According to new data released recently, the number of applicants for the UK investor visa has dramatically fallen by 82% during the second quarter of 2015.
New data shows that last year, 251 applications had been received for the UK investor visa during the second quarter of 2014, unlike the 44 applications that were received for a Tier 1 investor visa during this year’s Q2. Although the numbers for Q1 were equally disappointing, having received only 58 applications, it was expected since the spike that occurred at the end of 2014, as investors were rushing to submit their applications before the required minimum investment doubled to £2 million in November 2014.
According to statistics, the number of applicants have hit the lowest point since 2010, and is probably the first sign that the progressive limitation of non-resident tax advantages, a major discussion point in the pre-general election period, is discouraging inward investment.
According to tax consultants Mark Davies Associates, the drop during Q2 is not only a result of the spike during the end of 2014. One of the main factors affecting the matter is competition from other EU countries that the UK is currently facing. For instance, an applicant in Cyprus can have a full EU passport within a period of three months as opposed to the five year commitment that is needed for an applicant in the UK. Portugal on the other hand, requires an investment of €500,000 for the Golden Visa compared to £2 million in the UK.