A person who lives outside his/her home country and works as a skilled worker, professional, or an artist is considered to be an expatriate or expat. The term expat may also extend to a retiree who has chosen to live outside his/her home country.

People have been living in foreign countries as workers, diplomats, missionaries, or merchants since ages. With the invention of steamships and airplanes, travel became easier. As a result, the number of expats in the world also became larger. People were either choosing to live in a foreign country for a few years or their employers were sending them to offshore branches of their businesses.

Some people confuse expatriate with “expatriot” or someone who does not like his/her home country. Nothing could be further from the truth. In fact, being expats will make such people living abroad realize how much they miss some of the good things about their home country.

Why become an expat?

There are plenty of things to like about being an expat. Firstly, one gets to live in a foreign country and experience the local culture of that country. An expat goes much deeper into the local lifestyle than what a tourist would ever go. An expat also builds a network of foreign contacts that can be very valuable for business or personal pursuits.

Depending on the country where the expat is going to live, the savings from salary can be quite significant. If someone on a US payroll is asked to live in Southeast Asia for a few years, then the lower cost of living in that country would mean a lot more dollars available for investment/retirement savings. This benefit is particularly visible in cases where a company sends its employee for work in a lower-income country while still having the employee earn his/her regular salary.

Expats can also greatly develop themselves on a personal level by being an expat. A study conducted back in 2007 found that one of the biggest drivers for an employee wanting to become an expat was the breadth of responsibility in an international assignment. The employee has to work through various challenges and risks when working abroad. Expat assignments also tend to have a fair degree of autonomy. All of these factors can really hone the skills of an individual and help them grow professionally and personally.

Some challenges of being an expat

Being an expat is not always rosy. Moving to a new country can be a culture shock to many. Moving to a new country, even for a short period of time, can mean a total loss of an existing social network. A person who cannot immediately integrate into a new environment may feel lonely for a while. If the foreign country has more government restrictions than the home country, then the expat may miss the freedom that he/she enjoyed at home.

If the country where the expat is moving has a higher standard of living than the home country, then the increased cost of living can cost a business a lot more money in terms of employee expenses. Even the expat’s savings might get eroded due to higher personal expenses.

If one of the spouses has to move abroad as an expat, then it may disrupt the career of the other spouse. The foreign country might have strict rules regarding dependents of expats being able to work on a dependent visa. Or perhaps the foreign country does not have job opportunities in an industry in which the spouse of the expat was working in her home country.

Children can also have a hard time identifying themselves and relating themselves because of living life as an expat. Because they have lived in another country for extended periods of time, they find it difficult to answer the question “where are you from?”

Children who have lived abroad as expats may also find it difficult to find peers or friends who they can relate to. Even culturally, they can be in a grey zone. They already have their home culture inculcated in them but then they also absorb the foreign culture of the country where they live as an expat. So, because of a jumble of multiple cultures, they might be misunderstood by people who have always been surrounded by only one culture.

There is also something known as Expat Child Syndrome which children between the ages of 10 and 15 may experience.

Expat vs immigrant

An expat is also different from an immigrant. An expat is a person who lives outside his/her native country for a certain duration. An immigrant, on the other hand, is a person who seeks to live and work in a new country permanently. The immigrant has an intention of settling into a new country and staying there indefinitely. An expat does not go to a foreign country with the mindset or goal of permanently living there.

So, Sergey Brin of Google is considered as an immigrant while an American diplomat in Nigeria or a Moroccan executive stationed in the company’s Paris office would be considered to be an expat. While all of these people are living outside their birth countries for an indefinite period, it is sometimes observed that the term expat is reserved for white people (Western Caucasian) who go and work abroad.

This debate about labeling people from specific races as expats has been a political one. The words expat and immigrant can imply certain nuances about a person’s wealth. Expat is considered to be a wealthy person while an immigrant is supposed to be considered as someone who left poverty in a third world country to do low-skilled low-paid work in a developed country. However, in reality, the definition of an expat does not change with race or skin color.

Do expats remain aloof from local communities?

Expats may have a reputation for not integrating with the local community. Sometimes that may be intentional, while at other times it may be totally unintentional. For example, there are situations where people have moved to a foreign land and lived there for a few years and they would still not greet the locals in the local language.

The kids of diplomats at international schools tend to be regarded as expats as well. They are prone to moving to a new country every three or four years. They might appear as if they do not integrate with the local community, but you can’t really blame them either. By the time they build deep bonds with the local people, it is time to pack up and leave.

The post Expat- What Is An Expat Anyway? appeared first on Golden Prime Trust.

The government in Mexico is also stimulating entrepreneurship with significant investments in the start-up ecosystem. Mexico’s tourism economy is also booming while real estate investments can also be quite rewarding. Whether you want to retire in a beach house, invest in a growing economy, or simply live outside the US yet still be close to it, then Mexico as a citizenship option is worth exploring.

The process of becoming a Mexican citizen is actually quite straightforward. It takes only five years to get a Mexican passport. This passport is no pushover either. It is considered to be the 28th most powerful passport globally and it provides a Mexican citizen visa-free access to a whopping 139 countries which includes Europe’s Schengen region as well.

Entering Mexico

Entering Mexico is simple if you are a citizen of the US, most of Western Europe, or from certain Latin American countries. You can show up as a tourist and visit Mexico visa-free for up to 180 days. Citizens of other countries need a visa which costs about $15 USD.

You can stay in Mexico for this entire duration and even work online or in a business that is not location dependent. However, if you want to work for a Mexican company, then you will need a work permit. This permit costs $155 and you need a job offer on hand to apply. The interesting rule with work permits in Mexico is that you cannot get paid in Mexico for the work that you do in Mexico.

There are a couple of other visas that let you enter Mexico such as an adoption visa or a student resident visa.

If you are serious about living in Mexico permanently and moving to Mexico, then you would want to look at a temporary or permanent resident visa. One has to apply for a resident visa from a Mexican consulate located outside Mexico. When you apply, you will be given a temporary visa which is valid for 180 days. You can enter Mexico on this visa and then exchange the visa document for a temporary or permanent resident card.

You will have 30 days post entering Mexico within which you must do this exchange procedure. If you fail to exchange your visa for a permanent resident card, then you will have to pay extra fees, go through interviews, and complete a regularization process.

Qualifying for the temporary resident visa

As outlined above, the first step to living in Mexico for a longer duration is to apply for a temporary resident visa. This visa allows foreigners to stay in Mexico for up to 4 years. Besides getting a temporary resident visa, foreigners also need to apply for a work permit in order to be able to live and work in Mexico.

If you are planning to simply reside in Mexico and not work, then you will have to show that you have sufficient funds to pay for your housing and food expenses while in Mexico. There are also certain instances where you may receive an invitation to volunteer for a Mexico-based institution without receiving any income.

If you have such an invitation, then you may qualify for a temporary resident visa as well. The third possibility is relationships. You may be related to a Mexican citizen or a permanent/temporary resident. In such a case, you may qualify for the temporary resident visa as well.

If you marry a Mexican citizen, then you need to apply for a two-year temporary resident card. You can then apply for permanent residency (and eventually citizenship) after you get this two-year card.

There are two more ways to become a temporary resident in Mexico. It is through investments in a business or in real estate. If you invest about $86,000 in stocks or business and $86,000 in real estate for that business, then you can get a temporary resident visa. You also have to show that your business employs at least 3 people. You also need to show invoices, contracts, receipts, permits, and a registration with the social security department in Mexico which proves that you have hired three people.

With the business investment route, there are no significant rules on how long you need to stay in Mexico at one stretch. You can enter and exit the country with a lot of freedom. The temporary residence card in the case of business investment is granted for one year. However, it can be renewed easily for another 1 to 3 years. The only thing that you should be careful about is that you should stay in Mexico for the most part of the year if you plan to apply for citizenship in the future.

Coming to the real estate route, if you purchase Mexican real estate which is valued at forty thousand days times the minimum wage in Mexico, then you may be able to get a temporary resident visa. This amount works out to around $175,000. With that kind of money, you can easily find a 2 or 3 bedroom apartment in Mexico City or a spacious 3 to 5 bedroom house (with a swimming pool) across Mexico.

Qualifying for a permanent resident visa

Once you have your temporary resident visa, the next step is to obtain a permanent resident visa. Holders of a temporary resident visa have to remain in that temporary status for four consecutive years before they can qualify for a permanent residency. If a temporary resident is married to a Mexican citizen, then that wait is shorter at two years.

There are some situations where a person can directly qualify for a permanent resident visa without having to hold a temporary resident visa. The first possibility is if a person is related to a second level of permanent resident or citizen. Second level relation can be grandfather, grandmother, parent, son, daughter, or a grandchild.

The second situation could be a person who is retired, has pension payments coming in, and is able to provide for himself/herself through investment income, savings, or pension payments.

A third possibility is a person who seeks political asylum. The final possibility is if the person is a sibling of a Mexican citizen or permanent resident. All of these people can directly go for a permanent residency.

More recently, the Mexican government has introduced a points-based system to attract high-skilled people to become permanent Mexican residents. Foreign nationals who have expertise in sciences, technology, arts, humanities, sports, or other priority areas that the Mexican government deems capable of improving Mexico would qualify.

For the points-based program, the Mexican government looks at an applicant’s education level, work experience, skills in priority areas like science and technology, Spanish language proficiency, and a reasonable amount of knowledge about Mexican culture.

Foreign nationals who are directly applying for a permanent resident visa have to do so outside Mexico at a Mexican consulate. One exception is applicants of the points-based program who can apply within Mexico at any one of the Instituto Nacional de Migracion (INM) offices.

The good thing about a permanent residency is that the holder then does not have to apply for a work permit. He/she can pretty much work anywhere in Mexico. All they need to do is notify the INM immigration office. Any change in employer, marital status, nationality, or address needs to be notified to the immigration office. If you work online or are location independent, then there is no need to notify the immigration office about a change in your work/employer.

If you are born in Mexico, then you automatically become a citizen. The process of becoming a citizen normally happens within the first year of birth.

Obtaining citizenship and dual citizenship

Mexico is one of the countries in the world that allow dual citizenship. You can hold two citizenships at the most if a Mexican citizenship is one of the two. The path to citizenship is fairly simple once you have a permanent residency.

Most foreigners qualify for Mexican citizenship through a process known as naturalization. The duration of naturalization is five years of residency. Both temporary and permanent residency periods count in this five-year duration. Foreigners who come from Latin American countries or from the Iberian Peninsula can naturalize in just two years of residency.

The path to becoming a naturalized Mexican citizen directly is by birth within Mexico, outside Mexico to Mexican parents or parents of Mexican descent (going back two generations), through marriage to a Mexican citizen, or by having Mexican children.

Children who have been adopted by Mexican parents can also become naturalized citizens. They simply have to live temporary or permanent residents of Mexico for 1 year.

The process of applying for citizenship

The first thing you have to do is fill out the DNN-3 form. Make sure you fill the form in Spanish. You will need to bring two copies of this form along with your foreign birth certificate, foreign passport, and the Mexican residency card (temporary or permanent depending on your specific case). Make sure you keep backup copies of every single page of these identity documents because the Mexican immigration might ask you to submit the originals.

Next, prepare a letter listing out all the countries that you visited in the last 2 years. Make copies of this letter too for your records. Next, you also have to fill out a form that proves that you do not have any criminal record. For this, you will have to visit the local police station wherever you reside in Mexico and also the police headquarters in Mexico City.

Gather any extra forms or documents that may be needed. Go to the office, consulate, or immigration office, as may be the case, and submit your documents. At the end of the process, you may be asked to take a Spanish language test and Mexican history and culture test. Lastly, you will pay the required fee and become a Mexican citizen.

Conclusion

Thus, obtaining citizenship in Mexico is quite clear with multiple paths. Obtaining a Mexican citizenship makes sense for someone who has a manufacturing business and wants to produce cheap and sells to US customers. Someone who has a location independent business but simply wants to get out of the US can also look at a Mexican citizenship. It allows the person to be close to the US and visit family and friends whenever he/she feels like. If you think that becoming a Mexican citizen has benefits for you, then contact a professional or an immigration expert to get started.

The post How to Become a Mexican Citizen appeared first on Golden Prime Trust.

When we talk about residency for tax purposes and you only live and do business in one country the rules that apply are very simple.  

If you are a resident of Canada (you live there) Canadian tax rules apply.  

As you start to do business in multiple countries, have customers elsewhere, live abroad, form companies abroad, etc. It becomes more complex. 

It’s always important to look at whose tax rules will apply to you. 

Residency in short means “whose tax rules apply?”  You might have one residency, multiple residencies, or no residency for tax purposes. 

There are three different residencies we talk about: 

1. Personal residency  
2. Corporate residency 
3. Residency of income 

 Personal Tax Residency 

Personal residency will affect which personal tax you’ll have to pay, but will also trigger the application of certain rules, such as CFC rules to your business.  

Personal residency is not legal residency. You could be legally allowed to live somewhere and still not be tax resident there.  

Also, you could be a tax resident somewhere while being an illegal immigrant.  

Yes, that’s right! You could be illegally in the USA and they still expect you to pay tax! You are not allowed to legally be there, they will deport you when they find it out BUT you still have to pay their taxes.  

Another thing to have in mind when talking about personal residency is this: 

Just because you don’t qualify under certain residency rules doesn’t mean that you are non–resident 

For example, spending 183 days per year will make you a resident in most places, but not spending 183 days doesn’t make you non–resident.  

You could be in a situation where you are a double resident or double non–resident.  

For example, people will set up a residency in Panama and Panama only requires them to spend a day out of a year there. That rule only applies to Panama but not to your home country. Your home country will not recognize you as a resident of Panama if you only spent that little time there and they might still tax you depending on their local rules and the other circumstances of your life. In eyes of your own country, you will still be viewed as a resident. This might not always be the case, but it’s very important to be careful.  

Corporate Tax Residency 

When it comes to corporate residency lots of people don’t understand the difference between corporate registration and corporate residency.  

In other words, if you form a company in a certain country it doesn’t necessarily mean that your corporation is also a resident of that country.  

Canada, for example, will consider a company to be tax resident if it’s formed there, however even if your company is not formed there, Canada will still tax exactly the same as a local Canadian registered company it if it’s managed and controlled from Canada.  

So, when talking about company residency these are the three things that you have to have in mind: 

1. Where the company is registered 
2. Where is it managed and controlled  
3. Where is the main office 

Any of these might trigger the tax residency of the company in that country and could potentially mean double tax residency (or double non-tax residency). 

 Residency of Income 

Another residency that you will want to consider is the residency of income, but we will talk more about this in the future.  (See our post on “what is source income?”) 

We help clients legally reduce their tax through international tax planning, as well as help with company formations, bank account openings, residency, citizenship, and payment processing.  Have a question you want answered?  Book a consultation now! 

The post What is Tax Residency?  appeared first on Golden Prime Trust.

Having a successful online business gives you lots of flexibility. You don’t depend physically on a place where you’re at and you can spend a lot of your time traveling around. In my opinion, this is one of the biggest advantages of doing online business. 

There is another annoying thing most of us have to endure, this is taxes.

At the end of the year your beloved country takes 10,20,30 and some cases even more than 50% of your income. Seems unfair, right?

Well, the good news is that you can just leave. You can choose a place that suits your needs better than your home country and simply relocate there.

Since we are in a similar situation like you, we did extensive research about places that welcome online entrepreneurs. 

Here is our list of top 10 countries that you should consider if you are an online business owner:

10. Bulgaria

The place that we have chosen for ourselves. Bulgaria is a country in Eastern Europe, it’s EU member and country that is developing rapidly. Corporate tax is very favorable and lots of our clients and friends have chosen Bulgaria for their residency. Corporate tax rates are only 10%, the country is quite cheap and your money will go very far.

For example, 1000 EUR per month will get you an amazing apartment. With 10k per month, you will live like a king here. 

Sofia, which is the capital is very well connected with the rest of Europe and further. They have great flight connection, which is a big advantage for us since we travel a lot.

9. Montenegro

Montenegro is my country of origin. This is a tiny country at the Adriatic sea, with a population of 650 000 people. Even though it is not part of the EU yet it introduced the EURO as its official currency in 2002.

This country has very low tax rates of only 9%. 

It is geographically beautiful and has lots to offer, especially during the summertime. 

The main industry in the country is tourism and everything related to it. It also relies on foreign investments. 

Montenegro is a very welcoming country for online entrepreneurs.

Life is quite cheap and a couple thousand euros a month will provide you with an outstanding lifestyle in this tiny country.

8. Portugal

Portugal is an interesting country. It offers something that’s called non-habitual resident tax regime. This program was introduced by the government in 2009. to attract profitable industries and high earning individuals. If structured properly it gives you tax exemption for the first 10 years of living in Portugal.

Under this program, most income from a foreign source is exempt from Portuguese taxation for ten consecutive years, as is income that is taxable in another country.

Not to mention that this is a beautiful place to live since it offers sunshine and great weather for most of the year.

7. Georgia

Georgia is a perfect blend of old and modern. This country was a Soviet member in the past and is currently in transition. You will see lots of new modern glass buildings right next to old communist style architecture. 

They are very open for foreign business owners, and you will be able to set up a residency (even citizenship) quite easily.

It is super cheap to operate here, and you will be able to get employees for very appealing rates. Corporate tax rates are 15%.

Banking is developing fast and they have some interesting packages and opportunities for foreign business owners. This is a place that we often recommend for online business owners due to its openness and plenty of opportunities.

6. Singapore

Very famous and popular among online business owners. Singapore is my most favorite place in the entire world. This is the city that I visited multiple times, and I am always happy to come back.

This is the modern, first world, English speaking country. You can feel it on every single step and see it on every corner. This is the country for the 22nd century. 

If you make less than 300k per year, you will pay 8.5% in taxes. If you make more than you will have to give up 17% of your income due to taxes. Also, it’s important to note that Singapore does not impose any dividend or capital gains taxes

Singapore is one of the most appealing places in the world for doing business. Its unique location is giving you easy access to most of Asia. It is a very stable country with a very strong labor force. 

However, costs of living in Singapore are extremely high. This is certainly one of the most expensive cities in the world. 

In order to have a good lifestyle, you will need to spend way more than in any other country form our list. If you are not worried about money, then you might consider Singapore for setting up your residency. 

5. Hong Kong

Another popular place among online entrepreneurs. Hong Kong’s economy has been growing steadily for the past few decades.

For the first 300k that you earn, you will pay 8.5% taxes, similarly to Singapore. 

Above this amount, you will pay 16.5%. 

Hong Kong has something that’s called territorial tax system. This means that all the income that has been made outside of HK will not be taxable. However, what do they consider as income made outside of the country can be tricky sometimes.

In HK you will have access to the good labor force, however, expect to pay quite a lot for good talent.

There are no import duties in HK. People speak Chinese as well as English, so it can give you an edge of conquering the Chinese market. This place offers quite good banking, and tax write-offs are a no brainer (you could go as extreme as writing off clothes that you purchase as a business expense). 

4. UAE

If you decide to get a residency in this Gulf country expect to pay NO TAXES. This is a massive advantage and a big reason for choosing the UAE. 

It is quite easy to get a residency, and there is no audited financial requirement for companies. 

Dubai and Abu Dhabi are modern cosmopolitan cities that offer a lot, however, it is not quite cheap to set up there. You can end up paying in excess of 10k, depending on which free zone are you in.

When it comes to costs of living, I would say that the UAE is somewhere in between. It is not as expensive as Singapore, but definitely not as cheap as Montenegro or Bulgaria.

3. Malaysia

Malaysia is a country that has multiple advantages if you are a business owner. First of all, this a modern English speaking (as well as Chinese) country. Kuala Lumpur is one of the most impressive cities in the world, that has outstanding architecture, great weather and lots of talent to choose from. 

In Malaysia, you can potentially get away with 3% total tax if you are structured properly. 

It is pretty easy to set up a residency in Malaysia. This country is a great gateway to China which is a massive market. Infrastructure is great, and wages are not very high. Overall, your costs of living, as well as business expenses in Malaysia, can be quite low

  2. Thailand

Have you ever met someone that doesn’t want to visit Thailand? This country is considered to be a paradise on Earth by many. I visited Thailand a couple of times and I definitely understand why. 

This country offers a very appealing elite residency program. 

You can end up with potentially zero tax in Thailand. I have lots of friends and clients that have chosen this country as their new home. Your costs of living can be quite low, but on the other hand, they can be quite high as well since this is a country of extremes.  

1. c

If you can qualify for Panama’s Friendly Nations Visa program then setting up your residency can be quite easy and inexpensive.

This is a beautiful tropical country with a great location. It gives you good access to North and South America as well as Europe. 

Panama offers territorial tax system, which means that all the income made outside of Panama is tax-free. This makes Panama great for online business owners. Another interesting advantage is that Panama doesn’t have a minimum stay requirement to maintain your residency (just like UAE), however, be careful about this. If you don’t spend enough time in Panama, your country of origin might not recognize you as a resident and you might still have to pay taxes to your home country. 

The post Top 10 places to set up a residency if you are online business owner appeared first on Golden Prime Trust.

We all know that buying second citizenship is not an easy decision to make. You probably did lots and lots of research before taking any action.

There is lots of data out there about this topic, however, some of it is outdated and not valid anymore. Some of it is straight lies or scam. That’s why you have to be super careful and thoughtful when considering such an investment.

There is so much to cover when speaking about this topic.

Here are some of the most important things to keep in mind when buying a second passport.

Beware of potential overcharge

There are tons of agencies, companies, lawyers, etc. out there that are involved in citizenship by investment programs. 

For lots of them, this is quick and easy money to make. 

Basically, lots of these people don’t add any value to the whole process. They only act as the middle man and they get their share (more than generous share). Lots of these people don’t even know what they’re doing that well.

They will refer you to someone, who will then refer you to someone, and so on. It will take you a lifetime to get what you really want, and you will pay lots of unnecessary fees in the process.

We are not saying that you shouldn’t use an agency- you only have to be aware that there are lots of bad ones out there. Right one will get you what you want/need in a reasonable amount of time, for reasonable fees.

Make sure that what you are offered is the best for you

This leads us to my next point. Lot’s of agencies out there promote their own stuff, which is not necessarily the best solution for you. For example, if someone is promoting only citizenship by investment in Malta you might want to look into more options before making a decision. Remember, in this situation, there is not ‘’one size fits all’’. It’s simply impossible. You need somebody that will look at your situation from all angles and then make a decision based on what’s best for you. 

Some people are very excited about certain offers that seem appealing to them, but the thing is those offers might not be what’s best for their situation. What worked for someone else, might not work for you. Make sure to think about all the possible options, look at your situation and then make a decision. 

Lots of banks are aware of such programs, and will not open you bank accounts

Imagine this situation: You purchased Vanuatu passport and you proceed to open a bank account in Switzerland. Chances are that they will turn you down and ask you about your original passport. Why is this the case? Banks are extremely concerned about tax evasion and money laundering. Some of these passports that you can buy in citizenship by investment program are in their ‘’beware list’’ and they don’t want to take any chances. 

However, some of these passports are still fine and you will be able to bank normally. 

Lesser known citizenship by investment programs will generally mean less trouble when it comes to banking. 

Visa-free access, costs, bureaucracy

You must have a reason for wanting to get a second passport. If it’s for travel purposes then probably the most important thing to consider is how many countries will you be able to travel visa-free with your new passport. 

Currently, the best ones for visa-free travel would be Cyprus and Malta. However, those are members of the EU and therefore the most expensive ones. Bulgarian passport also gives you some decent traveling options.

Besides this, you will want to consider the costs of getting a new passport. How much does this program cost? What are other fees included? Depending on the country these prices vary drastically. In our articles where we wrote about each country that offers this program, we mention prices for each country.

Also, you need to know what is involved in getting your new passport besides investing money. Do you need to pass the language test? Do you have to learn about the history of a country? Which documents do you need to provide? What is bureaucracy like? All those are covered in our articles.

Family-friendly options

Is the program that you were considering offering passports to your entire family or only to you? If you are single this doesn’t matter that much, but if you are married and if you have a family this is something that you will have to consider. 

Some countries will offer passports to the entire family, some will not. I mean, they will if you make an investment for each family member which can be super expensive. You have to check what is involved and covered until the main applicant’s investment. 

What is life like in a country where you are buying a second passport

If you are planning to actually relocate to the country where you’re buying a passport you need to make sure you do your research about life in that country.

Visiting it and spending some time there before buying citizenship might be a good idea. Some of these countries might have different life and culture from your country of origin. In order to avoid the cultural shock, you need to prepare yourself.

The post Things to consider when buying a second passport appeared first on Golden Prime Trust.

What’s the Difference Between Residency and Citizenship? 

There is a lot of confusion when it comes to this topic. Many people don’t understand the difference between residency and citizenship. 

A residency permit gives you the right to live and possibly work in a particular country.  

Citizenship gives you access to their passport, and also typically gives you the right to vote. It also might change what benefits your children receive as they might receive the citizenships by merit of your citizenship. 

When you’ve obtained citizenship you are typically no different than a person who was born and spent their life in that country. So, with citizenship, you have full rights. 

When moving abroad the first step is obtaining a residency. After that, you might get a citizenship at one point of time. In some cases, it takes 5 years, in some cases 20 years, in some case, it’s not possible to get a citizenship of a country as a foreigner.  

Residency is the first of many steps when getting a citizenship of a country unless you are doing a citizenship by investment.  

In simple words, citizenship by investment means that you are buying a citizenship (and passport). This means that you’re skipping all the time and hassle that you would otherwise have. Instead of waiting 5,10,20 years you will get citizenship almost immediately.  

Rules vary from country to country: some countries will ask you to invest some money into the local economy, some will require that you buy certain real estate, some will ask to hire locals, etc, but the principal is always similar.  

Getting a residency is much easier. You can usually get it via investing some money in the country, via going to school in that country, sometimes via work, sometimes via starting a business – it really depends on the country. 

We can help you with both residency and citizenship by investment.  

If you are interested in relocating in a foreign country or obtaining a second passport give us a call and we will explain what would be the best options for you and your family. 

We help clients change their residency to a better jurisdiction and obtain second passports to expand their options in life.  We also help legally reduce their tax through international tax planning, as well as help with company formations, bank account openings, and payment processing.  Have a question you want answered?  Book a consultation now! 

The post What’s the Difference Between Residency and Citizenship?  appeared first on Golden Prime Trust.

There are many countries that offer residency by investment programs. Many offer multiple options to choose from, making it very appealing to wealthy foreigners. 

Generally speaking, if you are a high net worth individual you will be welcome in most places. Since lots of countries like foreign capital, you will have an open front door to the country if you are bringing money to invest. 

We have been writing a lot about different citizenship by investment programs. We compared different countries, wrote about each country separately and explained the process of getting a second passport. But if you are not interested in a second passport (for example you already have a good one) but only care about residing in a different country and using its benefits such as favorable tax options you might want to consider residency by investment programs. 

As we already said many countries offer this type of residency program – 71 of them! The number of these countries will probably expand in the future.  

What is residency and how is it different from citizenship? 

Residency lets you live in a country that is not your own. You are allowed to live in a country where you are not a citizen (yet), so it means that you still have your original passport. You are not allowed to vote or run for office but you have all the rights as the natives to that country.  

Being a resident of a certain country for long enough eventually leads to becoming a citizen of that country. At that point, you will obtain the passport of that country.  

To become a resident of a certain country usually takes lots of time and effort. You would need to have a certain education, experience in certain fields, be an expert in something which that country needs. Then you would need to wait for quite a while to be accepted and finally move to that country. 

Residency by investment is very different. This type of program has been around since 1986. when Quebec in Canada started their Immigrant Investor Program. 

The main requirement in residency by investment is having the capital to invest in a foreign country. It basically removes all the other requirements such as needed education, language, working experience, etc. 

What are the requirements for residency by investment programs  (sometimes called ”elite residency”)

Every country has its own requirements when it comes to this program, however, certain requirements are universal. This would include having a clean criminal record, proving that your funds come from legal sources, investing funds in government approved options such as government bonds, national economic fund or real estate investments.

In most cases investing into the country will put you in the fast track for getting residency, and you will not have to wait as long as other people usually do (which is usually months, sometimes years!). However, this definitely varies from country to country. 

So, who are the right candidates for this type of program? 

First of all, people who want to live in a different country. They might not be happy with their own country, they might not be satisfied with the health care system, the government, they might want better schooling options for their children, they want better mobility or even safety… Maybe they just have a dream country they want to live in which is not their original one. 

A huge portion of our customers are people who are not necessarily happy with their home country, but they seek better and more favorable options for their businesses. The most common example is lower tax rates in a different country. Residency by investment is a perfect option for them. 

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Uruguay is a country in the southeastern region in South America. Uruguay is home to about 3.44 million people and its capital is Montevideo. With an area of approximately 176,000 square kilometers (68,000 sq mi), Uruguay is geographically the second-smallest nation in South America, after Suriname. 

Uruguay is ranked first in Latin America in democracy, peace, low perception of corruption, e–government, and is first in South America when it comes to press freedom, size of the middle class and prosperity. This country has a European feel to it, more than any other country in South America. Possibly a good alternative to Cyprus  when considering an offshore location.

Uruguay is a place where it’s quite simple to get a residency. It is very welcoming, and you only have to meet a few requirements. It’s not even required that you invest in the country. 

You will actually need to live in the country in order to become a legal permanent resident

On the other hand, Uruguay will want you to actually physically reside in the country. If you are looking for a second residency, without having to live in a foreign place, Uruguay is not a country for you. 

It will take you approximately 6 to 12 months to get a residency. In this time, you will need to show your intention to live in Uruguay, which means that you actually have to spend most of the time there. 

Of course, you are allowed to travel but if you spend a little more than half the time of the application process in Uruguay, you will need to prove intent to live in the country with additional means and stronger ties (for example your spouse has spent all that time in Uruguay, you have kids who attend local schools, etc.). 

So, it is advisable to actually spend most of the time in Uruguay as you are waiting for your residency to be approved. This way you will avoid potential complications and delays. 

It gets easier once you obtained your permanent residency

Once you got your permanent residency, these requirements become more flexible. At that point, you will not need to spend time in the country. You will lose your residency status only if you spend more than three years abroad. 

If you are looking to obtain a citizenship it will take you 3 years if married, and 5 years if singe. Time is counted from the date you applied for your residency. You will need to spend at least 6 months per year for this period (3 or 5 years) in Uruguay.  

It’s important to note that the authorities will ask you to prove your ties with the country, and there is no way you would ever get a citizenship without these ties. They can ask for some unusual documents such as library card, or a doctor’s receipt slip so it’s important to get as many evidence of your ties with the country as you can ready. 

Uruguayan passport is one of the strongest in the world! In 2018, Uruguayan citizens had visa-free or visa on arrival access to 154 countries and territories, ranking the Uruguayan passport 23rd in terms of travel freedom according to the Henley Passport Index. 

However, let’s get back to the residency which is as we already mentioned quite easy to obtain. 

Steps to becoming a permanent resident in Uruguay

Documents needed for residency application:

• Birth certificate
  
• Marriage certificate (if married)
• Police record from the country of nationality, and all the countries where the applicant resided. This document cannot be more than 6 months old
• Proof of income, the only real requirement for a foreigner willing to reside in Uruguay is to prove that they have enough funds to provide for themselves and for their family. The amount you declare needs to be consistent with your lifestyle.
• Medical checkup, easy and fast and can be done in Uruguay

All the documents need to be Apostilled.  

As we mentioned before, permanent residence is usually granted within 6 to 12 months. In the meantime, you will be a “Temporary Resident”, with an Uruguayan National Identification Card (“cédula de identidad”) from the beginning, and as such, you may stay in the country indefinitely (or come and go), and even bring your household goods import tax-free. 

Tax residency in Uruguay

Most of our clients who decide to move to Uruguay do so because of tax benefits this country offers. 

You will be able to enjoy the tax benefits of Uruguay if you become tax resident of the country. In order to become tax resident, you will need to spend more than 183 days per year in Uruguay. 

If you do so, you will have a 5-year tax holiday, during which you will not pay any tax on any type of foreign income. After this period of 5 years end, and you’re still tax resident then you will pay 12% in taxes on two types of foreign income: interests and dividends. 

Any other type of income is not taxable: retirement, capital gains, lease income, etc. 

If you already paid your taxes somewhere else, Uruguay will not tax you again. 

Having in mind how the simple process of obtaining residency is and how many tax benefits you can get in Uruguay, it’s definitely a place worth considering for your second home.

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The United Arab Emirates is an Arabian Peninsula nation settled mainly along the Persian (Arabian) Gulf. The country is a federation of 7 emirates. Abu Dhabi, the island capital, is home to Sheikh Zayed Grand Mosque, with crystal chandeliers and room for 40,000 worshipers.  The country’s most populated city is Dubai, which has emerged as a business gateway and global city that is a thriving metropolis and popular tourist destination. Dubai houses the Middle East’s first indoor ski slope, many of the world’s most famous hotels, and several five-star restaurants. 

UAE is one of the richest countries in the world, it scores seven highest GDP per capita. 

Country’s wealthy economy lies in its oil and natural gas reserves that are among biggest in the world. 

Needless to say, UAE and especially Dubai attracts many business people from all over the world. They all see the rising potential of this amazing country and they want to pursue investment opportunities. 

UAE residency for foreign investors

UAE offers the investor visa that gives the investor temporary residence in the country. Temporary residence lasts for a maximum period of three years and allows the investor to start their own business or to invest into an existing one. This visa allows you to work and live in the country. 

One big benefit of this visa is that it doesn’t require an applicant to have a job offer from the UAE company. 

In order to qualify, foreign national must deposit either 10 000 AED ($ 2722 USD) or 20 000 AED ($ 5444 USD) with the UAE government.  

Candidate must also prove that he/she has sufficient funds to make a significant investment into a UAE company or to create a business in the UAE. The UAE immigration authorities must approve the prospective investment in order for the visa to be approved. 

Once the visa is approved, you can immediately move to the country. 

One of the biggest benefits of relocating to UAE is certainly taxes. There are no taxes in UAE. This means no personal income tax, no corporation tax, no capital gains or property tax. 

On the other hand, one important thing to note is that investor visa (just like most other visas) and residency will not lead to UAE citizenship. Obtaining UAE citizenship is extremely hard and unlikely even if you lived in the country for many years. UAE citizenship is generally only available if the foreign national marries a UAE citizen or if the national’s father had UAE citizenship. 

Real estate purchase as an option to gain residency

Besides investing in a business, a foreign investor has an option to buy property in UAE and get visa and residency. To obtain a UAE investor residency visa through this route, the investor must purchase property totaling at least 1 million AED (approximately $270 000 USD). The investor must also prove that their income is at least 10 000 AED per month. Through this option, the investor is not permitted to work in the country, and the visa lasts a total of 3 years. 

The UAE investor program will allow the candidate (on approval of his residency visa) to act as a sponsor for his family members to apply for a residency visa. It is only possible to sponsor your family for the purpose of a residency visa where you earn a minimum of 4000 AED per month. The investor will also need to provide a lease agreement for the place where his/her family will be staying in UAE (in case they didn’t purchase property in the country). 

Everything taken into consideration, UAE is an amazing place to get residence. You will get to live in a developed country with multiple opportunities. UAE offers breathtaking cities, good education, and world-class healthcare. Among other advantages, most of our clients choose UAE because of no tax regime which helps them massively in the long run.

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Thailand is becoming more and more popular destination for permanent residency of many business people. This country has a warm climate, beautiful beaches, affordable prices, and business-friendly environment so it’s not a surprise that many modern entrepreneurs decide to settle there. 

Residency by investment in Thailand has been around since 1997. when there was a crisis in the country, so the government decided to help local businessmen by introducing this program. Since then, Thai immigration was only becoming more and more popular. 

Thailand’s residency by investment program or Thai golden visa gives foreigners the opportunity to live in the country for up to 20 years. 

There are multiple benefits of residency in Thailand. There are no minimum stay requirements, tax benefits are very appealing- there is no tax on income generated outside of Thailand, there are multiple VIP services if you apply for residency through this program, such as airport transfers, 24-hour support, special airport lounges access, etc. 

Thailand currently offers seven options for golden visas (Thai permanent residence by investment), with the following three being the most popular: 

Elite Ultimate Privilege 

The investor will get a 20 years residency visa in exchange for approximately $60 000 USD fee that needs to be paid once, and an annual fee of approximately $600 USD. The residence visa can be transferred once during the 20-year validity at 20% of the prevailing rate. 

This visa comes with some VIP perks. You will get 24 hours visa assistance, exclusive VIP lounge access, and unlimited short haul airport transfers (50-80km) for all international flights. 

You will get 24 spa treatments per year and access to golf fields, plus one annual checkup at a private hospital. 

Besides this, you will have government concierge services, they will assist you with your residency, driver’s license, work permit, and other documentation. 

Elite Privilege Access 

This program is designed for a family application. You will get 10 years residence visas for each applicant. The fee is approximately $30 000 USD per the main applicant and another $22 500 USD for each dependent. Dependents can include parents, step-parents, spouse (civil union included), children and stepchildren. There is no age limit and no annual fee. Residence visa cannot be transferred. 

This package includes some VIP services, such as transport services (that’s limited to 18 short haul airport transfers for international flights), government concierge, a yearly checkup at the private hospital. 

Elite Easy Access 

This is a very popular option for expats and business people. This option will give you a five-year residency visa, for approximately $15 000 USD. There is no annual fee and no age restriction. This visa cannot be transferred, but it can be upgraded to Elite Ultimate Privilege option for approximately $45 000 USD. 

 The application process for these visas takes about a month. 

After living in Thailand for 10 years, you have a right to apply for Thai citizenship. However, in this case, you would need to renounce your current one, since Thailand doesn’t allow dual citizenship. 

More options for Thai permanent residency

If you are not interested in any of the listed options, there is another opportunity. This opportunity requires buying property in Thailand. You will need to invest 10 million TBH (approximately $304 000 USD) in real estate. This property needs to be new and approved. 

Besides that, there is an opportunity of investing the same amount in government bonds or depositing It in Thai bank.  

Thai permanent residency has a lot of advantages such as unrestricted right to live, study and work in Thailand.  

The permanent residency does not expire and it can be renewed in every ten years. It’s important to know that in case you want to travel internationally, you will need to apply for a re-entry permit before leaving Thailand. With the permanent residence permit, you will be able to become a director of the public company, which will be registered in Thailand.  

As you can see, there are multiple options if you want to get Thai residency. 

You might pay a fee to get residency, you might buy your own property, or simply invest money. As more and more people decide to call Thailand their permanent home there is no doubt that these programs will increase in popularity in the future. 

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