Different countries adopt unique strategies to manage their workforce needs. Many are continuously revising their immigration policies to favor local employment. Despite these tighter regulations, effective collaboration between local and expatriate workers is achievable and essential. Given the persistent labor shortages, the reliance on foreign workers remains a practical necessity. Here's an insight into the latest changes in popular global destinations.
Germany: Major updates to long-term visa regulations
Germany is streamlining its visa process for skilled workers, job seekers, and students from outside Europe. The European Blue Card scheme has expanded to include more qualified expatriates. Professionals in critical sectors such as IT and healthcare will find more lenient conditions. Visa applications can now be submitted online, enhancing accessibility. Moreover, foreign applicants can use a new qualifications recognition form to facilitate their job search in Germany.
United Kingdom: New automatic conversion from pre-settled to permanent resident status
The UK Home Office has introduced a new system to streamline the transition from "pre-settled" to "settled" status for foreigners under the EU Settlement Scheme (EUSS). Eligible individuals with "pre-settled" status will automatically be upgraded to permanent resident status. Previously, these individuals were required to live in the UK for five years before they could through the EUSS.
Notifications about eligibility and the transition process are being sent via email. The issuance of automatic permanent resident statuses started in late January 2025. While the process is automated, individuals can still manually apply for permanent residence. Furthermore, those with "pre-settled" status nearing expiration are granted a five-year extension.
Latest developments in the High Potential Individual (HPI) visa program
The UK is set to expand access to the , currently restricted to graduates from 40 select universities, primarily in the United States. To enhance its competitiveness in the artificial intelligence (AI) sector, the UK is looking to attract more foreign talent by including graduates from additional top-tier universities worldwide. The planned reform of the HPI visa is part of a broader effort to revise immigration policies, aiming to draw skilled graduates, especially from renowned Indian institutions specializing in AI. This visa allows individuals to work in the UK without a prior job offer, broadening opportunities for highly skilled new graduates.
Work permit: Key updates
The UK is implementing new strategies to attract skilled foreign workers in order to address ongoing labor shortages. Key changes include lowering the salary requirements in specific high-demand sectors to make it easier for skilled individuals to qualify for work permits. The will also be broadened to include more countries, allowing younger workers more opportunities to work in the UK. The process will also be simplified, increasing accessibility for foreign entrepreneurs interested in starting businesses in the UK. However, applicants should expect a rise in visa fees in 2025.
Scotland: Proposed "Scottish Graduate Visa"
The Scottish government has introduced a proposal for the "" aimed at attracting and retaining foreign graduates. This visa, intended to be valid for two years, is designed to ease the transition from student status to full employment, eliminating the need for graduates to meet the UK's salary threshold immediately after their studies. This initiative underscores Scotland's ongoing efforts to establish a distinct migration policy tailored to its specific needs. However, this proposal has been rejected by the UK government, leaving its future uncertain.
Finland: Partnership with the Philippines to recruit foreign workers
On the 70th anniversary of diplomatic relations between Finland and the Philippines, celebrated on January 16, the two nations signed a partnership aimed at promoting "ethical work mobility." This agreement comes as Finland continues to experience significant labor shortages in sectors such as healthcare, industry, and technology. The partnership is designed to streamline the recruitment of skilled Filipino workers, a group that numbered approximately 12,770 in Finland as of 2023, with expectations for increased future numbers. Key to this initiative is a commitment to transparency in the recruitment process and the protection of workers' rights. Filipino expatriates seeking opportunities in Finland are encouraged to apply through .
Residence permit update: Increased salary requirements for Foreign workers
Effective January 1, 2025, Finland has raised the minimum salary threshold required for foreign workers to qualify for a residence permit. The new minimum salary is 1,600 euros per month, up from the previous requirement of 1,339 euros. This adjustment reflects the rising cost of living in Finland and aims to ensure that foreign workers can support themselves adequately while living there. This change currently applies only to new applications for residence permits. For those seeking to renew their permits, the updated salary requirements will take effect on April 1, 2025.
Australia: New tax measures for expatriates and non-residents
Starting January 1, 2025, Australia has implemented a significant tax update affecting expatriates and non-residents. The Foreign Resident Capital Gains Withholding (FRCGW) regime now mandates a 15% withholding tax on the sale price or rental income from real estate owned by foreign residents. This measure is part of broader efforts to regulate the capital gains of expatriates, ensuring that tax obligations are met directly at the source of the transaction. Â
Rising number of WHV holders
As of December 2024, Australia reported a total of 206,000 individuals on working holiday visas, including 46,129 from the United Kingdom. This surge follows a bilateral agreement effective from July 1, 2024, between Australia and the UK, allowing British nationals up to 35 years of age to apply for the visa, extending the age limit from the standard 30 years. Moreover, British citizens are eligible for up to three consecutive working holiday visas, provided they engage in "specific jobs" for periods ranging from three to six months. While tourism professionals welcome this influx, viewing it as crucial support for the industry, there are concerns that it might counteract broader state objectives to reduce overall immigration levels.
Canada: Stricter criteria for Open Work Permit (OWP)
Effective January 21, 2025, Canada has implemented more stringent conditions for obtaining an Open Work Permit (OWP). These revised regulations require that a foreign worker, to sponsor family members, must hold either a valid work permit or a . Furthermore, the worker must be employed in an , reside in Canada for the duration of their work permit, and have at least 16 months remaining on their work permit when submitting a spouse or family attachment request. These changes aim to ensure that those entering Canada on an OWP can adequately support accompanying family members.
Quebec: End of Employment Aid for Temporary Foreign Workers
Effective February 1, Quebec has terminated public employment assistance services for temporary foreign workers and their spouses. This policy change has raised concerns among affected organizations and businesses that rely on these services to support their workforce. The Quebec government cites budgetary constraints as the reason for this decision. The sole exemption to this new rule is for international students who possess a postgraduate work permit, who will continue to have access to these services.
Reduced study permit quota for 2025
Canada has announced a 10% reduction in the availability of study permits for 2025, setting the new limit at 437,000 permits. This adjustment affects most categories of prospective students, though certain groups, such as exchange students, will be exempt from the cap. Of the total permits available, 316,276 will necessitate a formal application process. The distribution of these permits will also be controlled at the provincial level, with each province allocated a specific maximum quota of study permits.
United Arab Emirates: Accelerated career transition into teaching
To address the anticipated need for at least 30,000 teachers by 2030, the Abu Dhabi Department of Education and Knowledge (ADEK) is piloting an accelerated career transition program. ADEK's one-year intensive course culminates in a postgraduate diploma in education. The program is open to local and foreign applicants, with the sole prerequisite being a bachelor's degree in any field. Interested individuals can . For this initial trial, ADEK plans to select 125 candidates.
Kuwait: New opportunities for senior expats in the private sector
The Kuwait Public Authority for Manpower (PAM) has issued a new regulation enabling foreign workers aged 60 and above to transition their residency status from family sponsorship to a professional residence in the private sector. This directive is designed to simplify the process for foreign entrepreneurs, making it easier for them to contribute to and engage with Kuwait's private sector.
Bahrain: New tax on expats' money transfers
To diversify its economy and reduce reliance on oil revenue, Bahrain's Parliament has reintroduced a proposal to impose a 2% tax on money transfers by expatriates. This revised bill voted on January 31, 2025, follows an earlier version proposed in February 2023 that suggested a sliding tax rate of 1 to 3% based on the amount transferred, which was rejected in January 2024. The current proposal exempts capital transfers and investments from the tax. Despite its passage, the bill is contentious. Critics argue it could lead to a flight of wealthy expatriates, encourage black market transactions, increase the use of cryptocurrencies, and potentially facilitate money laundering. The Minister of Finance has expressed concerns that this tax could conflict with international treaties regarding the free movement of capital.
Oman: Major shifts in income tax policy
Oman is proposing substantial reforms to its income tax system with a new government bill that raises the tax exemption threshold and reduces the maximum tax rate from 15% to 5%. Moreover, foreign workers with annual earnings exceeding $130,000 will now be subject to income tax, an increase from the previous threshold of $100,000. If passed, this legislation would mark Oman as the first Gulf State to implement a personal income tax. Historically, Gulf countries have used the absence of such taxes as a strategy to attract affluent expatriates. However, these nations are increasingly considering taxation measures to diversify their economies and lessen oil dependency.
Singapore: Revised employment pass requirements
Singapore has introduced significant reforms to the Employment Pass, a work permit designed for skilled foreign professionals. Effective January, the updated regulations require a minimum salary of $6,200 for professionals in the finance sector, while those in most other sectors must earn at least $5,600. This salary criterion applies to . Foreign candidates are required to undergo an evaluation through the COMPASS framework, which is a points-based system assessing their qualifications and experience to determine eligibility.
South Korea: Innovative measures to tackle labor shortages
South Korea is set to launch a pilot project for regional visas next year to combat labor shortages, with participating regions to be selected by March 2025. This initiative underscores the country's strategy to draw more students and skilled foreign workers. Since January 10, South Korea has also been trialing a mobile app for expatriates that is equivalent to the resident card, enhancing convenience for foreign residents. The government also plans to implement a system to more accurately assess labor shortages and determine the specific needs for foreign workers. Current visa quotas include 130,000 E-9 visas for non-professional, manual labor positions, 74,689 E-8 visas for seasonal work, 35,000 E-7-4 visas for skilled workers, and 23,300 E-10 visas for ship crew. This year also marks the launch of the E-7-3 visa, a pilot program aimed at technicians in the construction and manufacturing sectors.
