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What is ‘golden visa’ to UK that Indians are spending £2 million on

BRICS nations — Brazil, Russia, India, China, and South Africa — account for 64% of global aggregate demand for golden visa, shows data from UK’s Home Office.

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New Delhi: As many as 58 Indians have invested £2 million in the UK for a ‘golden visa’ since 2015 despite the country’s move to exit the European Union (EU), found a Bloomberg report.

In 2016 — the year of the Brexit vote — nine Indians applied for the visa. By 2018, the number went up to 15.

For three-and-a-half years, Britain was locked in tiresome negotiations with the EU, and within its own government, to iron out a deal before Brexit officially happened, upsetting the region’s economy. Britain finally exited the EU in January 2020, moving the process to the next phase of Brexit.

However, regardless of the uncertainty that comes with Brexit, many Indians have been applying for the golden visa; 14 people applied for it in 2019.

As more and more Indians apply for the ‘golden visa’, ThePrint explains what it is and why this is happening.


Also read: In case of both Article 370 and Brexit, right-wing nationalism is its own nemesis


What is the ‘golden visa’?

Investment visas are called golden visas, though the official visa category changes from country to country.

Wealthy individuals typically opt for it as an easy route to settle in advanced western countries as it requires making the necessary investment as determined by the country one applies to. The investment also significantly shortens the waiting period in comparison to applying for permanent residency (PR).

It also differs from PR in terms of not requiring a candidate to demonstrate their skills and secure a job in the country they apply to.

Many high-net worth individuals in India use a golden visa to settle in the UK, United States, and Canada. For instance, in the US, an individual can make an investment of $1.8 million to receive a golden visa.


Also read: India 76th out of 82 countries on World Economic Forum’s global social mobility index


UK’s terms

In the UK, one needs to apply for a Tier 1 Investor Visa, which is granted to individuals who invest at least £2 million in the country.

A golden visa-holder can stay for three years and four months, but cannot avail of any public funds, such as “benefits, tax credits and housing assistance”.

If the visa recipient wishes to settle in the UK, they have three options:

  • Apply to settle after 2 years if they invest £10 million
  • Apply to settle after 3 years by investing £5 million
  • Apply to settle after 5 years if they invest £2 million

Also read:What is wrong with the British political system?


BRICS can’t get enough

Brazil, Russia, India, China, and South Africa — collectively called BRICS — account for 64 per cent of the global aggregate demand for the golden visa, according to data from UK’s Home Office.

A large part of this demand comes from China.

Back in 2015, 59 Chinese citizens applied for the golden visa. By 2019, this number had surged three times to 193.

“BRIC applicants accounted for 40% of total global refusals in 2019, even as the overall refusal rate dropped to about 4% from 11.4% in 2015,” said the Bloomberg report.


Also read: BRICS is all about geopolitics, not economics


 

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