Complete Guide to Residence by Investment

Residency by Investment: How It Works and Why It’s a Smart Option for Global Citizens

Residency by Investment (RBI) programs have become increasingly popular in recent years, offering individuals and families the opportunity to obtain long-term residency in a foreign country by making a financial investment. This guide explains how these programs work and why they are a smart option for those seeking greater flexibility, security, and opportunity in today’s globalized world.

What is Residence by Investment?

Residence by investment (RBI) is a program that allows individuals to obtain legal resident status in a foreign country by making a qualified financial investment. These investments typically take the form of real estate purchases, investments in businesses, or purchases of government bonds, and can often lead to permanent residency or citizenship after a certain period of time.

How does it work ?

Choose a program :

Different countries offer different residency options, each with its own criteria and benefits. The most common types of investments are:

Immovable : Buying real estate in the country.
Investment in a business: Invest in or create a business that contributes to the economy.
Government bonds: Buy bonds or other government-backed financial instruments.
Charitable contributions: Donate to government-approved causes or projects (see charitable investment opportunities).

2. Meet the eligibility criteria :

Each program has specific requirements related to age, financial status, and criminal record checks. For example, you may need to prove a certain net worth, demonstrate a clean criminal record, and sometimes meet a minimum age.

3. Make the investment :

Once you have chosen the investment option that best suits your financial goals, you will need to make the necessary investment.

4. Submit the request :

After making the investment, you will need to submit an application to the immigration authorities of the relevant country. This process can take anywhere from a few months to a few years, depending on the country and the program.

5. Obtaining residency :

If your application is successful, you will be granted residency, often on a temporary basis at first, with the option to apply for permanent residency or citizenship after meeting additional requirements.

Why is Residence by Investment a smart option?

1. Greater global mobility:

Many RBI programs allow visa-free or visa-on-arrival travel to a range of countries, including the Schengen Area or the Caribbean. This gives you more freedom to travel and work internationally.

2. Business and investment opportunities:

Residency can provide greater access to international markets, allowing you to invest in local businesses, start your own, or take advantage of otherwise inaccessible economic opportunities.

3. Wealth Protection and Security:

In an uncertain world, having a second home provides an extra layer of security. You’ll have more options if you need to relocate due to political instability, economic challenges, or other risks in your home country.

4. Tax optimization:

Some countries with investment residency programs offer favorable tax policies, such as reduced taxes on foreign income or inheritance, which can be a significant benefit to high net worth individuals.

5. A path to citizenship:

Many residency by investment programs offer a path to citizenship after a certain period of time, allowing you to gain full rights in the country, including the right to vote, work without restrictions and access social services.

6. Improved quality of life:

Residency in countries with a high standard of living can improve your overall lifestyle. Many programs provide access to better healthcare, education, and social services, as well as more stable economies and political environments.

7. Family benefits:

Most residency by investment programs extend benefits to immediate family members, such as spouses, children, and sometimes even parents. This allows you to provide your loved ones with increased opportunities and security.

Popular Countries Offering Residency by Investment

Portugal:

The Golden Visa program allows individuals to invest in real estate, create jobs or make financial contributions in exchange for residency. (Golden Visa Portugal).

Greece:

The Greek Golden Visa offers residency in exchange for a real estate investment starting from €250
(Golden Visa Greece).

Spain:

Spain offers a residency program for real estate investments, among other options
(Spain Residence Program).

Malta:

Malta offers both residency and citizenship by investment, with options including real estate and government contributions
(Citizenship and Residence Malta).

United States :

The EB-5 program offers residency through investment in U.S. companies that create jobs
(EB-5 Investment Visa in the United States).

Cyprus:

Cyprus has offered residency and citizenship programs for real estate investments (although the citizenship option was recently suspended)
(Investment programs in Cyprus).

Latvia:

Latvia only offers a residency by investment program. With a minimum investment of €50, it is one of the cheapest options in Europe.
(Golden Visa Latvia).

Is Residence by Investment right for you?

Investment residency is an attractive option for many, but it’s not necessarily right for everyone. Here are some things to consider:

Financial preparation: Investment thresholds can be high, so it's important to ensure you can meet the program's financial requirements.
Long-term commitment: Some programs require you to maintain your investment for several years, which may not be suitable for those looking for short-term solutions.
Legal and tax consequences: It is essential to understand the legal and tax implications of obtaining residency in another country, including possible tax obligations in both your home country and your host country.

Consult an expert

Conclusion

Residency by investment programs offer a unique opportunity to expand your global footprint, diversify your assets, and secure a brighter future for you and your family. With proper planning and expert guidance, you can leverage these programs to access new opportunities while enjoying greater security and global mobility.

If you are considering a residency by investment program, it is important to work with an experienced consultant or consulting firm such as Kouamou Capital who can help you navigate the complexities of the process, ensuring you make the best choice based on your financial and personal goals.