Global Citizenship Seminar Southeast Asia June/July 2018

Transcription

1 Global Citizenship Seminar Southeast Asia June/July 2018

2 The Agenda

3 Contents 1. Henley & Partners and the Industry 2. Top Citizenship-by-Investment Programs 3. Top Residence-by-Investment Programs 4. Helping Clients Make Informed Decisions 5. Questions and Answers

4 Focus Residence and citizenship planning Program development for countries Clients High net worth individuals anand their families Governments worldwide Reach Over 30 offices around the world Global presence Track Record Over 20 years industry experience Investment migration pioneers

5 Global Presence Antigua and Barbuda Australia Austria Canada Croatia Cyprus Dominica Dubai (UAE) Grenada Hong Kong Jersey Latvia Lebanon Malaysia Malta Philippines Portugal Singapore St. Kitts and Nevis St. Lucia South Africa South Korea Switzerland Thailand Turkey United Kingdom Vietnam ` ` 9

6 Unique Track Record in Government Advisory Henley & Partners is the leading firm worldwide advising governments on residence and citizenship programs Its assignments range from strategic consulting to assistance in the design, set-up and operation of residence- and citizenship-by-investment programs

7 Selected Henley & Partners Government Advisory Milestones Design, implementation and international promotion of the Swiss Residence Program, which consists of agreements with a number of cantons and is linked to the lump-sum tax facility offered in the Swiss tax codes. Review and design of the new investment migration program for Latvia, which was launched in Widely recognized as one of the most advanced and successful residence programs in Europe. Review and reform of UK Tier 1 (Investor) Rules in Great Britain and launch of the new program in April Design, implementation and international promotion of the citizenship-by-investment program of St. Kitts and Nevis, the most successful citizenship program in the world until The firm also assisted in the negotiation of a visawaiver agreement between St. Kitts and Nevis and the EU. Design and partial implementation (including design of application forms) of a planned citizenship-by-investment program in Montenegro.

8 Selected Henley & Partners Government Advisory Milestones Mandated by the Government of Antigua and Barbuda to design and set up their new citizenship-by-investment program. Contracted by the government to promote the program internationally. Appointed by the Government of Grenada to revitalize and enhance its citizenship-by-investment program, making it competitive in the international market Review and reform of Canada s Federal Investor Immigration Program, including recommendation to increase required investments (together with HSBC Global Investor Immigration Services), which was implemented according to our recommendation. Design, implementation and international promotion of a new citizenship-by-investment program in Malta. The Malta Individual Investor Program is run by the government with Henley & Partners as concessionaire under a public services concession. It is the world s most successful citizenship program. Appointed as global concessionaire for the Thailand Elite Residence Program to assist with the global promotion of the program; development of a web-based application portal; and enhancement of the program.

9 The Difference Between Residence and Citizenship Programs Citizenship The right to vote Ability to pass citizenship on to future generations Allows international travel Affords protection from the state Residence The right to live, work, travel and study in a country Usually comes with conditions or requirements May give some travel rights Can be withdrawn Is likely to affect tax status

10 Reasons for an Alternative Residence Quality of Life Security Better quality of life, climate and personal security Cleaner environment Better healthcare and transport systems Safe alternative in times of instability More privacy in investment banking A defined and stable legal environment Education Taxes Graduation at high-ranking schools and language skills are becoming increasingly important as the basis for a successful career Often the only way to reduce the tax burden and regulatory restrictions legally is to relocate Henley & Partners Residence and Citizenship Insight Session 2018

11 Reasons for an Alternate Citizenship Mobility / Visa Waivers Protection & Security Freedom of movement when some nationals are overly exposed to physical or financial threats Opens travel to countries previously restricted by time-consuming visa application processes Increased privacy in banking and improved physical security Guarantees a secure and truly permanent alternative place to go; the permanent right to reside Independence Tax Planning & Expatriation Be able to travel or have the option to relocate at any time Freedom to retire in a safe country without worrying about changing immigration laws Citizenship is one of the tie-breaker rules in most double tax treaties To renounce citizenship another citizenship must be acquired first Henley & Partners Residence and Citizenship Insight Session 2018

12 Top Global Ranking 2018: The Henley Passport Index 2018

13 Southeast Asia Ranking 2018: The Henley Passport Index 2018

14 Trends and Developments in the Investment Migration Industry St. Lucia Dominica

15 Leading Citizenship-by-Investment Programs

16 Citizenship by Investment Programs There are currently only seven countries which offer citizenship programs that provide a direct legal route to citizenship based on capital contribution and which have passed Henley & Partners country due diligence Antigua & Barbuda Malta Austria St. Lucia Cyprus St. Kitts & Nevis Grenada Other countries have similar provisions. However, in those countries there is no established or clear practice and/or the programs are not transparent

17 Malta Individual Investor Program

18 Malta Introduction Population: 431,618 Among the earliest settlements in the world, 7,500 years of history EU member since 2004, member of the Schengen area since 2007 Portugal Citizens enjoy visa-free travel to 182 countries Malta Citizenship gives the right of employment and establishment in all 28 EU countries, EEA, and Switzerland

19 The Malta Individual Investor Program (MIIP) Launched in March 2014 Over EUR 1 billion has been added to Malta s Foreign Direct Investment pipeline High level of due diligence; only highly reputable applicants admitted Citizenship is granted to reputable applicants who pass due diligence and make a significant economic and social contribution to the country The program has been designed by Henley & Partners and is managed together with the Government of Malta

20 Main Requirements Contribution to the National Economic and Social Development Fund EUR 650,000 for main applicant EUR 25,000 for spouse EUR 25,000 for each dependent under 18 years EUR 50,000 for each dependent over 18 years A residence in Malta for at least five years Lease a property: annual rent over EUR 16,000; or Purchase of a property: value over EUR 350,000 Contributions to approved financial instruments EUR 150,000 into bonds for at least five years

21 First Steps to Securing Legal Residence in Malta The applicant must hold residence status in Malta for a minimum of 12 months prior to the issuance of a certificate of naturalization. As a minimum, this means: Holding a valid residence permit card for 12 months, which provides visa-free travel access to the Schengen area Renting or owning a residence in Malta Establishing links with Malta (coordinated by Henley & Partners) Spending a number of days in Malta in order to arrange the residence card, tender biometric data, pledge the Oath of Allegiance, etc.

22 Malta Summary Advantages Lowest capital requirements to gain EU citizenship No lengthy physical presence requirements No laws currently restrict the passing of citizenship down generations The only European citizenship-byinvestment program endorsed by the EU Nationality is protected by European law A new spouse may acquire citizenship in Malta after five years of Maltese citizenship and continuous relationship Disadvantages 12-month process before citizenship documents and passports are issued At least EUR 650,000 non-refundable contribution + -

23 Cyprus Citizenship-by-Investment Program

24 Cyprus Introduction Cyprus is a small island located in the Eastern Mediterranean Sea. A former British colony, Cyprus became independent in 1960 Cyprus has a dynamic and flexible economy; and has established itself as a business and service center for shipping, banking, and commerce Cyprus Full EU member state enjoying all the benefits that EU citizenship offers including right of work and establishment in all 28 EU countries

25 Cyprus Citizenship-by-Investment Program Citizenship of an EU member of state, and as an EU citizen you enjoy the right to freedom of movement, freedom to work and study, and security within the EU social and legal system Full citizenship with passport is granted to the applicant and family A Cypriot passport allows visa-free travel to 171 countries including Canada, Hong Kong, Singapore, and the UK Flexible options with no residence required and granting of citizenship within 180 days A simple documentation process for investing, not donating, your wealth

26 Main Requirements Qualifying options; real estate or financial structure* EUR 2 million Real estate purchase option EUR 2 million Local business activities option EUR 2 million Participation in alternative investment funds A residence in Cyprus forever** EUR 500,000 in private residence if a residential real estate was not the qualifying investment property Due diligence and government fees EUR 7,820 per applicant over the age of 18 VAT and other taxes depending on selection *You may select a combination of any of the above qualifying options amounting to at least EUR 2 million. This combination may include a maximum contribution of EUR 500,000 in special government bonds of the Republic of Cyprus (excluding those on secondary market) **If qualifying by a EUR 2 million private residence purchase, you may liquidate after three years and replace your private residence with a EUR 500,000 property

27 Comparison of European CBI Programs Cyprus Malta Government processing time: 6 months months Visa-free access to: 163 countries 173 countries Important visa-free travel destinations: To qualify for citizenship, applicants have two options: Canada, Europe s Schengen, UK, Singapore, Hong Kong Canada, Europe s Schengen, UK, US, Singapore, Hong Kong Best passport for travel: 15 th best worldwide 7 th best worldwide Minimum investment / contribution: EUR 2 million* EUR 880,000* Must hold period for assets: Time required in the country: Three years Two mandatory visits and no physical presence requirement Five years Two mandatory visits and at least 14 days in 12 months from starting your application * These fees represent the minimum contribution for a single applicant and applicants would still incur additional property transaction costs and/or misc. government fees, due diligence fees and processing fees Henley & Partners Residence and Citizenship Insight Session 2017

28 Henley & Partners Residence and Citizenship Insight Session 2017

29 Grenada Citizenship-by-Investment Program

30 Grenada Introduction Population: 108,146 Member of the Commonwealth Tourism-based economy The Spice Island, formerly agriculture dominant Grenada Tropical rainforests, waterfalls and magnificent beaches Direct flights to London, Frankfurt, New York, and Miami

31 Grenada Citizenship-by-Investment To qualify for citizenship, applicants have two options: A contribution to the National Transformation Fund of USD 150,000 for a single applicant Purchase of government approved and designated real estate with a value of at least USD 350,000 An additional flat government fee of USD 50,000 applies for the real estate option. Additional due diligence fees of USD 5,000 apply for both options. Additional government processing fees of USD 1,500 apply for both options. Government application and passport fees of USD 1,750 apply for both options.

32 Grenada Taxation Income tax rate the first XCD 36,000 per annum is exempt, whereas the next XCD 24,000 is taxed at 15% and the excess thereof at 30% Flat tax rate for companies is 30% Withholding tax of 15%, which must be withheld on any payments sent to a non-resident for interest (except from bank deposits), rent, lease premiums, licenses, royalties, management charges, commissions, and fees VAT is 15% and 10% on hotel and villa-type accommodation and dive activities Property transfer tax for citizens is 5% payable by the vendor or seller Annual taxes in Grenada include property tax 0.2% of the market value for residential property as it relates to land; and 0.3% on building Stamp tax on business receipts is 0.75% if gross receipts are over XCD 300,000 and 0.5% on lower amounts. The first XCD 36,000 is exempt from annual stamp tax

33 Grenada Citizenship-by-Investment Program Fast processing time Relatively inexpensive Visa-free travel to 141 countries including China E-2 Investor Visa Treaty St. George s University (American offshore) No wealth, gift, inheritance, foreign income or capital gains tax Citizenship by descent

34 St. Lucia Citizenship-by-Investment Program

35 St. Lucia Introduction Population: 179,667 Member of the Commonwealth Legal system: English Common Law Government: Parliamentary Democracy Tourism-based economy English-speaking nation St. Lucia Eastern Caribbean Dollar (XCD) Tropical Climate

36 St. Lucia Citizenship-by-Investment Program A contribution to the St. Lucia National Economic Fund of USD 100,000 To qualify for citizenship, applicants have four options: Purchase of an approved real estate project with minimum value of USD 300,000 A contribution to an approved Enterprise Project with minimum value of USD 3.5 million Due diligence and government fees are charged on all options.

37 St. Lucia Qualifying Options Contribution to the National Economic Fund A non-refundable contribution to the National Economic Fund (NEF) of USD 100,000 (for a single applicant). An applicant may make the contribution under one of the four following categories: Main applicant USD 100,000 Main applicant and spouse USD 165,000 Main applicant, spouse and up to two other qualifying dependents USD 190,000 Each additional qualifying dependent of any age USD 25,000 Due diligence fees are USD 7,500 for the main applicant, and USD 5,000 for each qualifying dependent over 16. Government processing fees are USD 2,000 for the main applicant and USD 1,000 for each qualifying dependent.

38 St. Lucia Qualifying Options Purchase of Approved Real Estate Purchase of approved real estate with a minimum value of USD 300,000, which must be held for a minimum period of five years. Additional costs may also be incurred depending on the real estate developer. The following government administration fees will also apply: Main applicant USD 50,000 Spouse USD 35,000 Dependent under 18 years USD 25,000 Dependent 18 years and older USD 35,000 Due diligence fees are USD 7,500 for the main applicant, and USD 5,000 for each qualifying dependent over 16. Government processing fees are USD 2,000 for the main applicant and USD 1,000 for each qualifying dependent.

39 St. Lucia Qualifying Options Contribution to an Approved Enterprise Project A contribution to an approved Enterprise Project (as set out in the regulations) with a minimum contribution of USD 3.5 million plus the creation of no less than three permanent jobs, or a joint contribution of USD 6 million (each applicant contributing a minimum of USD 1 million) plus the creation of no less than six permanent jobs The following government administration fees will also apply: Main applicant USD 50,000 Spouse USD 35,000 Dependent under 18 years USD 25,000 Dependent 18 years and older USD 35,000 Due diligence fees are USD 7,500 for the main applicant, and USD 5,000 for each qualifying dependent over 16. Government processing fees are USD 2,000 for the main applicant and USD 1,000 for each qualifying dependent.

40 St. Lucia Taxation No capital gains or inheritance taxes Personal income tax allowance of XCD 18,000 is granted; thereafter tax is progressive up to 30% 10% on the first XCD 10,000, 15% on second XCD 10,000, 20% on third XCD 10,000, and 30% thereafter Individuals who have their permanent residence in St. Lucia, as well as those who reside in the country for less than 183 days a year, are only subject to tax on income earned in St. Lucia and not on worldwide income Business and corporate tax rate of 30% of net profits Attractive concessions available to qualifying companies Company dividends are not subject to tax Standard VAT rate of 15% Property tax rate of 0,25%

41 St. Lucia Citizenship-by-Investment Visa-free travel to 142 countries including Europe s Schengen area, Hong Kong, and the UK Equality of citizenship with natural born citizens Ability to pass on citizenship by descent No residence requirement No need to travel to St. Lucia during the application process St. Lucia recognizes dual citizenship No country restrictions No capital gains tax Good air links into and out of St. Lucia to most major cities

42 Comparison of Caribbean CBI Programs Antigua and Barbuda Grenada St. Kitts and Nevis St. Lucia Government processing time: 3 5 months 3-5 months 2* 5 months 3-5 months Visa-free access to: 149 countries 141 countries 151 countries 142 countries Important visa-free travel destinations: Minimum real estate purchase**: UK, Schengen, Singapore, Hong Kong To qualify for citizenship, applicants have two options: USD 200,000*** (available till 31 October 2018) China, UK, Schengen, Singapore, Hong Kong USD 350,000 UK, Schengen, Singapore, Hong Kong USD 200,000 / USD 400,000 UK, Schengen, Singapore, Hong Kong USD 300,000 Must hold period for real estate: Five years Three years Seven years / Five years Five years Minimum contribution**: USD 100,000 (available till 31 October 2018) USD 150,000 USD 150,000 USD 100,000 Physical presence required in the country: Five days within the first five years None None None *A fast-track processing option ( Accelerated Application Process ) is available for an additional due diligence fee payable to the government ** These fees represent the minimum contribution for a single applicant and would still incur property transaction costs and/or misc. government fees, due diligence fees and processing fees that differ per program *** The minimum investment requirement remains at USD 400,000, however, two applications from related parties can make a joint investment, with each applicant investing a minimum of USD 200,000 in order to qualify Henley & Partners Residence and Citizenship Insight Session 2017

43 Dependents Child Dependents Age Adult Dependents Age Antigua & Barbuda Grenada 30 (Don t need to be enrolled in school) St. Kitts & Nevis 30 (Don t need to be enrolled in school) St. Lucia Succession investment that can be handed down through generations Future spouses may also get the citizenship 22

44 Leading Residence-by-Investment Programs

45 Residence-by-Investment Programs Henley & Partners handpicks the most attractive countries with regard to mobility, security, privacy, personal tax, and lifestyle. Australia Hong Kong Singapore Austria Malaysia Switzerland Belgium Malta Thailand Canada Monaco UK Channel Islands New Zealand US Cyprus Portugal

46 United Kingdom Investor Immigration Program

47 United Kingdom Introduction Population: million One of the most attractive places in the world to live and do business United Kingdom International business environment London is the financial capital of the world World-renowned schools and universities Well connected with direct flight connections to almost all major cities in the world Strong and stable rule of law

48 United Kingdom Investor Immigration Program Part of the points-based system, the Tier 1 Investor category is for high net worth individuals who want to make a financial investment in the UK Quick processing time of one to six weeks No requirements on English language for the first five years Applicants are permitted to be gainfully employed or study in the UK Different Program Options: GBP 10 million or more may apply for PR after two years GBP 5 million or more may apply for PR after three years GBP 2 million or more may apply for PR after five years

49 United Kingdom Permanent Residence Status Conditions for Permanent Residence (PR) Residence Required English Requirement No Expiry Date No more than 180 days spent outside the UK in any 12-month period All applicants must pass a simple Life in the UK test (very easy, multiple choice) PR, once granted, has no expiry date PR will remain in force as long as the holder does not spend more than two years consecutively outside the UK

50 United Kingdom Conditions for Citizenship Heading Each applicant must spend, on average, 75% of their time in the UK over five years Unlike for PR, each individual is on their own time-line

51 United Kingdom Taxation Progressive income tax up to 45% Capital gains tax up to 28% No wealth tax Inheritance tax at 40% The obligation of personal UK taxes is based around the concepts of residence and domicile It is possible to be resident in the UK for tax purposes but non-domiciled. This can provide many tax benefits

52 United Kingdom Summary Advantages London is among the financial capitals of the world World-renowned schools Attractive tax system for wealthy individuals (resident, non-domiciled rules) Disadvantages Requirement for minimum physical presence Citizenship only after minimum five years of residence Straightforward investment migration program with fast processing time + -

53 Portugal Golden Residence Permit Program

54 Portugal Introduction Population: 10.3 million Lisbon, Oporto and Guimarães have been European Capitals of Culture The Algarve is a scenic treasure with a long coastline of golden beaches and dramatic cliffs Portugal A Portuguese residence card allows you to live, work, and study in Portugal

55 Portugal The Golden Residence Permit Program A capital transfer Qualifying Options Purchase of real estate A venture that creates 10 jobs Alternative investments Allowing non-eu citizens to apply for a temporary residence permit based on capital contributions to Portugal Since the program s launch, over 6,000 permits have been issued, families who have started their applications to date have committed over EUR 3.5 billion in foreign direct investment

56 Portugal Residence-by-Investment Program Requirements Current Options A. EUR 1 million; or B. EUR 500,000 a) Capital transfer into Portugal (flexible investments) b) Purchase of real estate anywhere in Portugal Additional Options D. EUR 500,000; or E. EUR 350,000; or F. EUR 250,000 c) Capitalization of small/medium enterprises (SME) d) Real estate purchase in an urban regeneration area e) Real estate purchase older than 30 years f) Investment into research activities g) Artistic production or natural heritage Government fees over the five-year permit period: EUR 11,830 for main applicant EUR 10,530 for each dependent aged 16 or over

57 Portugal Statistics (8 October 2012 to 31 March 2018) Total Approval = 6,050 62% China 9% Brazil 4% South Africa Investment Route 95% Real Estate 5% Capital Transfer Real Estate 98% opt for EUR 500,000

58 Portugal Summary Advantages Top ranked residence program Low cost, may be income-producing and may be recovered Gives visa-free travel within the Schengenarea Physical presence requirements are quite low, averaging seven days per year Disadvantages A residence permit provides authorization to reside not an absolute right to reside Your permit must be renewed after the first year, and every two years thereafter Authorization could be terminated without notice Laws can change which may affect your residence status + -

59 Portugal Requirements for Citizenship Yes A separate application for each person aged 18 and over Letter from government stating you were a recognized resident in Portugal for six or more years Reasonable knowledge (A2 level) of the Portuguese language Must not have been convicted of a crime Tangible connections with the Portuguese community: o o o o Portuguese bank accounts, income, investments Residential address and ownership Memberships of sports or leisure clubs, library, etc. Contribution of money and support to local charities

60 Spain Golden Residence Permit Program

61 Spain Introduction Population: 46.5 million Tourism contributed a total of billion to the economy in 2017 and creates 2.65 million jobs Barcelona is the 8 th most popular destination in Europe, 25 th in the world Spain A Spanish residence card allows you to live, work, and study in Spain

62 Spain The Golden Residence Permit Program A capital transfer Qualifying Options Purchase of real estate Creation of business project Investment into bonds Allowing non-eu citizens to apply for a temporary residence permit based on capital contributions to Spain Since the program s launch, over 2,900 permits have been issued, families who have started their applications to date have committed over 2.2 billion in foreign direct investment

63 Spain Residence-by-Investment Program Requirements Current Options A. EUR 1 million; or B. EUR 500,000 a) Capital transfer into Spain b) Purchase of real estate anywhere in Spain Additional Options D. EUR 2,000,000; c) Creation of business project deemed to be of General Interest d) Investment into Government Bonds Over 75% of applicants apply with real estate investments Chinese are the highest proportion of applicants followed by Russians

64 Portugal vs Spain Portugal Spain Minimum Investment EUR 250,000* EUR 500,000* Visa-free access to: Schengen Schengen To qualify for citizenship, Time required applicants in the country have to two options: maintain visa: 7 days per year None Dependents: Children still enrolled in school and not married Parents and In-laws Children still enrolled in school and not married Only 1 set of Parents Public Benefits Immediate upon approval with self payment of Social Security After 1 year of residence with self paid monthly fees Must hold period for assets: Length of Visa or Until Citizenship Length of Visa or Until Citizenship * These fees represent the minimum investment for an application and each application would still incur additional property transaction costs and/or misc. government fees, due diligence fees and processing fees ** Program requirements and processing times are subject to constant changes Henley & Partners Residence and Citizenship Insight Session 2017

65 Spain vs Portugal Path to Citizenship Portugal Spain Residence Time Required to Apply for Citizenship 7 days per year for 6 years 183 days per year for 2 years** (Only for Filipinos, others is 10 years) Residence Time Required to Await Passport To qualify for citizenship, applicants have two options: UNKNOWN Currently 183 days per year for 2 years Taxation 10 Year Non-Habitual Waiver Global Taxation for Tax Residents Language Requirement Portuguese A2 Level Spanish B2 Level Other Requirements Other Requirements Life is Portugal Test UNKNOWN Life is Portugal Test UNKNOWN Constitutional Exam Prove ties Constitutional Exam Prove ties * Program requirements and processing times are subject to constant changes Henley & Partners Residence and Citizenship Insight Session 2017

66 Thailand Elite Residence Program Residence-by-Investment Program

67 Thailand Introduction Population: million Currency: Baht (THB) Member of the WTO, APEC, and a founding member of ASEAN Industrial and service-based economy Thailand has moved from a low-income to an upperincome country in less than a generation Thailand Affordable, yet high standard of living Known as The Land of Smiles due to the friendly nature of its people Popular tourist destination Tropical climate

68 Thailand Elite Residence Program 1. Elite Ultimate Privilege 20-year residence visa To qualify for the Privilege Entry Visa, applicants must be a member of Thailand Elite, which has seven different program options: 2. Elite Family Premium Attached to Elite Ultimate Privilege member 3. Elite Superiority Extension 20-year residence visa 4. Elite Privilege Access 10-year residence visa 5. Elite Family Alternative 10-year residence visa 6. Elite Family Excursion five-year residence visa 7. Elite Easy Access five-year residence visa Certain complimentary VIP services are included depending on the option chosen

69 Thailand Elite Residence Program

70 Thailand Elite Residence Program

71 Thailand Elite Residence Program

72 Thailand Taxation Taxpayers are classified as either resident or non-resident Resident means any person residing in Thailand for a period(s) aggregating more than 180 days in any tax year Residents pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is remitted to Thailand in the same year it s earned Delaying remittance of earned income to Thailand to the following year is, therefore, an attractive tax benefit to a resident Non-residents are only subject to tax on income from sources within Thailand and may transfer foreignsourced income to Thailand without restriction Personal income tax rates are progressive up to a maximum of 35% It is possible to acquire a tax number if you have income sourced in Thailand (for example rental income). Tax certificates are available for residents who stay more than 180 days per year in Thailand

73 Thailand Summary Advantages Residence in Thailand is possible for a few days, a few months, or an unlimited period within the validity of the chosen package Attractive tax benefits Disadvantages The residence visa obtained through the Thailand Elite Residence Program does not lead to permanent resident status or citizenship because it is not classified as a non-immigrant visa Complimentary VIP services including a dedicated Elite personal assistant for international flights and lounge access, express airport transfers, and a 24-hour member contact center which operates in several languages Affordable, yet high standard of living + -

74 Australia Residence-by-Investment Program

75 Australia Introduction Population: million (2017) Multicultural society Structured approach to immigration Australia welcomes people to work and invest A high quality, affordable lifestyle First class English education system World class healthcare system Wonderful climate Australia World s cleanest air (Tasmania)

76 Australian Business Innovation and Investment Program

77 The Business Innovation and Investment Program (visa subclauses 188 & 888) 1. The Business Innovation Stream For people with a successful business career and a genuine commitment to be involved as an owner in a new or existing business in Australia 2. The Investor Stream For people with a successful record of qualifying business or eligible investment activity who make a designated investment of AUD 1.5 million in a state or territory of Australia. 3. The Significant Investor Stream For people who make an investment of at least AUD 5 million into a complying investment in Australia 4. The Entrepreneur Stream For business entrepreneurs who have secured a legally binding agreement to receive venture capital funding in Australia Involves a two-stage visa process: Applicants initially obtain a four year provisional (temporary) visa and then, after demonstrating a certain level of business or investment activity, they are eligible to apply for the permanent Business Innovation and Investment (subclass 888) visa. 5

78 1. The Business Innovation Stream (visa subclasses 188A & 888A) (1/2) Applicants are expected to provide valuable input to the Australian economy and must: Obtain and maintain substantial ownership in a business Participate, at a senior level, in the day-to-day management of the business Contribute positively to the economic development of the state Applicants must also meet the following requirements: Be less than 55 years of age Meet the business skills points test pass mark Have a genuine and realistic commitment to undertake business in Australia Have an overall successful business career Have net business and personal assets of AUD 800,000 Have business turnover of at least AUD 500,000 6

79 1. The Business Innovation Stream (visa subclasses 188A & 888A) (2/2) After four years, applicants must meet the following requirements to be eligible for PR Have owned and operated a business in Australia while on the provisional visa The business has annual turnover of at least AUD 300,000 for 12 months before you apply Have a genuine and realistic commitment to continue in business in Australia Have held the provisional visa and lived in Australia for at least one year in the last two years Must satisfy two out of three additional criteria: o own at least AUD 200,000 net personal assets in the main business o have a net value of personal and business assets of AUD 600,000 o have two full-time employees 7

80 2. The Investor Stream (visa subclasses 188B & 888B) Applicants must make an investment of AUD 1.5 million into a state or territory government bonds for four years Applicants must also meet the following requirements: Be less than 55 years of age Meet the business skills points test pass mark Have at least three years business or investment experience Have net business and personal assets of at least AUD 2.25 million After four years, applicants must meet the following requirements to be eligible for PR: Have continuously held the investment for four years Have a genuine and realistic commitment to continue in business or investment in Australia Have held the provisional visa and lived in Australia for at least two years in the last four years 8

81 3. The Significant Investor Stream (visa subclasses 188C & 888C) Applicants must make an investment of AUD 5 million into a complying investment fund and maintain their investment for at least four years At least AUD 500,000 must be invested into a Venture Capital fund At least AUD 1.5 million must be invested into an emerging companies fund The balance of AUD 3 million can be invested into other eligible assets Applicants must also meet the following requirements: Must meet standard health and character requirements Must lodge an expression of interest and be sponsored by a state or territory No upper age limit or minimum English requirement No need to satisfy the business skills points test After four years, applicants must meet the following requirements to be eligible for PR: Have continuously held a minimum of AUD 5 million in a complying investment fund for at least four years Have been in Australia for a cumulative period of 160 days over the four year period of the provisional visa Applicants may be eligible to renew the visa up to two times for two years each time 9

82 4. The Entrepreneur Stream (visa subclasses 188E & 888E) (1/2) Applicants must have signed a legally binding agreement to receive AUD 200,000 in venture capital (VC) funding Applicants must also meet the following requirements: Be less than 55 years of age (no waiver) Must have competent level English (no waiver) Must have sourced VC funding to undertake a complying entrepreneurial activity which must not relate to any of the following excluded categories: o Residential real estate o Labor hire o Purchase of an existing enterprise or a franchise in Australia Must hold at least 30% interest in your entrepreneurial entity Must have a detailed business plan After four years, applicants must meet the following requirements to be eligible for PR: Lived for two of the four years in Australia Undertaken activities of an entrepreneurial nature Meet a combination of key success factors and supporting success factors 10

83 4. The Entrepreneur Stream (visa subclasses 188E & 888E) (2/2) Key Success Factors: Employing 2 or more Australians Annual turnover of at least AUD 300,000 Filing or acquiring a standard or innovation patent Receiving ongoing funding or investment in your entrepreneur activity Entering into a partnership with a university Selling your entrepreneurial venture for at least AUD 2 million Supporting success factors include: Diversifying entrepreneurial activities Receiving a statement of success from government Receiving sponsorship from the corporate sector Starting at least one other business Receiving formal awards or recognition 11

84 Australian Business Talent Visa Program

85 The Business Talent Program (visa subclause 132) 1. The Significant Business History Stream For highly successful business people who wish to invest in or start a significant business in Australia 2. The Venture Capital Entrepreneur Stream For entrepreneurs with a high-value business idea who have sourced AUD 1 million in venture capital from an Australian company or institution specified by the Immigration Minister These are permanent residence visas there is no provisional visa stage. 13

86 1. Significant Business History Stream (visa subclass 132) For highly successful business people who wish to invest in or start a significant business in Australia. Applicants must maintain: Substantial ownership in the business Direct involvement in the day-to-day management of the business and be a decision maker To be eligible, applicants must meet the following requirements: Be less than 55 years of age Be high calibre and business owners Have net business and personal assets of at least AUD 1.5 million including at least AUD 400,000 being net business assets Own a business in the home country with annual turnover of at least AUD 3 million for at least two of the last four fiscal years 14

87 2. Venture Capital Entrepreneur Stream (visa subclass 132) For entrepreneurs with a high-value business idea, who have sourced AUD 1 million from an Australian VC company. Applicants must meet the following requirements: Be less than 55 years of age Have entered into a formal agreement to receive at least AUD 1 million in VC funding Funding must be for the start-up, product commercialization, or business development of a promising high-value business idea VC firm must be a member of the Australian Private Equity and Venture Capital Association Limited (AVCAL) Have a genuine and realistic commitment to continuously maintain an ownership interest and engagement in your business and/or investment 15

88 Australia Citizenship Lived in Australia as a lawful resident for at least four years, including one year as a permanent resident* Pass an English test (reading, writing, listening, and speaking**) Pass a citizenship test Show the steps they have taken to integrate into and contribute to the Australian community Applicants must pass the Australian Citizenship Test, which focuses on Australia s values, history, and traditional and national symbols An applicant can fail the citizenship test only three times * Likely to change to four years of permanent residence in 2018 ** Legislation to introduce the English test is currently before the Australian parliament.

89 Australia Taxation Progressive tax rates on income and capital gains of up to 45% (50% discount when capital assets have been held for at least 12 months) Australian tax residents are taxed on their worldwide income and capital gains No wealth tax No inheritance tax

90 Australia Summary Advantages Multicultural society and a good place to live High tax rates Disadvantages Proximity to Asia Excellent education system Excellent healthcare system Low population density Acquisition of citizenship possible after five years + -

91 Questions and Answers

92 Comprehensive Advisory Process Focus: Introduction of client Develop a medium to long-term residence and/or citizenship strategy Provide a fully-managed process for busy people Implement and manage all administrative tasks when able. Fly to visit, meet at their office or home Procure the desired citizenship and/or citizenship Ongoing strategy optimization Implement strategy Understand client profile Define strategy Henley & Partners office in the target country Henley & Partners office nearest to the home country of the client

93 Your Partner for Residence and Citizenship Advising hundreds of clients every year on residence and citizenship Mandated by governments worldwide Henley & Partners The Leader in Residence and Citizenship Planning Our unique knowledge and experience is your advantage