When considering residency or citizenship by investment, two primary options stand out: Golden Visas and citizenship by investment programmes. Each option allows individuals to gain a legal status in a foreign country by financial contribution, but they differ significantly in terms of benefits, requirements, and the level of involvement needed.

Vladlena Baranova, Lawyer, AML Compliance officer at Immigrant Invest, certified CAMS specialist, explains the differences between these two programs, providing a clearer understanding for investors interested in expanding their global reach.

Golden Visa and Citizenship by Investment

Golden Visa programs offer residency to individuals who invest in the country, typically through real estate, business ventures, or government bonds. The main advantage of the Golden Visa is that it provides legal residency without the immediate requirement for citizenship. In many cases, holders of a Golden Visa can also enjoy the benefits of living, working, and studying in the host country.

Citizenship by Investment programs, on the other hand, provide individuals with citizenship in exchange for a financial investment. This is a faster route to citizenship compared to traditional residency processes, often taking a few months. CBI programs offer full rights, including the ability to vote, work, and access public services like healthcare.

Key differences:

● Golden Visa grants residency, but not immediate citizenship;

● CBI programmes offer a passport, granting full rights;

● Golden Visa holders typically must maintain their investment to keep residency status;

● CBI participants receive citizenship that can be passed to future generations, with no need for further investment.

Which Countries Offer Golden Visas?

Several European countries offer Golden Visa programs, providing residency with various investment options. These programs are especially popular among those looking for flexible travel within the Schengen Area and access to European markets.

Portugal offers one of the most popular Golden Visa programs in Europe, with a minimum threshold of €250,000. Applicants can invest in culture, science, and business. Portugal grants residency which can lead to permanent residency or citizenship in five years.

Cyprus. While Cyprus previously had a direct Citizenship by Investment program, it now only offers a Golden Visa. This allows applicants to gain residency by investment in property or business with a minimum threshold of €300,000.

Greece Golden Visa program allows investors to obtain residency by real estate purchase. The program is particularly attractive due to its lower investment requirements compared to other European countries, starting at €250,000.

Italy Investor Visa requires a significant financial commitment, such as investing in a start-up or business of at least €500,000. The program provides residency and offers the potential for permanent residence or citizenship after a few years.

Hungary offers a residency by investment program, allowing individuals to live in Hungary and travel freely within the Schengen Area, with a minimum threshold of €250,000.

Countries with Citizenship by Investment Programs

Citizenship by investment offers a quicker route to full citizenship. Several countries, particularly in the Caribbean and the Pacific, have established successful CBI programs. These countries offer various investment routes, such as real estate purchases, business investments, or donations to national development funds. Some of the most popular CBI destinations include:

1. Antigua and Barbuda. Known for its scenic beauty and strong passport, Antigua and Barbuda’s CBI program requires an investment of at least $230,000 of contribution to the country’s National Development Fund.

2. St Kitts and Nevis. One of the oldest CBI programs in the world, St Kitts and Nevis offers a fast-track citizenship option by either a real estate investment or a donation to the government fund, starting at $250,000.

3. Dominica is popular for its relatively low investment requirements and speed of processing. Applicants can gain citizenship by contributing to the country’s Economic Diversification Fund or by investing in real estate with a minimum investment of $200,000.

4. Grenada offers a fast route to citizenship with the added benefit of a visa-free travel policy to China. The program requires an investment in government-approved real estate or a donation to the country’s National Transformation Fund, starting at $235,000.

5. St Lucia offers a CBI program that allows applicants to choose between real estate investment, government bonds, or a direct contribution to the St Lucia National Economic Fund, with a minimum of $240,000.

6. Vanuatu. Located in the Pacific, Vanuatu offers one of the fastest CBI programs, granting citizenship in just 1—4 months. The investment involves a direct contribution to the country’s development fund of at least $130,000.

How to Apply for Residence by Investment and Citizenship

Applying for a Golden Visa typically involves the following steps:

1. Choose an investment option. Depending on the country, this could be real estate, business investment, or government bonds.

Submit an application. Complete the necessary forms and provide the required documents, such as proof of investment, background checks, and financial statements.

Undergo Due Diligence. This step is essential to ensure applicants do not have a criminal background.

2. Receive approval. Once approved, you will be granted residency and can live in the country, and potentially apply for citizenship after a few years.

Applying for citizenship by investment follows a similar process, but applicants will be applying directly for citizenship instead of residency. The steps are:

1. Select an investment option. As with Golden Visas, applicants can invest in real estate, government bonds, or make a donation.

2. Submit required documentation. This typically includes financial records, background checks, and information about the investment.

3. Complete the due diligence process. The application will be vetted to ensure the applicant meets the legal and financial criteria. Approval and citizenship. Once approved, citizenship is granted, typically within a few months.

Conclusion

Both Golden Visas and citizenship by investment offer valuable opportunities for individuals looking to expand their international footprint. The key difference lies in the level of commitment and benefits: while Golden Visas provide residency and allow flexibility, citizenship by investment offers full rights, including the ability to travel on a second passport.