Comparison with other programs

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As a rule, there is a basic requirement on the part of the potential investor to invest in real estate or government bonds. On top of that, as well as government expenses, stamp duties, vouchers and various others amounts, the sum of which forms the total cost of the investment.

The services are offered by local companies specializing in the investment immigration business. They are mainly facilitators who know exactly what is required and how to do it. They are backed up by teams of lawyers, accountants, engineers and other required professionals who coordinate in order to complete speedily the residency project.

When you evaluate one or more residency programmes, make sure that you know the total cost from the very beginning. Ask your service provider to estimate it with precision and then guarantee that there will not be hidden charges at the end.

Some countries, as part of the residency permit, require from the resident/investor to be present in the country of residence for a minimum number of days each year. The idea behind this is that since you are a resident in our country you need to show up to justify the right of residency.
The presence requirement usually comes with a temporary residency for a number of years. For example, 5 years of temporary residency together with an annual presence of a minimum number of 7 days.

Keep in mind that the presence requirement may entail other obligations on the investor’s part. For instance, if you remain in a country for a predefined period of time, you may become a fiscal resident which means that you may be taxed for income earned internationally. This may not be in the resident’s best financial interest.

Moreover, the presence requirement requires additional funds covering each resident’s travelling and living expenses for a certain period of time. Depending on the number of days required and the number of family members having to fulfill this criterion, this amount could well rise above 10,000€ on a yearly basis.
Finally, at the end of this “trial” period, the applicant may apply for permanent residency, a step that does not require another visit.

Although investors in residency programmes primarily aim for the residency right and the relevant benefits, a return on their investment along with a possible capital appreciation is a very welcome bonus indeed. The majority of residency programs are linked to real estate investments. It is a win-win proposal both for the offering country and the investor.

Residency programmes helps the local construction industry, while the investor has the opportunity to invest in a property yielding a steady income. When the time comes to sell, the appreciated property value will offer a good resale profit. Exiting from the residency programme is a point that requires extra attention. Not all countries allow exit from the investment at any time. Some require to keep the investment for a minimum predefined period, usually 5 years, while others do not pose any restrictions to this. One simply sells the acquired investment, thus losing the residency right.

There are countries offering a combination of real estate and other forms of investment, like bonds or bank savings or to investment in stocks of local businesses. These schemes are not as popular because the returns vary a lot and it is very difficult to predict the future. Real estate options seem to be far more promising for mid and long-term returns.

An equally important factor to consider before selecting a residency programme is the level of fees, taxes, expenses and total expenditure for the duration of the residency period. It is not simple to calculate a specific annual cost from the beginning of the process because it greatly depends on the type and use of the investment. If it is real estate, the decision to keep it vacant or rent it out, makes a great difference. On top of this you need to consider how high property and income taxes are and what is the cost of utility bills on an annual basis.

Of utmost importance on one’s list should be who is going to carry out these tasks. Who will guide the investor every step of the way to turn his dream into reality? Very few residency applicants remember to check beforehand what after sale services are offered.

The main reason that someone is looking for a residency programme abroad is the safety that goes with it. It is the vital plan B in case the investor needs to flee an unstable country in a hurry. So, the most obvious question while trying to make a selection, refers to family members that may accompany the investor at no extra investment cost.

The most common answer to that question is of course, spouse and children. Here there are different options that should be examined carefully. Children are eligible up to a certain age (at the time of application). Keep in mind that residency for children expires when they reach a certain age. Pay special attention to the “dependent children” definition used by some countries. It is not the same in all countries. For example, an unemployed child 25 years old is considered dependent but a married unemployed child of the same age is not considered dependent.

Some countries offer coverage for the investor’s parents and his in-laws, with or without other criteria like age and financial dependency.

The second most important reason that someone is looking for a residency programme abroad is freedom of travel. A good residency programme is one with a long list of visa-free countries. The most desirable destination for residency investment is by far Europe. EU or Schengen zone access is number one in investors’ lists. A residency permit in a Schengen zone country means having an entry ticket to 26 countries of this borderless area.

There is no need for the resident to visit any embassy or to spend any money to apply for a visa. He can simply buy a plane ticket and go.

Europe is followed by the United states of America in the list of countries offering residency. Australia is also a popular destination mainly for investors from the Far East.

Although these types of programmes do not target career seekers, some countries offer access to the job market. Some offer free access to the public education and public health systems. There are countries that allow the investor to open as many bank accounts as desired and to register unlimited number of funds. Other countries require from the investor to keep a minimum amount of funds in local banks.

This is the million dollar piece of information that everyone wants to have. Will the residency lead to citizenship ? When and how ?

The answer is clear: most programmes offer an initial residency status that may eventually and under very strict criteria lead to citizenship eligibility. The time frame to citizenship varies a lot. Depending on the country, it may be 5 or 10 years or more. The conditions vary too. They may require knowledge of the language or to actually live in the country for a minimum period of time before applying.

Citizenship is not an easy target through a residency by investment program.

There are countries who offer fast track citizenship. Such as Cyprus and Malta in Europe and more than 10 countries in the Caribbean region. The prices vary a lot too, starting from 100,000USD in the Caribbean and rising to more than 2 million Euros in Europe.