Residency by Investment
What is Residency by Investment?
Residency by investment programmes help individuals and families secure their future through what are commonly known as golden visas, which are also sometimes known as investor visas. These programmes allow you to gain residency or citizenship in a country, in exchange for an investment in its economy. They are often aimed at high-net-worth individuals and are a way for the government to drive foreign investment into the country. Second residency, as a wealth planning tool provides greater visa-free travel access, improved education prospects for young family members, and protects family wealth built over generations from future taxation. Families around the world are increasingly looking to have backup options should they need to relocate in order to protect themselves from economic and political instability, future pandemics or other emergencies.
For high-net-worth individuals looking to invest their money in good opportunities, there are many benefits including a lower tax environment, social, political or economic stability and access to new markets and a common trading bloc, offering wider opportunities for investment and business growth.
The Benefits of Residency by Investment:
Improved mobility makes travel easier
For professionals, time is of the essence and business deals need to be completed within a tight schedule. Visa-free travel is the way to do this, and visa-free travel is most easily acquired with a strong passport. Having the freedom to travel visa-free, and live, and work in multiple countries is a huge advantage if you want to go international or retire in another country.
Better access to international business opportunities
Access to new markets, both established and emerging is vital if you want to do business internationally as well as open the doors to new business partners and customers; access strategic economic zones, preferred geographical locations, with consistent economic growth and a highly skilled workforce.
Having a backup option is like having two first choices:
Having a backup option is the ultimate insurance providing a safety net to allow for a more stable or desirable lifestyle somewhere else if the unforeseen should happen such as market crashes, natural disasters, political unrest and other emergencies. Peace of mind for you and your family, is invaluable amidst the world’s uncertainty, allowing you an alternative option to live and work in a stable and secure country.
Access to quality education and healthcare:
Take advantage of education and healthcare benefits which may not be available in your home country. For families with children, access to top schools and prestigious universities can be a significant advantage, opening a brighter future for them with limitless opportunities. A second passport gives you visa-free access to over 140 countries, allowing you to travel immediately to another country if a family member requires urgent medical treatment should you need to travel.
Protecting family wealth built over generations:
Family members of the applicant usually up to the third generation receive full citizenship or residence permits.
Change of lifestyle and local environment:
More and more families are choosing to relocate for lifestyle purposes in order to escape living in crowded cities and associated traffic jams and air pollution, and to live a healthier life in coastal areas or quieter cities.
Today there are over 20 residence by investment schemes actively running which include Portugal, Greece, Spain, USA, Canada, Malta, Germany, France, Ireland, Italy, Netherlands, Singapore, Thailand, Australia, New Zealand, Cayman Islands, Monaco, Bulgaria, Cyprus, Bahamas, UAE.
Portugal:
The Portugal Golden Visa is one of the world’s most successful residence by investment programs. Since the Portuguese government launched the scheme in 2012, over 10,000 people and their families have benefited from its golden visa. The Golden Visa grants a temporary residence permit for two years. After two years, you can renew the visa for another two years. After five years, residents can then apply for Portuguese citizenship. This allows foreign investors to obtain a Portuguese passport.
Some of the benefits include:
⭐ The right to live, work and study in Portugal.
⭐ A high quality of life, mild climate and high level of security.
⭐ Visa-free travel in Europe’s Schengen Area and 186 countries.
⭐ Low physical presence requirement (7 days during the 1st year of residency and 14 days for two subsequent years).
⭐ After five years, the right to a Portuguese passport and the right to live, work and study in any EU country (with citizenship).
⭐ Low taxation
At the start of 2022, the Portuguese Golden Visa saw some changes to its investment options. One of the biggest changes centres around real estate investments, specifically where real estate is located. The minimum capital transfer amount also saw a slight increase.
Greece:
The Greek Golden Visa was launched in 2013 and since then, around 29,000 permits have been granted. As a result, more than €2.6 billion in global funds have been added to the Greek economy. Greece issues permanent residency rights to foreign investors based on real estate investment or property purchase in Greece. As of 2018, Greece has become one of the most popular and cheapest golden visa schemes in Europe.
Some of the benefits include:
⭐ One of the lowest investment threshold for any of the European golden visa schemes.
⭐ Immigrate to Europe with family.
⭐ Visa-free travel to all 26 countries in the Schengen zone.
⭐ Immediate permanent residency in Greece.
⭐ No language tests, no business experience, no medical tests.
⭐Greece has still the lowest property prices in Europe.
⭐After 7 years as a resident you can submit your citizenship application.
In addition, the government has now introduced the option to invest in government bonds, bank deposits or specific Greek companies. No
Spain:
The Spanish Golden visa programme was luanched in 2013. The Golden visa scheme attracts mainly large numbers of UK (Brexit) and US Expats. The most popular locations of foreigners buying property are Barcelona, Madrid, Valencia and the Costa del Sol.
Some of the benefits include:
⭐ High standard of living with low cost for goods and services.
⭐ Travel freely in the Schengen Area.
⭐ High demand and profitable real estate market.
⭐ Family and children also receive residence permits.
⭐ No minimum stay requirements.
⭐ Access to prestigious University education at lower EU tuition fees.
⭐ Access to one of the EU’s best healthcare systems.
USA:
The EB-5 immigrant investor program, launched in 1990, and known as the ‘American golden visa scheme’ is the world’s most popular scheme to immigrate to the United States for wealthy foreigners. Under this program, investors (and their spouses and unmarried children under 21) are eligible to apply for a Green Card (permanent residence) if they:- 1. Make the necessary investment in a commercial enterprise in the United States and 2. Plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.
Some of the benefits include:
⭐ One of the most desirable business and lifestyle destinations worldwide.
⭐ Access to prestigious Ivy League University education.
⭐ Citizenship and permanent residence (Green Card) after five years.
⭐ Ability to include spouse and children on application.
⭐ No language proficiency or business experience required.
⭐ Flexible physical presence requirements.
Citizenship by Investment
What is Citizenship by Investment?
Citizenship by investment is simply gaining citizenship in another country by investing in local real estate, the government bond market. or making a donation to a government (which is often the more affordable option). Through citizenship by investment, a successful applicant is entitled to the same rights as a citizen born in the respective country.
The Benefits of Citizenship by Investment as compared to Residency by Investment:
⭐ Assessment of language ability and interview not required prior to granting citizenship.
⭐ Citizenship can be acquired within 6 months whereas Residency programmes take at least 5 years’ prior to granting citizenship.
⭐ Online application with no requirement to travel to the country in question to submit bio metrics and open a bank account.
⭐ Citizenship is granted for life and is automatically passed down to future children.
⭐ Instant visa-free access to over 140 countries.
Today there are about 12 citizenship by investment schemes actively running which include Antigua & Bermuda, St. Kitts & Nevis, Dominica, St. Lucia, Grenada, Malta, Vanuatu, Turkey, Montenegro, Bulgaria, North Macedonia, Jordan.
Turkey:
Turkey announced it’s citizenship by investment program in 2018 to encourage foreign investment and boost growth in the real estate sector. Turkey lies at the crossroads of Europe and Asia and is one of the largest emerging markets in the world. Turkey is a country of opportunities for investors that can also take advantage of the affordable Turkish citizenship by investment programme.
⭐ Turkey is at cross roads of of Asia and Europe important hub for transport and trade.
⭐ Air connections to almost anywhere in the world.
⭐ Citizenship is granted to the dependent family members of the applicant as well, without the need for separate investment funds.
⭐ Attractive country for Arab and middle east investors.
⭐ Turkish citizens can apply for the E-2 investor visa for the United States.
⭐ Cheap and best citizenship by investment scheme.
In summary, the rich and the wealthy are looking to have a second passport with alternative residency in their portfolio. There are a range of options and there is a lot to consider, but it could be one of the most important investments you make. Schemes offered by EU countries are a popular option as they allow freedom of movement throughout the Schengen Area. For the actual investment, real estate is a popular choice, but there are advantages to going down the capital transfer route. Depending on your requirements, the next step is to start the application process, so that you receive step-by-step guidance on the investment scheme which works best for you.
If you would like to discuss any area of personal finance, the author can be contacted at dermot.monaghan@holbornassets.com or simply use the Book A Call Back button at the bottom right of your screen.
