Residency vs Citizenship: What’s the Difference?

What’s the difference between residency and citizenship?

Residency refers to the legal right to live in a country under certain conditions, usually granted through a residence permit or visa.

Residency can be temporary (for example, a work or student visa) or permanent, which allows long-term settlement and employment but does not provide full citizenship benefits.

Citizenship, on the other hand, provides full legal membership in a country, granting nearly all rights and security benefits.

The main difference between residency and citizenship is that residency allows a person to legally live in a country, while citizenship grants full legal rights, including voting, holding a passport, and receiving state protection.

Residency vs Citizenship: Key Differences

Does residency lead to citizenship?

Residency does not automatically lead to citizenship in all countries. Most countries require residents to hold permanent residency status for a minimum period before they can apply for citizenship by naturalization. 

In Portugal, for instance, naturalization is possible after 5 years of legal residency under the Golden Visa program.

In the United States, residency does not automatically lead to citizenship. Individuals must acquire Lawful Permanent Residence (LPR), often called a “Green Card,” which allows them the right to live and work permanently in the United States.

Lawful permanent residents (green card holders) can apply for naturalization after meeting requirements like living in the U.S. for 3–5 years, demonstrating good moral character, and passing English and civics tests.

Canada requires 3 years of residency within 5 years before applying.

However, not all countries follow this model. Countries like the UAE or Qatar rarely grant citizenship to foreign residents, regardless of residency duration.

Residency vs Citizenship by Investment

Both Residency by Investment (RBI) and Citizenship by Investment (CBI) programs attract global investors seeking enhanced mobility, security, and lifestyle benefits.

While both involve making a qualifying investment, such as real estate, business, or government contribution, the key difference lies in what status you obtain and how fast you get it.

What is Residency by Investment?

Residency by Investment programs (also known as a Golden Visa) grant foreign investors the right to live in a country, often through a permanent residence permit. These programs typically require a minimum investment starting around €250,000, usually in real estate, business, or government bonds.

• Examples: Portugal Golden Visa, Greece Golden Visa.
• Path to citizenship: Residency holders may qualify for citizenship by naturalization after a period of continuous legal residence, usually 5 to 10 years, depending on the country.
• Additional requirements: Maintaining a minimum stay, a clean criminal record, and sometimes language or cultural knowledge.

What is Citizenship by Investment?

Citizenship by Investment programs allow qualified applicants to obtain citizenship and a passport directly in exchange for a qualifying investment. Unlike RBI, these programs typically do not require prior residency or extended physical presence.

• Examples: St. Kitts and Nevis Citizenship by Investment Program, Antigua and Barbuda Citizenship by Investment program.
• Investment threshold: Starts at $100,000 (government donation in many Caribbean nations).
• Timeline: Approval can take as little as 3 to 6 months, making Citizenship by Investment the fastest route to a second passport.

Main differences

Which option is faster and more affordable?

• Citizenship by Investment programs are the fastest route to a second passport, with citizenship granted almost immediately after investment.
• Residency by Investment programs often have lower upfront investment options compared to some CBI routes, but they require time and compliance before you can apply for citizenship.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions about Residency vs Citizenship

What is the difference between residency and citizenship?

Residency allows you to legally live in a country under certain conditions, usually through a residence permit or visa.

Citizenship status, on the other hand, grants full legal membership, including a passport, voting rights, and access to certain government jobs.

Is permanent residency the same as citizenship?

No, they’re not the same. Permanent residency grants you the right to stay in the country indefinitely and enjoy benefits like healthcare. However, it does not grant political rights or a passport.

Having citizenship status provides full rights, such as voting rights, and responsibilities to the particular country you’re a citizen of.

What is the main benefit of citizenship compared to residency?

Citizenship provides stronger travel freedom with a national passport, the right to vote, and security against deportation, while residency often comes with conditions and renewals.

Can you live long-term in a country without citizenship?

Yes, if you receive permanent residence, which allows an indefinite stay. However, you won’t have political rights, and some benefits may be limited compared to citizens.

What is the difference between citizenship by investment and residency by investment?

Citizenship by Investment (CBI) grants full nationality and a passport within months. Residency by Investment (RBI), such as a Golden Visa, offers long-term stay with the option to apply for citizenship through naturalization after several years.

Do residents have the same tax obligations as citizens?

Not always. Tax residency vs citizenship depends on local laws and international treaties.

Residents typically pay taxes where they live, while citizens may have tax duties abroad (for example, U.S. citizens are taxed worldwide).

Does residency give you the right to vote?

No, the right to vote is reserved for citizens in most countries. Permanent residents may have access to social benefits but lack political rights.

How long does it take to move from residency to citizenship?

This varies from country to country. For example, Portugal allows citizenship after 5 years of legal residence, while the U.S. typically requires 5 years for a lawful permanent resident under the naturalization process.

What is temporary residency vs permanent residency vs citizenship?

• Temporary residency status: Short-term stay, often linked to work or study visas.
• Permanent residency status: Long-term settlement rights but no passport.
• Citizenship: Full membership with all rights, including political participation.

Do residents lose their status if they leave the country too long?

Yes. Many countries require physical presence to maintain permanent resident status. Failure to comply can lead to revocation.

Which is easier to get - residency or citizenship by investment?

Residency by Investment is generally easier, with lower costs and faster approval.

Citizenship by Investment programs require higher contributions but offer immediate nationality and travel benefits.