Residency and citizenship by investment programs around the world offer individuals and their families the opportunity to secure a second residency or citizenship in exchange for making a substantial investment in the host country’s economy. These programs are particularly appealing for their potential to provide greater travel freedom, improved lifestyle, and increased business opportunities.

What is Residency by Investment (RBI)?

Residency by Investment (RBI) schemes offer a pathway for foreign nationals and their families to obtain residency in a new country through a qualifying capital investment. While investing in real estate is a common method, various programs provide alternative investment options to achieve residency status. Often referred to as investor visas or Golden Visas, these programs typically confer the rights to live, work, and study in the host country, opening up new opportunities for investors and their families.

Pros of Residency by Investment

  • Lower Investment Threshold: Typically, RBI programs require a smaller investment than CBI programs.
  • Pathway to Citizenship: Often serves as a step towards full citizenship, subject to meeting certain conditions.
  • Access to Local Resources: Grants the right to live, work, and study in the host country.
  • Less Stringent Requirements: May have fewer residency requirements compared to naturalization processes.
  • Tax Benefits: Possible tax advantages without the need for full citizenship.

Cons of Residency by Investment

  • Renewal Requirements: Temporary residency permits may require regular renewal and associated costs.
  • No Passport: Does not provide a passport or the same level of travel freedom as citizenship.
  • Limited Political Rights: Typically does not grant the right to vote or hold public office in the host country.
  • Contingent Status: Subject to changes in policy or personal circumstances that may affect the right to maintain residency.
vacation home by the lake

What is Citizenship by Investment (CBI)?

Citizenship by Investment (CBI) provides a route for foreign investors and their families to acquire citizenship in a different country, similar to Residency by Investment (RBI) programs, through a qualifying financial contribution. CBI programs feature a range of investment opportunities, such as purchasing real estate, investing in government bonds, engaging in business projects, or making donations to charity, allowing investors to choose the option that best aligns with their goals and values.

Pros of Citizenship by Investment (CBI)

  • Immediate Passport: Offers a second passport and the travel freedoms that come with it, often including visa-free access to many countries.
  • Permanent Status: Citizenship is usually for life and can be passed down to descendants.
  • Full Rights: Includes full rights of citizens, such as voting and access to public services.
  • Global Mobility: Increased ease of travel for business or personal purposes.
  • Security: A sense of security with a permanent legal status that is not easily revoked.

Cons of Citizenship by Investment (CBI)

  • Higher Cost: CBI programs generally require a larger financial investment.
  • Tax Implications: Full citizenship may come with global income taxation or other tax responsibilities.
  • Dual Citizenship Limitations: Not all countries allow dual citizenship, which could necessitate renouncing your original nationality.
  • Due Diligence: Often involves rigorous background checks and longer processing times.
  • Commitment to a New Country: May require a deeper commitment to the host country, including understanding its culture and, sometimes, language.
Portuguese Citizenship Vs. Permanent Residency in Portugal

Key differences between Residency vs Citizenship

Passport Eligibility

One of the key distinctions between residency and citizenship programs lies in the privilege of obtaining a passport from the host country. While holding either temporary or permanent residency status does not confer eligibility to apply for a host country’s passport, acquiring citizenship changes this dynamic significantly. Upon becoming a citizen, individuals gain the right to apply for a passport, offering them not just a travel document but also a symbol of their new national identity.

Duration

Citizenship offers a lifelong status that not only endures throughout the individual’s life but can also be passed down to subsequent generations. In contrast, residency tends to be a more transient condition. While Residency by Investment (RBI) schemes generally award temporary residence permits, there are exceptions where permanent residency is granted.

The duration of temporary residence permits can vary, typically spanning either two or five years. Upon the expiration of this period, these permits require renewal to maintain residency status. This renewal process is a crucial step for individuals looking to extend their stay under the conditions of the RBI program.

Residency Requirements

Most Residency by Investment (RBI) programs come with a minimum stay requirement, which specifies the least number of days an individual must spend in the country to retain their residency status. This condition ensures that investors maintain a tangible connection to the country. On the other hand, for those who have obtained citizenship, residency requirements are typically nonexistent, allowing citizens the flexibility to live wherever they choose without jeopardizing their citizenship status.

Legal Status

Another notable distinction lies in the legal status conferred by each type of investor visa. Citizenship represents the pinnacle of legal standing within a country. Through Citizenship by Investment (CBI) programs, successful applicants are bestowed with complete citizenship rights, encompassing the privilege to participate in elections through voting.

The specifics of voting rights can vary widely across different nations. However, a common thread is that residency typically does not grant the right to vote. This highlights a fundamental difference in the political engagement and rights afforded to citizens versus residents.

passport in hand

Which countries offer CBI programs?

Below you can find the most popular citizenship by investment (CBI) programs.

Which countries offer RBI programs?

Below you can find the most popular residency by investment (RBI) programs.

The Portugal Golden Visa Program

For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.

How Portugal Residency Advisors can help?

At Portugal Residency Advisors, we provide expert guidance to individuals seeking to secure residency through the Golden Visa program. We carefully evaluate each client’s unique situation to recommend the most suitable investment path and ensure that all legal and financial requirements are meticulously met for a seamless application process. 

Our proficiency in managing documentation and adhering to compliance standards significantly increases the likelihood of a successful residency application.

Frequently Asked Questions About Residency and Citizenship by Investment

CBI is a process by which an individual can obtain a second citizenship and passport by investing in the economy of the host country.

RBI allows an individual to obtain legal residency status in a country through investment. This can eventually lead to citizenship, subject to the country’s immigration laws.

Yes, Portugal allows dual citizenship. This means you can become a Portuguese citizen without having to renounce your original citizenship, allowing you to hold multiple passports.

You can obtain Portuguese citizenship through several routes:

  • Naturalization: After 5-6 years of legal residency in Portugal, you can apply for citizenship.
  • Descent: If you have a Portuguese parent or grandparent, you can apply for citizenship.
  • Marriage: If you have been married to a Portuguese citizen for at least 3 years, you may be eligible for citizenship.
  • Adoption: Minor children adopted by Portuguese citizens are eligible for citizenship.
  • Sephardic Jewish Ancestry: Descendants of Sephardic Jews expelled from Portugal in the 15th century can apply for citizenship under a special law.

To become a Portuguese citizen, you must meet the eligibility requirements under one of the available routes (such as naturalization, descent, marriage, or special programs) and submit your application to the Portuguese government, typically through the Civil Registry Office (“Conservatória dos Registos Centrais”). You must provide all required documentation and meet language proficiency requirements, if applicable.

Yes, but with specific conditions. Portugal grants citizenship by birth to children born in Portugal if at least one of the parents has lived legally in Portugal for a minimum of one year. If neither parent meets this criterion, the child will not automatically receive Portuguese citizenship.

You can get Portuguese citizenship by residing in Portugal for 5-6 years, having Portuguese ancestry, marrying a Portuguese citizen, or through special programs like the Sephardic Jewish ancestry route. Each path has specific requirements and steps, so it’s important to choose the one that fits your situation best.

The time it takes to obtain Portuguese citizenship varies depending on the route:

  • Naturalization: Typically 5-6 years of legal residency.
  • Marriage: Minimum of 3 years of marriage to a Portuguese citizen.
  • Descent: The application process can take several months to a year, depending on the complexity and completeness of the documents.
    Once the application is submitted, processing can take 6-24 months, depending on the case and the backlog at the authorities.

Yes, Portugal allows multiple citizenships, including triple citizenship. There are no restrictions on the number of citizenships a Portuguese citizen can hold.

The typical residency requirement to apply for Portuguese citizenship through naturalization is 5-6 years. Other routes, such as marriage or descent, may have different time frames.

To obtain dual citizenship, you must first meet the requirements for Portuguese citizenship (such as residency, descent, or marriage). Once granted Portuguese citizenship, you are not required to renounce your original citizenship, allowing you to hold dual or multiple nationalities.

Portugal does not offer direct citizenship by investment. However, the Golden Visa program provides a pathway to residency through investment, which can lead to citizenship after 5 years. Investment options start at €200,000 for cultural donation projects in low-density areas, €500,000 for investments funds, or €500,000 for investment in Portuguese companies. After maintaining the investment and meeting residency requirements for 5 years, you may apply for Portuguese citizenship.