Expat alert: Buying your way into Canada not an option

Several countries are currently offering citizenship as an investment option; for a certain amount of money, you can obtain residency, which can be turned into citizenship after a couple of years. In some of these countries, like St Kitts and Nevis and Dominica, the requirements are minimal; money is the driving factor.

These options do not exist for immigration to Canada.

For UAE expats looking to migrate, Canada has remained the most popular immigration destination.

The immigration policy is relatively welcoming, to skilled workers as well as business people.

But investors will most probably find the door closed.

On the federal level, the investment route has been closed for applications since July 2012, and although there were speculations of the program re-opening this year, this is unlikely to happen.

Citizenship and Immigration Canada (CIC) stated on its website: “As of July 1, 2012, Citizenship and Immigration Canada has temporarily stopped accepting applications for the Federal Investor Program to focus on processing the applications we already have while the program is reviewed. This pause on new applications will continue until further notice.”

What is considered by experts as the easier and faster way into Canada –the Provincial Nominee Program (PNP)- also lacks the investors route.

People can apply to the PNP if they are nominated by a province. The nominee will obtain a conditional residency, which can later be turned into a permanent residency depending on certain conditions.

The conditions for nomination and for residency differ per province.

There are currently 11 provinces participating in the PNP, which can be viewed here:

However, the options that could appeal to business people wanting to invest in Canada entail active entrepreneurship rather than passive investment.

“Being nominated through the PNP program provides with a conditional visa.

“Part of the conditions that are set by provinces is that you have to make the business you invest in work, or the conditional residency will be retained,” comments Walid Taha, consultant at Krisko & Associates.

Advertisements appear frequently in the media suggesting that investment is the way to obtain Canadian residency. Focusing on the investment amount rather than on the work force required, amounts as CAD $200,000 are suggested as the investment you need to make to buy yourself into the country.

Taking British Colombia as an example, there is a business option indeed. "The Business Immigrants component of BC’s PNP (British Colombia's Provincial Nominee Program) considers applications from experienced business entrepreneurs who plan to invest in and actively manage an eligible business in BC," it states on the website.

Three options to do this are pointed out: business skills, regional business, and strategic business.

Taking business skills as an example, the first requirement is: "Make a personal investment of at least $400,000 CAD to establish or to purchase and expand an eligible business anywhere in BC."

In addition to that, the business person must create at least three jobs in the business, own at least one-third of the equity of the business, provide active and on-going participation in the day to day management and direction of the business and fulfill several other requirements.

"The business options of the PNP's are all entrepreneur routes, says Pej Mojeheddin,  Immigration & Business Consultant at Bayat Legal Services .

"You have to be actively involved. There is no programme where you passively invest money and get the residency in Canada."

An exception to this rule is the upcoming Quebec Immigrant Investor Programme, which will be re-opened for applications on August 1st after a one-year closure.

Applicants must be able to demonstrate that they have legally acquired a net worth of CAD $1.6 million, alone or with the help of their spouse or common-law partner. When accepted, the applicant will have to invest CAD $800,000 through a government-approved financial institution into a government-controlled corporation for a period of five years at a zero rate of return.

"Once this programme is re-opened, this will be the only investors route for immigration to Canada," Pej added.

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