Residency vs Citizenship: What Is the Difference?

Citizenship and residency are often used interchangeably, but there are key distinctions. Residency allows you to live, work, and access services in a country but doesn’t afford you full rights like voting or holding a passport. Citizenship status is more permanent than residency and is the highest status you can obtain. It affords you full rights, including the ability to vote, hold a national passport and even run for a political position.

In this guide, we break down the differences between residency and citizenship and highlight how residency and citizenship can be obtained.

What we’ll cover:

• What is residency and citizenship?
• Comparing differences between residency and citizenship
• How to become a resident or citizen through investment

What is residency and citizenship?

Residency and citizenship are both legal statuses, but they differ when it comes to rights and privileges.

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 even through a Golden Visa. Citizenship status is usually permanent and difficult to revoke, except under exceptional circumstances. It also carries obligations, such as paying taxes and, in some countries, even military service.

Residency allows a person to work and live in a country for a specific or indefinite period but without the full rights of citizenship.

It can be granted through work permits, family reunification, or investment programs. Residents have limited access to public services and 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, permanent residency status is less secure than citizenship.

Key differences between residency and citizenship

How to become a resident or citizen through investment

Aside from paths like citizenship by naturalization or applying for a residence permit, you can become a resident or citizens by investing money in a country’s economy.

Residency by Investment (RBI)

Residency by Investment programs allow foreign nationals to obtain residency rights in a country by making a qualifying investment, such as purchasing real estate or contributing to a government fund.

If you invest in one of these programs you are granted the legal right to live, work, and study in the host country. It offers a pathway to citizenship after a certain period, subject to fulfilling additional criteria.

The investment threshold is typically lower than citizenship by investment programs. It does not provide a second passport, travel benefits are limited to the host country and residents have no political rights. Residency status may need periodic renewal and can be revoked under certain conditions, meaning less stability.

Examples of RBI programs:

• Portugal Golden Visa: Requires a minimum investment of €250,000 in cultural projects or €500,000 in scientific research activities at public or private research institutions. Offers a pathway to citizenship after five years.

• Malta Permanent Residence Programme: Involves a combination of government contributions, property rental or purchase, and a donation to a local NGO.

Citizenship by Investment (CBI)

Citizenship by Investment programs offer individuals and their families the opportunity to acquire full legal citizenship in a country by making a significant investment, often without the need for prior residency.

This type of program provides full citizenship rights, including obtaining a passport. It differs from residency by investment programs in that the contributions are substantially more and many programs don’t require applicants to reside in the country.

Citizenship through this path can often be obtained within a short period, oftentimes less than a year. For example, Dominica’s Citizenship by Investment program processes CBI applications within as little as 6 to 9 months.

This program is ideal for those who want a safety net in times of political or economic instability.

Examples of CBI programs:

• St. Kitts and Nevis Citizenship by Investment: Offers citizenship within 3–6 months for a minimum donation of $250,000.

• Turkey Citizenship by Investment: By making specific investments in the Turkish economy, foreigners can obtain Turkish citizenship.The most popular route is through real estate purchases worth at least $400,000, which must be held for a minimum of 3 years.

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

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 residency?

Investing in 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.

How does residency differ from citizenship in terms of rights?

A person with citizenship possesses full rights, including the right to vote, hold public office, and fully participate in political processes.
A permanent resident only has the right to live in the country but their rights may not include the ability to vote. There is also potentially restrictions on access to government services and freedom of movement from one country to another.

Can a permanent resident become a citizen?

Yes, a permanent resident can become a citizen through the process of naturalization. This means they have to meet a specific set of criteria such as having been a permanent resident for a period of time and passing a citizenship test (which differs from country to country).

Does residency allow me to work in a country?

Yes, residency generally means you can work and live in a country.

Is residency permanent or temporary?

Residency can be either permanent or temporary. A permanent residency permit allows a person to live in a country indefinitely while temporary residency is only allowed for specific period of time, which is dependent on the type of visa or permit.

Can a temporary or permanent resident hold a passport?

No, you must become a citizen to hold a passport. Permanent residents don’t usually receive a passport as it’s meant to signify citizenship.

What is the relationship between citizenship and voting rights?

Citizenship gives you the full right to vote and participate in other political activities such as holding office. On the other hand, residency doesn’t give you the right to vote in most countries.

Can a temporary or permanent resident own property like a citizen?

Yes, someone with a residence permit can purchase and own property in the same way as citizens of a country.

Can a permanent resident be deported?

Yes, someone with a residence permit can be deported but it’s dependent on certain circumstances.
Deportation can happen if they violate the terms of their permit, are deemed a security threat or commit a serious crime. However, the deportation process will involve legal proceedings and the opportunity to challenge the order.

Is residency by investment cheaper than citizenship by investment?

Yes, in general, residency by investment programs can be cheaper than citizenship by investment as they have lower investment thresholds.

Which option is better for digital nomads - residency or citizenship?

Residency would generally be the best option as it allows for greater flexibility to live in different locations. Residency also gives you access to visa-free travel to more countries, the same as with citizenship.

What are the easiest countries to obtain residency versus citizenship?

The easiest countries to get residency are considered to be Mexico, Belize, Nicaragua and Cambodia because of short processing times and few restrictions.
Some of the easiest countries to gain citizenship in include Portugal, Argentina, Italy, St. Kitts and Nevis, Malta, Ireland, Greece and Grenada. This is due to few requirements or short processing times.

Residency vs citizenship - how do healthcare and eduction benefits differ?

Citizens have access to a wider range of economic and social benefits like healthcare and education but a temporary or permanent resident has limitations placed on them depending on specific requirements.

Which option is better for business owners — residency or citizenship?

Permanent residency is better for business owners than citizenship as they can establish their business in a new location without the full commitment of citizenship.
You have lower investment requirements and can still enjoy the benefits of property ownership and access to local banking facilities.

Are there any risks in choosing residency over citizenship?

Residency has less stability than citizenship. You run the risk of losing residency if you don’t meet continuous requirements, fail to renew your permit (where applicable) or violate immigration laws.