The UK Government is considering a new visa route for international citizens who make a significant investment in the UK economy. This could be similar to the ‘golden visa’ offered by some countries to international investors. We explore what this could mean for Scotland.
A new investment-based UK visa pathway could help drive growth and create opportunities for key sectors of Scotland’s economy.
The UK Government has indicated that it may be exploring a new visa route to attract foreign investment to the UK. Other countries, including Australia and Canada, offer visa pathways based on foreign investment in the domestic economy – sometimes called a golden visa or investment visa.
Has this been done before?
There was previously a Tier 1 (Investor) Visa for those making significant investment in the UK economy. This visa route was closed in February 2022, following concerns around money laundering and source of funds from some applicants. This visa route was also criticised for allowing people to obtain permanent residence and citizenship by investment without establishing genuine ties or even actually living in the UK.
The UK Government recently proposed a series of radical changes to the UK visa and immigration system aimed at reducing the number of international citizens making the UK their home. We have written about how these changes might impact some businesses in Scotland.
However, the UK Government says the UK “will still be competitive in attracting the world’s best talent.” To achieve this goal, any new investment visa must address some of the issues with the Tier 1 (Investor) Visa.
Who might apply for a Golden Visa?
Scotland has always been an attractive destination for international citizens looking to invest or relocate, especially given the extensive Scottish diaspora. We receive regular enquiries from the US, Canada, Australia and many other countries from people with Scottish ancestry, including those interested in the ‘double descent’ citizenship route. Many people with historic connections to Scotland ask us specifically about a Scottish passport or Scottish visa. Powers over immigration are retained by the UK Government at Westminster, so it is a UK visa that provides the right to live in Scotland.
According to VisitScotland, there are around 40 million people who can lay claim to Scottish ancestry, fuelling a significant heritage tourism market. Many of those with historic links to Scotland see investment in or relocation to Scotland as an opportunity to reconnect with their heritage.
What are the potential economic benefits of attracting global investors?
For Scotland, a well-designed investment-based visa pathway could help attract international investment into key areas of Scotland’s economy, including renewable energy, life sciences and the space industry.
Deputy First Minister Kate Forbes has said that she wants to make Scotland a “globally competitive investment destination”. She has also called for a “distinct approach” to the UK immigration system for Scotland to encourage growth and investment.
With the Scottish and UK Governments broadly aligned, a new visa pathway could present significant opportunities for international investment in Scotland.
What could the new Investor Visa requirements be for Scotland?
The UK Government has not yet released any proposals for what a new investment-based visa pathway in 2025 and beyond might look like. However, it has suggested that it would strategically target key growth sectors, such as renewable energy, the space industry or research in the field of life sciences.
Eligibility requirements should also incentivise investment for the public good by prioritising productive investment into Scotland’s economy over passive investment into personal assets like property, which have limited economic impact.
A new approach should lead investors to create meaningful connections to Scotland. This means developing strong economic connections, including active engagement with Scottish businesses. It should also mean developing personal connections. While this visa route will naturally attract people with international connections, they should be encouraged to make Scotland their home.
Investment Opportunities in Scotland
As Scottish Development International has highlighted, there is a wealth of opportunity for investing in projects and companies that will create jobs, support wider economic growth, and strengthen communities. This is underlined by Scotland being the top-performing foreign direct investment (FDI) region in the UK outside of London for the last nine years according to the 2024 EY Attractiveness Survey.
What are the visa options for international investors and global talent now?
There is a variety of existing UK visa options for international founders and entrepreneurs.
The Global Talent visa is a highly favourable visa route for talented individuals in the fields of arts and culture, academia or digital technology. This visa can lead to permanent residence after three years and comes with the freedom of not being tied to an employer.
We work with clients who are world leaders in a diverse range of fields. In the last year, we have advised a BAFTA winner, a celebrated violinist, a biologist working at the frontiers of medical research and an entrepreneur developing AI technology for public good. For further guidance on preparing a strong Global Talent Visa, read our top three tips for securing your visa application with tech nation.
The Innovator Founder visa is another option for founders seeking to make the most of Scotland’s rapidly growing cohort of start-ups. This visa route can be a good choice for ambitious international founders seeking to bring a new product to the Scottish and UK markets.
We work closely with our unique Ventures & Innovations team on Innovator Founder business plans to support international founders to build, scale and succeed.
How might the investor visa attract international wealth to Scotland?
The UK Government has been criticised in recent months for a number of tax changes announced in the last Budget, which have reportedly resulted in a significant number of non-domiciled individuals leaving the UK. In particular, the taxation changes effective from 6 April 2025 in relation to foreign income and gains, and the rules around domicile and Inheritance Tax, have meant that a number of globally mobile families have exited the UK in favour of being based in jurisdictions with more favourable tax regimes.
However, Scotland remains an attractive destination for higher earners. Despite an increase in income tax rates since this was partially devolved to the Scottish Government in 2017, net migration has increased year-on-year with more higher and top rate taxpayers moving to Scotland than leaving. Edinburgh has now overtaken London as the most popular location for US-based international citizens considering buying property in the UK.
This proposed visa aims to attract more capital investment in particular sectors but when balanced against the tax consequences of long-term residence in the UK, wealthy international families will need to consider carefully how their assets are structured. It is important to engage in pre-arrival planning to ensure they minimise the scope of any foreign assets/income falling within the UK tax regime.
How can we help with investing in Scotland?
If you are exploring options to relocate to Scotland under a UK investor visa, regardless of your Scottish ancestry or current citizenship, please contact immigration law specialist Jacqueline Moore or a member of our team on +44 3330 430350 or complete an online enquiry and a member of the team will contact you.
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