fast to push through new legislation otherwise investors will start seeking other options, some of which may be outside of the United States.”

    In Conversation with Edward Beshara, Managing Partner of Beshara Global Migration Law Firm, USA

    Source: IM Yearbook 2019/2020

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