UK plans to introduce "invitation-only" investor visa with a minimum investment of £5 million

```

The UK is preparing to relaunch its residency visa program for wealthy foreign investors, aiming to revive its appeal to global high net worth individuals.

According to Bloomberg, the program requires applicants to invest at least £5 million (about $6.7 million) in “priority sectors” in the UK, granting three-year residency and a pathway to permanent residency after three years. The visa will be offered “by invitation” and accompanied by a rigorous vetting process.

This move comes against the backdrop of tightening policies toward high net worth individuals in the UK. In recent years, the UK has increased taxes on non-native wealthy residents and scrapped its previous investor visa program in 2022, making it less competitive among global wealth centers. Meanwhile, competition from Dubai, Milan, and Abu Dhabi is intensifying.

There remains uncertainty about the policy direction. The proposal's timing coincided with the Labour Party suffering a setback in local elections, putting pressure on Keir Starmer’s leadership. It is unclear whether, if Starmer cannot withstand challenges from within the party, the relevant plans will continue.

Abolition of Old Visas and Talent Exodus Forces Policy Shift

The UK's appeal among global wealth groups has been steadily eroded in recent years, with a series of tightening measures at the policy level being the main cause.

In 2022, aiming to curb Russian fund infiltration, the UK abolished its flagship investor visa program, which had allowed foreign citizens to obtain residency by investing over £2 million. This change greatly narrowed channels for overseas high net worth individuals to settle in the UK.

Tax policy has also played a role. Since last year, the UK has formally implemented tax reforms targeting non-native wealthy individuals. The reforms were initially proposed by the previous Conservative government early in 2024 and later expanded under the Starmer administration.

Afterward, several ultra-high net worth individuals, including shipping tycoon John Fredriksen, Egyptian billionaire Nassef Sawiris, and payments entrepreneur Guillaume Pousaz, left the UK or reduced their ties with it.

Chancellor Rachel Reeves’ second budget released last November indicated that the UK will explore a “tax preference scheme” aimed at high-end talent. Meanwhile, Secretary of Business Peter Kyle publicly admitted that Labour’s tax hikes prompted some ultra-wealthy residents to depart.

New Plan Focuses on Avoiding Money Laundering Risks

In designing the new visa, the UK government has clearly learned from prior lessons. The previous investor visa was criticized as a channel for money laundering.

To mitigate money laundering risks, the government is considering asset class restrictions for investments, such as excluding real estate, and will introduce strict due diligence procedures. The new scheme will operate on an “invitation basis” with enhanced vetting to keep out applicants with unclear sources of funds.

For investment direction, applicants must put their funds into rapidly-growing UK companies in so-called “priority sectors,” ensuring that the investments support the real economy. The government said its Global Talent Taskforce is “continuously evaluating all options to identify and attract the world’s finest talent.”

Intensifying Global Competition for the Wealthy

This policy adjustment in the UK comes in the context of an escalating global battle for wealth.

Global wealth centers including Dubai, Milan, and Abu Dhabi have been ramping up their efforts to attract elite groups, with increasingly competitive terms in tax incentives and residency convenience.

Meanwhile, US President Trump has promoted a permanent residency program costing as much as $5 million, further intensifying the global competition for high net worth individuals.

Domestically in the UK, the Reform Party led by Nigel Farage, which has gained major ground in local elections this month, proposed its own plan: offering wealthy foreigners tax exemptions on overseas wealth, in exchange for a fixed payment of £250,000 every ten years, with proceeds used to subsidize low-income workers.

With multiple parties racing to propose their own solutions, the UK government faces pressure to accelerate investor visa reform. However, political uncertainty around the plan—as well as criticism from within Labour regarding linking permanent residency to income levels—means the program’s future remains variable.

Risk Warning and DisclaimerThe market carries risks; investment requires caution. This article does not constitute personal investment advice nor take into account individual users’ special investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their specific circumstances. Investing based on this is at their own responsibility. ```