Residency by Investment

WHAT IS PERMANENT RESIDENCY?

Permanent residency (PR) is a visa status that allows the bearer of the permanent residence permit to legally reside in the host country without being a citizen of that country. This visa can be obtained through residency by investment programmes.

In addition to residing in the host country, permanent residents can also work, study and access healthcare benefits.

In some cases, permanent residents may be afforded additional benefits. Permanent residents of Schengen Area countries, for example, are permitted to travel within the Schengen Area without a visa or live in other Schengen states for up to three months within any six-month period.

Permanent residents can usually apply for full citizenship after a set period of time, depending on the host country.

 

Residency by investment is on the rise worldwide. Obtaining permanent residency through investment has become a very fast process which can be completed within 3-5 months.

WHAT IS
RESIDENCY BY INVESTMENT?

Residency by investment programs have become increasingly popular in recent years, with many countries recognizing the benefits of attracting foreign investments to their economy. For investors, these investment programs can offer the opportunity to obtain a permanent residence permit in a foreign country, as well as potential financial gains from their investment.

One of the primary benefits of residency by investment programs is the ability to live and work in a foreign country without the need for a work visa. This can provide greater freedom of movement and flexibility for investors and their families. In addition, many of these investment programs offer family-friendly options, allowing spouses and dependent children to obtain residency as well.

The minimum investment required to qualify for a residency by investment program can vary depending on the country and the specific investment program. For example, some countries require a significant capital investment in real estate, while others may require a financial contribution to a national development fund. It is important to carefully review the requirements and options for each investment program to determine the best fit for individual investment goals.

In addition to the potential financial benefits of residency by investment programs, investors should also consider the tax implications of their investment. Some countries may offer favorable tax rates for foreign investments, while others may require personal income tax payments on income earned within the country.

Overall, seeking residency though a residency by investment program can be a valuable option for individuals seeking to obtain permanent residence in a foreign country. These programs offer a range of investment options and benefits, and can provide a pathway to greater economic opportunity and freedom of movement.

Why Do People Choose Residency By Investment

Improvement in quality of life

Fast access to benefits

Fast access to benefits

Some programmes will grant permanent residency in as little as 3 months.

Most residency programmes allow you to extend your residency and its benefits to your spouse and any dependent children.

Freedom to travel

Freedom to travel

Freedom to travel

Enjoy visa-free travel across the EU and the 26 Schengen states.

Benefit from any formal travel arrangements or visa exemptions that your host country has in place with any other countries.

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Business benefits

Business benefits

As a permanent resident, you are free to do business within and trade from your host country.

Economical stability

Access to world-class services

Access to world-class services

As a permanent resident, you can access education and healthcare in your host country.

Greater opportunity

Minimal eligibility requirements

Minimal eligibility requirements

Most residency-by-investment programmes do not require you to live in your host country to qualify for residency. In some cases, you are only required to visit the host country once every 12 months.

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Tax efficiencies

Tax efficiencies

You can also benefit from your host country’s personal and corporate tax rates – this is as low as 10% in some of countries that offer permanent residency.

Navigating the Residency by Investment Application Process

Here’s a breakdown of the main stages you’ll need to travel through the residency by investment application process:

Connect with a Licensed Immigration Agent

The first rung on the ladder to securing residency by investment is contacting a licensed agent specializing in immigration services like Next Generation Equity. 

Be prepared for a preliminary due diligence process and be ready to sign your agreement for professional support during the application journey.

Fulfill the Investment Requirements

Once your initial agreement is signed and sealed, you’ll reach the investment process. Depending on the specific residency program you’re considering, this could involve;

  • Property purchase,
  • Investing in local businesses, or
  • Investment in local securities.

Assemble & Submit Necessary Documentation

Following the investment stage, you’ll have to gather all the required documents, ensuring they’re complete and accurate. Once your paperwork is ready, you’ll submit it for regulatory compliance checks.

The Due Diligence Process

The next major step is a comprehensive eligibility check run by the relevant immigration authority. During this period, your submitted documents will be examined for any potential issues.

Receive Your Residency Permit Card

You can breathe a sigh of relief once you’ve cleared the due diligence checks and received your residential permit card. However, it’s not the end of the line just yet – these cards are renewable and not permanent.

Regular Card Renewal

Finally, note that you’ll be revisiting the renewal process regularly, depending on your specific program. This may range from an annual occurrence to a five-yearly renewal requirement. Understanding these regular renewals can help manage expectations and make the ongoing process as seamless as possible.

Eligibility Criteria For Residency By Investment Programs

The residency by investment programs are a quick route to obtaining a residence permit in many European Union countries. Different countries have varied requirements, but some common conditions include the absence of any legal problems, ensuring financial stability, maintaining a presence in the country, and securing a residential address.

Clean Legal Records

To become a resident via investment programs, a clear legal slate is crucial. Any criminal, ongoing, or past legal conflicts can hinder your chances of succeeding in these programs.

Financial Stability

In applying for residency by investment programs, financial solvency is a major factor. This indicates your capacity to live and support your family financially without relying on the state throughout your residence permit’s tenure. Evidence of steady income that meets or surpasses the specified minimum level from a legal source outside the residing country is typically obligatory. You may also be required to deposit savings in local banks in some cases.

Residence Requirements

While traditional routes to residency often mandate a minimum stay period in the country—around half of the year, for instance—residency by investment programs often provide more flexibility. There’s no minimum stay stipulation in Spain or Greece for investors. Meanwhile, Portugal demands only a week’s stay annually from investment-based residents.

Housing Specifications

Owning or renting a residential place in the country of interest is another essential requirement for these programs. The EU often imposes this requirement, setting a minimum price threshold for renting or purchasing properties by foreign nationals. This necessitates access to sufficient funds to meet these housing conditions in the inhabited country.

The Global Offering of Residency By Investment Programs

Residency by investment options abound worldwide, with countries across several continents offering this provision. For prospective applicants seeking a change of scenery, choices range from the stunning beaches of Australia, the picturesque beauty of New Zealand, and the cultural richness of Spain and Portugal, to the modern city life of Canada and France. Countries such as Thailand and Cyprus also offer these programs, extending an invitation to newcomers to become a part of their diverse local communities. 

However, some of the most popular programs in the world are in Europe. Countries like Malta, Portugal, and Greece offer exceptional lifestyles and numerous benefits to investors. 

Here are the residency by investment programs that we offer at Next Generation Equity:

Greece

The Greece Golden Visa or Residency By Investment program is considered one of the most affordable residency programs providing fast-track access to Europe within 2-3 months.

The investment options include: 

  • Real Estate Acquisitions
  • Greek Government Bonds Or Shares
  • Venture Funds And Private Equity Investments
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Malta

The Malta Residency Program necessitates substantial financial commitments through through these investment options: 

Real estate investment (2 options)

  1. Real Estate Purchase
  2. Property Lease

 

Mandatory Investments

These Include:

  • A non-refundable government administration fee of €40,000
  • A dontation to an NGO of no less than €2,000
  • A contribution of €28,000 to the Maltese economy if the residential property is purchased, or €58,000 if the property is leased
The Flag of Malta

Portugal

Selecting a suitable investment that aligns with your unique financial circumstances is crucial to your application process for the Portuguese Golden Visa Program.

Here are the Investment options:

  • Real Estate Investment (Ending Soon) 
  • Capital Transfer (Ending Soon)
  • Business Investments
  • Contribution towards National Heritage and Research Activities 
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Investment Options for Residency By Investment

Residency by investment programs offers multiple avenues for investment. The choice of the investment pathway usually depends on the specific country’s guidelines and the individual’s personal preferences and financial standing. 

Among the common investment choices are capital investments, the purchase of residential or commercial property, or a substantial contribution to the country’s economy.

In many cases, proof of financial stability and health insurance is also a prerequisite. Additional requirements may include a clean criminal record and proof of payment of visa fees.

Benefits Of Residency By Investment

The benefits of residency by investment include easier access to travel, better quality of life, and financial advantages. Here’s a closer look at how you and your family can benefit from residency by investment.

1. Access to a New Country

  • Obtain residency in a foreign country and experience new cultures and lifestyles.
  • Benefit from a higher quality of life and improved living conditions.
  • Enjoy access to better healthcare, education, and other public services.

2. Access to the European Union

  • Gain the ability to travel freely and work throughout the European Union.
  • Enjoy visa-free travel within the Schengen Area, which includes most of Europe.
  • Benefit from the ease of travel and the opportunity to explore new destinations.
  • Save time and money on visas and other travel expenses.

3. Favourable Tax Regimes

  • Take advantage of a flat tax rate for foreign-sourced income.
  • Benefit from high-net-worth individual tax regimes, which provide tax benefits for high-net-worth individuals.
  • Enjoy non-habitual resident tax regimes, which offer favorable tax rates for those who meet certain conditions.

4. Property Investment

  • Build long-term wealth through property investments.
  • Benefit from affordable real estate prices and the opportunity to own property in a foreign country.

5. Educational Opportunities

  • Gain access to a wide range of educational opportunities, including international schools and universities.
  • Provide children with a high-quality education in a new and exciting environment.

 

Residency By Investment Vs. Citizenship By Investment

While both Residency by Investment (RBI) and Citizenship by Investment (CBI) programs are useful strategies utilized by individuals looking to move to a foreign country, there is a significant difference between the two. RBI programs offer investors the right to live, and sometimes work, in their chosen country. However, such programs may entail obligatory time periods for residence in said country to maintain these rights.

On the other hand, CBI programs offer investors a straight route to acquiring citizenship, often without a prior requirement of residency. This means citizens can possess a passport within a few months of their successful application. Adding family members to these applications also varies, with some CBI schemes allowing extended family members, while many RBI or Golden Visa options are more stringent. 

It is essential to remember that RBI programs, often known as Golden Visa programs, offer permanent residence only, and citizenship is usually an option after a stipulated time of residency. In contrast, CBI programs offer immediate citizenship following a successful investment. The benefits attached to either option vary greatly depending on the specific country the investor wishes to reside or gain citizenship.

Residency By Investment FAQs 

Which countries give permanent residency by buying property?

There are several countries that offer permanent residency in exchange for investment in property. Some of the popular options include Portugal, Spain, Greece, Turkey, Malta, and Cyprus. Each country has its own set of requirements and investment thresholds that must be met in order to qualify for permanent residency.

What is the difference between citizenship by investment and residency by investment?

Citizenship by investment and residency by investment are two different ways to obtain legal status in a foreign country. Residency by investment programs allow individuals to obtain residency status in a foreign country in exchange for a specific investment, such as a real estate purchase, business investment, or government bond purchase. Citizenship by investment programs, on the other hand, offer a faster and more direct path to obtaining full citizenship in a foreign country in exchange for a larger investment. These programs typically require a higher investment threshold than residency by investment programs and may also require additional criteria such as language proficiency or physical residence in the country.

What is the easiest country to get a residence permit?

The easiest country to get a residence permit differs based on individual circumstances and preferences. Among popular options, Portugal’s investment program is considered more straightforward due to its minimum investment requirement for obtaining permanent residence. The immigrant investor program in this country allows investors to choose from various investment options, including real estate, capital transfer, or job creation.

How much does residency by investment cost?

Residency by investment can vary in cost depending on the specific program chosen and the country where one seeks permanent residence. Typically, there is a minimum investment amount that must be met in order to apply for an immigrant investor program. For example, Portugal offers several options with different pricing points starting at €500,000 for real estate purchases or €1.5 million as capital transfer contribution. Other countries may have varying levels of financial commitments required for their respective programs – it’s essential to research each destination thoroughly before making any decisions regarding investments and residency applications.

Who can obtain Permanent Residency along with the investor?

The family members eligible to obtain permanent residency status along with the investor differ per program. Generally, spouses and children up to the age of 18 years can be granted a residence visa. Depending on the circumstances, some programs also allow for children above 18 years old, as well as siblings and grandparents to be included.

Can investing in residency lead to citizenship?

Yes, citizenship through naturalization is often a possibility with most residency programs. Investors are typically required to reside in the country for a certain number of years, become proficient in the local language, and integrate within the community. For example, in Portugal, investors need to maintain residency for five years, during which they must spend a minimum of seven days in the country annually. Other countries might demand a residence period of 7 to 10 years, with the majority of the year spent living there.

What is the meaning of tax residency?

Tax residency refers to the status determined by each jurisdiction’s domestic tax laws, indicating where a person is considered a resident for tax purposes. There can be scenarios where an individual might qualify as a tax resident in more than one jurisdiction. Simply having the right to live in a jurisdiction or having citizenship does not instantly confer the status of a tax resident. It also does not mean that tax residency in previous jurisdictions is automatically terminated upon acquiring residency or citizenship in a new jurisdiction.

WHY
NEXT GENERATION EQUITY?

Next Generation Equity is a world-class provider of second citizenship and residency programmes tailored to the individual needs of discerning clients across the globe. We deliver proven bespoke investor solutions and services and practical support every step of the way.

We will help you create the opportunities you need to discover personal and professional freedom today, whilst securing your family’s future for tomorrow.

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