A global comparison of golden visas and permanent residencies
Many of you have probably heard of golden visas and how countries ensure a legal residency for individuals that invest a certain amount into their country. This is one of the most traditional residency programs out there, but what you should know is that it’s nothing revolutionary or new, rather the opposite. As long as we have been on this planet, movement of people have always occurred. From the old Greeks, to the romans and the seafarers. The requirements have of course changed, depending on the development of the world, As countries developed, boarders were painted, also administrative elements were made. These administrative elements also meant that people that arrived to these new environments also needed to fulfill requirements to stay, and be part of that new culture. You would need to show or prove your value to qualify, if it was through the ability to craft, your artistry, or possessions that was needed by the new community. The golden visa programs are structured the same way, the only difference is that they are more limited to monetary contributions into the country, hence how much you spend or invest will qualify you for a residency.
However, this costs both loads of money, time and frustration. It will be extremely costly in the end, on all levels. You have now bought your residency, contractually setup all related services such as electricity, water, communication and internet etc, while at the same time being extremely frustrated of your incorrect decision that was made to first end up here.
So, how would these investments, or potential costs, then look like in respective country? Well simply looking at the ten historic most common countries that use golden visa to attract people here is a summary:
Malta – A minimum governmental contribution of €98,000, plus mandatory charitable donation to a Maltese registered NGO of €2,000, together with contractually signing a €10,000 p.a property rental agreement for five years (South of Malta or Gozo)
Ireland – Investment of minimum €1.0 million in an Approved Investment Fund. On top of that the Investors must be of good character, demonstrate a minimum net worth of €2 million and have a clean criminal record
Panama – There are different ways get a permanent residency in Panama via investment. The lowest cost option is an $80,000 investment into a governmentally certified reforestation project. Investors must on top of this also own a minimum of 5 hectares of titled land. Temporary residency will first be granted then followed by a permanent residency after a year
Panama’s Permanent Residency via real estate investment means buying a property of minimum $300,000, plus fees. The minimum amount is increasing to $500,000 after 16 October 2022
Spain – An investment of €500,000 in real estate will gain family residency. After 5 years this temporary residency can get upgraded to a permanent residency
Germany – Minimum investment of €360,000 into a regional developing fund. This grants a 3 years temporary residence permit that can develop to permanent after this period if lucky
UK – £2 million and allows temporary residency for the investor and their immediate family for the first 3.5 years. Its important to remember that this investment doesn’t guarantee a permanent residency in the end
Caymen Islands – $2.4 million into qualifying real estate
Cyprus – Offers two golden visa programs through real estate investments, but these have both been suspended and are not currently available. However, you can instead invest a staggering €2.2M plus an additional €200,000 in donations to fast speed a process and get the Cypriot passport in 6 months
So, whether it’s about applying for a permanent residency in Malta or Cyprus, or investing heavily into the golden visa program in Panama or Caymen Islands, you will face similar issues. It will be a lot of money required, significant bureaucracy throughout the process, and the time it will take will be linked to endless fears of making something incorrect along the way to adventure the whole purpose of becoming a resident of this new country.
The final question is then, is it really worth it? Is it worth taking such risk to change something that might not really be the best thing after all? Maybe yes, especially if you with a 100% certainty have done your homework, know that this will be the right thing for you and maybe also your family. But, what if you aren’t 100% sure? What if you really are just looking for greater flexibility and want to explore and earn new and existing experiences? Maybe you are just looking for a break for some time, from your current situation. Maybe you have a new private or professional situation; maybe you can work remotely or have your own business where you aren’t linked to a special dedicated place or time?
We will summarize this in a few simple points:
- Paraguay will not require you to invest in real estate nor land to receive permanent residency
- Paraguay will not ask you to donate money into something you aren’t aware of to receive permanent residency
- Paraguay will not ask you to invest in any governmental fund to receive permanent residency
- Paraguay will not ask you to pay taxes for foreign earned income
- Paraguay will grant you permanent residency immediately instead of granting a temporary residency before your permanent one
- Paraguay will let you be flexible and reside where you want while still allowing you to keep your Paraguayan permanent residency
- Paraguay will allow you to work in another country simultaneously while still allowing you to keep your Paraguayan permanent residency
Some additional points of interest:
- Paraguay is not on the black list of countries looking at illegal and illicit behavior
- Paraguay is the most secure country in South America, more secure than many of the European states
- Paraguay is the 96th country of 167 in the cost of living index (at 65… world average = 100)
- Paraguay is the 4th country in Latin America looking at the English Proficiency Index (considerable higher than countries such as Panama, Mexico & Brazil)
- Paraguay is part of the Mercosur trading union with possibility to move and trade freely
We therefore encourage you to take the step of becoming a permanent resident of Paraguay. It’s the most modern, flexible, and agile residency program in the world. You will be able to benefit from the permanent residency while staying international and competitive, not needing to give up everything that you potentially previously built up earlier in your life.
Please visit our website for further information, and don’t hesitate to get in contact with us to book a free consultation call