What is residency by investment?
Residency by investment programmes can open up a world of opportunity for investors and their families. Discover everything you need to know about residency by investment.
Free ConsultationResidency by investment programmes have existed in different forms since the late 1980s.
But in recent years, the concept of becoming a resident in another country by investing in its economy has gained some traction, and its popularity has grown.
This guide provides a complete overview of residency by investment schemes, including how they work and their benefits.
What is residency by investment?
Countries worldwide offer residency by investment (RBI) programmes, often called ‘golden visas’ or ‘investor visas’.
They allow foreign nationals to become residents by investing in that country. Investments are usually in real estate or government bonds, but different programmes offer different routes to securing residency.
These schemes often grant applicants and their families the right to live, work and study in that country.
Most residency by investment programmes are found in European countries. However, some are located outside of Europe. For example, the U.S. offers the EB-3 and EB-5 Visas, which can lead to a Green Card.
Read our article for a more detailed breakdown of the countries that offer residency by investment schemes.
How do residency by investment programmes work?
Like citizenship by investment (CBI) schemes, RBI programmes seek to stimulate economic growth through foreign investment. The way these schemes work is simple.
The country offering the investor visa will outline the criteria and the qualifying investment options. If the investor meets the requirements, they can obtain a golden visa.
You should be aware that the type of investment and the minimum investment amount will vary depending on the chosen scheme. To learn more about how a specific programme works, speak to one of our experts.
The benefits of investor visas
Residency by investment programmes can offer a wide range of benefits. However, each programme is different, so the advantages may differ.
Some of the typical advantages of investor visas include:
Visa-free travel
Many countries offering investor visas also have high-quality education systems. Children of the main applicant can often access both private and public schools.
Access to education
Obtaining a police clearance certificate from your home country is the main eligibility criterion for applying for residency in a foreign country.
A police clearance certificate is an official document issued by state police or relevant security authorities detailing any arrests or legal issues encountered by an individual in a specific area.
Access to healthcare
Many European Union (EU) and Schengen Area countries offer world-class public healthcare. Residency by investment allows individuals to have the same access to healthcare as citizens.
Tax benefits
Some countries have a more favourable tax system, including no tax on worldwide income. Meanwhile, some even offer tax incentives. For example, the Portugal Golden Visa (PGV) allows applicants to apply for non-habitual tax resident (NHR) status, which can result in substantial tax savings.
This only scratches the surface. Read our dedicated article on the benefits of residency by investment programmes for a more in-depth look.
The difference between permanent and temporary residence permits
Residency by investment either grants a temporary or permanent residence permit. While the rights are typically the same for both, there are some differences between the two.
The main difference is that a temporary permit must be renewed after a specific period. This will depend on the programme, but a temporary permit is usually issued for two or five years. After that period, the permit can be renewed as long as the programme requirements are met.
Unlike a temporary permit, permanent residence (PR) is, as the name suggests, permanent. It does not have to be renewed and allows you to remain indefinitely in the country.
A temporary residence permit can also lead to permanent residency status. There may be additional requirements to fulfil to do this.
Applying for residency by investment
Not all RBI schemes have the same investment options. Some of the common investment routes include:
- Real estate investments
- Government-approved and regulated investment funds
- Non-refundable donations
- An investment in businesses
The process is also slightly different for each programme. It typically involves submitting documents, undergoing due diligence checks and meeting the minimum investment amount.
In most cases, those who apply for residency do not need to pass a language proficiency test in their desired country of residence. Some of the typical conditions that the investor must meet include:
- No criminal record
- Be at least 18 years of age
- Be able to support yourself and your family financially
- Maintaining the investment for a defined period
- Reside in the country for a specific period of time
Read our article on residency by investment requirements to learn more.
How to choose the right residency by investment programme
Golden visa programmes benefit both investors and the host country. They help to support the country’s economic development and provide several advantages for investors, such as greater global mobility and tax benefits.
However, choosing the right RBI scheme for you requires careful consideration. Potential investors should seek professional advice to make an informed decision.
Holborn Pass is an international leader in investor visas and a part of the wider Holborn Assets Group. Our experienced team provides a bespoke, end-to-end service and tailored advice to support your needs.
We have successfully helped hundreds of people and their families secure golden visas. Book a consultation with one of our advisers to find out how we can help you secure yours.
Frequently asked questions
Residency by investment (RBI) schemes do not always offer a direct path to citizenship. However, some programmes can lead to citizenship and a passport after a certain period of residence. Additional criteria must also be met.
The minimum investment amount can vary depending on the scheme and the option you choose. Visit our RBI programmes page for a full breakdown of the costs for each scheme.
Investor visas often allow investors to include family members on their applications, including spouses and dependent children.
Every programme has different investment options. Some common options include real estate investments, contributing to a fund, and business investments.
The processing time for applications varies from country to country. To learn more about a specific golden visa application process, speak to one of our experts.