What Are The Best New Residency By Investment Programs part 1 – that will be the topic of today’s article.
Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here.
The best time to consider your financial situation is when you are moving to a new country.
Introduction
If you are looking for a way to move outside of your home country and have found that second passport that you need, then moving overseas as a permanent resident might be the best option.
While many countries encourage immigration to boost their population, this is not always possible due to various restrictions. However, recently more countries have been allowing individuals to move abroad and become residents in exchange for an investment.
If you are looking for a way to immigrate, then island residency might be your best option; while this is always an expensive route, the benefits can outweigh the costs. One of the main benefits that many countries offer is allowing their residents to travel visa-free into other countries, such as an EU country or a Caribbean nation.
If you were to invest in any of the islands that we list below, then you will be able to travel visa-free into Europe and America, which can not only save you money on flights but also time and stress! While the requirements for applying for residency varies from country to country, the application process is usually very quick and straightforward.
Also, some of these countries have a favorable tax regime, which means you can save on income taxes and property taxes. In this article, we will walk you through the islands that offer residency by investment programs. Not only is that, but you’ll also understand the requirements and all that it takes.
What Does Citizenship By Investment Entails?
Citizenship by Investment (CBI) is a legal form of acquiring citizenship by investing in the home country. The price depends on the amount invested and other factors, such as family ties to that country.
It is not unusual for countries to acquire foreign currency through economic activities, but it is very common for people to acquire the citizenship of other countries for various reasons. The first country that allowed foreigners to acquire citizenship by making investments was the Principality of Monaco, in 1865.
The applicant had to prove he could support himself financially and needed a clean criminal record. Later on, another condition was added: the previous residence for at least six months. Today, this is no longer an obligatory requirement, and applicants can be accepted even without previous residence in the Principality of Monaco.
The country that currently accepts the most citizens per capita as immigrants is Dominica, a small Caribbean island nation whose Citizenship by Investment Unit (CIU) has been processing applications since 1993.
Requirements to Get Citizenship by Investment
You may have heard about Citizenship by Investment Programs for a number of countries around the world. They allow you to apply and quickly get a second citizenship, as well as a passport from a country you choose without having actually to live there or learn its language.
Citizenship is one of those things people want to purchase if they can. Rich people most often buy it from countries that have no issue with foreigners buying a passport, and it may actually be a good idea for people who are wealthy enough.
Citizenship by Investment is very different from immigration – where you would move to a country and go through the naturalization process. You can still do this, but instead of waiting for years to do it, you can apply by directly buying your passport.
Get a Clean Criminal Record
For a CIP applicant, a clean criminal record is a serious prerequisite. Applicants must provide a police clearance certificate from each country they have lived in for more than six months in the last ten years after age 18, or up to 35 if no such period was spent there.
In addition, applicants must not be “subject to any form of judicial or administrative sanctions for failure to comply with tax, social security, public health requirements or any other obligations imposed by the laws and regulations of the country in which you are applying.
Pass a Test of Your Language Skills
This is also an important requirement as it shows the candidate’s willingness to integrate with the country and its citizens. As such, most countries require you to pass an English exam and one other local language. However, there are many exceptions to this rule: some countries only require proof that you have passed an English exam, while others do not have this requirement.
Buy a Real Estate
Although this requirement is not as common as the other ones, some jurisdictions require you to buy or rent a certain type of property. You can’t satisfy the real estate requirement by buying software and getting citizenship for it. Also, it is important to note that most jurisdictions require you to buy the property and keep it for a certain minimum period.
Contribute To the Public Budget and GDP
This is also an increasingly popular requirement as it allows countries to meet their financial needs while at the same time offering their citizenship program.
Citizenships by Investment programs are often much cheaper than other citizenship programs, which means the country has to find another way to finance itself. To do so, many countries ask for a certain minimum contribution in terms of Contribution to the public budget.
Contribute To the Local Economy
Most countries offering Citizenship by Investment programs give you two options: either contribute by yourself or have your family contribute. The contribution rules are very diverse and can be quite complicated as they can involve mandatory investments, tax fees, and even donations to public works. It’s advisable not to commit yourself until you fully understand the contribution required.
Proven Long Term Residence
Some countries offer Citizenship by Investment programs to high net worth individuals who want to relocate permanently in their territory, while others welcome investors with a temporary residence permit. Whichever is your situation, you should look for low-tax jurisdictions that do not tax worldwide income or levy inheritance taxes on their citizens’ assets.
Be a Member of the Business Class
The business class programs are very advantageous for entrepreneurs because they allow them to get fast-track citizenship to invest in their country’s economy. However, these programs are exclusive and only open to high net worth individuals who wish to settle in the country.
Demonstrate Your Interest in the Program
Each country has its style of running its Citizenship by Investment programs, and many require you to show how much effort you put into obtaining citizenship.
This is usually done by submitting an application form and other documentation such as bank statements, business presentations, and references. However, some countries allow individuals with deep pockets to bypass this step.
Differences between Residency and Citizenship
Residency and citizenship are popular topics of discussion, especially after the new presidential administration took power. The terms residency and citizenship both refer to someone’s legal status or residence in a country; however, they differ in many ways. These seven bullet points will explain the differences between residency and citizenship:
- Residency is a legal status in a country that determines how long a person can stay. Citizenship refers to a person’s nationality or place of origin.
- Some countries consider residency the same as citizenship, while others do not.
- Residency can be revoked if taking up another country’s citizenship goes against an existing treaty agreement or if the person breaks laws, leaves, or never intended to leave.
- Some countries allow dual-citizenship, while others strictly prohibit it.
- Residency is applied for before entering a country; citizenship is applied for after the birth (in some cases).
- People cannot always apply for residency if they don’t plan on staying for a certain amount of time.
- Citizenship is granted by the country, whereas residency is not necessarily required to be approved by the government.
Requirements to Obtain Residency of a Country
Have a Valid Passport
A valid passport is one that hasn’t expired or hasn’t been tampered with in any way. If the person’s name, birth date, photo, or country of origin on the passport has been altered, it isn’t considered to be a valid passport for this purpose. Also, the passport must have at least six months of validity remaining on it.
Have Adequate Finances
The person applying for residency must show the government that they are financially stable or have an adequately supporting sponsor. If another party supports them, they need to know exactly how much money they can expect to receive from that party regularly.
Have a Round Trip Ticket
In order for a person to obtain residency in another country, they will need to have a round-trip ticket. This shows the government that the person is planning on leaving after their residency period has been completed. In some cases, people can obtain residency without having a return ticket if all of their family members still live abroad.
Have Relevant Document
The person applying for residency must have some form of work history in the country, or they must be currently studying in that country. They need to show proof to the government so they can obtain their residency status. This will typically come in a letter from a school or employer.
Have a Job Offer from a Company
In order to obtain a work visa, a person must have a job offer from a company located within the country they are residing in. Once they have this document, it needs to be translated into the official language of that country for their records. They need to have completed at least one year of work with this company, either before they came to the country or while living there.
Have a Residence Permit
A person can only apply for permanent residency if they have already obtained their temporary residency status first. If you want to be considered for permanent residency, you need to apply for a residence permit. However, in order for this permit to be granted, you need to have already resided in the country for at least five years.
Have a Guarantor
In some countries, a guarantor needs to swear an affidavit. This statement ensures the individual will not become a financial burden on the country they are residing in. The guarantor needs to have sound financial standing within their own country. This person also needs to make at least three times more money than the person applying for residency.
