Residency by Investment
Residence by Investment Programs
Residence by investment programs allow applicants to obtain a residency visa for a country by making an investment such as purchase of property or investment in a business. These programs are often known as “golden visas”. The programs do not allow the applicant to obtain citizenship on their own. However, the applicant may eventually be able to apply for citizenship using standard naturalization procedures after residing in the country for a required amount of time.
Getting Residency Visa
One of the new priorities of HNWIs in countries with certain restrictions is to be able to plan their business trips, stays and interactions freely. Residence by investment programs offers wealthy individuals the option to relocate and the right to live, work, study, and receive healthcare in their new countries of residence. Talented and professional individuals may also find some types of residency programs such as the UAE Golden Visa by which they invest their special talent or expertise. Many countries, allow for investors to incorporate a company, establish a branch of a foreign company, invest in or establish a business and obtain a residence permit this way.
Applicants for Residency by Investment
Changing the place of residence is a very crucial matter for some individuals and familiesand for some others it is a plan for future. Applicants for residency usually include:
- Those who live in countries with an unstable political or economic situation, where another residence option means to increase personal security and achieve a better quality of life,
- Those who wish to acquire an additional citizenship after residency,
- People who live in countries with limited tax options and estate planning,
- Those seeking other lifestyle choices.
Family and Business Situation
Investors’ business and personal situation define their residence planning. Experts advise against relocating mainly for tax reasons, since experience shows that it may even jeopardize their tax situation further. There are many situations where a change of residence suits an investor’s business and family situation, and in these cases, a change of residence can also become helpful for their tax and estate planning.
Income Tax for Residents
Residence is the key factor for personal income taxation in many countries. Different criteria are usually applied to determine a person’s tax residence, for example available accommodation or physical presence. If a person leaves a country and establishes genuine residence in another country, the source country will not tax the emigrant’s worldwide income any longer. The United States is an exception to this rule. Citizens of the USA pay taxes to the USA government regardless of their place of residence. The only way for USA citizens to terminate their USA tax liability is to relinquish their citizenship.
Exit Taxes for Emigrants
An increasing number of countries are introducing specific measures to discourage the emigration of individuals through various forms of taxation. Such emigration taxes may have considerable implications for the tax aspects of applicants’ relocation plans.
Often taken for granted but in some cases, when people moves abroad, their current health insurance policy will not be continued, and they have to look for another local insurer in the new country of residence or find an international health insurer. If you choose an appropriate worldwide health cover at a younger age before the first signs of ill health appear, many of these issues will be resolved.
Obtain Residency Visa by Investment in Real Estate
The purchase of real estate abroad is a wise way to obtain residence mostly in European countries. Wealthy individuals and families can enjoy considerable advantages by obtaining residency by investment such as: the right to live, work and study in the destination country for all family members, social welfare, asset protection, tax savings etc.
There are also other aspects that need to be considered when deciding to acquire a property in a foreign country:
- Taxes, including those for real estate transfer, annual real estate, and local inheritance and gift taxes, capital gains and other taxes upon re-sale, personal tax liability and tax residence
- Local inheritance laws ,
- Maintaining confidentiality,
- Immigration restrictions.
At Cross Border Freedom, we analyze the individual situation carefully, offer the possible options. Our experienced team deal with government procedures quickly and efficiently on your behalf. By working closely together as a team, our specialists put together their knowledge and experience to reassure the specific details of each case are considered from all perspectives.
For more detailed information on the requirements for obtaining Residency by Investment, please contact one of our advisers in the UAE, Denmark, or Canada, or fill in the enquiry form so that we analyze your eligibility and contact you.
We will accompany you and your family until you obtain your residency.