Each year, around 80,000 high net worth investors relocate or obtain a second citizenship in another country. International investors around the world are looking for the best schools, the preservation of their heritage and the best lifestyle for themselves and their children.
The latest news on Quebec’s Immigrant Investor Program (QIIP): The provincial government is currently done with the work and is in formal talks with the federal government on immigration matters. We believe that the program should open in 2021 with an emphasis on the retention, integration and “francization” of all economic immigrants, including the “investor” sub-class.
What is the QIIP?
This program represents a passive investment option insofar as a foreign national purchases a bond with a “stripped coupon” from Quebec. Many foreign investors prefer this option because many are unprepared for the challenges that come with other options of immigration by investment in Quebec. The program’s financial intermediaries also offer credit facilities to investors to help them finance the acquisition of the bond from IQ Immigrants Investisseurs Inc.
The economic impact that the program represents for the province of Quebec helps them finance numerous government programs, in particular: the BAIIP and PRIIME. The income generated by the investment in the Quebec treasury bond acquired by the candidate is used to finance two assistance programs for Quebec business, Business Assistance—Immigrant Investor Program (BAIIP) and Employment Integration Program for Immigrants and Visible Minorities (PRIIME).
Aviseo Conseil: Economic Impacts for 10 Years of the Immigrant Investor Program
The economic impacts of QIIP are significant, as shown below, so most industry professionals agree that it will return.
$ 1.02 billion in returns generated by interest-free loans from immigrant investors, as such:
- These returns have made it possible to subsidize Quebec companies, finance government programs, and ensure the program’s remuneration.
- $477 million was paid in grants for investment projects in small and medium-sized enterprises in Quebec (SMEs).
- 3,747 investment projects received grants, and almost 80% of grants went to manufacturing companies.
$ 1.52 billion in economic benefits were reaped accordingly:
- Almost $ 540 million (36%) are indirect benefits outside of subsidized companies and financial intermediaries.
- Aviseo associates $ 553 million of the direct spinoffs of SME projects with regions outside the metropolis, i.e. 88% of the total.
- The economic benefits extend from 2009 to 2035, illustrating the structuring component of the subsidy of investment projects.
What has the Quebec government been doing?
Since October 30, 2019, the Government of Quebec has been carrying out reviews and work to assess the relevance of the Investor Program, make changes to improve its effectiveness and maximize the benefits for the province of Quebec within Canada. However, the province is still processing the thousands of applications received and is currently working on the backlog. The current reform of this program, which is very popular with foreign investors, focuses mainly on the following elements: the integrity of the Investor Program, the financial vehicle for investments made by foreign nationals belonging to this sub-class, as well as the role of financial intermediaries.
The government is also seeking to increase the retention of families and principal applicants in the province of Quebec for this subcategory, which is currently documented as being inferior to other economic categories selected by Quebec.
At Highgate Group, you can expect the best global mobility and investment immigration advisory services. We are an independent Canadian company providing international mobility services for investors; we know that value-added services offered in a climate of trust are the essential ingredients of a quality relationship – and that they are deserved.
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