On Tuesday 14 February, the Irish government announced the closure of the Immigrant Investor Programme (IIP). IIP applications via approved projects may be granted a grace period of three months to submit the finalised application. Any interest in IIP is the last chance and would have to apply on an urgent and immediate basis or the programme will no longer be available. Contact us now.
The small town of Ballina in County Mayo on Ireland’s west coast lies at the mouth of the River Moy and can count among its notable residents Mary Robinson, Ireland’s first female president, who served from 1990 to 1997.
Lately, its inhabitants have had something to celebrate and the town has been awash with flags and fanfare. This is because Ballina is also the ancestral home town of the new President of the United States, Joe Biden.
In the early 19th century, Biden’s great, great, great grandfather, Patrick Blewitt, called Ballina home. That was until 1851 when, spurred by the Irish potato famine, he cast his sights on America and headed West, settling in Scranton, Pennsylvania.
Almost a century later, in 1942, Biden was born in that very city. Yet Biden has maintained an affinity for Ireland and in 2016 made a trip to Ballina where the warmth of its residents was on full display as thousands lined the streets to greet him. Biden embraced Ballina’s people – and made contact with relatives who still reside there.
Cityscape of Ballina Ireland
Biden’s visit also served to inspire many in Ballina, reminding them that anything is possible. Not only has Ballina spawned the nation’s first female president, but it can now count the President of the United States of America among those the town is proud to call its own.
In a letter from the President of Ireland to Joe Biden on 20 January, Michael D. Higgins wrote to congratulate the new President of the United States and referenced an Irish proverb: “Is ar scáth a chéile a mhaireann na daoine”, which means, “we live in each other’s shadow and in each other’s shelter.” He added that “It reminded me that we are all interconnected, we are all interdependent, we all have an effect on each other on this fragile planet that we share.”
Higgins went on to say, “The US has been a true friend to Ireland in so many ways. Your own friendship and support for so many years has been invaluable. Ireland, of course, has made its most valuable contribution to your great land by providing so many of our daughters and sons. The descendants of some turned out to be rather fine Presidents!”
For Biden is not the only American President with Irish roots – others include Barack Obama, George H. W. Bush and George W. Bush, Ronald Reagan, Jimmy Carter, Richard Nixon, Woodrow Wilson, and famously John F. Kennedy, to name a few. The inauguration of Joe Biden means that 23 of the 46 US Presidents have Irish ancestors, it’s an impressive 50%.
Yes Biden is among the most outward in his affection for Ireland; he has embraced his Irish roots and Catholic faith. He has quoted Irish poet Seamus Heaney often – in the 2008 presidential primaries, as vice-president and, most recently, on winning the election he released a campaign video where he reads from Heaney’s The Cure at Troy, pitching himself as the person to mediate social healing.
US-Ireland Relations
And his love for Ireland may bode well for the nation and for US-Ireland relations. Biden is known for being against Brexit and while on the campaign trail he often mentioned that any future trade deal between the US and the UK would be dependent on the latter’s respect for the 1998 Good Friday Agreement, which brought decades of conflict in Northern Ireland to an end. Yet the Irish border was something of a sticking point in Brexit negotiations, with the UK government reneging on an agreement with Brussels to respect the agreement and the open border. Biden raised the issue early on, stating that he did not want a guarded border between the Republic of Ireland and Northern Ireland. And following the Brexit agreement in December, the decision has been made to maintain an open frontier.
Economically Biden appreciates that the United States is important for Ireland for investment and job creation. The nation is a magnet for US tech and pharmaceutical giants thanks to its low taxes and well-educated, English-speaking workforce. Pfizer, Johnson & Johnson, Facebook, Google, Apple and Twitter are among those with significant business operations in Ireland.
Many believe that Biden’s Irish roots will help relations between the US, the UK, and Ireland, particularly with regards to each’s relationships with Europe, especially as Ireland remains a member of the EU. And it certainly seems to promise a good relationship between the US and Ireland, which Ireland’s growing influence diplomatically will only enhance. Ireland boasts embassies in every country in the EU and is one of the biggest spenders in Washington when it comes to foreign lobbying. In June 2020 Ireland won a seat on the UN Security Council, while in July Irish Minister for Finance Paschal Donohoe became leader of Eurogroup.
Additionally, Ireland’s prime minister receives an automatic invitation every year to the Oval Office for St. Patrick’s Day – the only world leader to enjoy such a privilege – and has done since 1956. This arrangement could make Taoiseach Micheál Martin the first head of government to meet with the new president if the meeting goes ahead in March.
Ahead of that scheduled meeting, Martin extended an invitation to Biden to Ireland in return, who replied “try and keep me out,” jokingly emphasizing his love for his homeland. But it goes beyond just love – there’s a respect there too. As Ambassador Mulhall at Ireland’s embassy in Washington has said “It’s a good thing that we will have a president who has this kind of depth of understanding of Irish affairs, which is bound to be beneficial to us.”
Nursing care is an in-demand sector worldwide. Driven by a rising ageing population, the global nursing care market is expected to grow to a value of more than $1,100 billion at an annual rate of 8.6% to 2022 according to a recent report from The Business Research Company.
Unlike assisted-living facilities, nursing homes are strictly regulated by the government in many countries and are built and managed by sophisticated institutions to a high standard to ensure the care and treatment of elderly people who may have physical health concerns and/or mental disabilities.
It is common to see that those living in nursing homes generally have more disability than people living at home. Over half of nursing home residents need help with three or more activities of daily living (ADLs) such as dressing and bathing. Those who are able to walk may still need assistance or supervision, and some may have difficulty hearing or seeing.
Nursing homes have changed dramatically over the past few decades. They increasingly offer medical services similar to those offered in hospitals after surgery, illness or sudden medical problems. The elderly need a higher level of care, particularly as hospital stays are shorter than they used to be. However, medical services vary a lot among nursing homes.
At Bartra, we take the issue of ageing seriously. We believe in “growing old with dignity”. Bartra Healthcare is on course to become the largest provider of quality healthcare in Ireland. Led by seasoned professional Declan Carlyle, Bartra’s Healthcare division delivers a nursing home portfolio with superior elderly care facilities designed to meet the Irish government’s highest standards as imposed by the Health Information Quality Authority (HIQA). In Bartra’s nursing home operations, our highly skilled and experienced care team is inculcating a culture of quality caregiving in all our facilities, ensuring a standard of care that recognises our residents’ needs for independence, choice dignity and respect, compassion and advocacy.
Watch our interview with Declan Carlyle, CEO of Bartra Healthcare’s CEO, and former CFO of Beaumont Hospital, to find out what makes our service exceptional.
We are proud that Bartra Healthcare is comprised of a group of premium quality nursing homes, each of which provides individualised care in a safe, friendly and comfortable environment where all of the needs of our residents are met. As Declan says, “Every single aspect of these homes has been designed with meticulous attention to detail.” Aside from top-class elderly care facilities, high quality beds and bed linen and hand-picked teams of professional and clinical staff, we also strive to bring tasty, wholesome food to residents that is well presented and appetising to the eye.
Eating and drinking are fundamental needs and consequently essential parts of nursing and nursing care. Encouraging older people in nursing homes to engage in mealtime activities can increase engagement in daily life and encourage more optimal health among older people. It’s more than simply a meal. Our team of highly skilled chefs has a deep understanding of diet, cooks with heart, and brings empathy and imagination to the table.
Learn more about our food philosophy in our interview with Executive Chef Andrew Dunne.
Strong track record of success
Bartra’s nursing homes are Immigrant Investor Programme (IIP) qualified, with state-backed income, and meet the highest HIQA standards. Investors into our nursing home projects deploy €1 million for 5 years and receive 100% repayment upon maturity and a 20% return (4% per annum). Bartra has a strong pipeline of 825 nursing home beds, valued at €180 million.
Following the successful opening of our Northwood and Loughshinny nursing homes, Bartra’s third nursing home project, Beaumont Lodge was completed in October 2020, two months ahead of schedule and within budget despite the global pandemic and the challenges it presented. Beaumont Lodge is one of the Ireland’s largest nursing homes, featuring 221 single occupancy, ensuite bedrooms offering privacy for every elderly resident.
The building contains a large open plan area of 10,000 square meters, equivalent to the size of a football field, with three-storey overhanging areas supported on concrete beams and columns. Large ‘Winter Garden’ balconies were constructed on each floor to provide outdoor space. The development also offers 83 car parking spaces along with motorcycle and bicycle bays. Bartra teams provided civil, structural and traffic engineering services as well as design.
Beaumont Lodge, completed exterior and interior
Regarding nursing facilities, Beaumont will fully comply with the highest HIQA standards, accommodating some of the most advanced equipment to ensure high-tech and intelligent nursing services. Each room offers a separate shower room which ensures a private space. All beds can be easily raised and lowered, and the mattresses in each room are customised in consideration of body pressure distribution. Every room is equipped with an alarm system for daily needs or emergency assistance.
To find out how the development of Beaumont Lodge progressed from its beginnings in 2018, watch our construction video.
Beaumont is located in Dublin 5, close to Dublin Airport and within easy reach of Ireland’s most important traffic artery and busiest ring road, the M50. From this C-shaped highway, almost anywhere in Dublin can be accessed easily. Another important highway, the M1, which connects Dublin and Northern Ireland, is also nearby. The extensive transportation network around Beaumont is convenient for the elderly who reside there.
How does Bartra’s nursing home portfolio work?
With an ageing population, nursing homes are in high demand yet remain undersupplied in Ireland. The number of over 65-year-olds is expected to reach 16% of the total population, accounting for 860,600 people by 2026. This means the country will need 7,500 new nursing home beds in the system by then. However, little is expected to be built in the next few years, with just 1,144 beds due to be delivered.
To meet the required volume of units, reduce housing waiting lists and increase the delivery of much-needed infrastructure, collaboration between the public and private sectors is necessary. And since nursing homes qualify as essential infrastructure, institutional investors with long-term investment horizons are contributing to elderly care projects as part of their investment portfolios.
For more on the benefits of investing in nursing hones and healthcare (as well as social housing), read our article on Impact Investing with Bartra.
It is worth noting that, in Ireland, there is a financial support scheme available from the government for the cost of nursing home care. This scheme is called the Nursing Home Support Scheme, but It is better known as “The Fair Deal”. Under the Fair Deal Scheme, each bed in a nursing home receives a weekly subsidy from the government (the subsidy standard is determined by the National Treatment Purchase Fund). As such, investing in nursing home projects is safe and unaffected by market movements due to its state-backed income stream, many institutional investors with a long-term investment horizon have contributed to elderly care as part of their investment portfolios.
Investments in and acquisitions of nursing home projects in Ireland to date include:
Care Choice Group, Munster (5 Nursing Homes) and Dublin (1 Nursing Home): Infra Via acquired Care Choice for €70m (comprising 503 beds, the majority of which are located in Munster, with four sites located in the Greater Dublin Area).
The Beechfield Group, Dublin (3 Nursing Homes): German-based IMMAC Group entered the Irish nursing home sector with the €33m acquisition of the Beechfield Care Group, incorporating Beechfield Manor Nursing Home, Glengara Park Nursing Home and Mount Hybla Nursing Home as well as the Beechfield Private Homecare service.
TCL Group (Ireland) (4 Nursing Homes and 1 site): TLC is a provider of retirement care services based in Dublin, Ireland. The company specialises in luxury nursing homes for elderly people. It has been reported that the sale price of TLC Nursing Homes portfolio would exceed €150m for 4 Nursing Homes, comprising 674 beds (Santry, Cara Care, Maynooth, Citywest and Carton nursing homes) and a site in Ireland.
Bartra is a leading nursing homes developer in the healthcare sector in Ireland. We source, build and manage our projects from start to finish. The chart below explains our project development and exit process.
At Bartra, we build communities for life where everyone can contribute. We create environments and services in which people are valued, included and respected. And we put great emphasis on facilitating and encouraging residents to continue to pursue their hobbies and interests while living in our nursing homes.
Bartra is delighted to have once again been recognised by the industry at CORPHUB’s Most Outstanding Enterprise Awards in Hong Kong. Following our success at last year’s ceremony where we took home four awards, this year we were named Most Trusted Immigration Investment Services by the prestigious professional platform, which seeks to highlight enterprises on the rise and celebrate their achievements in various sectors.
At Bartra, we strongly believe that what makes us successful is our business model. As the only Irish developer with a physical office in Hong Kong that offers investors direct investments into our safe, transparent, fixed asset projects, along with the opportunity to gain Irish residency, we are the leading IIP provider and the strongest player in the market.
We pride ourselves on our 100% success and renewal rate, our robust projects in qualifying Social Housing and Nursing Homes projects, and our unmatched expertise in the IIP. Compared to other European immigration programmes, our Social Housing project offers a 100% repayment guarantee and the exit strategy is simple and straightforward without any of the hassle related to liquidation or concerns around market performance. Investors in our Nursing Homes projects enjoy the same simple and straightforward exit strategy, and receive a 20% return (4% interest each year) upon exit of the Euro1 million, five-year investment on top of obtaining Irish residency. This ensures that our IIP is not only cost-free but includes an excellent return which investors can put towards a property purchase or their children’s education. The safety of the investment coupled with the excellent return makes the IIP one of the most attractive investment migration programmes in the world.
To find out what makes Bartra’s business successful, watch the exclusive interview with our Regional Manager, Jeffrey Ling, below (in Cantonese).
Keen to learn more about beginning your immigration journey to one of the world’s most enticing destinations – Ireland with the expertise of a best-in-class Irish developer? Contact us today!
Hong Kong’s education and employment environments have become increasingly competitive, which may have contributed to the surge in interest in emigration. A growing number of parents are seeking alternatives to schools in Hong Kong, with more than 50% of parents expressing an interest in sending their children overseas for secondary and tertiary education, according to Prudential’s Hong Kong Parents Savings Gap Survey in 2019. Fast-track immigration has become an attractive option, as parents eagerly try to create a better future for their children. And interestingly, parents are shifting their interests from the UK to Ireland.
Bartra Wealth Advisors’ Hong Kong Regional Manager Jeffrey Ling said: “As a father of two kids, I know exactly how most Hong Kong parents feel. A high-quality learning environment and a good education system are the cornerstones that lead children to success. Ireland’s education system is among the best in the world and has been highly valued by the local government for many years. The primary goal of the Irish education system is to provide a broad spectrum of cultural, artistic, sporting, psychological and spiritual development as well as to prepare children for academia. Educational programmes at primary and secondary levels are designed to fulfill and develop a wide array of talents and to support childhood development mentally, artistically and physically. Compared to traditional education in Hong Kong, parents are increasingly willing to allow their children to receive an education in Ireland.”
It is worth noting that Irish graduates have a wealth of job opportunities; plenty of the world’s leading companies are located in Ireland with six top growing sectors that include IT services, accounting and auditing, innovation- and intellectual property-related enterprises, green sector jobs, business and financial services, and medical and pharmaceutical. There are also jobs in industries such as food and wine. Studies in medical care, social work, computing, engineering, accounting, animation and game design are in particular demand locally. In 2019, the Organisation for Economic Co-operation and Development (OECD) noted that Irish graduates are the most productive employees in the world among international companies. Employers, both national and international, affirm the quality of graduates from the Irish education system.
The Irish education
Hong Kong and Ireland have strong links in many areas, particularly education. Both are English speaking and have similar systems influenced by Britain. In fact, Hong Kong has more than 6,000 graduates from Irish Universities and the education sector in Hong Kong has long-established Irish links; tens of thousands of people in Hong Kong have studied in Catholic schools run by Irish priests. According to the Irish International Education Center (IIEC), an increasing number of Hong Kong parents are keen to send their children to study in Ireland. Established in 2012, the same year the Hong Kong DSE was implemented in Hong Kong, the IIEC is committed to and specialises in promoting Irish education. It has organised regular visits to Ireland and summer camps for students to experience the culture and study atmosphere in Ireland, and hosts regular seminars and information sessions for different stakeholders including students, parents, teachers, careers staff and school principals.
To learn more about studying in Ireland, watch the second episode in our video series Immigration Insights with Bartra Wealth Advisors, where Jeffrey Ling talks to Anthony Cheng, Director of the IIEC, about the most popular schools in Ireland, fees and budgeting, recognition of the HKDSE in Ireland, the best study years to transfer, and the leading degree programmes.
The UK and Ireland are home to some of the world’s most renowned and reputable schools at a secondary/boarding and tertiary level. By enrolling in a secondary or boarding school in the UK or Ireland, successful IIP applicants and their children will be close to top-tier universities in both countries and can conveniently visit university campuses and meet with faculty members and current students, which aids their decision-making process on which university will be most suitable.
In addition to attending world-class English universities, children who become citizens of Ireland can qualify as local university students and pay ‘home rate’ tuition fees instead of overseas rates.
For local, or ‘home’ university students, the typical tuition fee for an undergraduate degree at an English university is a maximum of £9,250 per year. Conversely, international students who plan to attend university in the UK and who are neither Irish nor British citizens have to pay the overseas rate, which could be as much as £26,000 a year. Without access to the ‘home’ rate, international students need to spend nearly three times more for the same undergraduate degree at the same university.
Similar to the UK, universities in Ireland follow a tuition fee structure whereby local students pay a local rate and international students pay an overseas rate. For instance, at the University College of Dublin and the National University of Ireland, Galway, charges for local students are €6,700 and €6,000 a year respectively for an undergraduate degree. An international student will pay €16,480 and €12,750 respectively for the same undergraduate degree at these two institutions – more than double that of their local classmates.
In addition to lower tuition fees, Ireland offers eligible university students funding support for their studies under the Free Fees Initiative. Qualifying students pay a contribution of just €3,000 per year, effectively receiving 50% off their fees, though one of the requirements is for students to be a national of either an EU Member State, a state which is a contracting state to the EEA Agreement, the Swiss Confederation, or the UK.
Ireland is the only English-speaking country remaining in the EU following Brexit and, as such, Irish education will be highly sought after in the coming years, especially for students from EU countries who want to enjoy an English education and improve their language skills. If Ireland becomes the centre of EU education, it will be more effective in connecting with top colleges in various countries (including well-known universities in the UK). For students considering their options for further studes, enrolling in Irish universities offers plenty of opportunities. Generally speaking, Irish universities require IELTS scores of 6.0 to 6.5, and DSE scores of 44333 to meet the entry threshold, and they offer a diverse range of courses, from environmental science and veterinary medicine to creative arts and game design.
The IIP is more than a residency; it is a future for your children
The goal of many parents is to provide a better quality of life for their children and future generations. Investors keen to maximise opportunities for their children’s education and obtain residency rights in both the UK and Ireland should consider the Ireland Immigrant Investor Programme (IIP). The programme’s ability to provide educational benefits, such as a wealth of choice in top-tier secondary and tertiary schools and tremendous cost savings on university tuition fees, makes it the optimal pathway to an elevated lifestyle and opportunity-abundant future.
A country’s economic stability and quality of life are key deciding factors when selecting an immigration destination; it’s not just the broader career prospects. Finer details such as the study environment for children, the local tax system, healthcare services, the real estate market, affordability and cultural inclusiveness are among the important considerations – and Ireland is one of few countries that appeals across the board.
If you are interested in learning more about the Immigrant Investor Programme (IIP) and the education system in Ireland, get in touch now.
In our previous article, we discussed four important things to be aware of post-Brexit. But the UK-EU deal presents opportunities, too.
From 1980 to 2020, Europe’s five largest economies have consistently been France, Germany, Italy, Spain and the UK. However, as COVID-19 has raged through Europe and the UK has departed from the European Union, many EU nations are facing deep recessions, with the economy of the EU forecast to contract by a record 7.4% in 2020.
Meanwhile, Ireland’s star has been rising. Ireland remains a strong and committed member of the EU post-Brexit. Politically, it is taking its place among the nations of the world. On a per-head basis, Ireland has a good claim to be the world’s most diplomatically powerful country. In July 2020, the 19 finance ministers of the eurozone elected Irish finance minister Paschal Donohoe to be the president of their influential Eurogroup, putting Ireland in a powerful position as the EU debates ways to deal with the economic fallout of the global pandemic. In October, the EU appointed Ireland’s Mairead McGuinness as the new commissioner in charge of financial services. Ireland also won a place on the UN Security Council, securing one of the ten rotating seats to join the five permanent members that include the US, UK, Russia, France and China.
Economically, Ireland remains a popular choice for investors looking to access the European market. With a low corporate tax rate of 12.5% (among the lowest in Europe) and favourable tax system, Ireland is a highly sought-after location for foreign investment and businesses. While the Global Financial Crisis caused a contraction in Ireland’s economy, which had been flourishing for the decade prior, it has regained its stability and for the past six years has been one of the strongest developed countries in Europe. And in terms of quality of life, Ireland ranked joint second with Switzerland, beating Sweden, Germany and the UK.
With a Brexit deal now agreed between the UK and the EU, Ireland appears to be the land of opportunity, particularly when it comes to global competitiveness. Here are four important elements to consider:
1. Business and employment
The Irish Government has continued to demonstrate its commitment to Foreign Direct Investment (FDI) by establishing a business environment that is conducive to FDI activity and Ireland remains a location of choice for many of the world’s leading companies. Indeed, more than 1,100 companies, including many of the world’s leading brands, have decided to place Ireland at the hub of their European operations. Additionally, 70 individual investments related to Brexit, with more than 5,000 associated jobs, have been approved since the UK’s EU referendum in June 2016, according to Ireland’s Foreign Investment Agency, IDA Ireland’s 2019 figures.
Cityscape of Dublin Docklands and river Liffey with modern buildings and barge on river. To date companies that have announced investments in Ireland connected to Brexit include Barclays, Morgan Stanley, TD Securities, Wasdell, Delphi/Aptiv, Simmons & Simmons, S&P Global, Thomson Reuters, Equilend and Coinbase. And Dublin remains the most popular destination for financial services firms to relocate to post-Brexit according to EY’s Brexit Tracker.
Besides the financial sector, Ireland is home to 9 of the top 10 global pharmaceutical companies, including Pfizer, Johnson & Johnson, Roche and Novartis. It is also the base for many US Tech titans; IBM was the first US tech firm to set up in Ireland in 1956, with Google, Microsoft, Intel, Apple and Facebook moving in more recently. Last year, Apple celebrated 40 years of continued investment and reinvestment in Cork.
“For US companies with ambitions to be global players, Ireland is a natural fit for their international operations,” said Martin Shanahan, CEO of IDA Ireland. According to IDA, 245,096 people were directly employed in the multinational sector in Ireland in 2019, representing about 10% of the Irish labour force.
Although the US remains Ireland’s largest overseas investor, investments into Ireland from China have surged in recent years. According to the Rhodium Group, FDI from China into Europe declined in 2019, but the opposite was true for Ireland. Figures from Baker McKenzie show that investment from Chinese companies rose 56% in 2019 through various M&A deals and expansions, meaning the world’s second-largest economy is becoming increasingly important to Ireland. Among these, Huawei announced a €70 million ($76.7 million) investment into research and development in Ireland in 2019, while in 2020 TikTok announced its plans to build €420 million ($500 million) data centre in Ireland.
The presence of foreign/international companies helps to create strong job markets which are crucial to immigrants. With more job opportunities in professional sectors, immigrants and any graduate children do not have to sacrifice their professional career and remuneration. With an increasing number of multinational firms, this could see the country open up.
2. Favourable market environment
The EU’s Single Market environment, together with the adoption of the Euro and support from the combined power of 27 Member States, have strengthened the Irish economy and allowed it to flourish. Ireland is now a nation with a modern economy based on free trade, foreign investment and growth.
It also has one of the most favourable tax regimes in the world, attracting hundreds of foreign companies. This is strengthened by the government’s long term commitment to its 12.5% corporate tax rate.
Language is vital for communication. And English is now the global language of business as well as being spoken at a useful level by some 1.75 billion people worldwide – or one in four people. Multinational companies are increasingly mandating English as the common corporate language. For two decades, English has been the ‘lingua franca’ of EU institutions in Brussels, used by EU policymakers to communicate about laws regulating subjects like energy, security and trade. After Brexit, Ireland will be the only Member State where English is spoken as its first language.
Ireland may have EU membership, a favourable tax system and a global first language, but it’s keen to offer more to boost its growth and productivity. The nation is currently updating its rules around private funds to encourage more alternative investment managers to use the country as a base for their European operations. The rules have been designed to appeal to private fund managers based in the UK who will lose the “passporting” rights that have allowed them to sell investment products across the EU pre- Brexit. Ireland is already Europe’s second-largest fund centre with more than 560 international managers using the country as a domicile from where they can sell their products across Europe and Asia, and this will only increase its appeal. Managers that establish Irish investment limited partnerships will be granted more flexibility when establishing private equity, private credit, venture capital, infrastructure, renewable energy and real estate funds under legislation which was approved in December 2020 in the Dáil, the Irish parliament. The reforms are expected to create several thousand jobs and new income streams for service providers. Currently, more than 16,000 staff are directly employed in Ireland’s fund industry including portfolio managers, administrators, trustees, auditors, compliance, legal and tax advisers.
3. Freedom of movement – UK and EU
Ireland remains a vital member of the EU and continues to benefit from the union’s economic and political stability. As EU citizens, Irish nationals can continue to live and work freely in any EU Member State and Irish citizens continue to enjoy other privileges, such as access to the European Health Insurance Card that provides them with healthcare while traveling throughout the EU. Students belonging to Irish institutions have access to the Erasmus+ programme and the right to study in the EU. Other perks for Irish nationals include waived mobile phone roaming charges when traveling within the EU.
Ireland will be the only bridgehead into both the EU and the UK following Brexit. The Common Travel Area (CTA) is a long-standing arrangement between the UK, the British Crown Dependencies (Jersey, Guernsey and the Isle of Man) and Ireland that pre-dates both British and Irish membership of the EU and is not dependent on it. Under the CTA, British and Irish citizens can move freely and reside in either jurisdiction and enjoy associated rights and privileges, including the right to work, study and vote in certain elections, as well as to access social welfare benefits and health services.
Thanks to its strategic relationships with the EU and the UK, and the freedom of movement that these provide, many international companies see Ireland as an important gateway to both the UK and Europe.
4. The popularity of Irish residency and citizenship
As Brexit sees the UK and EU go their separate ways, EU nationals residing in the UK must now apply for settlement, while UK citizens residing in the EU must follow suit and obtain resident permits. But there’s an exception – the Irish. And for this reason, Irish residency and citizenship are becoming increasingly attractive.
In particular, the Irish Investment Migration Programme is gaining popularity among wealthy individuals, not just because of its links to the EU and UK, but also due to its safety and simplicity. Compared to other Golden Visa programmes in Europe, the Irish Investor Immigrant Programme (IIP) outshines its peers. When investing in enterprises under the IIP’s investment options, the required holding period of 3 years is low compared to other European investment migration options (Greece, for example, requires an indefinite holding period), while the exit strategy is simple and straightforward without the need to liquidate investments; you simply get your money back. The IIP also only requires investment after approval, and unlike in other countries where the investment is required in real estate, investments in the IIP are hassle-free when it comes to exiting with no need for property management firms to rent out properties for ROI, nor the need for brokers to find buyers once the holding period is over. IIP makes the Irish immigration process simple, clean and efficient. To find out more, read about the Irish Investment Migration Programme on IMI.
Obtaining Irish residency in the most durable bridge between two of the strongest economies in the world, the EU and the UK, following Brexit, and is undoubtedly a wise move for international investors. This is something which the IIP sets the stage for in 2021. And we believe that interest in the IIP will only increase as businesses and affluent individuals recognise the personal and professional advantages of maintaining a foothold in Europe, and foresee strong demand from China, Hong Kong, Vietnam, India and the UAE, as well as interest from South Africa, Canada and the UK.
To find out more about our IIP, please do not hesitate to get in touch. Missed Brexit and beyond Part 1? Click here to read.
The UK and the European Union (EU) finally agreed a deal on Christmas Eve that will define their future relationship. It replaces the partnership they have shared for the last 47 years. But will this take Brexit off the front pages or stop Brits talking about it? Or has the real Brexit battle only just begun? We have put together a summary of Brexit-related information to help you gain a better understanding of what the future holds for the UK and Europe.
What do we know about the deal?
The 1,246-page trade agreement has detailed provisions on many issues and contains new rules for how the UK and EU will live, work and trade together. Importantly, it means no tariffs or quotas will be introduced. However, while the deal came into force on 1 January, with everything left so late many people and businesses have not had much time to prepare for the changes.
There are four key things to be aware of:
1. Economy
The British government’s own fiscal watchdog, the Office for Budget Responsibility (OBR), has said that the deal will dampen long-term GDP by 4%, meaning Brexit is projected to do more economic damage to Britain than COVID-19. The deal is also seen as a ‘thin’ deal, which means it leaves many unresolved issues to be dealt with in later negotiations.
Yes, the UK has avoided tariffs on trade, but there will now be other complexities and mountains of paperwork. The UK benefited from access to more than 20 EU systems, which do everything from track the movements of goods and vehicles to store risk profiles for goods and producers from around the world, with the UK sharing its own data as part of this. But after Brexit, although tariffs for goods will be dropped, more friction may ensue as a result of other trade barriers, such as the administrative burden on traders, complicated border processes, and limited information sharing between customs authorities. Additionally, the new import and export declarations alone are likely to cost UK companies £7.5 billion ($10.3 billion) annually, according to HM Revenue & Customs.
Unemployment will also be a challenge post-Brexit. Since the June 2016 referendum, the job market has been contracting, with many companies leaving the UK, downsizing or cutting jobs. For example, in the financial services sector, Aviva, Britain’s second-largest insurer, stated that it would move £7.8 billion worth of assets to Ireland, while Bank of America Merrill Lynch (BAML) announced a merger between its UK and Irish subsidiaries, transferring 125 jobs to Dublin, which remains BAML’s European headquarters. Additionally, British bank Barclays is transferring £166bn of its clients’ assets to the Irish capital, while Credit Suisse plans to move about 250 bankers from London to other European financial hubs. According to EY, £1.2 trillion ($1.6 trillion) of assets, along with around 7,500 employees, have been transferred out of the UK to the EU, including to Dublin, Luxembourg, Frankfurt and Paris by financial services firms.
UK unemployment is forecast to reach 2.6 million by mid-2021, according to the government’s economic watchdog, which represents 7.5% of the working-age population. This will compound the impact of the COVID-19 pandemic, which has resulted in nearly 300,000 jobs lost in the hospitality sector since February 2020. In addition, retail has shed 160,000 jobs as non-essential shops have been forced to shut, and culture has seen 89,000 jobs go. And those figures are only for staff on company payrolls; thousands more casual workers and freelancers have been affected too. It seems unlikely that the UK’s economy will rebound quickly.
2. End of free movement
UK citizens and residents will no longer have the right to work, live, study or start a business in the EU without a visa, though short stays will be allowed (visa waivers will apply). This doesn’t help those seeking to travel frequently and do business in the EU. Comparing market capacity, the UK’s population is about 66.4 million, but the European Union’s, excluding the UK, is six times larger, which may lead to unfavourable business opportunities.
COVID-19 has also movement less free. The UK is Europe’s worst-hit country, with more than 40 countries banning UK arrivals in December 2020. There were hundreds of passengers at London’s Heathrow Airport scrambling onto the last flight to Dublin minutes before a travel ban set in at midnight on 20 December to nations across Europe. Tighter measures may apply with prolonged quarantine and pre-departure PCR tests likely required even when the situation begins to ease.
3. Education
Students and young people from Britain will no longer be able to take part in the Europe-wide Erasmus exchange programme. Since 1987, the Erasmus programme has provided opportunities for students to go on exchange abroad, linked schools across the EU and offered work experience and apprenticeships in European countries. Around 200,000 people, including 15,000 British university students, have participated in the programme in its latest incarnation.
Vivienne Stern, the Director of Universities UK International, told The Guardian, “As I understand it, there will be grants for young people not just in universities but broader than that, to support study and possibly working and volunteering. These experiences help graduates gain employment, especially for students from low-income backgrounds who are the least likely to be able to travel abroad otherwise.” She added that any Erasmus replacement needed to be “ambitious and fully funded”, and that it “must also deliver significant opportunities for future students to go global, which the Erasmus programme has provided to date.”
4. Financial services competitiveness
No deal has been agreed for financial services, which will be worrying for many would-be emigrants holding professional qualifications, particularly as these qualifications will no longer be mutually recognised between the UK and EU and professional persons will have to be separately registered in each.
The EU and UK have not yet struck a deal that will provide UK banks and asset managers with access to European markets. EU regulators are unlikely to allow London to keep the benefits of the single market without its obligations, and EU banks will have to cease from using platforms in the UK for swaps, certain derivatives and Euro-denominated stocks from January. UK financial services firms will lose their passporting rights, which in the past allowed them to sell funds, debt, advice, or insurance into the EU from their UK base without the need for additional regulatory clearances.
Worse, it means that UK firms have to agree and comply with the individual rules of each of the EU 27 Member States if they wish to sell financial services there. The implications for a loss of financial services activity from the UK to the EU are significant.
Due to Brexit, almost 30 financial groups have moved operations from London to Dublin. “We’re now seeing those financial services firms who have relocated, gained their licensing and are operationally ready, focus a lot more on ‘business as usual’,” said Cormac Kelly, financial services Brexit lead for EY Ireland in an interview with the Irish Times.
The post-Brexit trade agreement leaves many questions unanswered, but while there is uncertainty, there is likely also opportunity. Stay tuned for Part 2 of our Brexit and beyond article, where we look at what else lies ahead for the UK and the EU.
