Individuals and families may seek to live in a different country long-term for a number of reasons.
For example, you may feel that there are better opportunities or social benefits to be experienced abroad compared to your country of origin. You might discover that you will be in a better position to achieve greater peace of mind, improved personal well-being, and increased freedom to travel and pursue a different lifestyle elsewhere. Additionally, you could decide that there is a higher chance of successfully protecting your wealth and securing your safety in another country.
If you are thinking about relocating to a different part of the world, you have two options available. You can secure either a citizenship or a permanent residency in a different country.
What is the difference between a citizen and a resident of a country? Do they offer similar features and benefits? What factors should you consider when deciding which program would be more advantageous for your specific needs, preferred lifestyle and long-term goals?
What Is the Difference Between Citizenship and Permanent Residence?
• Permanent residency refers to a person’s status as a legal resident of a country or territory. They can live and work indefinitely in the country, but they remain a foreign national and are not considered a citizen. There may be limitations to the rights they get to exercise and the responsibilities they can take on in their new location.
Not all nations extend permanent residency status, and those that do may differ widely in terms of the features, rights and benefits provided. Permanent residents do not have the full benefits and obligations that citizens do. For those intending to move abroad (such as remote workers, retirees, entrepreneurs and investors), this is the first step to take.
• On the other hand, citizenship means having a deeper relationship or integration with a country, and the highest legal status a person can hold. A citizen is entitled to the full legal rights, benefits and protections that a country has to offer.
As with permanent residency, citizenship is offered by most but not all countries. Typically, a person can apply for citizenship after they have spent a specific amount of time in the country as a resident, and again, different countries provide varying levels of access, rights, benefits and responsibilities with the legal status of being a citizen.
Examples of Caribbean countries that offer Permanent Residency by Investment include the Bahamas and the Cayman Islands. Countries where you can apply for Citizenship by Investment include Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia.
Comparing Features: Permanent Residency vs Citizenship
Which status would be more advantageous for you: resident vs citizen? For a clearer picture of the differences between citizenship and PR or permanent residence, here is a list of their key features that you can compare.
1. Legal Status
Residency: You have permission to live, study and work in a country, but you remain a foreign national.
Citizenship: You are granted full membership and nationality in a country, meaning you enjoy the rights and privileges of a citizen of that country.
2. Duration
Residency: Your residence will be either temporary or permanent. Typically, residency will be valid for one to five years, and then it will need to be renewed.
Citizenship: Your citizenship is granted for your lifetime and will not need to be renewed (although passports have renewal periods).
3. Required Investment
Residency: The required minimum investment amount you need for the Bahamas Residency by Investment program, for instance, is BSD $750,000 for purchasing a residence.
Citizenship: There are four investment options for securing Antigua & Barbuda Citizenship:
- A government donation of US $230,000 and up
- A real estate purchase of US $300,000 and up
- A business investment of US $400,000 and up
- A university donation of US $300,000
4. Processing Time
Residency: As an example, it takes two months to process a Permanent Residence Permit that will allow non-Bahamians to live permanently in the Bahamas.
Citizenship: In comparison, obtaining second citizenship in Antigua and Barbuda has a slightly longer processing time of four to six months.
5. Passport
Residency: You hold a residence permit for the country, but you cannot obtain its passport.
Citizenship: You are eligible to hold the country’s national passport as proof of your citizenship.
6. Eligibility for Voting Rights and Benefits
Residency: You are not eligible to vote in local and national elections. You can enjoy partial or limited education, health care services, and social benefits from the country.
Citizenship: You are allowed to vote in all national elections. You also have access to education, health care services, and social support in the country.
7. Family Inclusion
Residency: In certain countries, you can be allowed to include family members.
Citizenship: The same full rights you enjoy as a citizen can also be extended to members of your family, like your spouse, unmarried siblings, and children or parents of specific ages. This will vary among countries.
8. Tax Implications
Residency: You may be subject to taxes as a resident depending on the specific requirements of the country of your residency.
Citizenship: You may be subject to taxes as a citizen depending on the country. In parts of the Caribbean like Antigua & Barbuda, for example, there are no capital gains or estate taxes to pay.
9. Travel Freedom or Mobility
Residency: Your eligibility to travel depends on the terms of your residency.
Citizenship: You can enjoy visa-free access to certain countries based on the passport you obtain as a citizen. For example, you can travel to more than 150 countries without a visa with an Antigua & Barbuda citizenship.
Permanent Resident vs Citizen: Find the Right Program for You
Understanding the difference between a permanent resident and citizen is crucial in determining the right path for your future.
If you would like to enjoy stability, security, access to education and healthcare systems, better business and investment opportunities, and greater mobility across certain parts of the world without taking on the full commitment and responsibilities of becoming a country’s citizen, then applying for a permanent residence is sufficient.
If you prefer to gain the full legal rights and privileges that come with being a country’s citizen, including the right to vote, access to more visa-free travel destinations, and the opportunity to pass on the citizenship to family members and establish a legacy, then citizenship is the right choice.
Contact our team today for comprehensive assistance in finding the Caribbean Citizenship by Investment program or residency by investment program that meets your unique needs, budget and timeline.
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