In January 2023, a fresh scheme for welcoming investors through immigration was initiated by Moscow.
Amidst the backdrop of ongoing conflict and economic restrictions, Russia has recently unveiled an innovative initiative aimed at attracting foreign investors through a revamped immigration program.
Russia has recently initiated an investor immigration initiative aiming to entice foreign investors primarily from India, China, Africa, and the Middle East. Known as the Russian Golden Visa Program, this plan has been summarized by the India Economic Times as follows:
“The investment amount starts from 215 000 USD for investment into social projects in Russia and goes up to 715 000 USD for the investment into real estate in the City of Moscow.
But for example, real estate investment in the Far East region is only 285 000 USD, Moscow region is 360 000 USD. So, we are talking about middle to upper class of Indian investors.”
The program seems to have some appealing features. It provides investors with the option to actively invest in stocks or passively invest in real estate in order to obtain residency. Notably, foreign investors receive a temporary resident visa for one year upon making their investment.
After fulfilling a year in the program, the investor becomes eligible for permanent residence. It is unnecessary to live in Russia to retain this residency through the Golden Visa system. However, to ensure the continuation of permanent resident status, it is obligatory to retain the investment in Russia for one to two years, depending on the specific investment. Once this requirement is met, the obligations regarding investment duration are waived.
In addition, residing in Russia for a period of five years can lead the investor to become eligible for Russian citizenship.
The program astonishingly extends its residency benefits to not just the investor, but also includes the investor's spouse, children, parents, grandparents, and even grandchildren. Such expansive inclusivity surpasses the advantages provided by similar programs in its financial potential. Furthermore, eliminating any constraints on repatriating profits enhances the program's desirability. These features undoubtedly contribute to its overall attractiveness.
--- // ---
“On January 11, a resolution came into force approving the criteria that a foreign citizen who has made investments in the Russian Federation must meet in order to be issued a residence permit in Russia without obtaining a temporary residence permit,” the Russian Ministry of Economic Development said in a statement.
According to the government decree, foreigners can receive such preferences by investing at least 15 million rubles in socially significant regional projects within three years before applying for a residence permit or by investing 30 million rubles in a Russian company. It is stipulated that the company must operate for at least three years, and in the year preceding the application for a residence permit, it has paid taxes and contributions in the amount of 6 million rubles.
“Another option is registration and subsequent ownership of a legal entity that has been operating in Russia for at least two years and pays annually at least 4 million rubles in taxes,” comments Dmitry Volvach, Deputy Minister of Economic Development of Russia.
"Foreign investors can also buy real estate in Russia for any purpose at the construction stage or within two years after its commissioning - with a total cadastral value of 25 million rubles (in Moscow - from 50 million rubles, in the Far East - from 20 million rubles In this case, the real estate must be free of encumbrances, and the foreigner must own it continuously for a year before submitting the application,” Volvach added.
The Deputy Minister noted that the basis for refusal to grant a residence permit may be not only non-compliance with the approved criteria, but also the general rules enshrined in the law on the legal status of foreign citizens in the Russian Federation.
According to Volvach, interest in the simplified obtaining of a residence permit in Russia is primarily expected from citizens of the EAEU, CIS, Middle East and Asia countries. At the moment, obtaining a residence permit under a simplified procedure is available, for example, for IT specialists, as well as for citizens of Kazakhstan and Moldova.
The Ministry of Economic Development estimates probable investments in Russia within the framework of a simplified system for obtaining a residence permit in 2023 in the amount of up to 12 billion rubles, in subsequent years - up to 40 billion rubles per year.
As reported, the requirements for foreign investors applying for a residence permit in Russia were approved as part of the implementation of the federal law adopted on July 14, 2022, which makes it possible to freely enter the Russian Federation and conduct business in any region without obtaining a temporary permit. accommodation.
Investors eying Russian citizenship can find their golden opportunity through the Russian Investor Visa Program. By keeping their investments intact for a minimum of five years, participants can secure a permanent residency in Russia and unlock a wide array of perks that come with being a citizen of the country.
Obtaining permanent residency in Russia is possible after a two-year period with a temporary residence permit. To ensure a smooth transition, it is advisable to submit an application for a permanent residence permit six months prior to the expiration of the temporary one. The Russian permanent residence permit has a validity period of five years and can be renewed indefinitely. The option to extend is without limitations.
