Methods Where Ottawa Can Control Quebec Immigration Investors From Settling In Toronto And Vancouver

14 Feb 2018

 A large number of rich candidates arriving in Canada using the Quebec Immigrant Investor Program presently settle in Toronto and Vancouver.

These HNIs use the QIIP to enter two popular cities of Canada and face a blame for increasing the residential markets in these metropolitan areas.

These cities have introduced taxes for the foreign buyer to contest the unmanageable residential prices. Notably, Vancouver is considered a fast growing market in the world.

These immigrants scuttle the tax, and such measures work to a limited extent only.

Under this program, candidates having a worth of $1.6 million make an investment of $800,000 in Quebec for five years. When the period of investment is completed, the wealth is given back without paying any interest, and through this, there is a benefit to the economy in Quebec.

The argument of Toronto and Vancouver is that while there is a benefit to the French-speaking province from the amount invested, Ontario and British Columbia are required to meet the healthcare, education and other public services costs.

The reason is that PRs are free to move as it is a right in the constitution of Canada. Whereas QIIP applicants need to declare their objective to reside in Quebec, when they succeed, nothing stops them to move to any place in Canada, after obtaining the Canada PR status.

Reports suggest that 50,000 of the 60,000 candidates residing in Canada during 2016 after arriving through the QIIP resided in Toronto and Vancouver.

Primary Requirements of QIIP:

• Having a personal net worth of $1.6 million CAD which is acquired legally;
• Having a two year of appropriate management/business experience in the five years preceding the date of application;
• An investment of $800,000 CAD into a government guaranteed investment for five years;
• Intention for settling in Quebec province,

Earlier the Canadian government had its own edition of the QIIP which also had similar requirements of investment. It ended in 2014; but Quebec kept the program open, as it was an opportunity for passive investment to achieve PR in Canada.

The Critics point out that Ottawa disregards the fact that many such persons settle in Ontario and British Columbia depriving them of transfer payments of the federal settlement which Quebec receives in an unfair manner. The critics ignore the fact that this is the policy matter and there is a market demand for doing it.

The federal government until 2014 had provided a path to entry-level millionaires to gain residency and citizen status in Canada in the Canada Immigrant Investor Program. The program benefitted the country in the 1990s and at that time the interest rate was high. This program ended in 2014 as the government claimed that there was no benefit from it.

The Replacement came in February 2015 when the Immigrant Investors Venture Capital Pilot Program but there is no interest in it from the international investors.

Canada is neither attracting the successful businessmen nor their families. British Columbia and Ontario lose the transfer payments received by Quebec through immigrant investors and statistics reveal that only 16% take up residence there.

There is a clear solution for this. The government must re-design the IIVCP and create a right policy. A freshly structured program will succeed to attract rich businessmen who will succeed in bringing billions to businesses and also help in creating new businesses, which, in turn, will generate additional jobs.

Several benefits can be derived from the QIIP residency program. In the years between 2001 and 2016, $714 million were invested in 4,737 businesses spread in 17 territories in the province. Studies also reveal that average investors place around $770,000 directly in the economy in these five years. There were 1900 new Quebec Immigrant Investor applicants in the province for the present year.

Statistics also confirms the fact that more immigrants establish businesses compared to Canadians.

Quebec and Canada can dominate the International Residency Programs through investment and match the popularity witnessed by EB-5 program which has 10,000 immigrants annually.

In Canada, there is a great need to replicate the format of the QIIP and install a well-conceived, targeted model which can create the sound capital funds required by businesses in Canada. It must also attract the right applicants and have obvious policy objectives based on program integrity, cost efficiency, competitiveness, and fast processing.

There are considerable benefits to Canada, and it can meet the present economic challenges through the use of sound foreign investment and have the benefit of human capital. Several innovative and wealthy businessmen people of the world and their families are eager to reside in Canada and their desire must be met.

To find out if you are eligible to Move Canada permanently, Email us at [email protected] or call us 7207111222. One of our experts will meet your expectations and provide answers to queries.