In the global landscape of immigration and wealth planning, the United Kingdom remains one of the most prestigious destinations for high-net-worth individuals seeking UK permanent residency, business opportunities, and the benefits of a stable, secure jurisdiction.
The concept of gaining permanent residency in the UK through investment—often referred to as “residency by investment UK,” “UK investor visa,” or “British golden visa alternative”—has long been attractive to global investors. This guide explores how to obtain a UK investor visa (or equivalent business-investment route) and how to work towards Indefinite Leave to Remain (ILR), the UK’s form of permanent residency, through investment or entrepreneurial contribution.
We’ll cover:
- The background of the UK investor visa scheme
- Eligibility and investment thresholds
- The pathway to ILR (permanent residency)
- Alternative routes since the original investor visa closed
- Compliance and source of funds requirements
- Key advantages, risks, FAQs, and expert tips
Whether you are a global investor, entrepreneur, family office principal, or wealth planner, this guide provides clarity on achieving UK residency by investment in today’s environment.
Understanding the UK Investor Visa Route
For years, the UK operated the Tier 1 (Investor) Visa programme commonly called the UK Golden Visa. which allowed foreign nationals to secure residency by investing significant funds in the UK. Investors who met residence and investment criteria could later apply for Indefinite Leave to Remain (ILR).
Key facts about the former UK Investor Visa:
- Minimum investment: £2 million into qualifying UK share capital or loan capital.
- Accelerated ILR: £5 million led to ILR after 3 years; £10 million led to ILR after 2 years.
- Restrictions: Investments in passive property-holding companies, investment trusts, or government bonds (after later amendments) were not permitted.
- Benefits: Visa holders could work, study, bring dependents, and eventually apply for UK citizenship by naturalisation after ILR.
Closure of the UK Investor Visa Route
The Tier 1 Investor Visa was officially closed to new applicants on 17 February 2022. The UK government cited misuse, insufficient economic benefit, and risks related to illicit finance as reasons for its closure.
Key takeaway: If you did not already hold a Tier 1 Investor Visa before that date, you can no longer apply under the old rules.
Current Pathways to UK Permanent Residency via Investment or Business
Since the classic UK investor visa has closed, wealthy individuals and entrepreneurs seeking UK residency by investment must now explore alternative business immigration routes.
Main alternatives include:
- Innovator Founder Visa – for individuals who establish or join a UK-based, innovative business.
- Other business immigration routes that emphasize active participation, innovation, and job creation, rather than passive investment.
The Innovator Founder Visa Route
This is currently the most viable UK business immigration option for investors.
Key features:
- No fixed minimum investment amount (unlike the old investor visa).
- The business must be innovative, viable, and scalable with a UK-based operational plan.
- Requires endorsement from an approved endorsing body.
- English language and maintenance fund requirements apply.
- After continuous residence and business success, applicants can apply for Indefinite Leave to Remain (ILR).
Important: The UK now prioritises active contribution over passive investment. Investment alone is no longer sufficient for permanent residency.
Eligibility Requirements for ILR via Investment or Business
Whether through the legacy Tier 1 Investor Visa or newer business routes, applicants must satisfy strict criteria to obtain Indefinite Leave to Remain.
Residence requirements
- Under the old route:
- £2 million → ILR after 5 years
- £5 million → ILR after 3 years
- £10 million → ILR after 2 years
- Applicants must not spend more than 180 days outside the UK in any 12-month period.
Investment and business requirements
- Old Investor Visa holders: Maintain the qualifying £2m–£10m investment in approved UK trading companies.
- Prove the lawful source of funds (business income, inheritance, asset sale, etc.).
- For business routes: Demonstrate innovation, job creation, and growth within your UK enterprise.
Language and knowledge requirements
- Pass the Life in the UK Test.
- Meet the English language requirement (B1 or higher).
Good character and compliance
- No serious criminal record or immigration breaches.
- Dependents (spouse, partner, children under 18) may be included if they meet relevant requirements.
Application Steps: From Investment to UK Permanent Residency
1. Assess eligibility and strategy
Determine which route fits you best—legacy investor route or a current business-investment visa such as the Innovator Founder Visa. Seek professional advice from UK immigration and tax experts.
2. Prepare documentation and proof of funds
You’ll need bank statements, source-of-funds evidence, business plans, endorsement letters (if applicable), and proof of UK ties.
3. Apply for the visa and maintain compliance
Submit the visa application (Innovator Founder or other), maintain residence, and comply with business performance criteria.
4. Apply for ILR (Indefinite Leave to Remain)
After meeting residence and investment/business requirements, apply for ILR, pass required tests, and attend biometrics.
5. Post-ILR: Citizenship option
Once ILR is granted, you may live, work, and study in the UK permanently. After 12 months, you can usually apply for UK citizenship and a British passport.
Investment Thresholds and Timelines (Old Tier 1 Investor Visa)
| Investment Amount | ILR Timeline | Notes |
|---|---|---|
| £2 million | 5 years | Standard route |
| £5 million | 3 years | Accelerated route |
| £10 million | 2 years | Fast-track route |
Qualifying investments included share or loan capital in active UK trading companies, but excluded property-holding entities, government bonds, and offshore structures.
Advantages of UK Permanent Residency Through Investment
- Unlimited right to live, work, and study in the UK.
- Access to world-class education, healthcare (NHS), and infrastructure.
- Ability to bring your spouse and children.
- Pathway to UK citizenship and British passport.
- Access to Europe’s top financial and innovation markets.
- Enhanced global mobility and prestige.
- Strong asset protection and wealth diversification through UK residency.
Risks and Challenges
- Policy changes: Immigration routes can evolve or close (as with the Tier 1 Investor Visa).
- Compliance scrutiny: Applicants must clearly document the lawful source of funds.
- Active business requirement: Passive investment is no longer sufficient.
- Residence obligations: Extended absences may disqualify ILR eligibility.
- Financial planning: UK tax exposure may apply; seek expert tax advice.
- High costs: Application fees, healthcare surcharge, and professional fees can add up.
Frequently Asked Questions (FAQs)
Q1. Can I still apply for the UK Investor Visa?
No. The route closed to new applicants in February 2022. Only existing visa holders may extend or apply for ILR under the old rules.
Q2. What is the fastest way to gain UK residency through investment?
Under the old scheme, £10 million led to ILR in 2 years. Under current routes, the timeline depends on business growth and endorsement success.
Q3. Does UK property investment qualify?
No. Passive property investment does not qualify for residency.
Q4. Can my family join me?
Yes. Spouse/partner and children under 18 can be included in your application.
Q5. What happens after I obtain ILR?
You’ll have permanent residency in the UK and may apply for UK citizenship after 12 months if eligible.
Q6. What are the tax implications?
UK residency may trigger income, capital gains, and inheritance tax obligations. Always seek advice from a qualified UK tax specialist.
Practical Tips for Success
- Engage a specialist immigration and tax advisor early.
- Maintain clear records of source of wealth and investment activities.
- Invest only in qualifying UK companies or approved business ventures.
- Keep UK residence consistent and limit absences.
- Monitor immigration policy updates regularly.
- Plan long-term: UK residency is part of a strategic wealth and lifestyle plan.
Conclusion
For high-net-worth individuals pursuing UK permanent residency through investment or business, opportunities remain—though the focus has shifted from passive investment to active business engagement.
While the Tier 1 Investor Visa is no longer open, alternative options such as the Innovator Founder Visa continue to provide viable pathways to UK residency, Indefinite Leave to Remain (ILR), and eventually British citizenship.
By meeting eligibility standards, maintaining compliance, and contributing meaningfully to the UK economy, investors can secure long-term residence in one of the world’s most respected jurisdictions—the United Kingdom.