Residency by Investment vs Passive-Income Visas (D7/D8/D2): Differences (2025 Guide)

Why this guide

There are two big families of residence routes many buyers consider when moving abroad: Residency by Investment (RBI) and passive-income or work-flex visas such as D7 (passive income), D8 (remote work/digital nomad in some countries), and D2 (entrepreneur/founder). This article explains who each route fits, what documents you will need, how costs stack up, and what tax and timing look like in practice. Language is simple so it translates well.

Who each route fits (at a glance)

• Residency by Investment (RBI): best for families who prefer capital-based eligibility (property acquisition, investment fund, bonds, or similar) and want flexible timelines without relying on employment.
• D7 (passive income): fits retirees or professionals with stable recurring income (pensions, rentals, dividends), with moderate cost of living and proof of means.
• D8 (remote worker/digital nomad): suits employees or freelancers with remote work income above a defined threshold; allows you to keep your employer or clients abroad.
• D2 (entrepreneur/founder): for founders who will set up and run a business locally (business plan, company setup, basic capital, and execution plan).

How they work (plain words)

RBI: you qualify by making an approved investment (for example, designated funds or specific property categories where available). You submit due-diligence documents, proof of funds, clean criminal record, insurance, and pay government fees. In return you get a residence permit (and, in some programs, a path to long-term residence or citizenship).

D7: you show stable passive income and accommodation (rental or owned). You keep funds in a local account (where required), provide clean background and health insurance, and prove you can support your stay without local employment.

D8: you show remote work income (employment or B2B contracts) above a threshold, plus accommodation and insurance. Some countries ask for a local tax number and a basic presence plan.

D2: you submit a concise business plan, company setup steps, proof of initial funds, and accommodation. Approval depends on viability and execution capacity.

Note: D7/D8/D2 labels are common in popular jurisdictions, but each country sets its own rules, thresholds, and documents. Always check the local authority’s page before filing.

Comparison table

Indicative overview only; exact thresholds and rules vary by country and may change.

Real costs (what to budget for)

• Government fees: application, biometrics, residence card issuance, renewals.
• Investment or funding: only for RBI (investment amount) or D2 (business setup/capital).
• Insurance: health coverage meeting local rules for the whole family.
• Translations & legalisation: sworn translations and apostille/legalisation where required.
• Legal/advisory: file preparation, reviews, submissions, appointments.
• Travel & stays: for biometrics/appointments and housing search.
• Taxes: income/corporate, social security, and property taxes if you buy a home.

Documents (simple checklist)

• Passports for all applicants; clean criminal record certificates.
• Proof of accommodation (lease, invitation, or property).
• Income proofs (D7/D8) or business plan & setup docs (D2) or investment proofs (RBI).
• Bank statements showing means of support; Source of Funds where asked.
• Insurance for the whole stay.
• Sworn translations and apostille/legalisation, if required.

How to choose (step-by-step)

1. Define your profile. Do you have stable passive income, remote salary, or a business you can run? Or do you prefer an investment-based path?
2. Pick 1–2 candidate countries. Check their residence rules, presence days, and family coverage.
3. Compare total cost of ownership. Government fees, insurance, translations/legalisation, taxes, and (if relevant) property purchase and upkeep.
4. Decide your timeline. When do you want to move? RBI can be quick once investment is set; D7/D8/D2 may depend on appointments and income checks.
5. Prepare a clean file. Clear PDFs, matching names across documents, and translations in the required language.
6. Plan housing. Lease or purchase that matches your application and budget.

Common mistakes (and simple fixes)

Mixing routes without a plan. Fix: choose one primary route and keep a clear fallback if timelines slip.

Not checking family eligibility early. Fix: confirm rules for spouse/children before you sign leases or school contracts.

Under-budgeting translations/legalisation. Fix: request a translation plan with page counts before filing.

Confusing residence with tax residency. Fix: presence days and income sources decide taxes; take advice before you move clients/employer.

Submitting screenshots. Fix: export clean PDFs; use sworn translations when required.

FAQ

Can I switch from a passive-income route to RBI (or back)? In many countries you can re-apply under a different category if you meet the rules; check timing and presence days.

Do I need to buy property for D7/D8/D2? Usually no — a lease can work. Some families still buy for stability; that is a separate decision from the visa route.

Can I work locally on D7? Often limited; rules vary. Many holders rely on passive income and do not take local employment.

What is the main advantage of RBI? Capital-based eligibility and predictable family coverage without relying on local job offers.

Will I become a tax resident automatically? No. Residence status is not the same as tax residency; presence and income sources matter.

Expert comment

“Pick the route that matches your income reality today, not a plan that may or may not happen later. Clean documents and a realistic timeline beat theory.”
— Luca, Residency Lead

Next steps

Shortlist your route (RBI vs D7/D8/D2), pick a candidate country, and assemble a clean file with translations planned. Then you can book appointments and housing with confidence.