Updated
GL-T-04
Glossary · Taxes and residency
TCO - Total Cost of Ownership
Total Cost of Ownership (TCO) — all costs of a program or asset over its entire term, not just the initial price: fees, taxes, maintenance.
01 / In 30 seconds
The short answer
- What it is
- TCO — the total cost of ownership over the whole period, not just the entry price
- What it includes
- Contribution, fees, taxes, upkeep, renewal, services
- Why
- Seeing the real price of a programme or asset
- Mistake
- Looking only at the “starting” figure
- How to use it
- Calculate the full budget before deciding
02 / In plain words
What TCO means
TCO (total cost of ownership) is an approach in which not only the initial price of a programme or asset is assessed but all the costs associated with it over the whole period. In investment migration this is especially important: the stated “price from” is only the tip, and the real cost is made up of many components.
What the full cost of citizenship or residence includes: the main contribution or investment, government and administrative fees, the cost of due diligence (for each adult), legal and service fees, taxes, the costs of real estate and its upkeep (for the real estate route), renewal of the status and sometimes residence obligations. For an asset such as real estate, ownership taxes, maintenance and insurance are added.
Looking only at the starting figure is a common and costly mistake: the final sum may turn out noticeably higher. An honest calculation of the total cost of ownership makes it possible to compare programmes properly and avoid unpleasant surprises. We always set out the full budget with all its components for the client, so that the decision is based on the real price, not the stated one.
A case from practice
A client is choosing between two programmes by their “price from” and leans towards the one that looks cheaper. We set out the total cost of both, with fees, due diligence for the family and renewals — and it turns out the real total is different. They make the decision on the basis of an honest full budget.
Where the total cost matters
- Comparing citizenship and residence programmes
- Calculating the real budget
- Assessing the real estate route
- Planning costs for the family
- Accounting for renewals and upkeep
- An honest comparison of options
03 / What it covers
What the total cost includes
The main item
- Contribution or investment
- Government fees
- Due Diligence
Services
- Legal
- Service
- Support
Over time
- Renewal of the status
- Ownership taxes
- Upkeep
Keep in mind
- Costs for the family
- Real estate and its upkeep
- Obligations
04 / How it works
How to calculate the total cost
Include the main contribution
Add fees and due diligence
Include services and taxes
Budget for renewals and upkeep
The real full budget
05 / Key facts
What you need to know
01
TCO is the total cost of ownership over the whole period
02
It includes the contribution, fees, due diligence, services and taxes
03
It covers renewals and upkeep, not just entry
04
The “from” figure does not show the full picture
05
An honest calculation helps compare programmes properly
Common mistakes
- Going by the starting price alone
- Forgetting fees, due diligence and services
- Not accounting for costs for each family member
- Ignoring renewals and the upkeep of an asset
- Comparing programmes on incomplete figures
06 / Expert advice
How to prepare in advance
Before choosing a programme or an asset, calculate the total cost of ownership: the main contribution, government fees, due diligence for each adult, services and taxes, as well as renewals and upkeep. Take the family composition into account. Then the comparison of programmes is honest, and the final sum holds no unpleasant surprises after the start.
What we do for you. We always set out the total cost of ownership for you with all its components: contribution, fees, due diligence for each family member, services, taxes, renewals. That way you compare programmes on the real, not the stated, price and make the decision without unpleasant surprises after the start.
Sergej EvdokimovFounder and managing partner. Strategy, capital, complex cases
07 / Questions
Frequently asked questions
An approach in which not only the initial price of a programme or asset is calculated but all costs over the whole period: fees, taxes, services, renewals, upkeep.
The main contribution or investment, government fees, due diligence for each adult, legal and service fees, taxes, renewal of the status and, with real estate, its upkeep.
The starting figure is only part of it. The real total, with all fees and costs for the family, may turn out noticeably higher, and a decision based on an incomplete price can be wrong.
It allows programmes to be compared properly — on the real total rather than the “from” figure. A programme that looks cheaper may turn out more expensive overall.
Yes, without fail. Many costs (due diligence, fees) are charged per adult, so the family composition has a substantial effect on the full budget.
They are taken into account too: renewal, ownership taxes, the upkeep of real estate. The total cost looks at the whole period, not just the moment of entry.
INITIAL ASSESSMENT
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