April 28, 2017
As a businessperson, you might have several reasons for opting for a second citizenship or second residency. The so called golden visas can let you relocate your family, extend your business, or travel visa-free to certain destinations without all the administrative hassle. These programs usually require a significant financial commitment. But what if you do not have the total sum at your disposal? This is when you can opt for a financing option.
What is a financing option in a residency program?
A financing option is typically available in programs where you become eligible for residency or citizenship through an investment in government bonds or through a cash/bank deposit. In the default case of these programs, you usually make an investment or a deposit for a given period, after which the invested or deposited sum is returned to you in full. You do not get the interest, but your money does not lose its value either.
In the financing option of these programs you do not have to pay the full amount specified, but rather about the half of it – the rest is paid by a third party investor. However, in this case your money is not refurbished to you in the end. This is because the underlying process is not that you pay half and the third party investor the rest, but that the third party investor gives you a loan for the full sum, and you pay the interest on that loan in advance for “your part” of the investment or deposit.
It is important to note that the financing option never means that you are making the investment or the deposit in instalments. Since the residency or citizenship eligibility requires firm commitment, the investment or deposit has to be made in full right at the beginning – either by making it on your own, or asking for a loan in the financing option.
You should also know that you can ask for the financing option only in relation to the investment or deposit itself. If there is a processing fee, you will always have to pay it yourself, without an aid from a third party.
Does it change the procedure if I go for the financing option?
No, it does not. If a financing option is available in the program of your choice, the procedure itself will be the same whether or not you go for the financing option. You will need the same documents submitted on the same schedule, and the whole timeline for making the payments and receiving your passport or residency permit remains the same. Only the contract you sign changes, since the third party investor will have to be included in it – and since your money is not refurbished to you at the end of the investment or deposit period. However, the whole business will still be safe and government guaranteed.
Why is it worth choosing the financing option?
The financing option might be an ideal solution for you if you do not have the full sum necessary for the government bond investment or the cash/bank deposit at your disposal. You might also want to choose this option if you preferred to use the amount not deposited at your other ventures promising more profit to your business.
In which programs is the financing option available?
Because of the procedures described above, the financing option can be available only in programs where eligibility for the citizenship or residency is gained through an investment in government bonds or through a cash or bank deposit. In programs where you are required to purchase real estate or invest into local business – where you actually gain control of goods or work hours – this option is not available.
The list of countries offering a financing option for their programs is subject to change due to the developments of local regulations. Malta and Bulgaria are currently among the programs offering the financing option to applicants. They both offer residency and citizenship as well. Please click the below links to learn more about the programs, or contact us for the details of the financing option. Watch this space for constant updates.