Investment Immigration Frequently Asked Questions

Citizenship by investment is a legal process that allows foreigners to obtain citizenship through investment in a country other than their current countries of nationality. Investors, together with their qualified family members, can get citizenship of the host country and enjoy almost all benefits and privileges granted to citizens, including traveling, working and education. The process can sometimes be faster than other ways of obtaining citizenship. Different countries have different requirements for foreigners seeking new nationality – if you’re trying to decide between programs, we’d recommend you check out our list of top 5 citizenship by investment countries for families.

Investment immigration allows foreigners to become residents or citizens in another country by investing in that country’s economy. Some of the most common investment options include investing in real estate, bonds and shares, establishing a business, or making a donation. The programs are designed to attract foreign capital and stimulate the local economy. Different countries have different rules and minimum investment requirements that could range from hundreds of thousands to millions of dollars.

The term “golden visa” is often used to refer to a variety of investment immigration programs offered by European countries, where foreign investors and their family members can get residency permits if the required investment is made. Holders of residency permits from Schengen states can also travel visa-free to all 26 Schengen countries. Although many European countries have their own programs that grant residency to qualified investors, some countries’ programs are particularly popular, including those of Greece, Malta, Cyprus and Portugal, to name a few. Many countries outside Europe, although not using the term “golden visa,” also offer similar residency by investment programs with their own set of rules. Read more on Golden Visa programs here.

Many EU countries have visa or residency programs that provide residency to foreign investors who make the required investment in the country. These programs, although named differently, are in nature residency by investment. Many EU countries have such offers, including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania and Spain. The initial residency permits granted by these countries are usually temporary. However, many of them can be renewed and when requirements are met, some can lead to permanent residency.

Certain countries have citizenship-by-investment programs that offer foreign investors a fast-track path to citizenship. Successful applicants and their family members can get citizenship and start enjoying the benefits of the country they invest in after the application is approved. EU countries that offer citizenship by investment programs include Austria, Bulgaria, Cyprus and Malta. Other countries in Europe with CBI programs include Turkey, Moldova and Montenegro.

Although other EU countries with residency-by-investment programs don’t grant citizenship to foreign investors immediately after the required investment is made, there are usually pathways for permanent residents to naturalize if other requirements are met. For instance, a Greek residency permit holder can apply for citizenship after successfully maintain his or her status in five years.

It’s very important to understand the tax rules in the country a potential investor wants to move to, as different countries have different tax residency rules. The laws are often complex and consulting an international tax advisor ahead of time can prevent a costly scenario. You don’t want to pay taxes in more than one country and that’s exactly what could happen without proper tax planning. You could also find yourself paying taxes on your global assets and income.

Global mobility allows passport holders to travel to more countries without having to apply for visas in advance. This translates to less time and money spent on the preparation and applications of visas. As many countries require foreign visitors to apply for a visa before traveling, it is an advantage to have a passport with greater mobility that allows visa-free travel to more countries. Moreover, in times of uncertainty, global mobility offers more security to one’s assets and more stability to one’s family. Sometimes a second passport to a country with favorable investment policies and tax regimes can help investors save a great amount of money.

A second passport provides a backup plan for individuals to protect the safety of their wealth and the stability of their families in a volatile world facing geographical, political and economical challenges. Not only do individuals holding a second passport have greater flexibility in terms of traveling, but they can also strategically allocate their global assets and benefit from advantageous tax and investment policies offered by different countries. In addition, holding a second passport provides more freedom and opportunities for investors' children when it comes to education and employment.

One of the most common options to participate in a residency- and citizenship-by-investment program is through real estate investment. Greece, Portugal, Malta, Cyprus, Spain and Turkey are examples of countries that offer such options. Risk-averse investors can also opt to make an investment in the government bond in exchange for a residency permit or a second passport. Investors who want to make a real impact on the country and community they wish to live in can sometimes obtain residency or citizenship by donating. Ireland and St. Kitts offer such options to foreign investors. A popular option among entrepreneurial investors is setting up a business in the new country to boost the local economy and create jobs.

Investors need to understand that every residency or citizenship application is unique and the adjudication process varies on a case-by-case basis. However, the processing of applications in certain countries can sometimes be faster than that of others. For instance, the adjudication of a Greek Golden Visa application could be completed in three months; an application for the Turkish citizenship-by-investment normally takes three to six months to process. Some countries also offer fast-track processing if certain conditions are met. Investors need to understand that processing time is only one aspect to consider when it comes to choosing the best program. Other factors must also be taken into consideration to decide the most suitable program for the investor and the family.

Choosing the right investment immigration program is crucial, as it poses a significant impact on the mobility, safety and future of investors and their families. Factors to be taken into consideration include location, investment routes, investment criteria, requirements on investors, tax regimes and the local culture. For instance, many investors choose to participate in an investment immigration program for their children’s education. Therefore, the location of an educational institute chosen by their children becomes the decisive factor in the decision-making process. For business people and entrepreneurs, countries that offer the possibility of establishing a business might be more tempting than those that only have passive investment routes. Countries such as Australia and New Zealand have relatively high investment thresholds, which shut out investors with limited funds. Investors sometimes find themselves unqualified for certain countries' programs due to the lack of education, language skills or professional experience.

As with any investment activities, due diligence plays a crucial role in the preparation stage of one’s residency or citizenship application. Most of the time, the nature of a program determines the scope and depth of one’s due diligence. Some investment immigration programs do not link the performance of one’s investment entity with the success of the applicant’s immigration application, thus the lack of due diligence only incur financial losses to the investor. However, for programs where the performance of one’s investment and the immigration benefits interrelate, the lack of due diligence might endanger both the investment funds and immigration rights. As due diligence of different programs and investment routes require the knowledge and experience in different fields, it is recommended that investors seek professional advice before any investment is made.

Relocating through investment not only provides investors’ children with greater mobility, but also offer them the possibility to get a world-class education and access better job markets. This has been the motive for many parents who embark on the journey of investment immigration. Also, as a resident or a citizen, one can enjoy lower rates of tuition and fees to enroll in schools and colleges than attending as an international student. Holding resident permits or citizenship also means that upon the completion of education, investors' children can access a larger job market with more flexibility and opportunities without being subject to strict restrictions on work visas often imposed on foreign workers.