UK Govt Considering New Investor Visa Amid Record Wealth Flight

After cutting non-dom tax benefits and losing thousands of millionaires, the UK gov’t hopes to attract wealth with a new investor visa.

In a marked shift from the policies that closed its previous golden visa route, the United Kingdom is reportedly drawing up plans for a new investor visa designed to attract wealthy individuals willing to commit substantial capital to the British economy.

According to Bloomberg, the Labour government under Prime Minister Keir Starmer is considering a special visa for foreigners who invest in sectors it considers strategic, such as artificial intelligence, clean energy, and life sciences.

The new proposal is still in its early stages, but sources familiar with the matter tell Bloomberg it may form part of a broader effort to counteract recent economic headwinds brought about by tax hikes, a clampdown on other migration pathways, and the exodus of ultra-high-net-worth individuals (UHNWIs) following the scrapping of the UK’s non-dom tax regime.

A Response to Fiscal and Demographic Pressures

Since Chancellor Rachel Reeves’ first budget last October, the UK has implemented a series of measures aimed at tightening the fiscal belt, including a national insurance payroll tax hike and broader restrictions on work visas. While these policies align with Starmer’s pledge to reduce overall immigration, they have contributed to a slump in hiring and eroded business confidence.

The investor visa under discussion appears to be a tactical move to balance these effects and maintain the UK’s appeal to international capital. As outlined in a white paper published this week, the British government wants to “attract the best talent, entrepreneurship and investment into our country” and is exploring “faster routes for bringing people to the UK who have the right skills and experience to supercharge UK growth in strategic industries.”

A government official cited by Bloomberg said there was consensus across the Home Office, Treasury, and Department for Business and Trade on the need to court high-value individuals who can contribute meaningfully to the UK’s economic ambitions.

Lessons from the Tier 1 Investor Visa

Any new investor visa would inevitably be viewed through the lens of the now-defunct Tier 1 (Investor) visa, which the previous government shut down suddenly in 2022, ostensibly amid concerns about the influx of Russian capital through the program.

As IMI reported at the time, the decision to scrap the Tier 1 visa came after a long period of criticism, including a 2020 UK government review that found “a small minority of cases where the visa route had been abused for money laundering purposes.”

“We have long advocated for the reform and reintroduction of the UK’s Investor Visa, even before its sudden closure on February 17, 2022,” commented Farzin Yazdi, Head of Investor Visa at Shard Capital. “The visa’s reputation was negatively impacted due to certain loopholes and misinterpretations, which left it vulnerable to abuse.”

To avoid the reputational risks associated with the earlier iteration, the new investor visa will likely feature more stringent eligibility criteria and vetting procedures. Insiders suggest a new investor visa would, like the former version, exclude investment in real estate and instead channel funds toward sectors aligned with national priorities.

“It is crucial that the new Investor Visa align seamlessly with the UK’s visa, tax, and financial regulations. This is a pivotal moment for the UK to demonstrate global leadership by creating an Investor Visa that is transparent, secure, and mutually beneficial – a gateway for high-value migrants to invest that strengthens the UK economy while upholding public trust.”

If implemented, the new route would mark a departure not only from the UK’s own past policies but also from the broader European trend of curtailing capital-based immigration pathways. In the last two years, a number of EU countries – including Spain, Ireland, and the Netherlands – have closed golden visa programs, typically based on specious argumentation surrounding the potential for misuse. Hungary, meanwhile, is among the few EU countries that have opened a golden visa program in the last few years.

Conversely, the United States continues to pursue aggressive capital-attraction strategies, including former President Donald Trump’s proposal to grant residency and a path to citizenship to investors who contribute $5 million directly to the US Treasury, via the so-called Trump Gold Card.

Whether the UK will follow through on its new investor visa remains to be seen. Government departments have yet to formally comment on the proposal, and details such as minimum investment thresholds, required holding periods, and residency benefits remain under discussion.

However, given the current economic context and the political priority of restoring growth without fueling mass migration, the reintroduction of an investor visa, albeit a more targeted and tightly controlled version, may prove an increasingly attractive option for the Starmer administration.