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Residence by investment

Discover the opportunity to live, work and study in the country of your choice and subsequently obtain a second passport

What is residence by investment?

A visitor visa alone is usually not enough to stay abroad for an extended period of time. For this purpose, you will need an entry document that will later be used by the authorities of the host country to issue you with a residence permit, for example in the form of a biometric resident card.

The main problem with most of these visa categories is that the immigration service of another state grants residence permits only if the applicant meets a whole list of requirements. Yes, and upon arrival abroad, the newly minted resident will have to maintain his or her status. In other words, the student can not quit studying at the university, who came on business visas enterprising foreigners must devote all their working time to business, and those who came to another country as a spouse, categorically contraindicated to divorce. All of these disadvantages do not affect only those who have obtained their residence permit for investment by participating in a special government programme.

There are many countries that offer investment residency programmes. Residence through investment is the process of foreign investors obtaining a residence permit in a country in exchange for their investment in the economy of that country. The investor is granted a temporary residence permit, and after a certain number of years — a permanent one. Subsequently, if certain conditions are met, the investor can apply for citizenship through naturalisation and obtain a passport.

Advantages of programmes for obtaining residence permit for investment

You may have heard of passport programmes whereby a foreign investor can obtain a second citizenship on favourable terms. The most frequently mentioned are the former British colonies — the tiny island states of the Caribbean. Often, in order to obtain a second passport in the Caribbean, a participant in the programme does not even need to leave his or her home country.

Many programmes for obtaining a residence permit through investment are very similar to programmes for obtaining a second citizenship on the same principle:

  • As a rule, a residence permit is granted to an investor on the basis of a special government programme aimed at attracting foreign capital into the national economy. Exceptions are a few countries where the investor’s special status is ensured by immigration legislation or the local peculiarities of a particular canton, as in Switzerland;
  • To obtain a residence permit, a foreign investor usually does not need to prove his professional qualifications and education, learn the language or pass a cultural awareness test;
  • The investor can obtain the resident status not only for himself, but also for his family: wife or husband and children.

This is where the similarities between the programmes end, as:

  • An investor usually needs much less money to obtain a residence permit than a second passport;
  • Many jurisdictions provide a residence card for investment, while a limited number of countries host passport programmes;
  • It is usually much quicker to obtain a residence permit for investment than to obtain economic citizenship;
  • A residence permit through investment in the economy is mainly chosen in order to move to Europe, while foreign investors often obtain a second passport remotely and then never come to their new home country;
  • You do not need to renounce your first citizenship to become a resident, and a residence permit alone does not equate you with citizenship in terms of rights and obligations.

An investment residence permit allows you to obtain permanent residence status and even citizenship in the long term, but this will require several years of residence, integration into the new society and language skills.

In those states where the investor is given the opportunity to invest in both a second passport and a residence permit, the two programmes complement each other, so that it is not uncommon for the issuance of a residence permit for investment to be the first step in the process of obtaining economic citizenship.

Temporary and permanent residence permit

A temporary residence permit, as the name suggests, is limited in duration. However, the investor usually has the option to extend it and move to another immigration category.

Based on a temporary residence permit a foreign citizen lives in the country, does business, works or studies. As already emphasised, the residence permit itself does not usually lead to citizenship, but after a few years of permanent residence in the country you can become a permanent resident.

An immigrant can obtain a permanent residence permit after several years of residence. This period is usually 5 years or more.

Malta offers special conditions for wealthy foreigners. There, a foreign citizen is granted a residence permit for a substantial contribution to the development of the Maltese economy, after which he or she undergoes a strict security check and in 1-3 years, i.e. under an accelerated procedure, is granted EU citizenship.

The status of permanent resident implies a higher degree of integration into society, so you must know the language and understand the peculiarities of life in your second home country, even if you received your residence permit on favourable terms.

A permanent residence permit effectively equalises the immigrant in rights with other citizens. He or she can still work, run a business, receive education or simply do nothing and rest without any time restrictions. However, in some countries, permanent residents cannot stay away from their place of residence for long periods of time, as in this case they risk losing their immigration status. The next logical step is naturalisation and issuance of a passport.

Residence permit programmes for investment

The number of countries that offer residence permits to investors, as well as the number of investment options under existing programmes for investment in the economy, is constantly increasing. Sometimes even a trained person can find it difficult to understand all the nuances and make the right choice.

Imperial & Legal’s London immigration solicitors have a wealth of experience in dealing with the challenges of obtaining residency in return for investment and will be happy to provide you with legal support.

We currently advise and assist in obtaining residence permits for investments in the following jurisdictions.

From €150,000.
Indefinite, with annual confirmation for the first 5 years.
Citizenship in 1-3 years for additional investment in the economy.
From €300,000.
Indefinite (provided you visit the country once every 2 years).
Citizenship after 5 years of residence.
From €250,000 An alternative way is to move to the country under the Digital Nomad* visa category.
1 year with an option to extend for 2 years twice for the investor.
5 years for a Digital Nomad visa holder.
PML in 5 years. Citizenship after 6 years of residence.
From €500,000.
3 years with an option to extend for 5 years.
PML in 5 years. Citizenship after 10 years of residence in the country.
From €50,000.
5 years with annual confirmation.
PML in 5 years. Citizenship after 10 years of residence.
From €150,000 to €500,000 business investment.
1 year with annual renewal.
PML in 3 years. Citizenship in 5 years.
To be agreed individually. As a rule, a foreigner pays an annual tax at a fixed rate for the right to reside in the country.
1 year with annual renewal.
Permanent residence permit after 10 years. Citizen's passport after 12 years of residence in the country.
From £1,625,000.
Investor visa for 3 years with an option to extend for 2 years.
PML in 5 years. Citizenship in 6 years.
From £200,000.
Entrepreneur visa for 2 years, renewable for another 3 years.
PML in 5 years. Citizenship after 6 years of residence on the island.
From $125,000 to $800,000, depending on how you invest.
Permanent resident card for 5 years.
Citizenship in 5 years.

Note:

* The Portuguese immigration route Digital Nomad (Digital Nomad), although it is not an investment route, was still listed in the table, as it gives its holder almost the same amount of rights and freedoms as the residence permit for investment. Make an appointment for a consultation with our specialists if you would like more information on the Digital Nomad visa.

Why is it profitable to invest in a residence permit?

It will be much quicker and easier to obtain a residence permit abroad with the help of investments than on any other basis. Wealthy people choose economic immigration to highly developed countries for a variety of reasons:

  1. Freedom of movement

    Holders of a residence permit can travel to and from their country of residence as much as they like, without tedious bureaucratic procedures. And if you invest in a residence permit of one of such European countries as Malta, Latvia, Portugal, Spain or Belgium, you can travel visa-free throughout the European Union.

  2. Safety and comfort

    Provided by high standards of living, equally high quality health care and education, economic and political stability, and low street crime rates.

  3. Tax optimisation

    It is not uncommon for foreign investors to be granted a favourable tax regime together with a residence permit, which allows them to save significantly on fiscal payments.

  4. Benefits for business people

    A significant part of the states offering residence permits for investment support the development of small and medium-sized businesses at the state level. These countries have everything you need to expand your company: large markets, well-developed infrastructure, independent courts and qualified specialists.

Why do modern states grant residence permits for investment?

The main reason for the high popularity of immigration programmes for investors is the opportunity to attract foreign private capital into the national economy. Moreover, in addition to the main investment expressed in the purchase of shares, a gratuitous grant to the state development fund, expensive rent or purchase of real estate, 183 days after moving, the investor becomes a tax resident and starts paying taxes on all his income. And in some jurisdictions, such as Switzerland, the annual payment of a chord tax is the main condition for obtaining a resident card.

Often with the help of investment immigration programmes the government solves additional tasks. For example, it gives an impetus to the development of sparsely populated regions of the country or restores historical buildings of cultural value. The rules of the residence permit for investment programmes provide for more favourable conditions for those foreign investors who:

If complex investments are required to obtain resident status, one of the prerequisites is often a grant to a non-profit charitable or cultural foundation.

Requirements for applicants to obtain a residence permit through investments

The list of criteria on the basis of which the decision to grant a residence permit is made may vary significantly from country to country. However, there are some general requirements that are based on the logic of the immigration programme:

  • Such programmes are designed for wealthy individuals. The applicant must have sufficient funds of legal origin at his/her disposal to make the investment or pay the annual fixed tax;
  • The funds invested as an investment cannot be returned within a few years without losing the residence permit. On average, the term of investment placement is 5 years.

Other requirements common to all investment immigration programmes are that the applicant must be of legal age, have no criminal record and have no dangerous infectious diseases.

Potential investors can count on reliable legal support in the process of applying for residence permits and second citizenship for themselves and their families if they seek advice from our specialists. Imperial & Legal’s lawyers have extensive experience in dealing with investment immigration to Europe, the UK, Canada and the Caribbean, so from the many options available, we will find the one that will fully meet your needs.

Frequently asked questions on the topic of obtaining residence permit through investments

What is a residence permit?

A residence permit is a document that allows a foreigner to stay in the country for a long time (more than 6 months). It can be a long-term visa, an official authorisation from the authorities or a residence card.

A residence permit can be with or without the right to work. According to the period of validity, there is a distinction between temporary and permanent residence permit (PML). A permanent residence permit almost equates an immigrant with other citizens of the state in terms of the sum of rights and obligations.

What is the main advantage of residence permit through investment?

The main advantage of a residence permit obtained for investment is the simplicity of its application: the applicant usually does not need to know the language, prove his education, professional qualifications and work experience.

Unlike holders of other immigration categories, the investor is not obliged to work, run a business or undergo training. In some EU countries, holders of an investment residence permit are not entitled to be employed.

How to invest in a residence permit?

The conditions for participation in a particular economic immigration programme differ depending on the country you choose. The number of economic investment options for obtaining a residence permit for investment is small.

Investments can be made in state economic development funds, in the purchase of real estate, in science and technology projects, in shares in private companies and in government debt. In some cases, funds are invested in the form of a lump sum annual tax, as in Switzerland, or a minimum annual tax, as in Jersey.

Investments can also be complex, i.e. combining several options at once. For example, future Maltese residents invest according to this scheme.

How can an investor obtain a permanent residence permit?

An investment residence permit does not impose any significant restrictions on its holder and, as a rule, is issued if the applicant fulfils the minimum requirements. In contrast, a permanent residence permit assumes that the investor has successfully integrated into a new society: has lived in the country for several years and speaks the local language.

As a permanent resident, an investor can sell the property or shares in local companies that he bought as an investment and get his money back. In addition, several years of residence in the country with a permanent residence permit entitles the investor to apply for citizenship.

Which parameters of the investment immigration programme should be paid special attention to?

When choosing a suitable programme for granting residence permits for investment, several important factors should be taken into account:

  • The cost of participation is the total cost to the investor of obtaining a residence permit, which includes the investment itself (refundable and non-refundable), associated taxes and fees, and the cost of extending the immigration status;
  • Conditions that are provided to foreign investors in the country: favourable taxation regimes, government support for business and low lending rates. Sometimes the high cost of obtaining a residence permit is successfully offset by the benefits that the future resident will receive due to his immigration status. And the more detailed your plan of further actions is, the easier it will be to find a jurisdiction for relocation with an optimal ratio of “cost of participation in the programme / material benefit to the investor”;
  • The time period for processing an investor’s application. It is especially important for those who are accustomed to value their Depending on the country, the processing time can range from a few weeks to one year;
  • The length of the immigration route from resident to citizenship holder. If you plan to move to another country permanently, it is important to know how many years of permanent residence you will be allowed to apply for a permanent residence card and how long it will take you to qualify for citizenship. For example, in Portugal an investor can obtain citizenship after 5 years, while in Switzerland and Spain it will take twice as long.

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