5 questions about Residence Permit and Permanent Residency: what are the differences and features of these statuses?

A residence permit is often confused with a long-term visa such as a student or work visa. They are not the same, each gives different rights.

The visa allows you to cross the state border. In fact, this is a permit to enter a country for a specific purpose: for study, work, recreation or medical treatment. As a rule, this is a sticker on the passport page. In some countries, the visa looks like a stamp, insert, or a separate document.

A residence permit confirms the right of a foreigner to live in the territory of the country. Often the person will prove their identity to enter the country.

The permit looks different in different countries: like a plastic card in the European Union and in Russia, like a passport.

A residence permit incomparably gives more rights than a visa. During its validity period you can:

• live in the country,

• buy real estate,

• cross the border an unlimited number of times,

• do business,

• study in public or private institutions,

• use medical services,

• Get a driver’s license and purchase a car,

• travel without visas to the Schengen countries.

A residence permit can be obtained in different ways; the most common are marriage, study and work. Almost every country has special conditions for investors, businessmen, scientists and highly qualified specialists.

In special cases, the authorities can give a residence permit for specific merits. For example, providing crucial assistance to the police in the search for dangerous criminals.

Consider the popular ways to get a residence permit:

Buy real estate. Similar programs operate in several European countries, the minimum investment is from €250,000.

Invest in the economy. Officially, this can be done in any country in Europe but only some of them actively attract investors with preferential terms of residence permit.

Open a business and create jobs. All European countries make such statements but it is not possible to obtain a residence permit simultaneously everywhere.

Create a family with a citizen of the country. A common option that scammers often use when offering to conclude a fictitious marriage. We talk about this in detail in the article on citizenship in Europe.

Conclude an employment contract. A simple and reliable option if European employers are interested in a specialist.

Reunite with your family. Suitable if a relative — a husband, child or mother — has already received a residence permit. You will have to prove financial dependence or sufficient income.

Enroll in a university. This will allow you to obtain a residence permit status for four to five years. To stay in the country after graduation, you will need to quickly find a job and sign an employment contract.

Conduct official activities. The method applies to diplomats, representatives of international organizations and members of delegations.

Scientific research. You will need a contract with the organization that ordered the research.

Treatment. Suitable if long-term treatment is required. As a rule, it is issued for one to two years and is usually not renewed.

Proof of value. A residence permit can be obtained for special services to the state or for volunteering.

Some countries, such as Portugal and Spain, have official government investor programs. In exchange for investment, the applicant can get a residence permit faster and easier. You will need to meet the conditions of the program, e.g living in the country for several days a year and pass a Due Diligence check.

Investment options vary. It all depends on the goals set by the state: for example, to support a sector of the economy, revitalize sparsely populated regions or create new jobs.

Usually, investors are offered the following options: buying or renting real estate, opening a company, creating a start-up, buying government bonds and shares of companies or opening a deposit. In some countries, you will need to make a non-refundable contribution to a government fund.

Existing European programs and the most demanded investment options

Residence permit in Greece. To obtain the status, you need to buy real estate in the amount of €250,000, invest in the economy of at least €300,000 or prove your financial viability as an independent person.

Residence permit in Malta. The cost of obtaining the status will be €30,000, for maintenance — at least €8,750 per year. Real estate can be rented or bought.

Residence permit in Austria. Suitable for financially independent individuals within an annual quota. You need to have a sufficient level of income of at least €80,000 in accounts, know the language at a basic level and buy or rent a house.

Residence permit in Portugal. You can get it when buying real estate in the amount of €350,000, €1,000,000 for direct investments or starting a business providing at least ten jobs.

Residence permit in Spain. The right to obtain the status given the purchase of real estate for at least €500,000, investments in Spanish companies of at least €1,000,000, opening a deposit for €1,000,000, buying government bonds for €2,000,000 or starting a business.

Residence permit in Switzerland is extremely hard to obtain. However, it is possible to obtain a status by investing at least €1,000,000 in the creation of a company. It is much easier to obtain a residence permit by paying an annual lump-sum tax of 450,000 Swiss francs.

Residence permit in the UK. Despite the difficulties in the migration sphere and the exit from the EU, the British authorities left the opportunity to obtain a residence permit for investments in the economy in the amount of £2,000,000 or more.

A residence permit obtained on favorable terms by investments is often referred to as a golden visa. This definition can be confusing: a visa and a residence permit give different rights, which we wrote about above.

The name appeared by analogy to "golden passports", which are citizenship by investment. A golden passport can be obtained in Malta for exceptional services by direct investment.

Nevertheless, the name has a reason: a residence permit in a European country opens up visa-free travel to the European Union. When crossing the border, you need to show only the residence permit. In fact, this document performs the function of a Schengen visa.

Investors get status faster. The procedure, which can take several months without any guarantee, is reduced to one to two months. In the future, special living conditions apply.

Such loyalty and speed of registration is compensated by careful attention to reputation and sources of income. There are strict international requirements for Due Diligence. The applicants confirm that they are law abiding and legal for the proceeds.

Immigrant Invest lawyers, certified by AML Compliance Officers, conduct a preliminary check of the applicant which reduces the risk of refusal of a residence permit to 1%.

Permanent residency or a permanent residence permit has two meanings: legal and domestic. From the point of view of the law, permanent residency is understood as a permit for living in the country for a long or even unlimited time. This is a legal status that is granted when certain conditions are met.

Difference between a residence permit, permanent residency and citizenship

At the same time, in life they often say “to leave for permanent residence in Europe”, meaning that a person will live abroad permanently and is not going to return. In this case, it is not a matter of legal status, but rather of the intention to stay.

To obtain the right to live permanently in the country, you first need to obtain a temporary residence permit. After a few years, you can apply for permanent residence status: usually it can be obtained only after three or more years of legal and uninterrupted life in the country.

Permanent residency status in Europe gives a foreigner maximum rights and privileges, more than a residence permit:

• you can leave the country at any time and for any period or live in it as much as you like if permanent residence was issued through investments, in other cases the 183-day rule applies;

• you can work in any position in private companies;

• a permit is issued for life and does not need to be confirmed every 1‑2 years. In Europe, permanent residence is renewed every five years;

• you can use all the benefits and social benefits available to the citizens of the country.

This status differs from citizenship in that it does not give the right to work in the civil service or to participate in elections.

Permanent residence status is the last step before obtaining citizenship. In most European countries, any foreigner, including investors, go through the chain: residence permit — permanent residence — citizenship. This process of gradually deepening ties with the country is called naturalization. The exceptions are Malta and Portugal: an investor can get permanent residence in 5 or 6 months.

EU citizenship by investment

Each country has its own requirements, but in general terms, the process looks like this:

1. The investor receives a short-term visa to travel to the country to select a property, conclude an agreement and submit documents.

2. Within 1‑2 months, the state gives a temporary residence permit. The status must be renewed: for example, after a year, and then every two years.

3. After 5‑7 years of residing on a legal basis, you can apply for a permanent residence permit.

4. After 1‑5 years, you can apply for citizenship.

Immigrant Invest is a licensed agent for government programs in the European Union and the Caribbean.