Permanent Resident vs Citizen Status: Differences Ultimate Guide

The difference between permanent residency and citizenship is a crucial component of global migration and identity. Permanent residents, who are often referred to as “green card” holders in some countries, enjoy many of the rights and privileges of citizens, but they remain citizens of another country.

They can work, live, and study without the need for periodic visa renewals that non-residents require, but they are often excluded from the right to vote or hold public office, which signifies a partial integration into the social and political life of their new home.

Citizens, on the other hand, represent full integration into a country’s framework – not only residing but belonging completely. Citizenship provides a deeper connection and commitment, often symbolized by the ability to participate fully in the democratic process, which is a powerful symbol of integration and acceptance.

The path from permanent residency to citizenship, while available in many countries, involves layers of bureaucracy, significant waiting periods, and often stringent requirements that test one’s ties and commitment to the new homeland.

By exploring these differences, we gain insight into legal distinctions and the essence of what it means to belong to a community, society, and nation.

What is the difference between residency and citizenship?

Residency and citizenship are both legal statuses that grant individuals certain rights and privileges within a country, but they differ in several key aspects:

Residency: Residency typically refers to the permission granted by a country to a foreign national to live within its borders for a specific period of time, often subject to renewal. Residency status may grant individuals the right to work, study, and access certain benefits within the country, but it does not necessarily confer full political rights, such as the right to vote or run for public office. Residency is usually temporary and can be conditional or permanent, depending on the specific immigration laws of the country.

Citizenship: Citizenship, on the other hand, is a legal status that confers full political rights and responsibilities to an individual within a country. Citizenship is typically obtained either by birth (jus soli or jus sanguinis) or through a legal process known as naturalization. Once someone becomes a citizen of a country, they are entitled to all the rights and privileges afforded to citizens, including the right to vote, run for office, access certain government benefits, and enjoy protection under the country’s laws.

Resident versus Citizen

A “resident” and a “citizen” are both terms used to describe individuals within a particular country, but they denote different legal statuses and rights:

Who is a resident?

A resident is someone who lives in a particular place, such as a country, state, or city, for an extended period of time.

In a legal context, a resident is often defined as someone who has established a permanent or long-term presence in a specific jurisdiction, typically by living there for a certain number of days or months each year.

Residents may include both citizens and non-citizens (foreign nationals) who have been granted permission to reside in the country, either temporarily or permanently, through visas, residence permits, or other legal means.

Residents are entitled to certain rights and privileges within the jurisdiction where they reside, such as access to public services, education, and healthcare, as well as obligations such as paying taxes.

Who is a citizen?

A citizen is a legal member of a particular country or state by birth or naturalization.

Citizenship confers full political rights and responsibilities to an individual within the country, including the right to vote, run for public office, and enjoy protection under the country’s laws.

Citizenship is typically acquired either by birth (jus soli, the right of soil, or jus sanguinis, the right of blood) or through a legal process known as naturalization, which involves fulfilling certain residency, language, and knowledge requirements.

Citizens are considered to have a more permanent and integral connection to the country than residents, as they have pledged allegiance to the nation and are entitled to its fullest rights and protections.

What is a residence permit?

A residence permit, also known as a residency visa or residence visa, is an official document issued by a country’s government that allows a foreign national to reside legally within that country for a specific period of time, under certain conditions. Residence permits are typically granted for purposes such as employment, study, family reunification, investment, or retirement.

The specific requirements for obtaining a residence permit vary depending on the country and the purpose of the stay. Generally, applicants need to demonstrate that they meet certain criteria, such as having a job offer, being enrolled in a recognized educational institution, having sufficient financial means to support themselves, or having family ties to a resident or citizen of the country.

Residence permits may be temporary or permanent, depending on the duration of the stay and the immigration laws of the country. Temporary residence permits are usually valid for a specified period of time, after which they may be renewed if the individual still meets the eligibility criteria. Permanent residence permits, also known as permanent residency or settlement permits, allow individuals to reside indefinitely in the country and may eventually lead to eligibility for citizenship, depending on the country’s naturalization laws.

Residency vs Citizenship in the U.S.

In the U.S. and many other countries, permanent resident status is the final step before citizenship. It allows individuals to reside in the country permanently but not with the same extent of rights as citizens.

Specifically related to the U.S., here’s a comparison of permanent residency vs citizenship and how they impact an individual’s privileges and obligations:

Voting rights: U.S. citizens have specific privileges like voting in elections, which permanent residents don’t have. Political participation is a fundamental aspect of U.S. citizenship, enabling citizens to shape US policies and directly influence the direction of the US economically and socially.

Passport Eligibility: U.S. citizenship grants a passport, while US permanent residents keep the passport of their home country. US citizens can access all US passport visa-free countries and receive consular assistance overseas.

Deportation Security: U.S. citizens cannot be deported and have the right to reside in the US without the risk of removal. However, lawful permanent residents are subject to specific conditions and may face deportation if they violate immigration laws or commit certain crimes.

Economic Benefits: Americans have access to a wider range of job opportunities and training programs as citizens. Non-citizens may face restrictions on certain jobs, education, and property ownership in some countries.

Family: US permanent residents have the right to apply for residency for their family members. Many countries allow citizens to file a petition for eligible family members to gain citizenship. The children of citizens in most countries can obtain citizenship by descent directly.

Requirements

A valid Green Card is ongoing and does not have a set expiration date. However, an essential distinction between US PR and citizenship is legal permanent residents are subject to certain conditions to maintain lawful permanent resident status. In the United States and many countries, the criteria for permanent residence includes:

Residency period: In the United States, for example, holders of Green Cards are considered lawful permanent residents (LPR); however, they are restricted to stays of no more than a year outside the United States. Stays can be extended to two years, but they must obtain a re-entry permit before departing the U.S.. Should Green Card holders violate their stay requirement, they may be stripped of their permanent residency status.

Furthermore, an individual with Indefinite Leave to Remain in the UK or a US Green Card holder must prove to immigration authorities why they should be allowed to retain their lawful permanent resident status before spending a period outside the country beyond what is permitted with their residency status.

In contrast, U.S. citizens are not restricted on the time they can spend outside the United States; neither is their citizenship status affected by permanent living in a foreign country.

Re-entry permit: In certain nations, an extended stay overseas necessitates a re-entry permit, while in others, permanent residents are obligated to secure re-entry permits for any duration spent abroad. Singaporean permanent residents are required to hold valid re-entry permits before leaving the country for any reason, and failure to do so results in an automatic loss of their lawful permanent resident status.

It would be a near-impossible task to break it down for each country. Therefore, we’ll look at the various distinctions from a US perspective.

Applications for Residency and Citizenship

While it is similar in many countries, the applications for residency and citizenship in the U.S. are broken down as follows:

Permanent residency application:

• Generally, it requires three years of residency, which is less than the five years required for citizenship.
• Documentation includes proof of identity, background checks, and evidence of financial stability.
• Applicants retain their original citizenship, so there is no requirement to take an oath of allegiance to the United States.
• Processing times are usually shorter than US citizenship applications and are normally processed within a year, depending on the applicant’s nationality.

U.S. citizenship application:

• It involves meeting stringent eligibility criteria, including a three-year residency period after obtaining permanent resident status.
• Requires submission of detailed documentation, including proof of identity and criminal record certificates, and proof of continuous residence.
• Involves an interview and citizenship test to prove knowledge of the US history and customs and proficiency in one of its official languages.
• Processing times take at least 18 to 24 months.

Residency by Investment vs Citizenship by Investment

Processing Times

Inviting someone to contribute to your society and inviting them to become a lasting representative of your society are two vastly distinct concepts. Therefore, applying for citizenship involves a significantly more comprehensive application process and rigorous due diligence than residency.

Some countries establish specialized immigration authorities to handle residency by investment applications, leading to the issuance of residence permits within just a few weeks of an application’s submission.

In contrast, citizenship by investment applications may undergo multiple levels of government scrutiny for approval, necessitating additional documentation and steps as part of the due diligence process. Nonetheless, numerous CBI countries, particularly those in the Caribbean, have streamlined their citizenship by investment application process, granting citizenship to applicants within two to six months.

What to Consider

Before deciding between citizenship and residency programs, it is essential to consider various factors carefully to determine the most suitable option.

Long-term goals: Residency offers the opportunity to live and work in the country, while citizenship grants full rights and privileges, including the right to vote and hold a passport, without requiring the visa to be renewed regularly.

Evaluate commitment: Residency may have less stringent requirements, whereas citizenship often involves more comprehensive due diligence and longer processing times.

Residency requirements: Depending on the country, a permanent residency permit can be voided if the holder remains outside the country for a prolonged period. For example, Indefinite Leave to Remain in the UK can be revoked if you remain outside the country for more than two years. Residency requirements do not apply to citizenship.

Financial benefits: Residency by investment may necessitate a lower initial investment, while citizenship programs generally require a higher financial commitment. Additionally, the ability to travel visa free to other countries should be considered, as citizenship naturally facilitates expanded mobility through a second passport.

Residency by Investment Countries

Residency by investment programs provide a pathway for affluent individuals to obtain residency status by making substantial financial contributions to a host country. These investments often take the form of real estate purchases, business investments, or contributions to government bonds or funds.

Popular among high-net-worth individuals seeking benefits like visa-free travel, tax advantages, and improved lifestyle options, these programs are available in various countries including Portugal, Spain, Greece, and the Caribbean islands.

Each country’s program has specific investment requirements, benefits, and residency conditions, often leading to permanent residency and, potentially, citizenship after fulfilling certain criteria over a period of time.

Countries offering residency by investment programs provide opportunities for individuals to obtain residency rights in exchange for significant financial investments. These programs are popular in numerous countries and are often aimed at attracting foreign capital and boosting the local economy.

Investors typically gain benefits such as visa-free travel, potential tax advantages, and an option for permanent residency or citizenship if specific conditions are met. The requirements, costs, and benefits vary significantly between countries.

Citizenship by Investment Countries

Citizenship by investment programs allow individuals to obtain citizenship in a country through significant financial investments, such as real estate purchases or contributions to national funds. These programs are attractive for securing visa-free travel, enhancing business opportunities, and accessing better healthcare and education.

Countries like Malta, Cyprus, and several Caribbean nations offer these programs, each with unique benefits and investment thresholds. Applicants usually undergo stringent background checks and must comply with legal and residency requirements to qualify.

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 Citizenship vs Residency

Does residency or citizenship come first?

Foreign nationals must obtain a residence permit to move to a new country. After an extended period and following the rules, they can apply for permanent residence and citizenship status by fulfilling eligibility requirements, such as a minimum period of residence, language proficiency, and good moral character.

What is a non-resident citizen?

A non-resident citizen in the United States refers to an American citizen who resides outside the territorial boundaries of the United States.

Is permanent residency better than citizenship?

Choosing between permanent residency and citizenship depends on personal circumstances, goals, and preferences. Permanent residency offers limited rights, so it’s important to consider factors like long-term plans, mobility, desired privileges, and commitment to a country.

Does permanent residency mean citizenship?

Permanent residency in the US is the last status before an individual obtains US citizenship. In many countries, such as Italy and Spain, you must also obtain a permanent residency card before you’re eligible to acquire citizenship.

Are you a US citizen if you're a resident?

US residency and citizenship have different legal statuses. Residency permits living in the US temporarily, while citizenship grants full membership with all its rights, privileges and responsibilities.

Can residency be revoked?

Immigrant visas can be revoked for several reasons such as non-compliance with the minimum period of being physically present in the country, violation of immigration laws, fraud, misrepresentation, and criminal activity.

Do all permanent residents have a Green Card?

Many foreign citizens attempt to decipher the debate between a holder of a Green Card vs a permanent resident. In the United States, a Green Card is, in fact, a permanent residence card granted to foreign nationals, serving as proof of their right to live, work, and establish the US as their permanent home.