Although Russia is a bit of a controversial country right now, it has beautiful places to visit and tour and a really vibrant culture. Located West of Europe, bordering many western countries, such as Finland, Estonia and Belarus. It is also starting to ease entrance into its country for those interested in living there.
In 2020, the Russian government announced some details about its upcoming residency by investment (RBI) program. Recently signed into law, the new changes will come into effect in January of 2023. However, since it is unlikely to attract much attention from the West, it will primarily target nationals of China, India, Iran, and the CIS countries.
Russia's new investment visa program offers an attractive residence option for foreign individuals seeking to invest and contribute to the country's economy. This program provides several categories and types of visas that grant foreign investors and entrepreneurs the opportunity to obtain a residence permit and bring their family members to Russia.
The investment visa program encompasses various categories tailored to different types of investors and entrepreneurs
As noted above, the program was announced in 2020 and predated current world events. With that said, Russian analysts have commented that they expect little interest from Western investors. Since it was signed into law this month and will not begin until January, changes may still occur between now and then.
The investment visa program encompasses various categories tailored to different types of investors and entrepreneurs. These categories include investment in real estate, business investment, and investment in Russian governmental bonds.
However, we know that it requires a minimum investment of 30 million rubles (approximately $480,000 USD as of this writing) which can be invested in government bonds, real estate, or a business. In addition, it reduces the amount of time it takes to obtain a residency permit, down from 18 months to 180 days.
Successful applicants under the investment visa program are granted a residence permit, allowing them to reside in Russia for an extended period
It is no secret that countries have been cracking down on their residency and citizenship programs in recent years. This is especially true in the European Union, with pressure mounting for governments to restrict access to them or eliminate them altogether. While Malta and Cyprus still offer Golden Visas, they have lower minimum investment amounts, €150,000 and €300,000 (+VAT). Lastly, both countries are more restrictive regarding who qualifies as an eligible dependent.
Another notable benefit is who qualifies as a dependent. The investment visa program recognizes the importance of family unity. Unlike other residency and investment programs that usually limit eligibility to a spouse and dependent children, Russia permits investors to obtain visas for their extended family, including grandparents, grandchildren, stepchildren, and in-laws.
Successful applicants under the investment visa program are granted a residence permit, allowing them to reside in Russia for an extended period. This permit is crucial for individuals who wish to establish long-term roots in the country. They also gain the advantage of residing in a vast and diverse country like Russia. They can explore its rich history, culture, and breathtaking landscapes, all while experiencing its vibrant cities and embracing the unique lifestyle it offers.
Applicants interested in the investment visa program must gather the necessary information and documentation. This typically includes proof of investment, financial statements, a clean criminal record, and valid passports for all family members.
Related article: The Basics Of How To Get A Second Passport Or A Second Residency
By investing in and developing local businesses, foreign residents contribute to the country's economic growth and create employment opportunities
The Russian government has acknowledged that this program will be fairly narrow. However, it may be particularly interesting to Chinese investors since the two countries share a 4,000-kilometer-long common border. In addition, the recent departure of many western firms opens new opportunities across several industries. As an added incentive, there has been rumours of reducing the minimum 30-million-ruble investment in underdeveloped areas such as the Far East and Crimea, although that remains to be established.
Furthermore, you are not limited to a specific geographic area, and you do not have to live in the area where you choose to invest. For example, you can live in Moscow and invest in another region. Lastly, qualifying assets include real estate and government bonds.
Foreign investors and entrepreneurs often work in collaboration with a Russian investment company to navigate the complexities of the program. These companies provide guidance, assistance with paperwork, and support throughout the entire application process.
The investment visa program also encourages foreign entrepreneurs to establish businesses in Russia. By investing in and developing local businesses, foreign residents contribute to the country's economic growth and create employment opportunities.
The investment visa program covers the entire territory of the Russian Federation
Some experts have expressed doubts regarding the expected overall impact. It has been stated that, given current world events, interest will be limited to China and the CIS countries. However, it is hoped that it may inspire Russian nationals holding foreign passports to return home.
The investment visa program covers the entire territory of the Russian Federation. This means that investors and entrepreneurs have the freedom to choose their preferred location within Russia to establish their residence and carry out their business activities.
While Russia’s investment visa may not be the first choice for many, it is worth a look for citizens with limited investment opportunities due to their nationality. In addition, the 30-million-ruble amount is considerably less than some popular European destinations, and it does not require a donation. It can be invested in a tangible asset and sold later. Lastly, with the US and the EU pressuring countries to eliminate their golden visa programs, many of these opportunities may dry up in the future.
Russian analysts have commented that they expect little interest from Western investors
My opinion is this. We are seeing many walls go up in the world, and although it is great to be based in many different countries, we need more than that. Having residencies and citizenships in countries like Canada, the US, Mexico and throughout Latin America are all good things; however, they’re really the same thing. Those seeking true international diversification should work towards having additional residencies and citizenships set up in countries on the other side of these walls, and Russia certainly falls into that.
Russia is very unpopular right now in the western world, especially with woke culture. When looking at a plan for diversification in this day and age, I would rather my clients be set up in completely contrarian locations. This goes for structuring, banking, residencies, citizenships, precious metals, cryptocurrency, real estate and any other flag you choose to plant worldwide.
Russia's new investment visa program provides an enticing opportunity for foreigners to invest in the country, establish their residence, and contribute to its economic development. With various categories and types of visas, foreign investors and entrepreneurs have the flexibility to choose the best option that aligns with their investment goals and aspirations. By participating in this program, individuals can embark on a new chapter in their lives, enjoying the benefits of residing in the vast and dynamic Russian Federation.