The purpose of the Immigrant Investor Programme ("IIP") is to enable non-EEA nationals and their families who commit to an approved investment in Ireland to acquire permanent residency in Ireland.

The IIP was set up by the Irish Government in 2012. The most recent statistics released by the Department of Justice and Equality for 2014 show that a total of 41 investors had been approved to that date, with a combined investment of over €40 million.

There are essentially two components to an IIP application, the person and the investment. The personal criteria relate to the good character of the individual, their net worth and the providence of the funds to be invested. The investment component relates to the nature of the proposed investment.

Individuals can apply to the IIP without committing any investment funds. An individual must choose one of six eligible investments to invest in and submit the required documentation as described in this bulletin. Once the application has been approved, the investment may then proceed, and once the funds have been invested the individual and their family will be issued with permission to reside in Ireland.

IRISH RESIDENCY

Successful applicants can expect to receive residence permission for 5 years. An initial permission will be granted for two years and following a review at that point to ensure the investor is continuing to meet the conditions of the scheme, a further period of 3 years will be granted. After this initial 5 year period, the investor will be free to apply for residence indefinitely in 5 year tranches.

There is no minimum residence requirement other than that the persons concerned spend at least one day in Ireland every year. The investor is not required to establish actual residence in Ireland. The IIP is about rights of residence that the investor may exercise as their business and family needs dictate.

The Immigrant Investor Programme does not provide for preferential access to citizenship. Successful applicants are free to apply for naturalisation in the normal manner. This process is set out in brief below.

ELIGIBLE INVESTMENTS

1. Immigrant Investor bonds

A minimum of €1,000,000 invested in the immigrant investor bond issued by Ireland through the National Treasury Management Agency. The bond has a term of five years at 0% interest. The bond is not tradable and must be held for the full period of five years until maturity.

No supporting documentation is required other than the personal requirements set out below.

This option is suitable for investors who require an easy and risk neutral investment. It is a Government guaranteed investment.

2. Enterprise Investment

A minimum of €500,000 invested in either a single Irish enterprise or spread over a number of enterprises for a minimum of three years.

The enterprise can be a start-up or existing business but must be registered and headquartered in Ireland and the investment must support the creation or maintenance of employment. The purchase of publicly traded securities will not be considered an eligible investment. The investment must be made in the name of the individual seeking residence.

The most recent audited accounts must be submitted for existing businesses. A business plan must also be submitted for all businesses, indicating how the investment will help create or maintain employment. A template business plan is available.

This option facilitates investors who have their own investment or business strategy and see the benefits of Ireland as an investment location.

3. Investment Fund

A minimum of €500,000 invested in an approved investment fund. The investment must be held for a minimum period of three years.

There is no list of approved funds available, and the essential consideration in the assessment of each proposal will be an actual investment in Ireland and potential job creation.

The Irish Naturalisation and Immigration Service have specific guidelines in relation to the type of fund they approve. In general the monies invested by the fund must represent equity stakes in companies not quoted on any stock exchange. The funds and fund managers must be regulated by the Central Bank. There are a number of funds in Ireland which have been set up specifically with IIP investors in mind.

This option allows investors to avail of the services of approved professional investment intermediaries to invest in the future potential of Ireland's Enterprise sector.

4. Real Estate Investment Trust ("REIT")

A minimum of €2 million invested in any Irish REIT that is listed on the Irish Stock Exchange. The investment may be spread across a number of different Irish REITs. The full investment must be held for a minimum period of three years. During this period the number of shares approved must be retained even if their value rises above the original €2 million investment. After three years the investor may divest up to 50% of the shares purchased for the IIP, and after four years the investor may divest no more than a further 25%. After five years there are no retention obligations.

No supporting documentation is required other than the personal requirements set out below.

An investment in a REIT provides an investor with a lower-risk property investment model in which the investment is diversified into a pool of properties. The debt limits within REITs reduce exposure to negative equity risk. REITs are exempt from corporation tax and are required to distribute the majority of profits each year, so generate a regular stream of income for investors.

5. Mixed Investment

This comprises the purchase of a residential property in Ireland, to be used as the investors' residence in Ireland, with a minimum value of €450,000 and a €500,000 investment in the Immigrant Investor Bond, giving a total investment of €950,000. Residential properties purchased as "buy-to-let" investments are not eligible. The mixed investment must be held for a minimum period of five years.

In addition to the personal requirements below, the applicant must provide evidence of the property investment in the form of an original document from a legal adviser permitted to practice in Ireland confirming that the applicant has had an offer for purchase accepted on the property in question.

This option facilitates investors and their family members who wish to move to Ireland for business or education purposes.

6. Endowment

A minimum endowment of €500,000 is required in a project of public benefit in the arts, sport, health, cultural, or educational field. It will be regarded as a philanthropic contribution and investors will receive no financial return.

A business plan must be submitted, detailing how the investment is going to be utilised by the beneficiary and how it will be of public benefit.

WHO IS ELIGIBLE?

The programme is open to non-EEA nationals with a net worth of over €2 million. Individuals must be of good character and not convicted of a criminal offence in any jurisdiction. The funds used for the investment must be the individual's own funds, they cannot be borrowed.

Eligible Family Members

Residency under the programme is also available to spouses/partners and children under 18 years of age for whom the applicant and/or their spouse or partner has legal guardianship. In certain cases children between the ages of 18 and 24 will be considered where they are unmarried and are financially dependent on their parents.

PERSONAL REQUIREMENTS

Evidence of Net Worth

The individual must demonstrate that they have a legally acquired minimum net worth of €2 million. In addition to this declaration, the individual must provide an explanation of all activities for the previous 12 months including their income, investments and loans.

Evidence and Provenance of funds

The individual must provide evidence of the funds that are to be used for the proposed investment, evidence of the provenance of those funds and evidence that the funds are transferrable to Ireland and convertible to euros.

The Irish Naturalisation and Immigration Service have a list of specific information they require in relation to the following four sources of funds: business and investment activities, deeds of sale, inheritance, and divorce settlements. If the funding has been received from an alternative source the individual must provide original documentation and independent supporting documentation as evidence.

Statement of Character

The individual must submit a statement of character, both for themselves and for any family members, from the police authorities of each country in which they have resided for more than six months during the previous 10 years.

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.