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The new law extends the EB-5 Regional Center program through September 30, 2027, with changes that will impact existing and future investors. First, the minimum EB-5 investment amount will increase to $800,000 from the current $500,000 for TEA and $1.05M from the current $1M for Non-TEA for both regional center and direct EB-5 investments.
For Investors currently already filed, I-526 petitions, adjustment of status applications, and consular procedures will resume.
Going forward, for future investors:
- For targeted employment areas (TEAs) or “infrastructure projects,” the needed investment amount will increase to $800,000. The investment amount will be $1,050,000 if this is not the case.
- Gifts are still allowed, and the funds will not be restricted to family members.
- Capital investments, administrative fees, and any fees “connected” with the investment are also subject to source of funds restrictions.
- If a regional center or new commercial enterprise (NCE) closes, there is a process in place to switch projects.
- If the EB-5 program lapses in the future, grandfathering laws require USCIS to continue processing EB-5 petitions as long as they are filed by September 30, 2026.
- The bill allocates 20% of total EB-5 visa numbers to investments in rural areas, 10% to investments in high-unemployment areas, and 2% to infrastructure projects. So there will be less visa numbers for most of the popular large TEA projects and green card quota backlogs are more likely.
- In some instances, protection for dependent children who have reached the age of majority.
This year witnessed a turning point for the Portugal Golden Visa program as the long-awaited changes took effect. As of January 1st, the real estate acquisition route has been limited to certain areas, while the minimum investment amounts for most other routes, such as capital transfer and fund investment, have increased. Investor demand had already increased when the announcement was first made in early 2021. But in November and December, as applicants rushed to complete their applications, the applications skyrocketed. Still, some investors will need to make it under the new regulations.
Current Portugal Golden Visa prospects are only able to buy a residential property in designated interior areas as a result of the changes. As the residential property option in Lisbon, Porto, and the majority of the Algarve is now taken out of the equation, the investors who want to buy a house in the country turned their attention to interior areas. Aljezur and Monchique are two popular spots where most investors have already started their search. The beautiful Douro Valley is in the spotlight too.
Commercial Property Investment Rises Although buying residential property in Lisbon, Porto, and most parts of the Algarve region will not qualify investors for a Portugal Golden Visa, buying commercial property in these same locations is still an option. Those who don’t want to compromise from these hot spots lead to an increase in their quest for commercial properties. Considering the growing popularity of Lisbon as a digital hub for both companies, top talent, and digital nomads, a commercial property investment might turn out to be a profitable investment, along with Portugal Golden Visa benefits.
Investment Funds Are Here to Stay The fund subscription investment amount increased to €500,000 from €350,000 with the new regulation. This may appear to be a significant increase, but when compared to other residency by investment programs in Europe, it is still a reasonable amount. Portugal Golden Visa funds were already popular in 2021. But, some investors did not want to rush their application under the old rules so that they could analyze the funds, vet the fund managers, and assess the risks and returns more carefully. As investors become more confident with this route and the fund market grows. We’re waiting for new funds to be introduced to the market through CMVM, which will make the market more competitive.
Less Popular Investment Options Might Come Forward The most common methods to a Portugal Golden Visa are real estate investment and fund subscription. Other, less popular investment options, on the other hand, may become utilized once the changes are fully digested. One of these methods is a €250,000 donation to the preservation of national heritage in Portugal. It may be appealing because the investment amount lower than other routes. Still, I don’t think it can substitute a real estate investment or a fund subscription because it’s a “donation” that doesn’t guarantee a financial return.
Increased Mobility Will Attract New Investors Most investors who completed their Portugal Golden Visa in 2021, were already familiar with Portugal. Once – and hopefully – the pandemic slows down this summer, Portugal will welcome visitors from all around the world, who will set foot in the country for the first time. As global mobility increases, the investors’ appetite for Portugal will see a rise too. This is especially going to be the case for Americans, Australians, and Canadians who have not been able to travel and do proper research or house hunting.
The Bottom Line As I’ve explained, Portugal Golden Visa is still a favorable method for those who are looking for a solid Plan B in an EU country. The changes may have an effect “for a short while”, but the program is still almost unmatched, thanks to its low stay requirement only 14 days on average per two years, and its direction towards citizenship – only after five years.
(By Charles Taylor Harris)
(Photo by Richard Hewat)
The Residency Malta Agency, which governs the country’s Permanent Residence Program (the MPRP, known in its pre-2021 guise as the MRVP) has shared, for the first time, statistics on its residence by investment programs, going all the way back to 2016. The figures show that a grand total of 2,273 main applicants, as well as 5,303 of their family members, have received residence permits in Malta through either the MPRP or the MRVP since the start in 2016. Of those, nearly nine in ten have been Chinese nationals. At a distant second, Vietnamese applicants accounted for 2.9% of the total, followed by Russians (2.6%), South Africans (1%), and Turks (1%).
The Agency reveals it has rejected some 10% of all applications to date, while about 3% of applicants voluntarily withdrew their applications during the due diligence process “as a result of questions posed to the applicants by the agency”.
Approval volume grew steadily from the outset, peaking in 2020 at 988, making the MRVP (the current MPRP’s precursor program) the second-biggest EU golden visa during that year. 2021 volumes landed at roughly half that level, with 500 main applicant approvals, which still makes it one of Europe’s most applied-to golden visas in that year. The drop from the previous year is in large part explained by the transition from the old MRVP to the new MPRP. “Though it may not have looked strategic to have launched a new program during COVID, for us it was the culmination of a thorough analysis of propositions, markets, and competition,” Charles Mizzi, CEO of the Residency Malta Agency, tells.
He indicates enough time has now elapsed since the program launch in March last year to enable analysis of the market’s reaction to the MPRP. Interest, he says, has been high all along and grew substantially in the second half of 2021. He expects application numbers to reach new heights in the near future
During the early years, the Agency labored under a significant backlog of unprocessed applications, which caused significant delays in processing. The Agency explains that, in essence, the popularity of the program had grown faster than the bureau’s own capacity to handle applications. The Agency’s response to the bottleneck caused by too many applications for a relatively small staff to handle was to expand its recruitment drive, devote more resources to staff training and development, invest in software-based processing solutions, and streamline procedures.
New Startup Residence Program in the works In June, Residency Malta launched the Nomad Residence Permit, a one-year permit for digital nomads and entrepreneurs who are location- independent and who would like to work from Malta for the short or medium term. Mizzi describes the program as a response to “increased global movements spurred by Covid as remote working became the norm” and a solution for digital “nomads from third countries wishing to try a remote working stint from Malta.” The permit is suitable primarily for those who wish to live and work in Malta on a temporary basis, as it is issued for a one-year renewable term.
Now, however, the Agency is preparing a program for third-country nationals who wish to start a business in Malta and reside there on a more permanent basis. The Startup Residence Program, the Agency explains, will aim to attract “entrepreneurs wishing to use Malta as a base to launch their new business and reach new markets [..] This new permit will be another step in the direction of enticing third country entrepreneurs to consider Malta and strengthen the country’s innovative industries.”
(By Christian Henrik Nesheim – IMI daily)
(Photo by Nick Fewings)
The cumulative number of Greek golden visas issued grew by 137 in December, bringing the 2021 annual total to 1,035 approvals, according to figures published by Enterprise Greece this week. That represents a 10.3% improvement on 2020.
The figure, which makes Greece’s Golden Visa Europe’s biggest as measured in approval volume last year, is considerably above the Portuguese Golden Visa’s 2021 total of 865, the UK’s investor visa’s 422 (we still have only Ql-Q3 2021 figures, but they will certainly not exceed 1,035 in the final tally), to say nothing of Italy’s “Dolce Visa”, which approved 40 main applicants last year. Applications for Latvia’s Golden Visa have dwindled to virtually nothing in recent years, while Spain’s Golden Visa approved 232 main applicants in the first half of 2021. The last time Ireland provided a statistical update for its Immigrant Investor Program, on February 25th, the record sho,”led it had approved 18 applications in the first two months of the year. Malta’s MPRP, the Cyprus Golden Visa, and the Luxembourg Golden Visa have yet to provide any data.
Of all the Greek golden visas approved in 2021, close to half stem from the year’s fourth quarter alone, hinting at a rising trend in approval volumes as we embark on 2022, a sanguine development for a program that was among those worst hit by the pandemic.
While annual main applicant approvals grew only modestly, the number of approved dependents rose markedly, from 1,971in 2020 to 3,383 in 2021.The implication is that the average family size for a Greek golden visa application last year was 3.3 individuals, up from just 2.1 in 2020. In other words, if Enterprise Greece’s figures can be trusted (which is a big “if”), Greece’s golden visa investors brought, on average, more than one full family member more in 2021than in 2020.
All told, close to 30,000 individuals (main applicants and dependents) have received Greek golden visas since the program opened in 2013, most of them Chinese.
Americans, however, are increasingly making their presence felt. in the Greek Golden Visa program, as they have been doing in the last year and a half in Portugal and the UK as’.veil.
While Greece approved about 20% more golden visa applications than its chief rival Portugal in 2021, the latter still raised some 48% more FDI thanks to its considerably higher average investment amounts.
(by Christian Henrik Nesheim – IMI daily)
(Photo by Xuan Nguyen)
Real Estate Changes After the Changes to Portugal Golden Visa
The changes limit the locations where you can invest in a property for a Golden Visa. The minimum investment amounts remain the same, while there are geographical restrictions on the qualifying areas.
You are no longer be able to get a residential property in major cities such as Lisbon or Porto or in coastal towns of the mainland.
Only the property investments inland and possibly rural or low-density areas are eligible.
Capital transfer change
The minimum investment amounts were increased, both for monetary and for the number of jobs.
- Capital transfer amount increased from €1 million to €1,5 million
- Investment Fund minimum subscription amount increased from €350,000 to €500,000
- Research and Development amount increased from €350,000 to €500,000
- Job and Company Creation: minimum incorporation amount increased from €350,000 to €500,000; the number of jobs remain at 5
The changes came into effect as of January 1st, 2022.
What Did Not Change?
The below investment options did not change:
- To launch a company in Portugal and employing at least 10 new local employees,
- €250,000 contribution in arts
The changes will not be retroactive to anyone who submits a Golden Visa application before December 31st, 2021.
Provides new investors with a last chance to secure their future in one of Europe’s most promising citizenship programs.
Following the decision to extend the Montenegro Citizenship by Investment Program until December 31st, 2022, the Montenegrin Cabinet underlined their commitment to implement changes that will allow the globally acclaimed CIP to further the country’s development plan.
This includes an increase to the government contribution amount from €100,000 to €200,000.
As one of the fastest growing economies in the region, the foreign direct investments that continue to fuel the nation’s economy bring additional resources to both the local community and to Montenegro for the years to come.
With a starting investment of €250,000, and a donation of €200,000, Montenegro’s program still proves to be one of the most competitive in Europe
The new investment requirements are as follows:
- €200,000 in the form of Government Fund Donation, and
- €250,000 in real estate investment (in the north)
- €350,000 in real estate investment (in the south)
While there won’t be any new real estate investment options for 2022 — amongst the 11 projects currently approved by the Government of Montenegro, those offered by us are nearly finalized: including the majestic 4-star resort, Bjelasica 1450, the 5-star Westin Ski Resort Kolašin, the first 5-star hotel in Žabljakas, the Durmitor Hotel, as well as the luxury Hotel and Spa Breza.
Another primary reason for Montenegro’s significant acclaim is due to its likely accession into the European Union by 2025.
Essentially, as a Montenegrin citizen, you will be granted the same rights as other European Union member, such as free movement to work, study and live anywhere in the EU, It can be thought of as the investment that grants nearly-instant advantages that continue to resound from one generation to the next.
Montenegro’s Citizenship by Investment Program has become one of the most sought-after investment options for families who are in search for a better quality of life and a secure future in Europe with global mobility to 100+ countries.
The year 2021 has undoubtedly come with its highs and lows. As the year comes to a close, the U.S. Citizenship and Immigration Services has released a report detailing preliminary fiscal year (FY) 2021 agency statistics and accomplishments, some of which have impacted EB-5 investors and stakeholders.
USCIS Director Ur M. Jaddou said in a statement she was proud of the USCIS during a very challenging year, “From responding to the COVID-19 pandemic and addressing processing delays to enacting numerous operational and policy changes in response to executive orders from the Biden-Harris Administration.” She said the year marked one of growth and renewed vision for the agency.
In 2022, she said the agency will continue to serve the public “with compassion and reflect America’s promise as a nation of welcome and possibilities for all.” She added that the agency “will adjudicate requests with fairness, efficiency and integrity.”
Challenges faced in 2021 for EB-5 investors and applicants
Some of the challenges the agency endured during 2021 include challenges with fiscal health, temporary flexibilities in response to COVID-19, employment-based adjustments and processing delays.
Regarding employment-based adjustments, USCIS noted the challenge of processing over 237,000 employment-based Green Card applications—apart from the agency’s usual 115,000, plus an additional 122,000 immigrant visa numbers that the Department of State was unable to process in FY 2020 due to the COVID-19 pandemic. By the end of FY 2021, USCIS approved over 172,000 employment-based adjustment of status applications, an increase of 50% above the typical baseline, the report showed.
Processing delays saw an increase in pending cases and processing times. USCIS addressed processing delays by reusing biometrics for 2.5 million applicants since March 2020; reducing the number of pending biometrics appointments from 1.4 million in January 2021 to 155,000 as of the end of September; and fully eliminating the “front-log” of cases awaiting intake processing—which was more than one million receipts in January 2021 and was eliminated in July—by expanding staffing and overtime at their lockbox facilities.
“With the large number of pending applications that are not being reviewed due to the lapse of the Regional Center portion of the EB-5 Program, we would hope that some of these measures to address delays are implemented once the program is reauthorized,” says Rogelio J. Carrasquillo, Esq., Shareholder at Carrasquillo Law Group P.C. “Otherwise we may see a crazy number of delays which may increase the number of legal actions by investors against USCIS for the processing of their applications.”
USCIS achievements in 2021 when dealing with visa and immigration petitions
Regarding the agency’s response to executive orders, the agency noted they promoted naturalization and continued to process naturalization cases at pre-pandemic levels during 2021 and completed approximately 895,000 naturalization applications, conducted more than 52,000 video-facilitated interviews, and hosted more than 40,000 naturalization ceremonies.
Another accomplishment mentioned in the release was increased public engagement by the agency, which held more than 2,000 virtual engagements covering more than 20 topics, including citizenship/naturalization, online filing, family-based petitions and business immigration. The agency also highlighted their transition from paper applications to a fully digital filing and adjudication experience, such as expanding and enhancing self-help tools for applicants online and through the agency’s Contact Center to provide more efficient and timely service. Additionally, the agency mentioned its increased data transparency as an accomplishment, noting the USCIS has increased data transparency and availability of new and expanded quarterly reports.
Carrasquillo says he hopes in the new year that Congress will provide a permanent solution for the reauthorization of the EB-5 Regional Center Program.
“This reauthorization should include an increase in the number of available visas in order to jump-start the program and the confidence of foreign investors,” says Carrasquillo.
Although the EB-5 Direct program is permanent and Carrasquillo says they are seeing a small number of investors taking advantage of such programs, “the numbers are not sufficient to cause the economic impact that the regional center program could have with the larger amounts of foreign direct investment flowing into our economy.”
However, he says, at the same time, they “expect a steady number of direct EB-5 investors as the amount of investment remains at the $500k amount.”
(By Anayat Durrani – EB5 Investor)
