The difference between residency and citizenship
Citizenship and residency by investment (RBI) programmes are two types of investor visas. Learn the difference between residency and citizenship.
Citizenship and residency by investment (RBI) programmes are two types of investor visas.
Both offer foreign nationals a route to securing legal status in a foreign country. And while the two share some similarities, there are some key differences between residency and citizenship.
In this guide, we examine the difference between residency and citizenship to help you determine which is right for you.
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What is residency?
Residency is a legal status that allows individuals to live in a country. It may also allow them to work and study there.
Residency by investment (RBI) programmes, also known as golden visas, provide a clear path for foreign nationals and their families to secure residence in another country.
Investment options usually include real estate, government bonds or non-refundable contributions. However, different programmes offer different routes to securing residency.
RBI schemes grant either permanent or temporary residency.
As a temporary resident, you are granted a residency permit. This document allows you to remain in the country for a set period and can be renewed.
With permanent residence status, you can remain in the country indefinitely and do not need to renew it.
The benefits of citizenship by investment
CBI schemes offer a path to citizenship for foreign investors and their families.
Obtaining citizenship status gives you access to an array of benefits, such as voting rights in a country and the ability to apply for a second passport. This can increase their global mobility by providing visa-free travel to more countries.
A large number of countries that offer CBI schemes also allow dual citizenship.
What is the difference between residency and citizenship?
We have established the meaning of residency and citizenship. Now, let’s examine some of the key differences between the two.
Residency vs citizenship: passports
Probably the biggest difference between citizenship and residency is the ability to secure a passport. Neither temporary or permanent residents can apply for a passport in their host country.
Residency requirements
Most residency by investment programmes have a minimum stay requirement. This is the minimum period (in days) you must be in the country to maintain your residence status. However, this does not typically apply to citizens.
Legal status
Legal status is another notable difference between residency and citizenship. CBI schemes allow successful applicants to gain full citizenship rights, including the right to vote in elections.
Be aware that voting rights differ from country to country. However, residents do not generally have the right to vote.
Duration
Citizenship is a permanent status that is granted for life. It can also be inherited by future generations.
Meanwhile, residency can be permanent or temporary. Temporary residence permits usually last two or five years and must be renewed after that time.
It’s worth noting that while RBI schemes don’t directly grant citizenship, some provide a route to becoming a citizen after a certain period of time and if specific criteria are met.
Residency vs citizenship: which is right for you?
Residency and citizenship programmes both offer unique benefits and opportunities. Understanding the difference between residency and citizenship is the first step to determining which option is the right choice for you.
To learn more about investment visas and their benefits, speak to one of our experts.
Holborn Pass is an international leader in investor visas and a part of the wider Holborn Assets Group. Our experienced team provides a bespoke, end-to-end service and tailored advice to support your needs.
We have successfully helped hundreds of people and their families secure golden visas. Book a consultation with one of our advisers to find out how we can help you secure yours.