Citizenship and residency are often used interchangeably, but there are key distinctions. Residency allows you to live, work, and access services in a country without full citizen rights, such as voting or holding a passport, and it can be temporary or permanent.
On the other hand, citizenship grants full legal rights, including voting, holding a passport, and permanent residency. While residency can sometimes lead to citizenship, citizenship is more permanent and may include added responsibilities like taxes or military service.
In this guide, we will break down everything about residency vs. citizenship, highlighting how residency and citizenship can be obtained through investment and clearly explaining the differences between citizenship and residency by investment. The guide includes countries that offer these routes and their requirements.
What is citizenship?
Citizenship is a permanent legal status that grants individuals full rights and responsibilities in a country. Citizens can vote, run for public office, and access social benefits like healthcare and education.
Citizenship can be acquired in several ways, including by birth, descent, naturalization, or sometimes through investment. Once obtained, it is usually permanent and is difficult to revoke, except under exceptional circumstances. It also carries obligations, such as paying taxes and, in some countries, military service.
What is residency?
Residency, however, allows a person to live in a country for a specific or indefinite period but without the full rights of citizenship. It is commonly granted through work permits, family reunification, or investment programs. Residents are entitled to live and work in the country and may have access to public services, but they cannot vote or hold political office.
Residency can be temporary or permanent, depending on the visa type, and often requires renewal or adherence to specific conditions. While residents can enjoy many benefits, their status is less secure than citizenship.
Residency vs Citizenship: What's the difference?
Citizenship is permanent and offers individuals full legal rights within the country. Citizens can vote, hold public office, and are entitled to a passport.
Residency, on the other hand, is not permanent as it usually gives people the right to live and work in a country. However, it has restrictions, such as the need to renew permits and the inability to vote or hold political office.
Residency is granted through a residence permit, also known as a residency visa. This official document issued by a country’s government allows a foreign national to legally reside within that country for a specific period, subject to certain conditions.
Permanent resident vs citizen differences
Permanent Resident | Citizen | |
Legal Status | Temporary or permanent right to live in a country | Full legal membership in a country |
Acquisition | Typically through visas, work permits, family reunification, or investment | By birth, descent, naturalization, or investment |
Right to Vote | No | Yes |
Eligibility for Political Office | No | Yes |
Access to Public Services | Limited or conditional access to services like healthcare | Full access to social services like healthcare and education |
Passport | Cannot hold a passport of the country | Eligible to hold the country's passport |
Travel Rights | Restricted; may need visas for certain travel | Broader access to visa-free or visa-on-arrival countries |
Military Service Obligation | Typically no | May be required in some countries |
Tax Obligations | Required to pay taxes if living or earning income in the country | Must pay taxes, even on global income in some countries |
Permanence | Conditional, can be revoked if residency requirements are not met | Generally permanent, can only be revoked under rare circumstances |
Dual Status | Can maintain residency in other countries | May be allowed, depending on the country's laws regarding dual citizenship |
Residency by Investment vs Citizenship by Investment
Residency by Investment Program | Citizenship by Investment Program | |
Summary | Through a residency by investment (RBI) program, foreign investors are granted the right to reside in the host country, usually temporarily or permanently. | Citizenship by investment (CBI) programs allow foreign investors to obtain citizenship in the host country and access the same rights as natural-born citizens. |
Financial Commitment | The expense of applying for residence by investment varies considerably based on the country and region providing the program. Nevertheless, the financial commitment is typically lower, but so are the benefits associated with it. | CBI programs often involve a more substantial financial commitment than RBI programs, but they offer the advantage of obtaining full citizenship, including the right to vote and hold a passport of the host country. |
Travel Privileges | Residency by investment does not come with travel privileges beyond unrestricted access to the host nation and, in some cases, its territories or other countries forming part of a regional coalition. | Citizenship by investment grants a new passport, offering new passport holders unrestricted access to their country of citizenship and other nations to which citizens enjoy visa-free access. |
Limitations | There are often limitations on the duration residency permit holders can stay abroad while maintaining their residency. Additionally, they might be obliged to obtain a re-entry permit for returning after traveling outside the country. | Citizenship status does not change regardless of where the citizen goes or how much time they spend outside the country. |
Duration | Residency by investment typically grants temporary residence in a country; although some residency programs offer permanent residency, it likely requires maintaining the initial investment. | Citizenship is a permanent status that stays with the holder for life and can be inherited by future generations. |
Residency by Investment Countries
Each country has specific investment requirements, benefits, and residency conditions regarding Residency by Investment programs (RBI). These programs often lead to lawful permanent resident status and potential citizenship after fulfilling certain criteria over time. Countries offering these programs aim to attract foreign capital and boost the local economy.
Country | Details | Minimum Investment |
Italy | The Italy Golden Visa is a renowned European residency by investment scheme due to its wide array of investment options and reasonable investments that suit investors. With the Italy Golden Visa, you are entitled to all the benefits of residence in the European Union. | €250,000 |
Greece | The Greece Golden Visa is popular among investors for numerous reasons, from the mesmerizing beaches and tranquil coastline to delicious Mediterranean cuisine and profound Greek history. The region offers you flexible and lucrative investment options along with European residency. | €250,000 |
Cyprus | The Cyprus Investor Immigration Permit is aimed to bring you various perks in addition to the country’s scenic beauty and high quality of life. Investing in Cyprus gives you the right to become a Cypriot permanent resident. | €300,000 |
Malta | Malta’s Permanent Residence Program (MPRP) is a popular residency by investment program for its investment opportunities in addition to obtaining residence in a sought-after EU country. | €300,000 |
Portugal | Portugal's Golden Visa program, established in 2012, offers non-EU investors a fast track to residency in exchange for significant economic contributions. By creating jobs or injecting capital into specific sectors, participants can secure residency permits for themselves and their families. | €250,000 |
Spain | The Spain Golden Visa program is one of the most popular programs in Europe. With excellent investment opportunities, the residency program in Spain attracts many investors and expats. | €500,000 |
United States | The United States EB-5 Visa Program is a preferred option among foreign entrepreneurs to obtain a Green Card and permanent residency status in the US. | €800,000 |
Canada | The Canada Startup Visa is an innovative immigration program providing lawful permanent resident status to talented entrepreneurs who establish innovative and successful startups in Canada. | Requires endorsement |
Citizenship by Investment Countries
While Citizenship by Investment Programs (CBI) can seem similar to residency by investment options, the key difference lies in the legal status they provide. Each country also has its investment options and requirements, but this route offers immediate citizenship status without the need for an extended residency period.
Country | Details | Minimum Investment |
Antigua and Barbuda | The Antigua and Barbuda citizenship by investment program provides an opportunity to obtain dual citizenship after investing in the country’s economy. | $230,000 |
St Kitts and Nevis | The St Kitts and Nevis citizenship by investment program allows investors to obtain citizenship and a second passport through foreign direct investment. | $250,000 |
St Lucia | The St Lucia citizenship by investment program offers citizenship in exchange for economic contributions made to the country. | $240,000 |
Grenada | The Grenada Citizenship by Investment program is unique because it is the only Caribbean option offering investors the opportunity to establish residency in the USA via the US E2 Visa. | $235,000 |
Vanuatu | With the Vanuatu citizenship by investment program, you’ll access the fastest citizenship available of all CBI programs, granting passports within 60 days. | $130,000 |
Dominica | Dominican citizenship can be easily acquired by contributing to economic growth in the country. Investment options for the Dominica Citizenship by Investment include government-approved real estate. | $200,000 |
Turkey | The Turkish government will grant citizenship to foreign investors who can fulfill one of several lucrative investment options, including a real estate purchase, a bank deposit, a contribution to government bonds, or creating jobs for Turkish residents. | $400,000 |
Malta | Through the Malta Citizenship by Investment program, investors can gain Maltese citizenship by naturalization within 12 to 36 months and acquire a Maltese passport. | €690,000 |
Residency vs Citizenship in the US
The U.S. is worthy of highlighting in the context of residency vs. citizenship because of its popular Green Card and citizenship policies. The U.S. Green Card system allows permanent residency with significant rights, but citizens hold distinct privileges like voting, a U.S. passport, and protection from deportation.
Additionally, the naturalization process in the U.S. is pretty linear for Green Card holders, who can become citizens after five years of residency. This may differ from longer or more complicated residency requirements in other nations. This straightforwardness makes U.S. citizenship status appealing to those considering their options.
Here are the key differences between a U.S. citizen and a Green Card holder:
Point of Distinction | US Citizenship | US Permanent Resident Permit |
Ability to apply for a Passport | You can apply for a US passport | US permanent residents do not have the right to apply for a US passport |
Mobility | The benefit of traveling US passport visa free countries | Disadvantage of not having travel access available to Americans |
Working and studying abroad | Enhanced options of choosing from various US institutions and organizations | US permanent residents have more limited prospects of working and studying in the United States |
Protection | The right to US consular assistance overseas | No assistance from the US government when traveling abroad |
Voting rights | US citizens have the right to vote in federal and local electrions | Green Card holders do comprehensive voting rights |
Residency | US citizens maintain citizen status regardless of time spent abroad | US permanent residents are limited in the time they can spend abroad and require a re-entry permit, depending on how long they spend overseas |
Ownership | Citizens can own any type of property or commodity | Residents may be restricted in the types of property they own or may be limited to ownership in specific areas |
Applications for Residency and Citizenship
While it is similar in many countries, the applications for residency and citizenship in the US 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.
US 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.
- It involves an interview and citizenship test to prove knowledge of U.S. history and customs and proficiency in one of its official languages.
- Processing times take at least 18 to 24 months.
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
What's the difference between residency and citizenship?
Citizenship is permanent and offers individuals full legal rights within the country. Citizens can vote, hold public office, and are entitled to a passport. Residency, on the other hand, is not permanent as it usually gives people the right to live and work in a country, with restrictions such as needing to renew permits and not being eligible to vote or hold political office.
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 is an individual who holds citizenship in a country but does not reside there permanently. They may live in another country while retaining their citizenship rights, such as voting and holding a passport. This status often applies to expatriates or those who have moved abroad for work or personal reasons but have not renounced their original citizenship.
Is permanent residency better than citizenship?
When deciding between permanent residency and citizenship, consider 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?
No, permanent residency does not mean citizenship. Permanent residency grants individuals the right to live and work in a country indefinitely but does not include full citizenship rights, such as voting or holding a passport. While permanent residents may eventually apply for citizenship, they must typically meet certain requirements, including residency duration and other legal obligations.
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?
In the United States, a Green Card is 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.
Why do people invest in permanent residency?
Investing in permanent residency offers numerous benefits, including the ability to live, work, and study in the country of your choice, increased mobility, and financial and personal freedoms. In most cases, your immediate relatives also qualify.
Who is eligible to apply for a residency program?
Eligibility requirements vary by country but typically include a clean criminal record, adequate health insurance, legal source of funds, minimum qualifying investment, foreign nationality, and passing biometric and regulatory checks.
