Bahrain: new challenges for expat workers
This is a significant setback for expats in Bahrain. On February 27, following lengthy deliberation, the executive passed a bill prohibiting foreigners from working in six key sectors: justice, aviation, medicine, banking, and education. The legislation includes a two-year grace period for expatriates currently employed in these fields to transition out of their positions. The respective ministries are tasked with proactively addressing the void created by foreign workers' departure, necessitating their replacement with Bahraini nationals.
MP Mohammed Janahi argues that Bahraini citizens face limited opportunities to secure skilled positions, and the new law aims to rectify this imbalance. He rejects the argument that nationals lack the necessary qualifications, asserting that they often face rejection due to biased perceptions, while expatriates' applications are more readily accepted. Other MPs advocating for reforms are calling on universities and companies to eliminate what they perceive as discrimination against Bahraini nationals.
However, there is a dissenting opinion on this matter. Protesters argue that the "Bahrainization of jobs" is already underway and express concerns about potential negative impacts on the economy. What if there's a shortage of local talent? Pro-reform advocates shift the responsibility back to businesses and educational institutions, asserting that it is their duty to recruit and train more Bahraini nationals. Before the bill can be enforced, it must first be approved by both Parliament and the Shura Council.
Kuwait: visa regulations for skilled workers with families
Despite the growing number of job opportunities for Kuwaiti nationals, the Kuwaiti government remains committed to attracting foreign talent. Recently, the cabinet approved the extension of family visa eligibility for skilled workers, which came into effect on January 28, 2024. Under this measure, spouses and children under the age of 18 are eligible for family visas. Moreover, new provisions have been introduced to streamline the arrival and residency process for foreign talent. They will now be able to secure residency for their family members "immediately". This initiative is part of the phased reopening of family visas, initiated in December 2022 after being suspended in August 2022. At that time, the Ministry of Interior was reviewing its immigration policy.
Foreign talents can obtain a family visa if they hold a university degree relevant to their job in Kuwait, with exceptions for certain professions like media or engineering. They are required to earn a minimum of 800 Kuwaiti dinars per month, which is higher than the previous requirement of 500 Kuwaiti dinars before the program was suspended.
United Arab Emirates (UAE): attracting foreign talent is a priority
Updates to residence permits: The UAE, a hub for expatriates with over 9 million foreigners from 200 different countries, takes pride in its visa system. Offering four distinct types of visas, the country aims to attract highly qualified individuals such as investors, entrepreneurs, and outstanding students. The highly favorable Green Visa, allowing self-sponsorship for five years, stands out as a particularly attractive option.
The standard work visa generally lasts 2 years, whether the job is in the private or public sector.
In contrast to certain nations, the UAE continues to uphold its Golden Visa program. This highly beneficial visa permits individuals to reside, study, and work in the country while offering various perks, such as the ability to sponsor family members and obtain long-term residency.
The last type of visa is the domestic worker visa. This visa binds the holder to their employer (who sponsors them).
It is important to note that each visa has different eligibility criteria (minimum salary to be earned, multiple-entry visa or not, possibility of bringing one's family, etc.).
China: Shanghai aims to restore expat trust
The new website launched by Shanghai authorities in early January aims to rebuild trust among expatriates and those considering expatriation. Memories of the stringent measures in Shanghai are still vivid for many. Some expatriates have departed China due to frustrations with the zero-Covid policy. "International Services Shanghai," the city's new platform, caters to all foreigners, whether they are students, workers, travelers, or simply seeking information. The website underwent testing and validation by a group of foreign residents. Available in multiple languages, including German, French, English, Japanese, and Arabic, International Services Shanghai is intended to enhance the image of the cosmopolitan city and reignite international trade, innovation, and mobility, as envisioned by Shanghai's mayor, Gong Zheng.
Shanghai has recently unveiled a new 24-hour port visa service to further promote international mobility. This service is applicable to foreigners visiting the region for various purposes, such as business trips (M visa: business), visits (F visa), internships (S2 visa: short visa), or employment (Z visa). Interested applicants are required to apply online via the Shanghai Entry-Exit Administration Office website. They can expect a response from the Shanghai Port Visa Department within three working days. Depending on the type of visa, there may be applicable fees.
South African expats are returning home
South African expatriates are returning home, particularly those who left the country in the mid-90s. These insights stem from a survey conducted by The Times newspaper. The landscape has shifted significantly since the end of 2023, when only 19% of South African expats expressed intentions of returning permanently. Granted, the relatively small sample size of respondents (948) prevents definitive conclusions. Nonetheless, there appears to be a gradual inclination towards opting for life in South Africa over residing abroad. This shift can be attributed to a global context showing little improvement. Ongoing conflict in Ukraine and escalating inflation are eroding purchasing power, while recent governmental measures to curb immigration, notably in Europe, are discouraging some expatriates.
They are returning home despite South Africa's numerous challenges: the electricity shortage, housing issues, unemployment, corruption, and more. These expats shed light on the less visible aspects of living abroad. Working abroad, developing friendships, or establishing a family life far from home is a challenging feat. Besides, South Africans are realizing that returning home after years abroad poses its own challenges. Feeling uprooted, some individuals feel alienated by their fellow compatriots. Their message is clear: carefully consider the implications before embarking on an expatriate journey.
Nigeria prioritizes jobs for locals
Nigeria is taking steps to promote local employment and is making it evident. The government has endorsed a new regulation mandating organizations that employ foreign professionals to pay an annual tax of $15,000 for hiring a foreign director, for example, and $10,000 for hiring a foreign employee. However, diplomats and government officials on official missions are exempt from this requirement. Despite this, investors remain undeterred. During his address on May 27, while introducing the Expatriate Employment Levy (EEL) manual, President Bola Tinubu emphasized his aim to strike a balance between employing Nigerians and approximately 150,000 foreign workers, as per Ministry of the Interior statistics. The EEL is designed to increase the earnings of local workers and promote the hiring of qualified Nigerians. Expatriate workers are predominantly employed in sectors such as the oil industry, healthcare, telecommunications, and construction.
While it's true that companies were already required to pay $2,000 to secure a residence permit for each foreign worker, the government has now taken further action in response to the crisis. Unemployment, particularly among recent graduates, poses a significant threat to the country. Nigerian immigration authorities will be tasked with implementing the new regulation. Failure to comply with the tax requirements could lead to fines and prison sentences ranging from 3 to 5 years.
Canada: decline in immigration to Prince Edward Island
Prince Edward Island is scaling back its immigrant intake, a decision announced by Premier Dennis King aimed at enhancing the integration of current immigrants. In essence, the idea is to "Welcome fewer, but welcome them better." The Canadian province is aligning its policy with the federal government's stance. The rationale behind this move is the strain on infrastructure coupled with the acknowledgment of the province's ongoing need for foreign workers. Authorities plan to reduce the number of applications from foreign nationals by 25%, prioritizing profiles that align with their specific needs, particularly in sectors facing severe labor shortages, such as construction and healthcare. This year, the province aims to welcome 435 foreign workers in manufacturing and processing, 300 in healthcare, 215 in sales and services, and 185 in construction.
Bulgaria implements changes to the Aliens Act
On February 28, the Bulgarian government approved the alignment of entry and residency requirements for foreigners with the standards established by the European Union (EU). This synchronization aims to streamline the systems in place for the residency of third-country nationals, especially skilled and seasonal workers. The harmonization also encompasses the process for permanent residency applications. The government is mainly focused on attracting investors and pledges an "optimized" procedure to enhance efficiency.
The government is addressing businesses' concerns by addressing significant administrative hurdles that impede the hiring of foreign talent. As part of the reform, companies will no longer be required to demonstrate that foreign workers have a Bulgarian address before their arrival in the country. Additionally, collaboration between different immigration services will be enhanced.
Japan
Authorities consider revoking permanent residency for bad payers
In response to its demographic crisis, Japan is increasingly welcoming foreigners. However, the government is taking a firm stance against bad taxpayers among foreign permanent residents. As of June 2023, Japan had approximately 880,000 holders of permanent residence permits. Currently, permanent residency cannot be revoked even if the obligations associated with the permit are not met, with a few exceptions. Nevertheless, the Japanese Immigration Service reports that a significant number of permanent residents deliberately evade paying their taxes, prompting a push for reform. Immigration authorities are contemplating the possibility of revoking permanent residency if an individual receives a prison sentence of one year or less. The present regulations only permit revocation in cases of imprisonment exceeding one year.
The proposed reform is currently being examined. Advocates of the reform assert that all permanent residents should bear the same responsibilities as Japanese citizens. However, skeptics are concerned about potential misuse and urge stringent government oversight to prevent any ambiguity.
Labor shortage
The Japanese government intends to expand the list of eligible categories for the specified skilled worker Type 1 visa. Currently, this visa covers around ten sectors, including construction, agriculture, and nursing. In response to the labor shortage, the government plans to include the transport and rail sectors under this visa category. Japan has been grappling with a vocational crisis for years, with taxis being notably affected by the lack of interest among young people. While taxis are a common sight, they struggle to attract younger recruits. Other sectors, such as food processing and textiles, would also be eligible for Type 1 visas.
However, critics have voiced their opposition to the measure. It's important to note that there are two types of specified skilled worker visas: Type 1, which is limited to a 5-year duration without the option to bring family members, and Type 2, which is unlimited and allows for family reunification. In the summer of 2023, the government was considering expanding the number of Type 2 visas, which are more favorable for foreigners.
Another sector facing a demand for foreign workers is overtime. Despite previous reforms, the issue of excessive overtime accumulation persists as a significant public health concern. Reportedly, the government is contemplating implementing stricter regulations as soon as April. Reducing overtime hours could result in increased hiring and reliance on foreign workers. In fact, Tokyo anticipates recruiting even more foreign workers this year.
New Zealand: foreign investors at the rescue
Is the country encouraging real estate construction by attracting foreign buyers? Finance Minister Nicola Willis is reigniting this discussion. In essence, it entails permitting foreigners to invest in the construction of rental housing (known as built-to-rent/BTR). However, the challenge lies in opening up the market to foreign investors without causing price hikes. In 2018, the then-government prohibited foreigners from owning homes due to concerns about speculative abuses. As per the legislation, non-residents can invest in new constructions but are required to sell them upon completion. The only exceptions are citizens of Australia and Singapore.
Willis and the center-right National Party sought to partially lift the ban, permitting foreigners to invest in properties valued at over NZ$2 million ($1.2 million). However, the populist New Zealand First party quashed the initiative upon joining the coalition government. The conservative ACT New Zealand party, the third member of the coalition, remained supportive of the proposal. At the end of February, Willis re-entered the debate. According to the Minister, New Zealand must relax its investment regulations, which are overly restrictive for foreign investors.
United Kingdom
Scottish civil servants allowed to work remotely
At the end of January, the Scottish government announced that its civil servants could work remotely from abroad for up to one month per year. This move has stirred controversy in London. In response to cases involving civil servants working remotely from abroad, the British government has rightly emphasized the importance of agents working in-office for at least 60% of the time. However, the Scottish government appears determined to maintain its stance in favor of remote work. They argue that the roles in question would be suitable for hybrid working arrangements. Reportedly, 32 Scottish civil servants have been granted permission to work from Europe or other locations worldwide for "personal reasons." Nevertheless, applicants for remote work must demonstrate valid reasons for their request.
Stricter immigration rules
On December 4, 2023, new amendments were announced. On January 30, 2024, Immigration Minister Tom Pursglove released a written statement detailing the government's updated immigration strategy. One of the key revisions involves raising the salary threshold: starting from April 4, applicants for skilled worker visas must earn a minimum of £38,700 per year, compared to the current threshold of £26,200 (+48%). However, foreign professionals entering on a Health and Care visa are exempt from this requirement. The same exemption applies to foreign talent working in a "national" capacity.
The minister has confirmed that nursing staff can no longer bring their families with them. This restriction comes into effect on March 11. Furthermore, the minimum income requirement for spouse/family visas will increase to £29,000 starting from April 11. This minimum income threshold will gradually rise to £38,700 by 2025, aligning with the income requirement for skilled worker visas. These adjustments to immigration regulations were communicated in writing again on February 19. Additionally, the list of high-demand occupations will be reduced by 20% as of March 14. Employers are making every effort to expedite their current recruitment initiatives for foreign workers before the costs increase.
New visa regulations threaten the fishing industry
The British government's stricter measures are causing concern among fishing professionals. Already grappling with the aftermath of Brexit, the sector is urging the government to reconsider its approach. They argue that the significant increase in the minimum salary requirement for skilled foreign workers (from £26,200 to £38,700 per year) will compel companies in the industry to move their operations overseas. According to David Duguid, MP, approximately 40% of companies could be compelled to relocate. Speaking in the House of Commons, the MP highlighted that several professions in the sector, such as fishermen, seafood producers, and processors, are no longer included in the shortage list. He believes that the new visa regulations for skilled workers are further weakening an already strained sector.
France: British expats denied special privileges
An unexpected development occurred at the end of January when France's Constitutional Council dismissed an amendment to the immigration law that would have granted British nationals with second homes an automatic long-stay visa. The proposed amendment aimed to permit them to stay in France for more than 90 days without requiring a visa, following a proposal endorsed by both chambers of the Senate to uphold "good economic relations" between France and the UK. However, the amendment was deemed unconstitutional. This decision means British nationals will not receive special treatment like third-country nationals.
With no appeal filed, the dismissal of the amendment stands as final. This decision is a tough blow for the approximately 86,000 Britons who own a second home in France. Since Brexit, they have lost their European citizenship status and are now regarded as third-country nationals, subject to visa requirements. Presently, France is home to approximately 177,000 British immigrants holding residence permits, constituting around 24% of the foreign population.
United States: pilot program for H-1B visa renewal
The program has been eagerly anticipated. H-1B visa holders, especially those in the Tech sector, have faced challenges in renewing their visas, including chronic delays and uncertainty. The pilot program aims to address these issues and make the system more efficient. However, it's important to note that this measure does not impact dependent visa holders and children (H-4 visa holders).
A select group of Indian and Canadian expatriates now have the opportunity to apply for visa renewal without having to leave the country. The application window opened on January 29 and will remain open until April 1, 2024. The State Department has allocated 4,000 slots and will accept 20,000 applications. Eligible expatriates are those who have recently obtained their H-1B visa at an Indian or Canadian consulate. Applicants can verify their eligibility on the State Department website. Processing times are estimated to be between 6 and 8 weeks after receiving the applicant's documents.
Poland's "Business Harbour" program suspended
In 2020, Poland initiated a program aimed at enticing foreign IT professionals from its eastern neighboring countries, a move that sparked controversy from the start. The European Union (EU) expressed concerns that the program could be exploited by applicants primarily interested in gaining access to the Schengen area rather than seeking employment in Poland. The recent Russian invasion of Ukraine has further escalated tensions, leading the EU to criticize the program as a way to continue issuing visas to Russian nationals.
On January 26, Foreign Minister Radosław Sikorski declared the suspension of the "Poland Business Harbour - PBH" program. He cited its failure to meet expectations and the misuse of visas, which are not aligned with their initial objectives. The program will remain suspended until Poland obtains more assurances regarding the participating companies and foreign applicants. However, the Minister emphasized that foreign nationals can still apply for work visas through regular channels.
Initially, the PBH aimed to stimulate Polish economic growth and provide support to Belarusian nationals opposing President Lukashenko's regime. By 2021, approximately 10% of Belarusian IT specialists had migrated to Poland. In the same year, the PBH extended its scope to include Ukrainians, Russians, Georgians, Armenians, and Moldovans. As of September 2023, over 93,000 visas had been issued, with the majority going to Belarusians. However, the number of visas issued has been decreasing since 2023 due to escalating protests following the war in Ukraine and heightened concerns about corruption, leading to the suspension of the program.
Denmark expands its positive list
In response to labor shortages in the healthcare sector, Denmark intends to recruit 1,000 foreign workers. The Ministry of Education and Research announced this initiative in January, outlining the details of the new agreement. The "positive list" (which comprises positions in high demand) has been expanded, making it easier for foreign professionals, particularly those in the healthcare sector, to obtain work permits. According to projections, Denmark is expected to face a deficit of 15,000 health and social service workers by 2035. Therefore, this agreement is deemed a crucial initial step," stated the Minister of Immigration.
However, the Minister emphasizes that this does not imply a relaxation of immigration policy. He believes that "immigration policy" and "foreign labor" should be addressed separately. Conversely, Sophie Løhde, the Minister of Health and Home Affairs, has already advocated for a more assertive approach to relaxing immigration regulations for foreign workers. Using doctors as an example, she highlighted that despite the shortage of healthcare professionals, the country does not actively encourage them to settle due to the restrictive rules criticized by the Minister. She suggests implementing "shortcuts" to expedite the recruitment of foreign doctors.
Thailand: Tax reform threatens foreign income of retired expats
The tax reform regarding foreign income took effect on January 1, 2024. As of this date, income from foreign sources has become taxable in Thailand, impacting both Thai residents and foreign tax residents. However, the situation remains quite ambiguous. There is a lack of details regarding the reform's impact on foreign income, with the Thai tax authorities themselves stating that they are still evaluating the specifics of the measure. Questions arise as to whether the reform primarily targets affluent immigrants, whether it contradicts Thailand's efforts to attract wealthy foreigners, and how it aligns with the double taxation agreements between Thailand and numerous other countries.
How will the reform be enacted? Will retirement pensions be categorized as foreign-source income? Retired foreigners are feeling anxious. Many of them do not have a Thai tax identification number and are apprehensive about having to seek advice from a Thai tax specialist.
Greece reviews its Golden visa program criteria
The Greek Golden Visa program could be facing a downfall as many locals, grappling with a housing crisis, are dismayed by its impact, urging authorities to take action. In January 2023, the Greek government had already doubled the minimum investment threshold from 250,000 to 500,000 euros. While this measure only affects certain regions, it primarily targets tourist hotspots such as Athens, Thessaloniki, Mykonos, and Santorini. In early February, the government proposed a further increase in the threshold to 800,000 euros for regions severely affected by the housing crisis. Areas that have been relatively unaffected so far could soon be subject to the higher minimum investment threshold as well.
Luxembourg updates the process for declaring overseas work
The Centre commun de la sécurité sociale (CCSS) in Luxembourg is introducing new forms for declaring foreign work in April 2024, aiming to reduce declaration errors and enhance the quality of data received. Seculine, the electronic management center of CCSS, will also be updated to achieve this goal. The reform aims to streamline procedures for employers and foreign professionals, eliminating bureaucratic hurdles. According to CCSS, this initiative aligns with Luxembourg's goal of better integration into the globalized world of work.
The modernization efforts also involve enhancing coordination among different services. The new forms will consider various professional situations abroad, including specific provisions for insurance coverage for workers on temporary assignments (seconded) to the EU, the European Economic Area (EEA), the UK, or Switzerland. Additionally, the reforms will address other social trends, such as telecommuting. Overall, the reform aims to align the CCSS with evolving work practices and the changing international landscape.
