When it comes to making a worthwhile investment, opinions vary on what underlying factors contribute to success.

However, one fundamental factor that all investors can agree on is the presence of a strong investment environment – with economic stability, predictable legal & regulatory systems and plentiful opportunities.

 

The advent of globalisation has opened up new opportunities for individuals to make overseas investments. Despite this, selecting a foreign country to invest in can be difficult, especially for investors living thousands of miles away and often lacking adequate information on overseas economies, laws and the full breadth of opportunities available.

 

Below are our top three reasons why intelligent foreign investors should consider the United Kingdom when planning to make an investment overseas.

 

 

1. The UK is the top investment destination in Europe

 

 

The UK has long held  the position as the top destination for foreign direct investment in Europe.

At its core, this is driven by the country’s stable and democratic political system, ‘safe haven’ currency (the British pound) and strong and respected system of law, together providing a high level of confidence to investors.

And when it comes to investment opportunities, it’s easy to see why discerning foreign investors are attracted to the UK. The country has produced a whopping 72 unicorn companies (start-ups valued at more than $1bn) over the last 20 years, with more world-leading businesses in growing industries such as fintech, renewable energy and education predicted to emerge in the near future.

Despite the uncertainty surrounding Brexit, confidence in UK businesses remains steadfast, with 70% of investors reporting to Ernst & Young that they will not change their UK investment plans as a result of Brexit.

 

 

2. The UK has a robust and refined regulatory system

 

 

The UK holds the highest overall score awarded by the OECD for the quality of its regulatory practices.

This is largely due to its focus on evidence-based policy making, in which decisions are informed through rigorous use of scientific evidence, rather than in a manipulated or cherry-picked manner as is often used for political gain.

The UK has operated this evidence-based approach since 1997, and its regulatory system is studied by academics worldwide as a model for developing nations to develop progressive policy making practices.

On top of this strong foundation, the UK Government invests heavily in regulatory systems and specialised departments are ordered to regularly conduct post-implementation reviews to evaluate and refine policies – particularly those which concern business.

In line with its commitment to supporting businesses of all types and sizes, the UK government has also established longstanding ‘Business Impact Target’ and ‘Cutting Red Tape’ review programmes to reduce regulatory costs for businesses and maximise their chance of success.

Thanks to this system, the legal framework for investment and business activities in the UK is predictable and fair, contributing to an excellent investment environment.

 

3. The UK offers a simple ‘residency via investment’ scheme

 

 

Individual investors are highly regarded by the UK Government.

So much so, that as an incentive to invest in British businesses it invites foreign investors to take part in a ‘residency via investment’ scheme, known as the Tier 1 (Investor) visa.

Under this scheme, foreign individuals who invest upwards of £2 million into British businesses are eligible to apply to become a resident of the UK and secure permanent residence status (known as ‘Indefinite Leave to Remain’) with their families after 5 years.

There is no ‘active involvement’ required on the part of the investor to be eligible for a Tier 1 visa – making the scheme a simple solution for foreign individuals seeking dual citizenship.

There are many exciting visa-compliant investment opportunities available. Using our portfolio of 250+ pre-screened qualifying UK companies, InvestUK can help you to make an investment into an exciting UK business or infrastructure project. Contact us today to find out more.

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