What is Residency by Investment and How Does It Work?

A Residency by Investment (RBI) programme can be a smart route if you want global mobility without uprooting your life. But what is residency by investment, exactly? More families and investors are seeking alternative residency options. In short, it’s a legal pathway that grants you the right to live, and often to work and study, in a foreign country when you make a qualifying investment. This article will explain how it works, the common investment types, which countries offer Residency by Investment programmes, and how Premier Consultancy can help streamline your application process.

What Is Residency by Investment?

The Residency by Investment programme is also commonly known as the Golden Visa. Simply put, RBI is an exchange of economic value to a nation for long-term residence rights. It offers a direct path to residency based on your financial contribution to the host country’s economy. The investment can be real estate property, government securities, regulated funds, pre-set deposits, or business capital. 

The difference between residency and citizenship is permanence and rights. Unlike citizenship, residency usually needs renewal and does not grant political rights such as voting. Residency allows you to reside in the country, albeit with conditions, while citizenship grants you nationality with a passport and full rights as a citizen. However, many RBI programmes offer pathways to eventual citizenship.

Typical RBI Investment Forms

Residency by Investment programmes vary according to the issuing country, so the precise rules and regulations would depend on the jurisdiction. In general, these are the common types of RBI forms:

• Real estate: Purchase or long-term lease of properties in approved or designated areas
• Government bonds or national funds: Contributions to national development funds are locked for a set period
• Business creation or capital transfer: Invest in existing enterprises or set up a local company

Where Can You Find Residency by Investment Programmes?

It’s important to note that programme rules are changed, updated, or paused from time to time. You need to obtain current information to ensure your application process is smooth. Here are countries from various continents with popular RBI programmes: 

European Union and Schengen Area 

Portugal’s Golden Visa remains popular for its flexible residency requirements, while Greece offers competitive real estate investment options. Spain, Malta, Italy, and Ireland provide access to EU markets. Other options include Cyprus, Montenegro, Switzerland, Andorra, Hungary, and Latvia.

United Kingdom and Channel Islands 

The UK’s investor visa programme caters to high-net-worth individuals, whilst Jersey and Guernsey offer alternative pathways.

Middle East

The UAE offers attractive investor residence programmes and business-friendly environments in Dubai and Abu Dhabi, as well as Qatar, Bahrain, and Saudi Arabia.

Asia and the Pacific

Singapore, Thailand, and Hong Kong’s investor residence schemes attract individuals seeking Asian market access. Australia, New Zealand, and Fiji also offer RBI programmes.

North & Latin America

The United States, Canada, Panama, Brazil, Uruguay, Paraguay, Colombia, and Argentina offer investment or financial-solvency routes.

Caribbean & Indian Ocean

Mauritius and Antigua & Barbuda offer residence pathways alongside citizenship options, depending on goals.

Africa

Egypt, Mauritius, Seychelles, South Africa, Rwanda, and Ghana have various investor and permanent-residence routes.

How Residency by Investment Works

The RBI process follows a structured pathway designed to verify eligibility and complete the required investment:

Eligibility review: Initial assessment covers basic requirements, including minimum age, a clean criminal background, and proof of sufficient funds. Most programmes require demonstrating the legal source of investment funds.

Programme selection: Professional advisors help compare the investment options available in terms of costs, timelines, and stay requirements across different countries to determine the most suitable one.

Document preparation: Comprehensive documentation includes valid passports, detailed bank statements, medical certificates, police clearance certificates, as well as educational or professional qualifications, if relevant, from the country of residence.

Government submission: Applications are formally lodged with government authorities, accompanied by due diligence fees and supporting documents. Processing times and costs may vary significantly between programmes.

Approval in principle: Successful applicants receive a formal acceptance, typically conditional upon completion of the required investment within specified timeframes.

Investment completion: Funds are transferred, property purchase contracts are signed, or business capital is injected according to programme requirements.

Residence card issuance: Final steps include biometric data collection and residence card issuance. Most programmes require periodic renewal and compliance with maintenance requirements.

Advantages of Residency by Investment Programmes

Enhanced mobility: Many programmes provide visa-free travel within regional blocs. EU Golden Visas, for example, offer Schengen Area access, significantly expanding travel opportunities.

Tax planning: Several countries, such as Portugal and Malta, offer favourable tax regimes for non-domiciled residents, which provide advantages for international investors.

Business expansion: Residency by Investment programmes open investors up to new markets, banking systems, and business networks. 

Family security: Programmes typically include spouse and dependent children, providing access to higher-quality education, healthcare, security, and transportation systems.

Investment diversification: Property investments can generate rental yields, whilst bonds provide interest returns to create portfolio diversification.

Factors to Consider Before Applying for a Residency by Investment

Financial commitment: Total costs may extend beyond the basic investment to include government fees, legal expenses, ongoing maintenance costs, and potential tax implications.

Residency requirements: Some programmes require minimal physical presence, whilst others need more substantial residential periods.

Exit strategy planning: Understanding resale conditions for property investments or bond redemption timelines helps plan long-term financial strategies.

Tax implications: Residency can trigger tax obligations in the host country. Professional tax advice prevents unexpected liabilities and optimises structures.

Family considerations: Age limits for dependents vary between programmes, and additional fees often apply for family members.

Programme stability: Legislative changes can affect programme conditions. Consider countries with stable political environments and consistent policies to reduce risks.

Interested in Residency by Investment? What Premier Consultancy Can Help With

With over 20 years of industry experience, Premier Consultancy provides comprehensive support throughout the Residency by Investment process. Our consultants align your specific goals, budget, and circumstances with the most suitable programme options. We’ll handle end-to-end application management, from document preparation to official translations and government submissions, for smooth and worry-free processing.

Our team can also conduct property inspections, fund audits, and legal verification, as well as provide tax advice to protect your investment interests. We’ll provide ongoing support services every step of the way and beyond, from assistance in residence card renewals to citizenship pathway planning. Contact Premier Consultancy today for an eligibility assessment and consultation.