This article will explore the 20 best Residency by Investment programs in 2023.
In the past few decades, the world has witnessed a remarkable shift in global migration trends, propelled by factors like economic prospects, political instability, and the increasing ease of communication and transportation. This transformation is fostering a diverse and interconnected global community.
According to the World Migration Report 2022, it was estimated that in 2020, approximately 281 million individuals were living as international migrants worldwide, constituting 3.6% of the global population. Last five decades saw a consistent increase in the number of international migrants. In 2020, the total estimate of 281 million individuals residing in countries other than their places of birth was 128 million higher than in 1990, and it was more than three times the number estimated for 1970.
Europe and Asia played host to roughly 87 million and 86 million international migrants, respectively, collectively accounting for 61% of the global international migrant population. North America followed closely with nearly 59 million international migrants in 2020, representing 21% of the global migrant population. Africa accounted for 9%, Latin America and the Caribbean for 5%, and Oceania for 3%.
When considering the proportion of international migrants in relation to the population of each region in 2020, highest percentages were observed in Oceania, North America, and Europe, where international migrants comprised 22%, 16%, and 12% of the total population, respectively. In contrast, Asia and Africa had relatively smaller shares of international migrants at 1.8% and 1.9%, respectively, while Latin America and the Caribbean had 2.3%.
The same report highlighted that Asia saw the most significant growth from 2000 to 2020, with a 74% increase, corresponding to approximately 37 million people in absolute numbers. Europe experienced the second-largest growth during this period, with a rise of 30 million international migrants, followed by North America with an increase of 18 million and Africa with 10 million. In certain countries, like the United Arab Emirates, more than 88% of the population consists of international migrants.
As global migration trends persist in their upward trajectory, numerous countries across the globe have introduced Residency by Investment programs and similar initiatives, each characterized by distinct eligibility criteria and advantages for both applicants and host nations. These programs serve as magnets for foreign investments, specifically targeting the high-net-worth-individuals (HNWIs), and igniting economic expansion, all the while furnishing a pathway to residency for individuals who may not meet conventional qualification criteria.
Benefits of Residency by Investment
Residency by Investment programs offer a multitude of compelling advantages to individuals in search of a new place to call home. They liberate individuals from the constraints of travel, work, and residency limitations, granting them global mobility and the freedom to explore the world. This leads to an enhanced quality of life, encompassing improved access to healthcare, education, social services, and a more wholesome environment.
Furthermore, these programs present diverse business opportunities for High Net Worth Individuals (HNWIs), enabling them to diversify their investment portfolios and bolster their wealth. Additionally, the host country’s favorable tax structures empower investors to legally mitigate their tax obligations and even establish corporate entities. The long-term benefit of obtaining eligibility for a second passport and citizenship represents a significant advantage, rendering Residency by Investment programs an enticing pathway toward a brighter future.
Residency by Investment programs offer diverse investment options and financial criteria, which vary by country. These options typically include purchasing real estate for personal or investment purposes, investing in local businesses (starting new ventures or backing existing ones), or contributing to a government fund dedicated to economic and social development initiatives. Each program has its unique requirements and benefits, making it essential for potential participants to research and choose the one that aligns best with their objectives.
Trends in Residency by Investment
In a report released by COMPAS (Centre on Migration, Policy & Society) in June 2022, it was revealed that the most comprehensive evaluation of Residency by Investment programs within the European Union (EU) had accrued a cumulative total of approximately €20 billion (approximately $22.5 billion) in investments by the end of 2019. Prior to the onset of the Covid-19 pandemic, these programs were yielding an annual revenue of approximately €3 billion (approximately $3.375 billion), with a notable concentration of proceeds in countries such as the United Kingdom, Spain, Portugal, and Greece.
With the trends in European Residency by Investment programs steadily on the rise, investors are diversifying their portfolios beyond real estate and residency opportunities too. Many consider the stock market to capitalize on the potential for growth and stability within the region. A few notable stocks that have piqued the interest of investors in recent times are ASML Holding N.V. (NASDAQ:ASML), AstraZeneca plc (NYSE:AZN), and Shell plc (NYSE:SHEL).
ASML Holding N.V. (NASDAQ:ASML), is one of Europe’s top prestigious tech firms. ASML Holding N.V. (NASDAQ:ASML) currently commands approximately $180 million for its highest-end machine. Despite recent softening in the chip market, ASML Holding N.V. (NASDAQ:ASML), continues to experience growth, and its long-term prospects appear promising due to the constant demand for increased computing power.
AstraZeneca plc (NYSE:AZN), a prominent global pharmaceutical and biotechnology corporation headquartered at the Cambridge Biomedical Campus in Cambridge, England, has recently joined forces with IKN to introduce cutting-edge AI X-ray technology, as reported by Medical Device Network on September 25, 2023. This partnership marks a significant milestone in the quest for advanced healthcare solutions.
On September 19, 2023, Reuters reported that Shell plc (NYSE:SHEL), the British multinational oil and gas company, opened the world’s largest electric vehicle (EV) charging station in Shenzhen, China. This station, located near Shenzhen airport, offers 258 charging points and incorporates solar panels capable of generating 300,000 kilowatt-hours annually. It is a joint venture between Shell plc (NYSE:SHEL) and the Chinese EV giant BYD (002594.SZ).
Let’s now proceed to explore the top 20 Residency by Investment Programs in 2023.
Image by Steve Buissinne from Pixabay
Methodology
To determine the top 20 programs, we considered key metrics such as investment amounts, application approval/process duration, and personal income tax rates of the leading Residency by Investment program countries in 2023. We utilized information from a diverse set of reputable sources, including IMI Daily, Get Golden Visa, Golden Visas, Global Citizen Solutions, Sov Spot, Best Citizenships, Passports.io, International Relocation Firm, Nomad Capitalist, Premier Consultancy Group, South China Morning Post, alongside the official Canada, New Zealand, and USA government websites. Additionally, we relied on data from Trading Economics and KPMG to ascertain the relevant tax rates.
Subsequently, we created specific ranking indices for these metrics, and to establish the overall rankings, we averaged these three rankings. The best Residency by Investment program among these ranked at the top spot, followed by the second and third. In cases of tie scores, we used tax friendliness as the tiebreaker to distinguish and rank similar programs.
20 Best Residency by Investment Programs in 2023
20. Australia
Investment Amount: $1.6 Million
Process Duration: 12 months
Personal Income Tax Rate: 45%
To obtain residency in Australia by investment, there are several options available, including the Investor Stream, the Significant Investor Stream, and the Entrepreneur Stream. The minimum investment amount for the Investor Stream is AUD 2.5 million, while the Significant Investor Stream requires a minimum investment of AUD 5 million. The Entrepreneur Stream requires a minimum net business and personal assets of AUD 1.5 million, with a minimum annual turnover of AUD 3 million in one or more of the main businesses. After obtaining an investor visa, applicants can be granted a five-year visa by investment of AUD 1.25 million or more, and applicants who maintain their investment can then obtain permanent residency in Australia.
19. New Zealand
Investment Amount: $1.8 Million
Process Duration: 8-9 months
Personal Income Tax Rate: 39%
There are several investment programs available for individuals seeking New Zealand residence. The minimum investment amounts vary for each program. Investor Category 1 Visa requires a starting investment of NZD 10 million, while Investor Category 2 Visa calls for NZD 3 million (approximately $1.8 million), with the investment being directed towards lawful enterprises or managed funds and sustained for a four-year period. This investment can be spread across three years and must be maintained for the fourth year. Additionally, applicants must spend a minimum of 146 days in New Zealand in each of the last three years of the four-year investment, totaling 483 days over this period. For the Active Investor Plus Visa Program, individuals must invest between NZD 5 million and NZD 15 million over four years, following the same investment schedule.
18. Netherlands
Investment Amount: $1.5 Million
Process Duration: 3-5 months
Personal Income Tax Rate: 49.5%
The Netherlands allows foreign nationals to make a significant business or fund investment in the country and gain a renewable Dutch residence permit in return. The investment must be deposited into a Dutch bank account or the bank account of another EU member state with a branch in the Netherlands.
For those considering investment opportunities in the European market, it’s worth keeping an eye on stocks like ASML Holding N.V. (NASDAQ:ASML), a leading semiconductor equipment manufacturer; AstraZeneca plc (NYSE:AZN), a pharmaceutical giant; and Shell plc (NYSE:SHEL), a global energy company. These stocks represent diverse sectors within the European economy and can be attractive options for investors.
17. Ireland
Investment Amount: $1.1 Million
Process Duration: 9-12 months
Personal Income Tax Rate: 40%
The Ireland Immigrant Investor Program (IIP) necessitates a minimum investment amount of €1 million (approximately $1.1 million), which must be allocated to an approved fund and retained for a minimum duration of three years. In addition to this financial commitment, applicants must satisfy various eligibility criteria, including having a minimum net worth of €2 million, demonstrating good character, and possessing a clean criminal record in all jurisdictions. The application processing period typically ranges from nine to twelve months.
16. United States of America
Investment Amount: $800,000
Process Duration: 30-36 months
Personal Income Tax Rate: 37%
The US residence program, also known as the Immigrant Investor Program, offers EB-5 visas to individuals who invest in USCIS-approved regional center-associated commercial ventures, aiming to boost economic development. The US ranks 16th on our list of best Residency by Investment programs in 2023. Eligibility for the EB-5 visa entails a minimum investment of $1,050,000, or $800,000 if directed to designated high-unemployment or rural areas. This investment must fund a newly established commercial enterprise with the goal of creating at least 10 new full-time jobs for US citizens and authorized US workers.
15. Singapore
Investment Amount: $2.5 Million
Process Duration: 9-12 months
Personal Income Tax Rate: 22%
The Global Investor Program (GIP) offers an opportunity for foreign nationals to obtain permanent residency in Singapore by making a substantial investment. To qualify for this program, individuals are required to invest a minimum of SGD 2,500,000 in either establishing a new business entity, expanding an existing business operation, or contributing to an investment fund. It is essential to note that this investment must be completed within six months following the approval-in-principle for permanent residency.
14. United Kingdom
Investment Amount: $2.2 Million
Process Duration: 1-8 weeks
Personal Income Tax Rate: 45%
The UK investor visa, also known as the Tier 1 investor visa, is a Residency by Investment program in the United Kingdom. To apply for a Tier 1 (Investor) Visa, you will be required to satisfy the following criteria: be 18 or over, have access to at least £2,000,000 (approximately $2.2 million) in investment funds, and open a UK bank account. The cost to apply for a Tier 1 visa is £1,623. Additionally, the application fee for citizenship by investment for each person is £1330.
13. Austria
Investment Amount: $400,000
Process Duration: 1-3 months
Personal Income Tax Rate: 55%
Austria’s Residency by Investment program is attractive for those seeking to enjoy the country’s high quality of life, strong economy, and access to the Schengen Area, which allows for visa-free travel to many European countries. Investors can choose to invest in businesses, real estate, or approved securities, meeting specific financial thresholds. Once the investment criteria are fulfilled, applicants and their families gain the right to reside and work in Austria.
12. Switzerland
Investment Amount: $220,000
Process Duration: 3-6 months
Personal Income Tax Rate: 40%
The Switzerland Residency by Investment program necessitates a lump-sum tax payment of CHF 200,000 (approximately $220,000) to the Swiss canton where the investor resides. However, it’s important to note that this amount can vary and may potentially escalate to CHF 600,000 per annum, contingent on the specific canton Alternatively, individuals can consider the Swiss Lump Sum Taxation program, which mandates a minimum investment of $1 million as a prerequisite for applying for the Swiss residence program. The actual lump-sum tax amount is contingent upon the canton in which one resides, as well as the family’s expenditures both within Switzerland and abroad. The tax agreement typically spans either 1 or 5 years, depending on the canton, and the residence permit must be renewed on an annual basis.
11. Canada
Investment Amount: $150,000
Process Duration: 12–31 months
Personal Income Tax Rate: 33%
Canada allows foreign entrepreneurs to create an innovative business in Canada and apply for permanent residence. The minimum investment required is $200,000 if it comes from a designated Canadian venture capital fund, or $75,000 if it comes from a designated Canadian angel investor group.
10. Hong Kong
Investment Amount: >$1,300,000
Process Duration: 4-8 months
Personal Income Tax Rate: 15%
Hong Kong offers multiple residency options through investment for talented individuals, professionals, and entrepreneurs. These programs include the Capital Investment Entrant Scheme, introduced in 2003 but suspended in 2015. However, Hong Kong currently provides various employment and investment visa categories. To qualify, applicants need to pass a points-based test under the Quality Migrant Admission Scheme. The new investment scheme announced in 2023 will require a higher investment than the previous HK$10 million (approximately $1,300,000) threshold from eight years ago. After residing in Hong Kong for seven years, individuals can apply for a Permanent Resident Visa, and citizenship eligibility begins after ten years.
9. Namibia
Investment Amount: $316,000
Process Duration: 3 months
Personal Income Tax Rate: 37%
To obtain a residence permit in Namibia through investment, foreign nationals are required to purchase real estate with a minimum value of $316,000 at an approved project in Walvis Bay, Namibia’s second-largest city. Moreover, they must adhere to the specific investment criteria outlined by Namibian immigration authorities.
8. Monaco
Investment Amount: $530,000
Process Duration: 8-9 months
Personal Income Tax Rate: 0
To acquire a Monaco residency permit via investment, individuals are required to place a minimum deposit of €500,000 (approximately $530,000) in a Monaco bank. It’s essential to keep this deposit in the bank account, although the exact minimum deposit amount may differ depending on the chosen bank. Alongside the bank deposit, applicants must also either rent or purchase a property in Monaco.
7. Malaysia
Investment Amount: $230,000
Process Duration: 3-6 months
Personal Income Tax Rate: 30%
To secure residency in Malaysia through investment, foreign individuals have two options: the Malaysia My Second Home Program or the Premium Visa Program. These programs permit eligible foreign nationals to live in Malaysia under a long-term multiple-entry visa. The minimum investment needed is MYR 1 million. The processing time for both programs typically takes three to six months. The program primarily caters to retirees and financially independent individuals seeking to establish residency in Malaysia.
6. Latvia
Investment Amount: $270,000
Process Duration: 1-3 months
Personal Income Tax Rate: 31%
Investors can obtain a Latvian residence permit by purchasing real estate worth at least €250,000. After holding the property for 5 years, they have the option to sell it and recoup their initial investment, making this investment-based residence permit option a popular choice for those seeking European residency through real estate investment in Latvia.
While real estate is an attractive investment option in Europe, investors can also look up top European stocks which include ASML Holding N.V. (NASDAQ:ASML), AstraZeneca plc (NYSE:AZN), and Shell plc (NYSE:SHEL).
5. Jersey
Investment Amount: $1 Million
Process Duration: 2-6 weeks
Personal Income Tax Rate: 20%
Jersey provides an attractive Residency by Investment opportunity tailored for high net worth individuals aiming to attain prestigious residency status and gain the privilege to acquire property in Jersey. To qualify for this program, applicants are required to make a substantial contribution to the island’s economy. This contribution encompasses a minimum real estate investment of £1.75 million along with an annual tax commitment of £250,000. Alternatively, HNWIs can explore Jersey’s High-Value Residency program, which necessitates a sustainable annual income of at least £725,000 (approximately $1 million), coupled with a minimum annual tax obligation of £145,000.
4. Thailand
Investment Amount: $19,500
Process Duration: 2-3 months
Personal Income Tax Rate: 35%
Foreign nationals aspiring to establish a residence in Thailand can pursue various avenues, including visas, permanent residency, or citizenship. Among the options for obtaining permanent residency, the Thailand Elite Residence Program stands out, affording applicants the opportunity to reside in Thailand for up to 20 years, coupled with access to an array of exclusive services and benefits. To initiate the application process for this program, individuals are required to pay a minimum fee of THB 600,000.
3. Panama
Investment Amount: $100,000
Process Duration: 3-4 months
Personal Income Tax Rate: 25%
The Panama Residency by Investment Program offers foreign individuals the opportunity to invest in Panama and seek a residence permit. The minimum required investment stands at $100,000, and this investment can be directed towards either real estate or reforestation projects. This program provides a temporary residence status for a duration of two years, following which investors are eligible to apply for permanent residency.
2. Mauritius
Investment Amount: $50,000
Process Duration: 6 months
Personal Income Tax Rate: 15%
Mauritius’s 10-Year Renewable Residency Program offers individuals the opportunity to obtain a renewable residency permit through a minimum investment of $50,000 in real estate, with additional processing costs varying based on family size. This program provides numerous advantages, including the potential for an attractive return on investment, the establishment of a bank account, and the incorporation of a domestic company in Mauritius. Moreover, beneficiaries of this permit are granted the privilege of residing and working in Mauritius, along with the added perk of utilizing a premium property in Mauritius for one week each year, both for themselves and their families.
1. Montenegro
Investment Amount: No minimum investment required
Process Duration: 1 months
Personal Income Tax Rate: 9%
Montenegro ranks as the best Residency by Investment program in 2023 on our list. Foreign citizens can extend their stay in Montenegro beyond 90 days with a temporary residence permit, which can be obtained for various purposes such as family reunification, education, research, and more. Those interested in the real estate route can purchase property for potential profit. After five years on a temporary permit with a clean record, they can apply for permanent residency in Montenegro.
You can also take a look at our articles 15 Countries That Have the Best Economy in Africa & 12 Fastest Growing Sectors and Investment Opportunities in the US.
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Disclosure: None. 20 Best Residency by Investment Programs in 2023 is originally published on Insider Monkey.
