Insights

Permanent Residency vs Citizenship

The debate between permanent residency vs citizenship is longstanding, with many people struggling to determine which is better. With an increasing number of people seeking the benefits and security that a second citizenship can offer, it’s no surprise that Citizenship by Investment (CBI) Programmes have seen a rise in popularity. However, contrary to popular opinion, citizenship is not always unequivocally better than permanent residency. In fact, there are several situations where opting for permanent residency might be more advantageous than obtaining citizenship.

Most people are under the impression that low-cost citizenship in a more established country is superior to a permanent residency even though they cost roughly the same. This assumption is far from accurate, much like a Rolls Royce limousine is not better than a Ferrari sports car. It ultimately depends on how you intend to use it.  

Let’s delve into the comparison of permanent residency vs citizenship to determine which might be the better choice for your specific circumstances.

When are Dominica and St Kitts and Nevis Passports an excellent choice?  

Ever since St Kitts and Nevis issued their Citizenship by Investment Programme, the Caribbean countries have become synonymous with second passports. There is no doubt that in the realm of travel documents, the Caribbean programmes provide great value in the form of second passports.  

If the ultimate intention is to travel to more countries, several programmes can fulfil this need:  

Notably, this Caribbean Citizenship by Investment Programmes only grant the right to visit. Essentially, you cannot stay indefinitely in any country. While, in theory, one is free to live in an exotic Caribbean country permanently, very few people are likely to do so.

If you need to stay in one of the 26 Schengen Area countries for more than 90 days within any six-month period, a Schengen visa alone will not suffice. This restriction applies across the entire Schengen Area, meaning you cannot simply travel between borderless countries like Germany, France, Italy, and Malta without eventually leaving the Schengen Zone.

This limitation highlights a key difference between established Permanent Residency Programmes and entry-level Citizenship by Investment Programmes. Permanent residency offers a more enduring solution, allowing for longer stays and greater flexibility compared to the short-term access provided by a Schengen visa.

When is Permanent Residency superior to Caribbean Passports?  

If you choose to pursue a Permanent Residency Programme, such as those offered by the UK or Malta, you gain the right to reside in that country year-round. This status provides access to all the benefits associated with permanent living, including long-term stability and integration into the local community.

Moreover, if you select a country that is part of the Schengen Agreement, you will also be granted the right to travel to:
 

FREEDOM TO TRAVEL
Austria-Flag - permanent residency vs citizenshipAustria Iceland-Flag(1)Iceland Poland-Flag(1)Poland
Belgium-Flag(1)Belgium Italy-Flag(1)Italy Portugal-Flag - permanent residency vs citizenshipPortugal
Czech-Republic-Flag(1)Czech Republic Latvia-Flag(1)Latvia San-Marino-Flag(1)San Marino
Denmark-Flag(1)Denmark liechtenstein - permanent residency vs citizenshipLiechtenstein Slovakia-Flag(1)Slovakia
Estonia-Flag(1)Estonia Lithuania-Flag(1)Lithuania Slovenia-Flag(1)Slovenia
Finland-Flag - permanent residency vs citizenshipFinland Luxembourg-Flag(1)Luxembourg Spain-Flag(1)Spain
France-Flag(1)France Malta-Flag - permanent residency vs citizenshipMalta Sweden-Flag(1)Sweden
Germany-Flag(1)Germany Monaco-Flag(1)Monaco Switzerland-Flag(1)Switzerland
Greece-Flag(1)Greece Netherlands-Flag(1)Netherlands Vatican-City-Flag - permanent residency vs citizenshipVatican City
Hungary-Flag(1)Hungary Norway-Flag - permanent residency vs citizenshipNorway    

 

As a result, a permanent residency programme can potentially grant unique benefits that do not apply to particular CBI Programmes. It also allows for freedom of travel in many European countries, replicating the benefits of a second passport.  

Furthermore, after five years of continuous presence in Malta, you gain the right to long-term residence in the following 25 countries:

LONG-TERM RESIDENCY
Austria-Flag(1)Austria Germany-Flag - permanent residency vs citizenshipGermany Poland-Flag(1)Poland
Belgium-Flag(1)Belgium Greece-Flag(1)Greece Portugal-Flag(1)Portugal
Bulgaria-Flag(1)Bulgaria Hungary-Flag - permanent residency vs citizenshipHungary Romania-Flag(1)Romania
Croatia-Flag(1)Croatia Italy-Flag(1)Italy Slovakia-Flag(1)Slovakia
Cyprus-Flag(1)Republic of Cyprus Latvia-Flag(1)Latvia Slovenia-Flag - permanent residency vs citizenshipSlovenia
Czech-Republic-Flag(1)Czech Republic Lithuania-Flag(1)Lithuania Spain-Flag(1)Spain
Estonia-Flag - permanent residency vs citizenshipEstonia Luxembourg-Flag(1)Luxembourg Sweden-Flag(1)Sweden
Finland-Flag(1)Finland Malta-Flag(1)Malta    
France-Flag(1)France Netherlands-Flag - permanent residency vs citizenshipNetherlands    
 
Additionally, with long-term residency, you can reside in any of the above countries indefinitely and more importantly, you can also work in these countries without restrictions, subject to compliance with certain conditions defined by the Country in question.
 

Conclusion on Permanent Residency vs Citizenship

In conclusion, if you're considering obtaining second citizenship or permanent residency, start by asking yourself why you need it. You may find that your reasons lead to a different choice than you initially anticipated.
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