Kestrel Private · Reference

The residence & citizenship glossary.

The vocabulary of residence and citizenship by investment, in plain English — defined accurately and kept current. The terms families and their advisers actually need, from non-dom regimes to due diligence.

Residence & citizenship

Residence by investment (RBI): The right to live in a country obtained by making a qualifying investment — typically new-build real estate, a fund or a business. It grants a residence permit, not a passport.
Citizenship by investment (CBI): A lawful route to a second nationality and passport in exchange for a significant economic contribution — a government donation or approved investment — usually without a long prior residence period.
Permanent residence (PR): An indefinite right to live in a country that does not lapse like a temporary permit. It is not citizenship and carries no passport, but it is durable and often a base for later naturalisation.
Golden visa: The common name for a residence-by-investment permit, especially in Europe — for example the Greece Golden Visa, a five-year renewable residence secured against property.Greece Golden Visa
Naturalisation: Becoming a citizen after meeting a country’s legal residence, and sometimes language or integration, requirements over a number of years — distinct from citizenship by investment.
Dual nationality: Holding the citizenship of two countries at once. Permitted by many states and restricted by some; worth confirming for both your current and prospective nationality.
Plan B (residency): A standby residence or citizenship held as insurance against political, economic or personal risk at home — secured before it is needed.

Tax

Tax residency: The country with the primary right to tax you, usually fixed by where you spend time (often 183 days) or have your centre of vital interests. It is separate from immigration residence — you can hold a residence permit without becoming tax-resident.
Non-dom (non-domiciled) regime: A tax framework that treats residents favourably on foreign income — often taxing it only when remitted, or at a flat annual charge. Cyprus offers a 17-year non-dom status; Greece offers a flat €100,000/yr option.
Remittance basis: A treatment under which foreign income and gains are taxed only if brought into (remitted to) the country of residence.
Territorial taxation: A system that taxes only income arising inside the country and exempts foreign-source income — for example Panama.
Capital gains tax (CGT): Tax on the profit from selling an asset. Several residence jurisdictions — Mauritius among them — levy none.
The 60-day rule: Cyprus’s test allowing tax residency with as few as 60 days a year, subject to conditions: not being tax-resident elsewhere, and maintaining ties such as a home and a business or employment in Cyprus.
CRS (Common Reporting Standard): The OECD framework under which banks automatically exchange account information between participating countries’ tax authorities.

Compliance & due diligence

Due diligence: The background checks governments and licensed agents run on applicants — identity, criminal record, reputation and finances. Rigorous due diligence is central to every credible programme and protects its integrity.
Source of funds / source of wealth: Evidence of where the money for an investment came from (source of funds) and how the overall wealth was built (source of wealth) — a core anti-money-laundering requirement.
AML (anti-money-laundering): The legal framework of checks designed to prevent the proceeds of crime entering the financial system. RCBI applications are conducted within it.
KYC (know your customer): The identity-verification a financial institution or adviser must complete before acting for a client.
PEP (politically exposed person): Someone in, or close to, a prominent public position, who is subject to enhanced scrutiny under anti-money-laundering rules.
Apostille: An international certification, under the Hague Convention, that authenticates a public document (such as a birth certificate) for official use abroad.
Biometrics: Fingerprints and a photograph captured as part of many residence applications, usually requiring one in-country visit.

Programmes & jurisdictions

Regulation 6(2): The fast-track category of Cyprus’s permanent-residence rules for investors buying a new-build first-sale property of at least €300,000 (plus VAT), with secured foreign income.Cyprus Permanent Residence
PDS (Property Development Scheme): The principal Mauritian scheme under which a foreigner buys qualifying property and gains residence, administered by the Economic Development Board. Residence lasts while the property is held.Mauritius Residence
EDB (Economic Development Board): Mauritius’s investment-promotion agency, which approves residence-by-property applications under the PDS, IRS and RES schemes.
IRS / RES: Earlier Mauritian property schemes — the Integrated Resort Scheme and Real Estate Scheme — which, alongside the PDS, can confer residence on qualifying buyers.
Smart City Scheme: A Mauritian framework for large mixed-use developments whose qualifying residential units can confer residence.
Qualifying investment: The specific asset and minimum value a programme requires for the investment to count — for example a new-build property, a fund subscription or a government contribution.
Qualifying real estate: Property that meets a programme’s rules on type, value and (sometimes) location and build status for the residence application to qualify.

Mobility & status

Schengen Area: The group of European states that have abolished internal border checks. A residence permit from a Schengen member allows short-stay travel across the zone; a permit from a non-member (such as Cyprus today) does not, by itself.
EU long-term residence: A status open to non-EU nationals after five years’ lawful residence in a member state, carrying enhanced rights and mobility across the EU.
Minimum stay / physical presence: How many days a year, if any, you must spend in a country to obtain or keep its residence. Several programmes — Greece and Mauritius among them — require none.
Visa-free travel: The ability to enter a country without arranging a visa in advance — a principal benefit of a strong second passport.

Terms are defined to general guidance only and verified against official primary sources; specific eligibility and tax positions are confirmed in writing by licensed professionals within an engagement. Start a private assessment →