What is Residency by Investment?

Residency by Investment (RBI) is a government programme based on a clearly defined legal framework, wherein foreign nationals apply for Permanent Residency (PR) in a country by investing a minimum amount in a government-specified project or sector of the economy.

In most cases, Residency by Investment programmes are the quickest way to obtain residency in another country provided that certain criteria, apart from the initial investment, are met. These include professional skills or rare work experience.

Should the applicant be successful, a Permanent Residency visa will allow the holder to reside in the issuing country indefinitely, as well as travel easily into the country and neighbouring ones. The right to work in a country is more case-dependent: in some cases, establishing a business is permitted but the right to employment is not. Most times, permanent residency can pave the way to full citizenship through naturalization after continuous residency for a certain number of years.

How Can You Benefit From a Residency Programme?

Residence by Investment programmes vary according to the country. The investment threshold, speed and cost of processing the application, the country’s infrastructure, business opportunities, cost of living and quality of life must all be carefully considered, especially when relocating your family.

The past year has also brought another important factor to the attention of those mulling a relocation – a nation’s response to a global health crisis, a very important factor to consider. Additional factors include:

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A Sense of Security

Political stability and peace are a necessity for everyone, especially for investors from conflict zones. Businesspersons who regularly travel overseas treasure a safe environment where their families can stay safe in their absence.

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Tax Planning

Businesspeople find favourable tax structuring, exemptions or incentives, inheritance, and capital gains taxes that accompany many residence by investment programmes extremely enticing.

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Mobility

Although Permanent Residency may not grant you the same travel privileges as Citizenship in certain countries, Permanent Residency status can facilitate and accelerate a visa application process.

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Dependents

Most programmes allow investors to include their family members in their application for residency by investment. However, there are differences, as some might include children as well as parents and in-laws, while others don’t. You must also consider what will happen once children come of age.

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Establishment or Relocation of Business Enterprises

Permanent residency outside your own country might be the gateway to new business opportunities, whether in a specific country, the wider region, or globally. Here it is worth exploring and comparing the levels of professional services provided and how easy it is to conduct international business in each destination.

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Education and Health Care

For families with children, education and health care are of primary importance. Look into the available international primary, secondary and tertiary educational facilities, and their accreditation.

What Do Countries Gain from Residency by Investment Programmes?

Most countries offer Residence by Investment programmes as a means of attracting foreign direct investment. The programme details are usually designed to channel such funds in a particular direction, either to boost a specific sector or the economy as a whole.

Residence by Investment programmes also attract international entrepreneurs seeking to expand the scope of their business. This in turn offers the country new and valuable exposure, and puts it on the map of global business, with all the associated benefits.

In most countries, the main route to residency by investment is via property acquisition. The minimum value of such property varies not only from country to country, but may also be adjusted from time to time, to reflect the country’s interest in attracting investors.

What Pre-Requisites Are Required for Permanent Residency?

There are no standard conditions, as each country designs and develops its Residence by Investment programme individually. It is also important to note that such programmes are periodically amended, as their impact is assessed and compared with the desired outcome.

However, all programmes have some basic requirements in common. As a general rule, applicants must be able to demonstrate the following:

  • Clean criminal record in the country of origin and/or residence
  • The legal source of the investment funds
  • Investment in one of the government-approved routes, which usually include real estate, government bonds or a national economic fund
  • Supporting documents for all financial and personal criteria, for the applicant himself and any dependents included in the application.

Why Velment?

 

A Vast Collection

Our wide array of properties can be found in the world’s most desirable locations, a wide array of property spanning multiple continents, perfect for consolidating your global mobility.

Highly Trained Team

Our Velment team possesses the vital expertise and experience necessary to assist you in your latest real estate venture.

Always by Your Side

Our Velment team is readily available through every step of your property purchase, ready to assist in any real estate conundrum you may face.

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