Visa Programs for Foreign Investors in Canada
Canada is also known for its stable economy with many well-developed industries. Thus, it offers opportunities for foreign investors and business leaders to invest and participate in the growth of the economy. Canada’s government actively encourages such participation by offering generous immigration opportunities to foreign investors.
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Here are facts about Canada’s main immigration program for foreign investors which is usually referred to as Canadian Residence by Investment:
- At present, there is no federal immigration program for investors in Canada. Instead, Canadian provinces and territories directly offer such programs for investors under the Provincial Nominee Program (PNP).
- Obtaining permanent residence in Canada as a foreign investor opens your access to the entire North American market.
- Quebec operates the most comprehensive program for foreign investors who want to settle in their region. However, on 31 March 2021, the Ministry of Immigration, Francisation, and Integration announced the suspension of the Quebec Immigrant Investor Program. The program will not reopen before 1 April 2023.
Following a 26-year run, the federal Immigrant Investor Program in Canada was permanently closed in 2014. The Canadian government launched this program to attract experienced business persons and their capital to Canada to help grow the country’s economy. Investors that qualified for the program, along with their families, were granted permanent resident status and would eventually be eligible for citizenship. To be eligible for the program, a candidate had to meet specific business experience criteria, possess a net worth of at least CAN $1.6M, and be able to make a CAN $800,000, five-year, zero-interest, guaranteed investment. Investment capital raised through the program was allocated to participating provinces and territories, which used the money to help achieve regional economic development and job creation objectives. At the end of that period, provinces had to repay the principal to the investor in full. The program raised almost $4B in capital from more than 9,500 investors (principal applicants) since 1999.
While the program was popular with foreign investors, it got a lot of negative press. It was denounced as a shortcut for wealthy foreign nationals to “purchase” Canadian citizenship, a privilege inaccessible to most newcomers. Thus, the federal government put a moratorium on the program in 2012 and fully closed it in 2014. The official reason was that immigrant-investors were not maintaining sufficient ties to Canada and ended up paying significantly fewer taxes than other economic immigrants in the long term.
There are no plans to resume this program at the federal level. But the government didn't want to completely foreclose its options, particularly for provinces and territories who could still benefit from such a program. So immigrant investor programs were “delegated” directly to the provinces and territories. Some provinces have developed immigration streams for investors who want to settle in their area under the Provincial Nominee Program. Often, these streams are:
- Available only to persons who want to invest in a particular industry, such as agriculture or mining (typically it is an industry that the province wishes to promote);
- Combined with the relevant entrepreneur streams.
While the Investor Immigration Programs designed for high net worth individuals making a passive investment were closed at the federal level in 2014, Quebec alone continued to maintain such a program. It is called the Quebec Investor Immigration Program (QIIP). You might be wondering: “Why can Quebec operate its own program?” The answer lies in the Canada-Quebec Accord, an agreement between the Canadian federal government and the Government of Quebec. According to its provisions, the sphere of immigration is within the competence of the Government of Quebec. Quebec decided not to terminate the investor immigration program.
Who can apply?
To be eligible for the Quebec Investor Immigration Program, a person must:
- Invest CAN $1.2 million for five years at no interest (0%). The investment is government-guaranteed and will be repaid in full at the end of the investment period.
- Possess, alone or with the accompanying spouse or de facto spouse, legally acquired net assets of at least CAN $2,000,000, excluding any amounts received by donation less than six months before the application is submitted.
- Intend to settle in Quebec.
- Have management experience for at least two years in the five years preceding the application for selection. This experience must include duties related to the planning, management, and control of financial, human, or material resources under a person's authority.
- Sign an investment agreement with a financial intermediary (broker or trust company) authorized to participate in the Investor Program.
- Obtain an attestation of having learned about democratic values and Québec values.
- Complete and pass Canada's medical and security evaluations.
How to apply for the QIIP?
Immigration to Québec is a two-stage process:
- First, you must apply to the government of Québec for the Québec Selection Certificate (QSL). You must pay the application fee of CAN $15,962. If your application is successful, you will be issued the QSL. The average processing time is 6 months.
- After receiving your QSL, you must apply to Immigration, Refugees, and Citizenship Canada, the federal immigration authority, for permanent residence. At this stage, you must pay processing fees of CAN $1,575 for your PR application, plus the right of permanent residence fee (CAN $500). Please note that the average processing time for the Quebec investor immigration PR application is 53 months.
However, at the time of writing this article, the Ministry of Immigration, Francisation, and Integration had announced an extended suspension of the Quebec Immigrant Investor Program. The program, frozen since 2019, is not likely to reopen before 1 April 2023. The QIIP had been previously suspended until July 2020, and later until April 2021. There are two main reasons the Government of Quebec decided to suspend it:
- There is a massive backlog of already submitted applications under this program.
- Many applicants used this program not to settle in Quebec, but to receive a sort of back-door entry to the rest of Canada. They typically left Quebec within a year after obtaining permanent residence. Some 85% of immigrant investors who entered Canada through Quebec ended up in Ontario or British Columbia. Only 10% remained in Quebec. When the program is reopened, it will likely contain some safeguards against this loophole.
Each province establishes its rules of application for investor immigration. However, there are some similarities between the application systems. Generally, it is a two-stage process:
- First, apply to the provincial or territorial government for the relevant business stream.
- Second, apply for permanent residence to the federal government. You can apply when you receive a nomination certificate from the provincial government that proves you have successfully implemented the Business Performance Agreement.
Here is a more detailed step-by-step guide for applying as a foreign investor under the PNP:
- Assess your own situation to determine if you meet the minimum eligibility criteria.
- Submit an expression of interest to the immigration authorities of the province where you wish to settle.
- Visit the chosen province for exploratory and research purposes.
- Attend a face-to-face interview with a representative of the immigration authority.
- If chosen, you will be invited to apply and submit your full application for the relevant Business Stream and business plan.
- You will be issued a Temporary Work Permit.
- Sign a Business Performance Agreement (BPA), which is a legal agreement between the applicant and the government of the province, outlining the obligations you must fulfill in order to receive a nomination certificate for permanent residence.
- Successfully implement the Business Performance Agreement.
- Get a nomination certificate for permanent residence and apply for PR to Immigration, Refugees, and Citizenship Canada.
Finding the proper Canadian immigration program for foreign investors can be rather complicated. Contact us, and our team of professionals will help you navigate the process of immigrating to Canada. We will review your background and provide you with a realistic assessment of your chances of success.
The importance of providing clear, complete, and accurate information throughout the process cannot be overstated. It is usually a good idea to seek the assistance of a professional who is experienced in the process so that you avoid making mistakes or acting on incorrect information at any step. We can assist you in all stages of your journey for Canadian residence as well as make the application process efficient and stress-free.
If you are unsure about your likelihood of success, contact us for a free evaluation. If you still have any other questions that are not addressed in this article, please contact us and we will be happy to help.