The areas in which Residency and Citizenship by Investment (RCBI) programs are evolving include global interest, regulation and regulation, regional competition and the diversity of options available.
But what are the differences between residency and citizenship programs?
Countries are introducing residency visas and citizenship programs to boost their economies by attracting foreign investment, creating jobs, alleviating skills shortages and increasing their competitiveness.
Residency by Investment (RBI) programs allow individuals to obtain residency in another country by investing certain funds in mandated investments. These investments can include real estate, funds or company shares. If the requirements of the RBI program are met, applicants receive the right to stay for a certain period of time as well as a work permit.
However, it is crucial to emphasize that a residency by investment program only grants residency, not citizenship or passports! It is unfortunate that some agencies intentionally or incorrectly claim that a residency-by-investment program automatically leads to citizenship. These claims are incorrect.
Only a few countries also offer a path to permanent residency and then citizenship. However, it is important to note that the criteria for obtaining permanent residency (ID) are different from the requirements for applying for citizenship. Among other things, the authorities check the length of stay in the country over the last five to ten years.
The most sought-after RBI programs worldwide include the European Golden Visas and the United States EB-5 investor visas.
In contrast, Citizenship by Investment (CBI) programs are aimed at foreign applicants seeking citizenship in another country. Similar to RBI, CBI programs offer a wide range of investment opportunities, including real estate investments, purchasing government bonds, and direct donations in exchange for citizenship. It is crucial to emphasize that CBI programs confer citizenship and therefore passports, but are a different process than naturalization in a country. Some of the world’s most sought-after citizenship programs include the Caribbean CBI alternatives and Vanuatu’s Pacific program.
While many RBI programs offer the opportunity to extend residency over several years, few of them offer a path to CBI or naturalization opportunities. It is also worth noting that some CBI programs function as continuations of RBI programs, while others operate independently of the residency visas offered by the same country.
Advantages and Disadvantages of Residency and Citizenship Programs through Investment
Both types of these programs offer expected benefits, including varying degrees of international mobility depending on investors’ preferences after obtaining residency or citizenship. They also serve as robust asset diversification options. RBI programs that provide a pathway to citizenship also provide applicants with expanded mobility, access to social services, and the added benefit of political and voting rights.
However, they are also vulnerable to changes in policies and regulations influenced by political and economic conditions. Such changes may negatively impact investors’ long-term plans or their eligibility for residency or citizenship. In some cases, due diligence procedures can be time-consuming and invasive. Some investment residency programs are also criticized for restricting certain types of work or professions within visa regulations.
The regulations and requirements related to investor visas are currently undergoing significant changes.
In many countries, investor visa programs are being reviewed for various reasons, be it security or economic considerations. There are countries that are tightening their regulations, while others are loosening their conditions.
Recently, the European Union (EU) has taken steps to regulate its RCBI industry by requiring stricter access conditions and regulations for its member countries. In parallel, the US is in discussions with various countries to encourage them to improve their access to CBI programs.
For example, the US has reportedly pushed Caribbean states to update their CBI programs. These programs are sometimes used by investors as a means to gain access to the US and EU. As a result, some of these states have tightened their due diligence process.
The EU is also reported to be pushing for tougher measures on several Caribbean states that rely heavily on its CBI economic development programs. For example, St. Kitts and Nevis has introduced a new investment option and doubled the investment threshold for CBI. In addition, offers with lower thresholds were expanded and face-to-face interviews for citizenship applicants were introduced. Similar measures have also been adopted by Grenada and Dominica.
Asia and the Middle East are expanding their offerings of residency and citizenship programs
Countries in Asia are increasing competition for investors and adopting more welcoming immigration policies to attract wealthy individuals and talented professionals.
A notable example is the United Arab Emirates (UAE) investor residency visa, which has quickly become a popular program in the Middle East and North Africa (MENA) region. This visa grants foreigners the right to live, study and work in the country.
In Southeast Asia, Indonesia has introduced a so-called “Golden Visa” program, while in Central Asia, Kazakhstan has overhauled its immigration policies to attract skilled migrants and investors. In western Asia, Saudi Arabia has introduced a “guest investor” visa, while Kuwait and Bahrain are exploring the possibility of long-term investor visas.
Apart from this, Singapore has increased the investment threshold for its Global Investor Program, Thailand has revised its elite visa, Hong Kong has restarted its RBI program with changes, and South Korea has extended its real estate investment visa. Malaysia has also implemented fee increases.
Greece and Turkey have also almost doubled the investment threshold.
While Asian countries are leading this trend, other nations are also trying to gain a foothold in this highly competitive environment. Malta has introduced a “startup residency program” to make the country a hub for non-EU start-ups. The government is showing particular interest in attracting start-ups in specific sectors, including manufacturing and industry in general.
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