Investment Citizenship and Residence Permits - How to Contribute under Sanctions?

In recent times, due to the significant number of imposed sanctions, the mechanism for conducting transactions between individuals and legal entities has become noticeably more complex. Many residents with residency permits in other countries or applicants seeking second citizenship through investment are concerned with questions such as how to pay abroad for not only regular payments like utilities or state fees but also for large investment contributions.

Experts from the licensed agency GARANT.in analyzed the state of this issue as of late 2024. They reviewed restrictions, current transfer methods, and how to process payments in various countries. A detailed overview is presented in their new report.

Current Payment and Transfer Restrictions

Since many Russian banks have been subject to sanctions, the difficulties in making transfers are often technical. Additionally, restrictions imposed on individuals have significantly impacted the operation of various payment systems and services. Today, conducting financial transactions such as receiving funds, making transfers, settling accounts between parties, and other operations has become quite challenging.

Key Restrictions in Effect:

1. Disconnection of several Russian banks from the SWIFT system.
2. Partial limitations on operations, such as the removal of mobile applications from the App Store.
3. Payment cards issued by VISA and Mastercard within Russia are nonfunctional abroad.
4. Contactless payments via Apple Pay and Google Pay are restricted or unavailable.
5. Access to many popular payment services is limited for users in Russia.

With many banking institutions disconnected from SWIFT, the speed of transfers has significantly decreased, and transaction fees have increased. While transfers used to take just a few minutes, similar operations can now take several days and cost 2–3 times more than before.

Receiving and Sending Payments Abroad for Russian Residents

Despite the current restrictions, there are still ways to receive and send transfers or payments abroad. Below are some methods:

Bank Account Transfers

This method doesn’t always work and comes with limitations. Even though not all Russian banks are disconnected from SWIFT, users may encounter delays, requests for proof of funds, or the risk of transfer blockage. It is crucial to identify banks that are not on the sanctions list, as only they can facilitate transactions.

Cryptocurrency Transfers

Cryptocurrency transfers are becoming an increasingly popular payment method. Why? State structures cannot fully take control of the activity of cryptocurrency transactions, so transfers in crypto coins have remained almost at the same level as before the sanctions. The main advantages of crypto transactions include high speed of transactions, security, and minimal commission fees on transactions.

One of the easiest ways to get cryptocurrency is to buy it on an exchange. It is important to remember that it will not be possible to withdraw money directly to a Russian payment card, so it is worth looking at such a method as buying through a P2P exchange.

P2P exchange is an opportunity to sell cryptocurrency for rubles to individuals through a verified platform without the participation of intermediaries or third parties. Using this method will allow you to find quite favorable offers in terms of cost. It is important to carefully choose the seller of cryptocurrency, so as not to fall for a fraudulent scheme.

How to work on the platform:

1. Go through registration and create an account.
2. Get a cryptocurrency transfer to your account.
3. Go to the P2P-trade section, and choose the currency for sale and a suitable payment method.
4. Study the seller's ratings, terms of the transaction, and other subtleties - make a choice.
5. Receive crediting of the transaction amount in rubles from the seller to the specified payment card.
6. Confirm receipt of funds.
7. Receive confirmation of writing off the amount in cryptocurrency from the balance.

You can send a payment abroad according to a similar scheme.

Using bank accounts abroad 

If you already have a foreign bank account, that's great. If you do not, do not panic - it can be opened, albeit with a few difficulties. You can register an account personally, through a power of attorney, or with the help of an intermediary firm.

The most popular destinations for opening accounts are Kyrgyzstan, Kazakhstan, Armenia, Turkey, and others. It should be understood that applications for account opening from citizens of the Russian Federation are analyzed with special care. The list of documents required to open an account should be specified in each individual bank, as the requirements in each financial organization may vary greatly. You can transfer money from the Russian Federation to an open account, and then send it from the foreign bank to the destination. 

Another way is to open a company abroad and open a business account for it in a neobank. With the help of such an account, you can make payments practically all over the world. There should be no difficulties with financial activities.

Further, we will consider how to make different kinds of payments in different countries. We will study the current schemes for the most common destinations. 

France

Many clients of our agency ask the question - how to pay for real estate purchase, rent, and state duties in France. Let's analyze this question in detail.
Russian cards do not work in the European Union. It is possible to open an account in France if you have resident status, so it is quite problematic to pay for the purchase of real estate. Often buyers who do not have accounts in French banks, open cards in other countries where banks accept applications from Russians. In any case, notaries, register a transaction with a citizen of the Russian Federation, the first thing to check - is whether the candidate is not on the sanctions list.

The primary conditions for buying/paying for real estate are as follows:

1. Have the ability to transfer the necessary amount to a French account.
2. Do not appear on the sanctions list.
3. Prepare documents that can confirm the legality of the origin of funds.

If you still manage to open an account in a bank in France, it should be remembered that there is a common restriction in the country - the account of a citizen of the Russian Federation should be no more than 100,000 €. The requirement of 25.02.2022 applies to citizens of the Russian Federation, who do not have residence permits, long-term visas, or citizenship of EU countries. This point makes many people wishing to buy real estate in France doubt - whether you can buy an object more expensive than 100 000 €.

It is possible because to carry out the transaction with the purchase does not need to open a separate account - the entire amount is transferred directly to the notary. 
Then the question arises - the real estate is bought, but how to manage your own object, transfer taxes, utility payments, and state duties if it is impossible to open an account in France? Everything is real!

1. In France, in case of refusal in 3 banks, you can submit a petition to the central bank Banque de France, and he is obliged to appoint a bank where the applicant will open an account.
2. Taxes, utility payments, and other services can be paid through the personal cabinet of the chosen organization. It is important to link the card of a non-Russian bank.
3. Use the services of a management company and entrust it with the payment of all necessary services. This will be more expensive, but the client will be sure that everything is paid on time and in full. 

Buying real estate in France, it is also worth remembering that in the country there is a practice of checking the operating conditions. This year, the authorities required property owners to report on the use of property. It was necessary to report whether the owner lives in his housing, uses it temporarily or permanently, whether it is rented out for the short or long term, and indicate the number of non-residential premises, basements, parking spaces, and other parameters. 

Turkey

Turkey is another popular destination among the clients of our international company. People come here for wintering, work, vacation, buy real estate to participate in an investment program, and obtain a second passport. Most often our clients are interested in the issue of transferring the investment contribution for participation in the program and payment for the apartment when directly residing in Turkey.

Currently, cards issued in the Russian Federation do not interact with Turkish banks. It is impossible to withdraw cash and make a transfer. What methods work?

SWIFT system

To make a swift payment, it is necessary to have/open a foreign currency account in a bank of the Russian Federation, which does not appear in the sanctions lists. When forming a payment, it will be necessary to enter the SWIFT code, bank, information about the recipient, and its full details. You can send up to $1,000,000 per month through a SWIFT transfer (regulation of the Central Bank of the Russian Federation).

To make a transaction from the mobile application, you need to:

• Select the tab “Payments” - “Transfers” - “SWIFT”;
• Enter information about the recipient and transfer amount;
• Confirm the transaction. 

If there are difficulties with the independent execution of the procedure, it is recommended to contact a bank branch. The amount of commission and terms of crediting money should be clarified at the time of financial transaction.

Transfer of funds from card to card

At the moment it is not possible to use international MasterCard and Visa cards, transactions simply do not go through. The Mir payment system is also unavailable now. The only way out is to use the UnionPay payment system. To activate it, it is necessary to register a card working on this payment system in one of the banks. Then you can credit money to UnionPay, after which you can pay for purchases, apartments, and services or withdraw cash on the territory of Turkey.

Payment with cryptocurrency

Payment with digital currency is widely used all over the world. Its main advantage is privacy! To send money through a cryptocurrency exchange, you need to create a verified account, register a virtual wallet, and buy tokens. To cash out your funds, you need to use the scheme: wallet - fiat and spot - withdrawal - fiat. After that, you need to choose the optimal currency and method of withdrawal. 

An alternative method is P2P exchange. How to use it, is said at the beginning of the article, in a separate section. 

Zolotaya Korona

The service of payment transfers is quite popular because it allows you to conduct transactions quickly and without opening an account. With the help of Zolotaya Korona, you can quickly credit money to a Turkish card. In Turkey itself, there are more than 4000 points of cash withdrawal. The transfer takes 1-3 working days.
The transaction can be carried out independently through the payment system's website or the mobile application. The intuitive menu will allow even a beginner to make a transfer. The transfer fee is about 0.7%.

Payment from a Turkish bank card

For domestic payments and transfers, it is necessary to issue a card from a Turkish bank. Here is a step-by-step algorithm of how to do it:

1. Get a Turkish TIN - the document is necessary for almost any transaction: renting housing, obtaining a residence permit, citizenship registration, and others. You can get the certificate online through the website of the Turkish Tax Inspectorate.
2. To certify a copy of the passport. You can apply to a Turkish translation agency and go to the notary office with the ready documents.
3. Purchase a SIM card from any national operator. The SIM card is necessary for the activation and binding of the account and, for receiving notifications about transactions.
4. Submit a ready list of documents to the bank branch. It is better to clarify in advance in the chosen bank about the list of required documents.

The card will be produced within 1-7 days. It can be used to pay for an apartment, services, settlements around the world, and money transfers. Citizens of the Russian Federation can use the cards of Turkish banks on the territory of their country. 

Some of the most popular banks among Russian citizens are Denizbank, Ziraat Bankasi, and VakifBank. Dollars, rubles, and euros can be used as the currency of payment.

Vanuatu

Speaking about Vanuatu, clients are first of all interested in the possibility of sending an investment fee to participate in the citizenship program. After becoming a citizen of Vanuatu, you can easily open accounts around the world and make any transactions in different currencies.

Cryptocurrency

Unfortunately, it is currently impossible to obtain citizenship in another country for digital currency. It is necessary to first sell cryptocurrencies, transfer the money to a bank account, and prove the legality of the origin of the money in the account. And only then is it allowed to apply for a second passport.

Since 2021, the government of Vanuatu has allowed the storage and use of digital assets in the country, so transactions with digital currency are treated loyally here. Nevertheless, this does not cancel the mandatory Due Diligence check and comprehensive reporting on the origin of digital currency. It is important that transactions are conducted through regulated platforms or licensed agents.

In 2017, rumors that Vanuatu allowed payment for participation in the program with cryptocurrency were actively rumored. In reality, everything happens as we said earlier - the investor sells cryptocurrency, and in US dollars pays the investment fee. Program participants are allowed to use digital assets to confirm the legality of income and sufficient funds to make the investment. 

How to make a payment using cryptocurrency is told above. 

SWIFT

It is also possible to make an investment contribution by SWIFT transfer. Despite a number of difficulties, it is still possible. Passage of payment depends on a number of factors: sender bank, recipient bank, correspondent banks, currency used, purpose of transfer, amount, addresses of participants.

How to work with SWIFT payments is described in more detail above. 

Italy

How to transfer money to Italy and how to pay for an apartment and utility bills in Italy?

To send money from the Russian Federation to Italy, you can use one of the methods. Each has its advantages and disadvantages.

SWIFT transfers - for large sums of money

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is an international banking system. Currently, many Russian banks are disconnected from it. It is necessary to look for an international bank that can make swift payments.

Advantages:

• High level of security and reliability.
• Suitable for large transactions - up to $1,000,000 per month.

Disadvantages:

• A large amount of commission.
• Long payment processing - up to 7 days.

Online services for international transfers

Currently, you can use such platforms as Wise, PayPal, and Revolut for small money transactions. Each system offers convenient options for sending money online.

Advantages:

• Prompt transaction processing - money can be credited to the recipient within minutes.
• Favorable exchange rates are often offered.
• Simple interface, intuitive menus.

Disadvantages:

• Hidden commission fees may appear.
• Often set limits on transaction amounts. 

Domestic payments in Italy

If we mention internal payments in Italy, such as taxes, utility payments, and current settlements, we can distinguish three main ways of carrying out:

1. Bank transfer (bonifico bancario) - one of the most popular options.
2. Postal transfer (bollettino postale) - carried out in post offices and Sisal payment points.
3. Automatic debit (domiciliazione bancaria or RID) - a convenient option for automating regular payments.

Cyprus

You can transfer money to Cyprus through the banking system, payment services, and cryptocurrency. We have already raised these topics when reviewing other countries, but we will go over them again.

International transfer systems 

You can send money to Cyprus using Korona Pay, Contact, and Unistream. You can make a transaction through a mobile application, having previously created a personal account. It is important to remember the rather high commission - up to 6% and restrictions on the amount - no more than $ 10,000 per month.

SWIFT

Repeatedly we have previously mentioned SWIFT payments, now it is the most convenient way to send large tranches, including investment contributions. During the transaction, both the receiving and sending bank may request additional documents confirming the legality of the origin of funds and the legitimacy of the grounds for the settlement.

Specialized financial services

An alternative method that allows you to correctly bypass some restrictions regarding the banking system. For example, Solar Staff allows you to transfer money to the recipient's card not only in Cyprus but also in more than 100 countries. 

For settlement operations, there is a MadeTask service. New users can make a transfer of up to 1500 $ without commission. Later the fee will be 6-9%, it all depends on the user's turnover. You can send money to a European Visa or Mastercard card, or to UMoney or QIWI wallet.

Cryptocurrency

Another quick way to send money to Cyprus without use the banking system. For more details on how to use cryptocurrency for transfers, see above.

Cyprus bank account

For domestic payments and international transactions, you need to open an account in a Cypriot bank. The banking system of Cyprus operates according to the rules established by the European Union. Local banking institutions have been repeatedly rated by Global Finance magazine. Banks in Cyprus are optimal for those who need a foreign currency account in Europe for making payments via the SWIFT system or for reliable capital savings.

There are 20 banks operating in Cyprus, 15 of them with foreign capital. The Central Bank of Cyprus (Central Bank of Cyprus) has been operating since 1963 in Nicosia. Since 2014, the Central Bank of Cyprus has been included in the European System of Central Banks.

You can apply for an account online, but you can open an account only after a personal visit to the branch. To open an account a non-resident needs to provide a passport, biography about himself, credit history, confirm the legality of income, and provide a certificate of the place of registration. Before opening an account, all non-residents must undergo a Due Diligence check. Without this step, it is impossible to receive and use the account. 

Friends, if you still have questions about the possibility of making an investment contribution under sanctions, we are waiting for your consultation. We will help you to get a second citizenship by making all the necessary financial calculations. Each client requires an individual approach, and on our part, we will do our best to ensure that you can make full payment and get a new status as soon as possible. We will not only help you to collect documents for registration of the new status, but also check the legal cleanliness of the object for rent/buy, help you to open an account abroad, get TIN, and will accompany you at every stage until the moment of obtaining residency. You just need to voice your request and we will do the rest!