Obtaining residency in a foreign country may seem complex. However, there are numerous countries offering straightforward routes to obtaining a residency through investing in their country’s economy.
Residency is having the legal permission to reside in a country.
Some residency permits allow you to reside and work in a country, while others only enable you to live in a country without the legal right to employment or entrepreneurship. Another major distinction between residency permits is whether they are temporary or permanent in nature.
Most of these residency permits are issued with time limitations. Work permits can be granted to employees to come and work in a foreign country, while study permits can be issued to students engaging in education abroad.
Seasonal permits can be issued to farmers or fair performers. At the same time, retirees can obtain a residence permit that allows them to spend their time in a certain country without actively engaging in employment or profitable practices.
The common denominator of these permits is that they eventually expire, and a person must renew them to remain in the country. The renewal of these permits is tied to the purpose they serve. A work permit, for instance, won't be renewed unless the person holding the permit still has a job in the country.
Temporary permits also come with some limitations. For example, a temporary resident may not be able to obtain free health insurance or set up their own company as a citizen would. They may also require higher physical residence requirements to be renewed, as temporary residents might need to spend six months per year to renew their residence permits.
Other countries, such as the US, may limit the number of times a person can leave the country on a residence permit. For example, some residence permits in the US are labelled as "single entry", meaning if a person leaves the US while on that residency permit, then it would be automatically cancelled.
Temporary residence cards do not lead directly to citizenship, but they can lead to permanent residence
The second type of residency permits are permanent residency cards, which offer more comprehensive rights to their owners. In most countries, permanent residency gives its holders the same rights that citizens of that country have except political rights, such as voting or running for office.
Permanent residency permits also have expiry dates, but their renewal is only tied to physical residence in a country.
So, for example, if someone has a permanent residence permit, they can undertake employment or entrepreneurship, but if they terminate their activity, they can still renew their permanent residency cards if they have spent the required amount of time living in the country.
Every country has a different legal structure, but the norm is that permanent residency can lead to citizenship through naturalization: a process in which if a person lives long enough in a country on a permanent resident card, they can usually apply for citizenship.
As part of a citizenship application, some countries require an individual to learn another language to a certain minimal level. Additionally, some countries do not legally permit dual citizenship. It is critical that individuals work with experienced advisors to navigate these complex legal structures.
Getting a residency in a foreign country comes with numerous benefits. Some of the major benefits of getting a second residency are:
Those looking to immigrate to another country need to do so as citizens or residents. If a person is not a citizen, then they must apply for residency to be able to live, work, study within that country.
Having a second home is a great contingency plan for a person to mitigate social, political or economic instability within their country of origin. If anything goes wrong, then they can just move to another country with their residence card.
Getting a residence within an economically strong country such as the UK, USA, Canada or any EU nation can provide investment opportunities as conducting business within these markets is desirable and having a residency means a person can actively manage their business instead of relying on travel visas or local partners.
Getting a residence permit in an EU Schegen country will allow a person the ability to travel visa-free throughout the entire EU Schengen Zone, greatly enhancing their global mobility.
Some people look to get a residency in countries with a top tier education system and a growing job market to ensure their children can get the best education and employment opportunities possible. This is especially important for people who live in countries where education is falling behind the global standard and unemployment is on the rise.
In some cases, a family member will obtain a second citizenship or residency and will live abroad. For example, foreign university students get a valid study visa allowing them to pursue education abroad. The parents of a student often obtain a second residency in order to make visits much simpler and more frequent without having to apply for travel visas every time they want to check up on their child.
Many retirees look abroad for a place to spend their free time. A retiree's home country may suffer from high inflation, lack of activities, bad weather, or otherwise. By getting a residence in another country, retirees can find a second home that fits their needs, budget, objectives, and more.
People who live in countries with high taxes may look to move their tax residence to somewhere else. Most countries consider a person a tax resident if they live in the country for over 183 days each year. By dividing that year amongst two or more countries, then a person could alleviate their tax burden and be able to choose a taxation system that suits them best.
Getting residency in another country is based on that specific country's immigration laws. Here are some common routes most countries abide by for obtaining residency:
Family sponsorship - if a first-degree family member (parents, spouse, child) is a resident or citizen of a foreign country, they may be able to sponsor their family members for residency cards.
Marriage - A person can usually obtain residency of a country if they marry a citizen and their spouse sponsors them for a residence card.
Business - Most countries grant entrepreneurs who set up and run businesses within their borders a residence permit. However, rules and conditions differ from one country to the other. This is commonly known as entrepreneur migration.
Study - Students can apply for study visas, which are temporary resident permits if they wish to study in a foreign country. Some countries such as Canada or The Netherlands even grant students a grace period after they finish studying to look for employment in order to switch their student visa to a work permit.
Taxation - Some countries offer residence permits to those who agree to adhere to a specific tax regime. Switzerland, for example, has a "lump sum taxation" route for interested immigrants under which they grant people residence permits if they agree to pay a certain rate of annual tax. Anguilla has a similar structure where tax residency can be achieved through paying an annual sum for at least five consecutive years.
Financial independence - Some countries such as Greece or Costa Rica have financial independent residency permits, which are popular among retirees. People who can prove they have a certain amount of income, do not work, and do not need any public funds can obtain a residence permit.
Investment activity - Gaining Residency by Investment is the simplest route to acquiring a second residency. Many countries offer residency within their borders in exchange for a qualified investment into their economy. There are additional key requirements, such as having a clean criminal background, but this is the fastest route to obtaining a residence permit.
The easiest route to obtaining a second residency comes through investing in a country's economy. Many countries offer Residency by Investment programmes, more commonly dubbed as Golden Visas, and each one has its own specific investment requirements and regulations. The most common types of investment are:
Real Estate - Various countries grant a person and their family members with residency cards if they rent and/or purchase a property for a certain value within the country. Some countries allow a person to sell the property after obtaining permanent residency, while others require applicants to maintain ownership of the property to maintain their residence permit. Real estate is a fantastic option for those looking for a tangible asset with low risk. Portugal and Greece are two of the world’s most popular programmes which allow one to qualify via a real estate purchase.
Bonds/Stocks/Loan Capital - Some countries allow an applicant to invest in securities to obtain their residency. Investment funds, loan capital, and even investing in company stocks can grant a person and their family members with a residence card. This is a great option for those looking for a return on investment and a simpler exit strategy from their investment. The United Kingdom offers such a programme which is known as the Tier 1.
Business/Job Creation - Another route to obtaining a residency card is establishing a business in a country. Many countries, however, require applicants to establish a business within a certain set of terms to be eligible for residency, while others require applicants to create a certain amount of jobs through their business to become residents. This is a great option for those already looking to expand their business overseas.
Bank deposit - A few countries grant foreigners who make and maintain a bank deposit for a certain amount with residency cards.
Each country has its specific requirements when it comes to Residency by Investment, but there are a few core requirements that applicants must meet:
- Have a clean criminal record.
- Make a qualified investment.
- Submit a complete application.
- Maintain investment for a specific amount of time to maintain residency.
- Abide by the country's laws and regulations.