Bartra Wealth Advisors have a limited number of final Irish Immigrant Investor Programme (IIP) approved investment slots available, with a restricted quota and timeframe. These slots are open to clients who have an immediate intention to apply for the IIP. Contact us now to secure your opportunity.
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.
2020 has been a challenging year. It has forced people to adapt to a new reality. But at Bartra, we remain optimistic. We have seen our teams thrive on change. And our ever-present desire and drive to share ideas, to collaborate, create and innovate, and to continue making progress, is undeniable. This year has not altered our fundamental belief that great investments require three things: great locations, great people, and the right opportunities. Bartra prides itself on consistently delivering all three for clients and investors and we are grateful that we have been able to help many of our clients achieve their goals, while also being recognised by the industry for our efforts.
As another year comes to a close and we look to the year ahead, we would like to share some of our achievements and to thank everyone – clients, business partners and our staff – for contributing to our strength and success.
Accomplishments:
2 IIP project completions (Northwood, Beaumont)
Close to 100 IIP applications
4 awards
A little throwback to Bartra’s highlights from the last 12 months.
Received 20 IIP applications from Hong Kong investors since the Hong Kong office has opened in August 2019.
First Hong Kong investor, who applied in August 2019, received approval from the Irish Naturalisation and Immigration Service (INIS).
“I am proud that the ISIF has invested in our business. This is testament to both the quality of Bartra’s projects and the expertise of the personnel putting those projects together. Our development projects support local housing requirements: co-living projects offer accommodation for young professionals; nursing homes provide critically needed care for the elderly and vulnerable; social housing caters to those on housing lists. As the investment immigration arm of Bartra Group, with offices in Hong Kong and multiple cities across Mainland China, Bartra Wealth Advisors has seen increased demand for investment in the social housing and healthcare sectors, with international investors keen to acquire these government-backed asset types. We offer investors direct access to our social housing and nursing home projects, which are good, safe investment opportunities that support the local community and are also IIP-qualifying for obtaining Irish residency.”
James Hartshorn, CEO and Co-founder of Bartra Wealth Advisors.
February
Northwood Phase II, Bartra’s Nursing Home project, completed on time and within budget.
The year’s first batch of Stamp 4 visas arrived on 14 February as a Valentine’s Day gift for our clients.
March / April
In response to the pandemic, Bartra held its first webinar.
Bartra received visa approvals for applicants from November 2019 on 22 and 23 April, with a 100% success rate.
Bartra held its first press conference in Hong Kong, which saw more than 30 news platforms report on Bartra over two days.
Jeffrey Ling, Hong Kong Regional Manager, was featured on Apple Daily’s news and video platforms, and hosted a webinar with a tax partner to discuss Ireland immigration.
Bartra won Uglobal Immigration Magazine’s Top 25 Developers Award.
Bartra received 50 applications from Hong Kong clients.
November
Beaumont, our biggest nursing home project to date, completed construction ahead of schedule and entered HIQA inspection phase.
Bartra participated in one of the world’s largest international migration summits in China, the 2020 Global Migration Summit of Entry-Exit Industry.
Bartra Homes launched a new luxury residential project, Glensavage, Blackrock, comprised of 8 contemporary homes and 14 apartments.
Bartra secured planning permission for our €25 million co-living scheme on Merrion Road.
Bartra was named Innovator of the Year – Real Estate at the HKB Management Excellence Awards.
In the past year, Ireland has ranked among the best-performing economies in the western world, with GDP growth of 3.4% (ESRI). Looking ahead, export-driven growth of 5.3% in 2021 is forecast (Ibec).
With regard to the IIP, we believe that interest in the programme will steadily increase as businesses and affluent individuals recognise the personal and professional advantages of maintaining a foothold in Europe. We foresee strong demand from China, Hong Kong, Vietnam, India and the UAE, as well as interest from South Africa, Canada and the UK.
As a company, we are excited to welcome 2021 and will continue to deliver our world-class services and products to investors and clients. In the spirit of the tagline of our Immigration Insight video series – Joy of Living – we’d like to take this opportunity to wish everyone a joyous, prosperous and healthy New Year!
The hottest property markets for Hongkongers include London, Sydney, Vancouver, New York, Japan, Bangkok, Lisbon, and many more, but with a large number of multinational companies have established their European headquarters in Ireland (many more are planning to) and the IIP providing the opportunity for immigration to Ireland, its cities are looking increasingly attractive. And there are other benefits to be had, too.
Ireland’s property market has enjoyed steady growth over the last decade, particularly in the nation’s capital, Dublin and its surrounding commuter areas. This growth has been driven by a strong economy (see our blog on ‘Ireland’s Economy’) and high employment levels; GDP growth in 2018 was 5.6%, the second highest in Europe, and in the same year full-time employment grew 2.7%. This year, Ireland is the only developed economy to experience growth in GDP, boosted by exports from the Pharma and tech sectors, the chief economist at Goodbody Stockbrokers said.
Dublin has experienced continued international investment, particularly in the technology sector; it is home to Twitter’s EMEA headquarters and Facebook and Google’s European headquarters. Ireland also boasts a burgeoning medical technology industry, which performed particularly well in 2020, and many of its giants are based out of the capital.
In addition, a limited supply of homes in Dublin’s prime locations, coupled with a growing population that is predicted to increase by nearly a third before 2036 taking it to 1.76m, contribute to a high demand for property in the capital. In 2019, PwC ranked Dublin third out of 31 European cities for real estate investment and development in its 2019 PwC/ULI Emerging Trends in Real Estate Europe report.
There is plenty, then, to attract international property investors. And with similar procedures for purchasing a property in place in Ireland as there are in the UK, where many Hongkongers have chosen to invest in property, good value and promising returns also add to the appeal.
Dublin, for example, is well priced compared to some of its European counterparts. Home prices start from €400-500,000 for a one-bedroom flat in prime residential areas, such as South Dublin, according to Mei Wong, Executive Director – Head of International Residential Sales at Knight Frank, which deals in both residential and commercial property consultancy, while family homes start from €1 million, though in super-prime areas can exceed €10 million.
Location matters and ownership
Dublin’s most desirable areas to live in, particularly for a family home, are found in the South of the city, with Dublin 4, including Ballsbridge, Sandymount and Donnybrook, and Dublin 6, namely Ranelagh, Rathmines and Rathgar, holding greatest appeal. Each offers a range of housing options within easy reach of the city centre and is close to some of the city’s best schools including a number of those listed in The Sunday Times’ top 25 schools in Ireland in 2018. Blackrock, Monkstown, Dalkey and Killiney, also areas in south Dublin, are of growing interest thanks to their coastal locations offering attractive sea views.
Whether buyers are in search of houses or apartments, property titles are similar to those in the UK. Houses and townhouses are generally freehold, while flats, particularly new-build units, are likely to be leasehold (often 999 years). For those buying for investment, rental yields in and around Dublin are strong and have risen steadily since 2011, but vary according to the area.
Off-plan properties, which are often popular with Hongkongers, can offer attractive yields of between 4 and 6%, particularly in Greater Dublin where undersupply continues to drive growth and push up rental values. Apartments in Dublin 2, where a number of new developments are launching on the south quays, have particularly high rental yield potential, while property in more established areas of Dublin, such as Dublin 4 and Dublin 6, does not offer the same growth prospects.
There are a number of other elements to consider when purchasing overseas property, many of which set Ireland apart. Property taxes remain relatively low in Ireland. Stamp duty is 1% of the value of the property up to €1 million, then 2% on the balance over €1 million. Local property taxes are also modest, but vary according to location.
IIP investors will hold a Stamp 4 VISA, equivalent to a permanent residence permit, though there is currently no limit on the number of homes that can be purchased by a resident or non-resident, so prospective buyers and investors are able to purchase property at any stage of the residency process.
While most Hong Kong property buyers tend to be cash buyers, mortgages are available with an LTV of up to 70% with an interest rate of around 2.9%. Bartra works in partnership with EBS, one of Ireland’s largest financial institutions, to offer attractive and appropriate mortgages to its clients. For IIP program investors, it is worth bearing in mind that at maturity investors can expect around returns of €200,000 from a €1 million investment of Nursing Home projects, which could be put towards buying property.
Based on the resilience of property markets around the world, the global pandemic seems to have had little impact on buyers’ desires to purchase new homes. In fact, international investor enquiries have picked up as people have had time to consider new markets. And Ireland’s capital, set in an English-speaking country within the EU where residents enjoy high quality of life amidst a steadily growing economy, is a place where investors should feel confident in its potential.
If you are looking to invest in property in Ireland, watch our interview with Mei Wong, Executive Director – Head of International Residential Sales at Knight Frank, which is part of our “Immigration Insights with Bartra Wealth Advisors” video series. Mei and Jay Cheung, our Marketing Director, reveal some of Dublin’s most attractive areas for investors and considers the elements international buyers need to be aware of when contemplating property purchase in the Emerald Isle.
New launch – Glensavage, Avoca Road, Blackrock, by Bartra Homes
Apart from IIP projects, and as a leading property developer in Ireland, Bartra Group has diverse real estate portfolios. Bartra Homes has recently launched a premium residential development project, strategically located in a prestigious and highly sought after location in South Dublin, Blackrock. Glensavage is a beautiful hidden site of 2.49 acres (0.94 hectares) off Avoca Road in Blackrock.
“By failing to prepare, you are preparing to fail” – Benjamin Franklin
We know how important making plans ahead of time can be, which is why we are publishing this piece now instead of waiting for the Brexit transition due to take place on 31 December. Here, we hope to share some insights with would-be immigrants currently looking at whether the United Kingdom should be their future home given the uncertainty surrounding Brexit and BN(O) citizenship.
Immigration is potentially the biggest decision that an individual or family will make in their life, and it’s complex. You need to understand your options, prepare and know what to expect on relocation.
The UK is considered a traditional immigration hotspot by Hongkongers. But is it the only option? The Republic of Ireland, Europe’s rising star, has been gaining traction internationally, with its capital, Dublin, an emerging financial centre and technology hub. In terms of GDP per capita, Ireland is ranked among the wealthiest countries in the Organisation for Economic Cooperation and Development (OECD) and the EU-27. It’s certainly a worthy contender for would-be immigrants to consider.
But first, a bit of background.
Strong Historical Links
For over a century and a half, from 1842 Hong Kong was a British colony before being handed back to China in 1997. And lasting legacies of this time endure in Hong Kong, particularly with regards to education, which is largely modelled on systems in the UK, specifically England.
As early as the 1100s, Ireland was ruled by the British, with some considering Ireland to be England’s first colony. Whatever its status, Ireland inherited much from the Brits, not least elements of its education system, which has evolved over the years and is now ranked 6th best in the world and is home to seven top-level universities.
Hong Kong people are, therefore, more familiar with Ireland than they might think. Hong Kong is also home to 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. Additionally, many of the colonial Governors of Hong Kong were born in Ireland or claimed Irish heritage, as were civil servants, police and judges from throughout Hong Kong’s colonial past. Today, many Irish business people, teachers and other professionals continue to build strong ties between Hong Kong and the Emerald Isle.
Education Matters
Education is of prime importance to parents, with early childhood education instrumental in a child’s social and intellectual development. In both the UK and Ireland, once residency is obtained children of applicants are able to enjoy free education and free choice of schools.
Some Hong Kong parents prefer that their children study in private schools where the student-to-teacher ratio is often lower, allowing teachers to spend more time on average with each student. However, with a smaller population in Ireland than in Hong Kong or the UK, both public and private schools offer small classes.
When it comes to comparing the ‘style’ of education, the Irish government pays more attention to personal development than schools in Hong Kong tend to, and students have less pressure when it comes to academic studies. However, Ireland believes that education is closely related to national planning, and vigorously promotes science, technology, engineering and mathematics education, with a vision to make Ireland an international centre for technology, science and financial services. Although some parents may send their children to top universities in the UK on completion of secondary education in Ireland, many have come to realise that Ireland has just as much to offer as England’s finest further education institutions such as Cambridge or Oxford. To learn more, take a look at our article on the many strengths of the Irish education system.
Trinity College Dublin, the University of Dublin is Ireland’s leading university, ranked No. 1 in Ireland and 101st in the world
So what are the options for those considering immigration and what costs and requirements are involved?
UK BN(O), UK Investor Visa and Irish IIP
UK BN(O)
For a BN(O) visa application, there is no direct cost or investment amount required. Expenses will be based on the costs of living for the whole family for at least five years. It’s important to pay attention to the restrictions of this option, as the whole family is required to reside in the UK to maintain residency. Additionally, BN(O) residents in the UK are restricted from accessing public funds. In most circumstances, BN(O) residents will not be able to enjoy social benefits, but will still be liable to taxes and national insurance. It is also worth noting that the UK is reviewing its Capital Gains Tax, which may usher in higher taxes or cut tax exemption.
UK Investor Visa
HNWIs seeking a residency visa for the UK can consider the Tier 1 Investor visa. The investment entry level is GBP 2 million, which is comparatively lower than the investment fund required by similar programmes in, for example, Australia or New Zealand.
Successful applicants will be granted a Tier 1 Investor visa initially valid for 3 years. The Tier 1 Investor visa can be extended for an additional two years as long as the main applicant does not spend more than 180 days outside the UK per year. It can also lead to UK permanent residency if the holders are able to meet the annual residency requirement for five consecutive years and maintain the investment fund.
Irish IIP
The Irish IIP is a cost-minimised immigration approach to obtain a foreign residency. It requires a EUR 1 million investment into INIS-approved projects for a minimum 3-year investment period to receive a Residence Permit (in the form of a Stamp-4 visa) upon approval. There a number of options for investment, but the Enterprise Investment route is the most popular. Bartra offers two Enterprise Investment options, Social Housing and Nursing Homes, both of which are safe and government-backed. The Social Housing scheme has a 3-year investment period with 100% repayment and no interest offered, while the Nursing Homes scheme is a 5-year investment with a 4% annual return (paid on exit), and 100% capital protection. The income from these projects is derived from a Sovereign Government, which is often described as ‘recession-proof’, even when taking into account external factors such as Brexit or global recession.
Transferability and Recognition
The Irish IIP is a straightforward immigration approach where applicants can receive permanent residency in one step, unlike for other immigration programmes where visas are initially only granted for temporary stay. The IIP has no travel restrictions to maintain residency status – just one-day residency in Ireland per calendar year is necessary. It provides flexibility and allows people to have a residency without moving, so there is no necessity to give up current jobs or businesses. This residency is later transferred to citizenship through naturalisation, which can be started at any time.
The Irish passport is the joint sixth strongest in the world, based on the number of countries its holders can visit visa-free. Its ranking is ahead of the US, the UK, Belgium, Switzerland and Norway, and it is the only passport in the world to provide both EU citizenship and the right to reside and work in the UK.
Comparatively, the BN(O) Visa offers five-year temporary residency, while a minimum stay of six months per year in the UK is required to maintain this residency status and there is no guarantee of transferability to permanent residency or citizenship at a later stage. It is also worth mentioning that the Chinese government is considering a ban on the use of the BN(O) passport as a legal travel document.
Similarly, the Tier 1 Investor visa requires that the applicant spend no more than 180 days absent from the UK in any 12 month period for 5 consecutive years in addition to the GBP 2 million investment. With an investment of GBP 10 million, two consecutive years with the same annual residency requirement are required.
The IIP investor and his/her family will be granted a Stamp 4 Visa, which is top-class immigration status. The immigrant also benefits from the added flexibility of being able to hold this status and enjoy social welfare benefits without having to reside in Ireland. Stamp 4 Visa holders’ children can enjoy free primary and secondary education and will pay the same university school fees as locals.
The BN(O) Visa is simply a means to work and reside temporarily in the UK. These immigrants have no access to social welfare benefits and its holders are often described as second-class citizens, which is an important element to bear in mind as quality of life should be a key consideration when weighing up options.
A Client Case Study
Bartra Wealth Advisors has received more than 1,600 enquiries related to immigration to Ireland in the past three months. Since August 2019, we have helped more than 50 families from Hong Kong successfully apply for Irish residency.
Jeffrey Ling, Regional Manager at Bartra Wealth Advisors in Hong Kong, shared one client story. Peter and May (both pseudonyms) are married with three children attending elementary school in Hong Kong. High-income, senior professionals, the couple had purchased properties in Hong Kong for investment purposes. They were keen to send their children (or go with their children) overseas to study, with a preference for an English-speaking country. However, their biggest concern regarding immigration was that they may not be able to find a job with a similar level of income after relocation, especially considering the current challenging times. The flexibility of the IIP was attractive, as it allows them to keep their jobs in Hong Kong while also obtaining residency overseas. In addition, due to its minimal residency requirement, they are considered non-Irish tax residents residing for fewer than 183 days a year, so there is no fear of double taxation. With its stable economic environment, strong legal system, world-class education, and accessibility to both the UK and EU, the couple felt that Ireland and the IIP fit their needs perfectly. The Advisory Agreement was signed with Bartra predominantly because the Enterprise Investment option we provide offers 100% capital protection with transparent and clear investment procedures. To find out more about the IIP and the projects we offer, start by reading our article The 4 Things You Must Know About the Ireland Immigrant Investor Programme.
In a recent webinar with South China Morning Post, we compared investment and immigration opportunities in the UK and in Ireland. Guest speakers included Liam Baily, Global Head of Research at Knight Frank; James Hartshorn, CEO and Co-Founder at Bartra; and Cheryl Arcibal, business and property journalist at South China Morning Post.
We hope this article provides you with the information you need to weigh up the available options and consider what works best for you and your families in terms of cost, requirements and quality of life.
Look out for upcoming articles where we’ll be comparing the economy and property markets in the UK and Ireland. If you have any questions or would like to find out more about the IIP, feel free to contact us directly.
Filled with laid-back cafes and edgy restaurants, Stoneybatter is known by locals and tourists as Dublin’s edgy neighborhood. Imagine a vibe similar to Sheung Wan in Hong Kong, the community blends young families, students (particularly from the Grangegorman DIT campus, which is just around 600 meters away), and older residents, where they’d mingle over some steaming coffee or a relaxing pint of plain. Stoneybatter has beat out Hong Kong, Budapest, and Prague, ranking as one of the world’s 50 coolest neighbourhoods by Time Out magazine. Described as “one of the most central places” in the city “where young people can still afford to live (just), and the neighbourhood pride is strong”, this close-knit area is a heartful location unique to Dublin and Ireland, if not to the world.
Image Credit: Nothingness Vision | Photo of Dublin
Experience Dublin like a Local
Stoneybatter has something for everybody. There are so many things to do for locals, students, backpackers and other tourists. Kick-off your day at Love Supreme with their famous flat whites and sausage roll, or Proper Order with their champion-winning coffee, and drop by the beautiful little bookshop, The Lilliput Press, to pick up a copy by a famous Irish writer. Take a stroll at Phoenix Park, the largest enclosed public park in any capital city in Europe, and savor a winner brunch at Slice before lunch hits. Have a sweet tooth? Visit The Green Door Bakery, and enjoy their range of scrumptious baked goods! If you want some personal pointers around Stoneybatter, go visit Maureen, she would know where to point you.
When it comes to Stoneybatter restaurants and must-try local food, the list can go on. But on the top of our list would be L. Mulligan Grocer, known for their scotch eggs and single pot still whiskey, and Fish Shop, which serves the best locally caught, beer-battered fish with wine. Looking for a cozy spot to enjoy a late-night drink? Consider Frank Ryan’s and Dice as your next destination. Want to go to a movie? Visit Light House, a cool cinema in the hipster area.
How is Bartra making a mark?
With a growing population and a drop in housing listings due to COVID-19, Bartra’s announcement of the acquisition of the Stoneybatter site of 0.07 hectares last year is a powerful move. Our Stoneybatter social housing project is located at Blackhall, Stoneybatter, Dublin 7, right in the heart of the city. The size of the 23-apartments project is 15% to 20% larger than most apartments in the area. This social housing project is less than 2km from Dublin Centre, 150 meters from the Law Society of Ireland, and just 500 meters from the Smithfield LUAS stop, making it highly convenient. Acquiring the site with our capital, the construction is fully on schedule since its start date in September 2019, and is aiming for completion at the end of March 2021 (This will be dependent on any further restrictions or delays caused by COVID-19). As the first company in Ireland to enter into a 25-year Enhanced Lease Agreement with a local authority, namely, the Dublin City Council, the Backhall-located apartments will not only allow more people to call this amazing neighbourhood home but welcomes those who are wishing to immigrate to use such investment as their ticket to Ireland.
The Stoneybatter social housing is just one of our phase 1 projects, with the gross development value at about €11.5 million. With phase II around the corner, speak with one of our expert advisors to find out more about Bartra Wealth Advisors and the Irish Immigrant Investment Programme by completing the form below, and see how you can be a part of our projects.
Book an appointment to speak with one of our consultants.
