That’s right. Russia’s government is launching a residency by investment program.
Drafting the bill has been in the works since May 2020. And as stated by Russia’s Economic Development Ministry, the bill is almost complete. Its launch date should be around 7/2021.
The Ministry hopes that the state Duma adopts the bill by September this year, with the program going into full effect by mid-2022.
This might be a year later than the intended launch date of the program, but it’s a big step forward for the country.
Who’s Allowed into the Russian Residency Program?
The bill is quite inclusive. It allows applicants to bring up to 5 generations of family members into the country, including:
- Spouses and children
- Spouses OF children
- Parents and their spouses
- Grandchildren and grandparents
Thus far, there isn’t a defined age limit for family members accompanying applicants.
What’s Russia’s Residency by Investment Program’s Goal?
According to the Ministry, Russia wants to attract applicants from CIS-countries, who already travel there for seasonal residence.
Additionally, the inclusiveness of the program aims to combat Russia’s population problem, which include a fast-dwindling population and labor shortage.
Russia Residency Program Details
As announced in November 2021, the program had 4 paths. The program has been modified with the new bill, but the old details included the following criteria:
Company Ownership. Investors who own a company in Russia by investing a minimum of RUB 15 million ($200,000 USD). Foreign company ownership is also accepted, as long as that company operates in Russia, and with the applicant’s investment reaching 50 million rubles (or $650,000 USD).
The company must have been active for 3 years to qualify. But do note that Information on this specific requirement is still not available. It’s not clear whether it means 3 years before applying to the program, or 3 years after receiving the residency permit.
Business Investment. This path grants residency status to individuals investing 15 million rubles. The company invested in must operate in Russia. It should have existed for a minimum 3 years, with 6 million in total taxes, and with 25 individuals employed.
Startups. The third path provides permits to those who establish a Russian company. The starting capital investment must be 10 million rubles at minimum. The company must employ 10 Russians at minimum.
Purchasing Public Financial Instruments (OPTION HAS BEEN REMOVED). Acquiring Russian government real estate and bonds qualify applicants for residency. Their value must be 30 million rubles at minimum (around $400,000 USD). The applicants should own the instruments for 3 years before applying for residency.
Alterations to Note
The purchase of government financial instruments has been removed as a qualifying option. Also, investments for startup and business investments now require 30 million rubles minimum per investor.
As mentioned by the Minister of Economy, the goal is to funnel as much of the investments as possible into job creation and fixed assets.
So the requirements have become stringier. Regardless, the opportunity to access Russia is one many investors seek, especially with the promise of multi-generational residence.