Obtain a residence permit and even citizenship without having to invest or donate anything

Obtaining a residence permit or even citizenship without investing large sums of money is possible, although many people are unaware of this. In contrast to the well-known citizenship by investment (CBI) programs, there are countries that allow access to legal residence and even a second passport without investment or donations, simply by demonstrating regular income or sufficient assets. These options, based on visas for economically independent individuals or investor visas, offer a legal, more accessible, and strategic route for those seeking to diversify their residence, nationality, and personal sovereignty.

However, although these programs are an excellent way to quickly obtain a second passport, not everyone is willing to invest the necessary sums.

The good news is that there are also more economical and often underestimated alternatives for obtaining citizenship or, at least, permanent residence. The financial effort is considerably less, but in return you have to invest mainly time and, in most cases, remain in the country for a certain period. However, if strategically well-chosen countries are selected, this effort remains within reasonable limits and allows us to advance our personal Flag Theory. Let’s see how this can best be done.

A widespread misconception is that you always have to make large investments or marry a citizen of the country in question to obtain permanent residence or even citizenship of a country. Although these things often lead to the desired goal, depending on the country, they are not always necessary.

Visas for financially independent individuals

In many countries, the easiest way is to prove that you have sufficient financial resources to support yourself, which is known as a visa for financially independent individuals. You do not need to be a wealthy individual; you can obtain a good residence permit even with fairly modest sources of income. These permits may have different names: financially independent visa, residence permit for financially independent individuals, independent means residency, or, for example, independent means visa.

In Latin American countries, the terms “rentista” or “pensionado” are more commonly used, although these visas, contrary to what their name suggests, are not always intended exclusively for retirees and pensioners. People who can demonstrate recurring (passive) income, i.e., cash flows that are generated without continuous active participation or direct work, can also benefit from these visas. These include, for example, income from dividends, interest, rents, or even pensions. In some cases, however, even this is not necessary, and it is sufficient to have assets that credibly demonstrate that you can support yourself.

Specific requirements for a residence permit

In many cases, the requirements are similar: proof of recurring income (pay slip, pension notification, or rental agreements as proof of rental income), assets (the amount varies from country to country), real estate, etc. The decisive factor is the regular inflow of a certain amount or capital, rather than whether the amount comes from a pension fund or is generated through rental income.

This type of visa allows holders to settle in a country for an extended period of time and often obtain citizenship after a certain length of stay. This is an interesting alternative, especially for those who cannot or do not want to meet the requirements of CBI programs due to the high sums they require, considering that in some cases, after two years of temporary or permanent residence, there is the possibility of acquiring citizenship. Countries with the fastest citizenship procedures include:

Country	Years of residence before applying for citizenship
Dominican Republic	2
Argentina	2
Peru	2
Armenia	3
Uruguay	3
Canada	3
Serbia	3
Bolivia	3
Benin	3
Honduras	3
Paraguay	3
Australia	4
Brazil	4
Nicaragua	4
Ethiopia	4
Jordan	4

It is important to note that, in general, length of stay is only taken into account if you have a permanent residence permit. In some countries, it can take several years to obtain a permanent residence permit, while in others it is granted immediately.

Before looking at some particularly interesting countries as examples, let’s get a general idea of which countries offer the fastest naturalization options.

In some countries, for example Brazil, you are considered a tax resident from the moment you are granted a residence permit, even if it is temporary. This often leads to taxation of all worldwide income.

Minimum periods of residence, for example, more than six months per year, also usually automatically result in tax residency. In countries with territorial taxation, this is not normally a problem, as only income earned locally is taxed. On the other hand, even in countries with worldwide income taxation, you can probably arrange to avoid paying taxes (you can hire our consulting services to see how).

In any case, tax rules must always be taken into account in relation to your own situation. It is essential to understand them and accurately assess your individual situation.

In cases where a temporary residence permit does not require a minimum length of stay, you will generally not be automatically subject to taxation. Immigration law and tax law must always be considered separately.

Beware of unwanted tax obligations and wrong paths that do not lead to the goal

You should bear in mind that not all residency options that may seem easier to obtain lead to citizenship by naturalization. There are many visas that do not give you the option of obtaining citizenship no matter how long you spend in the country. This is especially true in Asian countries.

For example, in Thailand, it is theoretically possible to obtain citizenship after five years of residence, but this requires, among other things, permanent residence, and Thailand only grants visas of limited duration. The granting of permanent residence to foreigners is insignificant (the official annual limit is 100 people per country), and the granting of citizenship is even lower, practically non-existent.

As always, the decisive factor here is to have real practical knowledge of the programs, rather than just knowing the theoretical rules.

In Asia, apart from Thailand or the expensive and complicated option of Singapore, there is currently also the possibility of obtaining nationality after eight years with a special visa in the Philippines.

The situation is similar in the United Arab Emirates, where citizenship is officially only granted after 30 years of residence in the country; even then, it is not guaranteed, as it is subject to many conditions.

However, the biggest drawback is that none of these countries accept dual nationality, which means that you have to renounce other passports, which goes completely against the ideal of international diversification of nationality.

In total, there are around 40 countries around the world to which you can emigrate with only your regular income or assets.

Now, let’s take a closer look at some particularly interesting countries, especially with regard to:

1. What (financial) requirements exist
2. What the visa application process is like
3. To what extent there are prospects for obtaining a permanent residence permit or citizenship in the long term
4. How this type of visa affects taxes

As for the requirements and documents needed for the application, we have limited ourselves to the most important ones. All applications may involve costs and fees (possibly also additional fees for spouses and children), which are not included here. You should find out about these costs yourself or request our comprehensive advice.

In principle, we can help you in all the countries mentioned with regard to immigration, taxation, and other matters, and we can also handle everything locally through our partner law firms.

Firstly, it should be noted that Latin America is traditionally considered the continent where, in most countries, it is relatively easy and quick to obtain permanent immigration and citizenship. They are also interesting because, often, only a minimum income or assets need to be demonstrated.

Citizenship by naturalization in Argentina

In the case of Argentina, anyone who can demonstrate a stable passive income has an excellent opportunity to live legally in the country with a so-called rentier visa. The rentier visa is one of the easiest ways to obtain a temporary residence permit in Argentina. The requirement is that the applicant has a regular monthly income of at least five Argentine minimum wages, which in March 2025 is equivalent to about US$1,600 per person per month. It is essential that this is passive income, i.e., income that is not based on active work. We have already clarified above what is included in this category.

There is no minimum age for applying for the rentier visa. It is also expressly accessible to younger people, provided they can prove their financial independence through passive income. Therefore, the visa is not only suitable for retirees, but also for digital nomads, entrepreneurs, or individuals, provided they can prove that they have passive income.

Income must be proven by official documents and transferred to the country through financial institutions authorized by the Central Bank of Argentina. A simple deposit is not enough; it must be clearly documented that the money is deposited monthly into an Argentine bank account.

Bank balances or having a large sum saved is not sufficient. However, if the money generates interest, for example, in the case of a fixed asset of US$300,000 with monthly interest income of more than US$2,000, this can be recognized as a source of passive income. In this case, however, an Argentine bank account is also required.

A major advantage of this visa is that after two years of residence, you can apply for Argentine citizenship by naturalization. Argentina is therefore one of the countries in the world where you can obtain a second passport most quickly and without financial investment.

Currently, the tax conditions are not yet very favorable. However, this could change soon with the reformist libertarian president Milei, who may offer liberal conditions in the country’s tax system.

Citizenship by naturalization in Colombia

The process for obtaining a residence permit in Colombia is as simple as in Argentina. One option is through a retirement visa (Migrante M11). You must prove that you have a monthly income of at least three times the Colombian minimum wage, which is approximately US$900.

Those who have regular passive income from abroad or professional income equivalent to at least ten times the Colombian monthly minimum wage can apply for a residence visa that is valid for three years and renewable (“M visa”). The minimum annual stay is six months, which must be spent continuously in the country.

After five years of residence in the country, you can apply for a permanent residence permit, and after another five years, the path to citizenship opens up. The process is therefore much longer than in Argentina, for example. However, for Spanish citizens, spouses of Colombian citizens, or parents of Colombian children, there is a shortcut: naturalization is possible after only two years.

To obtain citizenship, you must take an exam on the history, geography, and constitution of Colombia, as well as a Spanish exam. However, those who have a university degree from a Colombian university or are over 65 years of age are exempt from these exams.

One disadvantage of Colombia is that foreign income is taxed and there is a wealth tax. Taxation is universal and depends on residence. This means that you are considered a resident for tax purposes and your income is subject to local taxation if you spend more than 183 days in the country.

Pension income is tax-exempt up to an annual limit of approximately US$10,000 in 2024. Income above this limit is subject to progressive taxation ranging from 19% to 39%. With proper planning, tax rates on investment income can be kept below 20%.

Citizenship by naturalization in Indonesia

The Indonesian KITAS (Kartu Izin Tinggal Terbatas) visa is a fairly comprehensive temporary residence permit for foreigners who wish to live in Indonesia for a specific period of time. KITAS stands for “limited stay visa” and allows for a stay of up to two years, with the option of extension. In addition, there is the KITAP (“Kartu Izin Tinggal Tetap”) for permanent residence in Indonesia, which we will discuss later.

KITAS visa holders can enter and leave the country several times, which is particularly advantageous for entrepreneurs or digital nomads.

The KITAS does not automatically include a work permit, but this can be applied for separately if the stay is also to be used for professional purposes. The cost of a two-year KITAS is around IDR 6,000,000, which is equivalent to around EUR 360. Another advantage: when entering the country, KITAS holders benefit from priority processing at the airport, as there is no need to wait any longer to obtain a visa.

It is important to note that the KITAS loses its validity if you do not enter Indonesia within 90 days of the entry permit being issued.

There are different types of KITAS depending on the purpose of the stay:

• KITAS for investors: this visa requires a minimum investment of IDR 10 billion (approximately €600,000) in an Indonesian company.
• KITAS for digital nomads: this visa is valid for up to one year and requires proof of annual income of at least US$60,000.
• Working KITAS: issued on the basis of an employment contract with an Indonesian company.
• KITAS for retirees: this visa is linked to age (55 and above) and can be applied for if you can prove a monthly income of at least US$3,000.

For foreigners who wish to live permanently in Indonesia, there is the KITAP, a residence permit for a period of up to five years. The requirement for obtaining a KITAP is generally to have held a KITAS for at least three years. KITAP holders can also enter and leave the country several times and enjoy advantages in bureaucratic procedures, such as opening bank accounts or real estate matters.

The KITAP also exists in different versions:

• KITAP for investors: in this case, it is necessary to present the certificate of incorporation of an Indonesian company.
• KITAP for workers: in addition to a valid employment contract, you must present, among other things, a university degree, your place of work, and various company documents.
• Retirement KITAP: this is intended for people who wish to retire permanently and already have a retirement KITAS.

Provided that the financial and administrative requirements can be met, the KITAS visa and the Indonesian KITAP are two flexible options for temporary and permanent stays.

The disadvantage of Indonesia is that there is no good way to obtain citizenship, a classic case in Asia, where obtaining citizenship is extremely difficult or impossible. Of course, the biggest disadvantage is that the country does not allow dual citizenship, so you would have to renounce your original passport.

However, those who wish to obtain Indonesian citizenship must meet certain requirements. Applicants must be at least 18 years old and have lived legally in Indonesia for five consecutive years or a total of ten years with interruptions. In addition, a certain degree of integration into society is expected: This includes sufficient knowledge of the Indonesian language, as well as a basic understanding of the state ideology Pancasila and the Indonesian Constitution. Furthermore, the applicant must be in good physical and mental health, as well as have the financial ability to earn a living independently, either through income or assets. People with a criminal record, particularly those with a prison sentence of more than one year, are usually excluded from naturalization.

According to Indonesian law, anyone who has resided in the country for at least 183 days per year is subject to taxation. In practice, however, this is more of a theoretical law than a reality. Almost no permanent nomads in Bali actually declare their foreign income.

Citizenship by naturalization in Uruguay

Uruguay is considered a very favorable country from a tax perspective, especially for newcomers. For the first eleven years after obtaining a residence permit, income earned abroad is not taxed (principle of territoriality). After that, only 12% tax is levied on interest and dividends from abroad. Alternatively, there is the option of choosing a fixed long-term rate of 7% on this income. Thus, those considering emigrating to Uruguay benefit from a relatively simple and fiscally attractive immigration model.

To apply for a permanent residence permit, you must prove that you have a monthly income equivalent to at least US$1,500. This income can come from passive sources and does not need to be earned in Uruguay.

Several documents are required to apply for a residence permit, including a birth certificate, an up-to-date vaccination certificate, a criminal record certificate, a medical certificate (issued by a doctor registered in Uruguay), and a certificate of permanent residence in the country.

The application must be submitted in person at the National Immigration Office or online through the official website. In general, all documents submitted must be officially translated and certified.

Those who wish to remain permanently must apply for a temporary or permanent residence permit within this period. If you apply for permanent residence, you will usually be granted a residence permit valid for two years, which can take between six and twelve months to process. During this time, you are NOT allowed to leave Uruguay, so you must really want to live there.

After five years of legal residence, provided you spend at least 183 days a year in the country, you can apply for Uruguayan citizenship. There is also a shortcut here: for married couples and persons in equivalent situations, a certificate of residence of at least three years is sufficient.

Citizenship by naturalization in the Dominican Republic

The Dominican Republic is particularly popular with retirees. Those who have a monthly income of at least US$1,500 from a legal pension can apply for a so-called pensioner visa. This residence visa can also be extended to spouses and children, in which case the required income limit increases by US$250 per family member. The application is submitted to the relevant consulate or directly to the country’s immigration office. In addition to proof of income, an authenticated birth certificate, a criminal record certificate, a medical certificate, and proof of residence and health insurance are required, among other things. The documents must be legalized or apostilled and translated into Spanish.

Unlike the pensioner visa, there is currently no standardized visa for people with purely passive income that does not come from a pension, such as dividends or rent. However, those with this type of income can apply for an investor visa or a resident visa for investment or income, but they often have to prove a considerably higher monthly income (starting at around USD 2,000-2,500). The exact amount depends on the type of income and individual circumstances.

After a five-year stay with temporary status, you can apply for a permanent residence permit, which is initially valid for four years. Those who live in the country continuously for a period of ten years can eventually obtain an indefinite permanent residence permit, which only needs to be formally renewed every ten years.

An additional incentive for many immigrants is the possibility of applying for Dominican citizenship after only two years of residence with a permanent residence permit. In addition to a minimum stay, applicants (who are not Spanish speakers) must demonstrate, among other things, basic knowledge of Spanish, no criminal record, and a certain degree of integration. However, with only 74 visa-free countries, the passport is, unfortunately, one of the worst in the Caribbean. Nevertheless, it is very popular among Americans who renounce their nationality because of its speed.

A decisive advantage for retirees and wealthy emigrants is the Dominican Republic’s territorial tax system (and, in the case of Spaniards, its advantageous agreement). In the Dominican Republic, only income earned in the country is taxed. Income from abroad, such as pensions or dividends, is tax-exempt, which is a great advantage for those with international sources of income.

The country also offers notable freedoms in other areas. For example, the banking sector is relatively discreet, as the Dominican Republic does not yet participate in the Common Reporting Standard (CRS). It is relatively easy for foreigners to open a bank account there, even with a tourist visa.

Citizenship by naturalization in Paraguay

Paraguay was known for its extremely simple procedure for obtaining permanent residence. A few years ago, all you had to do was deposit US$5,000 in an account in Paraguay as a guarantee and you would obtain permanent residence. Today, it is no longer so easy, but there are still relatively simple ways to obtain permanent residence and, if desired, citizenship.

To obtain permanent residence, applicants must first have temporary residence, valid for two years, and prove, among other things, that they have the necessary financial means to support themselves in Paraguay. No proof of income is required for temporary residence, but for permanent residence Paraguay accepts different forms of proof of solvency, which can usually always be provided in some way. Depending on the circumstances, a pension notification, a work certificate, or even a university degree may suffice. Paraguay also accepts proof of assets.

A decisive advantage of Paraguay is its flexibility: there is no obligation to live permanently in the country to retain your residence permit. It is usually sufficient to visit the country every two or three years to maintain your status. This makes Paraguay particularly interesting for frequent travelers, digital nomads, or people with an international center of life.

Those who wish to obtain Paraguayan citizenship in addition to a residence permit can apply for it after three years of permanent residence. However, this requires a certain physical presence in the country: at least during the naturalization process, you must not leave the country for several months or, at a minimum, be able to return quickly if requested.

In our experience, to have a real chance of obtaining citizenship by naturalization, it is necessary to invest several tens of thousands of dollars in the country and in property. Unlike other countries, naturalization is not an administrative act, but requires the signature of all seven Supreme Court justices. Our lawyers in Paraguay can assist in the naturalization process for $15,000 and increase the chances of success, but they cannot guarantee it.

Paraguayan citizenship has several advantages, including access to a relatively strong passport, the right to dual nationality (provided your home country allows it), and the chance to live in one of the most attractive countries in Latin America from a tax perspective. Paraguay applies the principle of territorial taxation, which means that income from abroad is not taxed in Paraguay, provided that it is not earned in the country or transferred directly to it. There are also no taxes on wealth, inheritance, or capital gains on foreign income. The national income tax has a maximum rate of 10% and only applies to income earned within Paraguay.

We discuss Paraguay in more detail here.

Citizenship by naturalization in South Africa

A key requirement for obtaining a retirement visa in South Africa is to prove that you have sufficient financial means to support yourself. Applicants must demonstrate that they have sufficient resources to cover their living expenses in the country independently, without relying on paid employment.

This can be done in two ways:

On the one hand, there is the possibility of demonstrating a guaranteed monthly payment of at least ZAR 37,000 (approximately EUR 1,700). This payment must come from a statutory or private pension, an irrevocable life annuity, or a registered retirement account and be guaranteed for life. The source of this regular income must be proven by means of appropriate documentation, such as pension notices, contracts, or bank statements.

Alternatively, the applicant can also prove, by submitting the relevant documentation, that they have net assets that generate a permanent and demonstrable monthly income of at least ZAR 37,000. This may be a combination of assets such as real estate, capital investments, interest, or other income-generating investments. The important thing is that the funds are permanently available and generate sufficient income on a regular basis to cover the minimum amount required. South Africa has not set an age limit for this visa.

There is also a visa for financially independent persons. To apply for permanent residence in South Africa as a financially independent person, you must demonstrate that you have a net worth of at least ZAR 12 million (approximately EUR 560,000). In addition, there is a one-time fee of ZAR 120,000, which must be paid to the Director-General of the Department of Home Affairs once the application has been approved. This is equivalent to a permanent residence permit and does not give rise to any tax obligations.

For many remote workers, online entrepreneurs, and digital nomads, South Africa can be particularly attractive as a temporary residence, not only because of its climate and infrastructure, but also because of its relatively clear tax regulations. In this regard, the definition of South African tax residence is key, which is based primarily on two criteria: the principle of “habitual residence” and the so-called “physical presence test.”

Those who live in South Africa but are not permanent residents (e.g., retirees or remote workers with no local ties) are only subject to tax if they meet the criteria of the physical presence test. This test only applies if a person:

1. spends at least 91 days in South Africa in the current tax year,
2. has also been present for at least 91 days in each of the previous five tax years, and
3. has spent a total of more than 915 days in the country during that five-year period.

These three conditions must be met cumulatively. It follows that even someone who lives in South Africa for 100 days a year does not become a tax resident until after five and a half years, i.e., in the year in which the 915-day threshold is exceeded for the first time.

Of particular interest: if any of the conditions are not met in a subsequent year, for example, because you have only been in the country for 89 days in a fiscal year, the five-year period starts again. Thus, with intelligent planning of your stay, you can consider yourself permanently non-resident for tax purposes, even if you reside in the country on a regular basis.

Those who can also prove their tax residence in another country, for example through a double taxation agreement, will not be considered residents under South African law, regardless of their stay, if the other country is recognized for tax purposes as their “principal residence.”

To cease being subject to South African tax, the following applies: anyone who, after a period of residence, is not in South Africa for at least 330 consecutive full days will automatically lose their tax resident status.

South Africa is therefore an ideal place to reside temporarily or even regularly, as long as the length of stay is controlled. It is a highly underrated country with effective territorial taxation for newcomers.

Citizenship by naturalization in Cyprus

For Schengen passport holders, Cyprus is, of course, less relevant due to the existing freedom of establishment, but it remains an excellent example of an EU country offering attractive immigration options, especially for non-EU citizens. For unmarried couples from non-EU countries, this can also be interesting, precisely because Cyprus remains relatively open to Russians and Belarusians, who are now frowned upon in most other countries.

Cyprus offers citizens of the European Union and EFTA countries attractive opportunities for long-term stays with very few barriers to entry. Those who wish to stay on the island for more than 90 days need a temporary residence permit, which is applied for using form MEU1, also known as the “Yellow Slip.” The application must be submitted within four months of the date of entry into the country and is more of a formality.

For non-EU citizens, Cyprus offers a “visitor’s permit,” for which the colloquial “Pink Slip” is required. It is intended for financially independent persons from non-EU countries. This visa allows permanent residence in Cyprus without the need to work and is valid for one year, renewable for another year if the requirements continue to be met. These are:

Proof of regular income of at least €2,000 for the main applicant, plus 20% for the spouse and 15% for each child. In addition, a bank balance in a Cypriot bank with a minimum balance of €10,000 for the main applicant and an additional €5,000 for each family member. A bank guarantee of €550 for each family member is also required to cover possible repatriation costs.

From a tax perspective, Cyprus is particularly attractive to many people. The country is considered one of the most tax-friendly in the EU. Here we have discussed in detail the tax changes currently planned and the general tax situation in Cyprus.

Conclusion on the best countries to naturalize

In summary, it can be said that, as always, conditions vary greatly from country to country due to national legislation, and that individual needs and circumstances determine the best options for obtaining permanent residence or citizenship.

Our Emigrant Encyclopedia summarizes many other attractive countries and compares their tax systems, immigration options, and living conditions in detail. You also have our Citizenship Encyclopedia if you want to delve deeper into the subject.

Since relatively low passive income is sufficient in many countries, it is realistic for many people to start a new life without a large fortune. In this way, it is possible to enjoy a pleasant lifestyle in select locations around the world, often with the prospect of obtaining permanent residence or even citizenship. If you consider the second passport as what we often call in flag theory, that is, as the “queen of disciplines” of personal sovereignty, it becomes clear that this goal can also be achieved with a moderate income. Not to mention that the lower cost of living in many of these countries can in itself contribute to a significantly better standard of living.

Given that requirements and procedures can change quickly, it is important to always stay informed about current regulations. Do you have any questions or need help with planning? We would be happy to advise you.