Beginner’s Guide to Residency by Investment Program
There are many ways to attract investment to your country, and two of them include Citizenship by investment program and residency by investment program. It is the latter that interests us today. Many people want to enjoy certain benefits from certain countries, but these benefits often only come when one is at least a resident. The process of acquiring a residence is long and often tedious unless you are interested in making investments.
To become a permanent resident in a country, you will need to invest a particular amount and may need to undertake some additional activities such as creating jobs in certain industries. Once you do, you will benefit from an expedited process to obtain permanent residence. But is that all there is? Of course not! If it was, I would not have written this article.
In this article, I aim to help newbies understand what investment residency programs are.
- About permanent residence
Without acquiring the citizenship of a country, you may be entitled to certain types of benefits through permanent residence. Those who are permanent residents (PR) or, quite simply, hold a PR card are allowed to reside in the country without having to be citizens. Under this card, they will be able to enjoy a set of benefits such as accessibility to health care, education and work. However, PR cardholders are not entitled to certain legal rights such as the right to vote. Typically, you must reside in the country for a period of time to obtain such status.
- Invest and reside
Investing has become a fairly popular method of acquiring permanent residence since the late 1980s. Essentially, it involves acquiring a PR card in a country by making certain levels of investment. Because of the economic contribution made, you are entitled to an expedited process as opposed to a regular process. It should be noted, however, that these investment levels vary from country to country. For example, under the Canadian residency by investment program, the applicant is required to contribute up to $ 1.2 million Canadian towards the continuation of the Quebec immigrant investor program which will process your application within 56 months; while the Spanish residency by investment program requires an investment of EUR 500,000, with the accepted application being processed within 20 days.
- Benefits of permanent residence
With the exception of the fact that you will not be armed with the legal rights that a citizen exercises, you enjoy all the main benefits as a permanent resident. A range of reasons make these programs eye-catching for many high net worth individuals. Take an example, security. You might want to reside in a peaceful, friendly, and safe country. Or, you can’t wait to enjoy smart and fast visa-free mobility. Many investors wish to explore business opportunities in regimes with less restrictive tax systems. Family welfare can also be a reason for you to apply for such a program.
- Benefits for the host country
I don’t think we need to really explore the reasons why many countries explore these routes. They understand that investors want to tap the best potential, but cannot because of statutory and administrative barriers. Residency can be a step towards a better future, and these countries want to deliver just that, but at a price. These programs allow host countries to invest the contributions received in various economic, infrastructural or cultural projects. For example, there are programs that require applicants to make categorized investments in specific areas such as science and local industries. As long as your funds have a legal source, have a fund of their own, and make the necessary investments, you’re good to go!
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