Residency by investment FAQs serve as a crucial resource for families seeking to safeguard their future. Residency by Investment has become increasingly popular among foreign investors, offering a pathway to stability and security. By delving into common questions about residency by investment, you’ll gain valuable insights to help you make an informed decision about pursuing residency through investment.
RBI is a legal, governmental process that allows individuals to gain residency in a country through financial investments in its economy, such as in real estate, stocks, bonds, shares, or other government-approved economic endeavors.
Citizenship by investment programs confer immediate nationality and a passport without residency mandates, unlike residency programs, which often lead to obtaining citizenship through prolonged domicile.
Citizenship and residency are both legal statuses, but citizenship is perpetual and offers a person all the political rights in a country. In contrast, residency is conditional and may restrict a person’s rights (i.e., work, study, physical residence, etc.).
Countries including but not limited to Portugal, Spain, Greece, Malta, Latvia, Cyprus, the United States, Canada, and New Zealand provide these programs, each with distinct requirements.
Most countries in the world have an investment-related route to residency, but only a few have an outright, standardized program that has a simplified and clear process.
Benefits encompass the right to live and work in the host country, access to education and healthcare, and potential visa-free travel within certain areas such as the Schengen or Mercosur zones.
Gaining residency in another country does not affect current citizenship, but it may have tax implications.
Residency status is typically not inheritable, with subsequent generations needing to qualify on their own. However, first-generation dependents (children) can gain residency through their parents as long as the parents have a valid residence permit. This is done through “family reunification.”
Global shifts can influence RBI programs, underscoring the importance of staying informed about potential impacts on residency status.
However, as a general rule of thumb, any changes to residency laws are usually not applied retrospectively, hence not affecting a valid residency permit.
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Investment thresholds vary widely depending on the Residency by investment program. Some programs, such as Latvia’s Golden Visa, may require investments as low as €60,000, while other investment funds can easily breach the $1 million mark.
Eligible investments often involve real estate, government bonds, or significant business ventures that create employment opportunities.
Residency status may be contingent on maintaining the investment, with specific terms varying by program. Usually, investors can change their investment, but recouping the amount outright will typically lead to the residency permit’s termination.
The refundability depends on the nature of the investment, with real estate investments potentially being resold after a specified period.
It is important to note that investments typically need to be maintained for the residency permit to continue to be valid. The main applicant can sell or recoup their investment once they obtain permanent residence or citizenship, and this differs depending on the country and program.
Many programs offer a pathway to obtain citizenship after meeting specific residency requirements and other criteria. This, of course, differs depending on the country.
For example, in KSA, the permanent residency program does not lead the individual to obtain citizenship at all, while the vast majority of programs in Europe and North America do have a route to naturalization.
Incomplete documentation, unclear fund sources, and criminal history are among the common reasons for rejection.
Language proficiency requirements vary by program, with some necessitating basic knowledge for residency or citizenship.
EU Golden Visas, for example, do not require any language proficiency. In Canada and New Zealand, however, English proficiency is an essential requirement. Hence, the choice of program is vital in terms of language requirements.
The impact of a decrease in investment value on residency status does not affect the residency permit as long as the investment itself is maintained. The initial investment value is the basis for renewal.
The timeframe can range from a couple of months to over a year, influenced by various factors, including the chosen program and the complexity of the application.
Some programs mandate a minimum period of residency to maintain status, while others are more flexible. Greece’s Golden Visa, for example, does not require any physical residence, while the US EB5 visa does require at least six months a year.
It is important to note that for those wanting to qualify for naturalization, physical residence is an essential requirement under RBIs. Some programs, such as Portugal’s Golden Visa, however, do have a simplified route to residency, as the Portuguese government requires Golden Visa holders to reside only seven days a year for five consecutive years to qualify for citizenship.
Applicants must undergo thorough background checks, including financial and criminal record verifications.
The process involves:
Yes, for reasons such as legal violations or failure to maintain the investment as required.
Residency permits often require renewal, necessitating proof of continued compliance with investment and residency requirements.
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Immediate family members can typically be included under the main applicant and its investment, subject to certain conditions. Some programs may widen the parameter of eligible dependents, allowing the main applicant to add parents or even grandparents to their application, depending on the financial dependency of those members, of course.
Changes like marriage or the birth of a child require updating residency status with the relevant authorities and may involve additional documentation and financial requirements.
RBI can provide dependent children with access to quality education and a secure environment, offering broader future opportunities.
Tax consequences can be complex and vary significantly, highlighting the importance of consulting with tax professionals.
Some countries, like Greece and Malta, offer non-dom tax regimes which can significantly lower a person’s overall tax liability, while others, such as the US and Canada, have brutal taxation regimes.
Another important aspect is considering whether a country has a double taxation treaty with one’s country of origin, which can make a considerable difference going forward. Careful tax consideration and planning is vital before applying to an RBI.
Agents provide essential guidance throughout the RBI process, ensuring compliance and facilitating communication with government bodies.
Ensuring the legality of funds, completeness of documentation, and adherence to program requirements are critical to avoid pitfalls.
Another major issue is the valuation and processing of the investment. Doing so in an incorrect manner may lead to significant monetary losses as well as the application being rejected.
The simplest way to start is by contacting Savory & Partners to book a comprehensive consultation with an investment migration expert.Residency by investment presents a compelling opportunity for families and investors alike to secure their future with stability and security. With the insights provided, individuals can gain a comprehensive understanding of the process and its implications. Explore all your options as you plan for your next investment in 2024.
Wondering which migration investments would suit you best? Contact Savory & Partners today to book a comprehensive consultation with one of our experts.
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