Many people often quite confused understanding the difference between Residence permit, Permanent Residency often called “PR” or “Green card” and Citizenship. Here is a proper explanation.

Before we start, “Naturalisation” means one needs to live, being a resident for certain number of years, in an alien country before applying for citizenship. For example, one needs to live 12 years in Switzerland, before applying for Swiss citizenship. The Residence permit is the first step towards naturalization.

Residence Permit (RP) Permanent Residency (PR)
The “Residence Permit”(RP) also known “Temporary Residence Permit” (TRP), gives a “temporary” residency in an alien country. It is usually renewed once in a year.In EU countries and UK, this is usually a pink color biometric card which replaces visa sticker. The Permanent Residence Permit (PR) grants a long term permanent residency in an alien country, grants full rights to its owner at par with the locals except voting. It is renewed every 5 years.
Does not impose no minimum of days to stay in the alien country. In most countries, you are required to spend atleast 6 months yearly to satisfy the PR requirements.
You can enter and exit the country anytime (multiple entries) You can enter and exit the country anytime
Puts you in path to receive “Permanent Residency (PR)” or even a Citizenship. Some countries allow to apply for citizenship after few years of residence, bypassing PR requirement.For example, Norway allows to apply for citizenship after 7 years of residence, without the need of PR status. Puts you in excellent path to apply for citizenship in few years. Some countries allow to apply for Citizenship, only with the PR status.For example, UK only allows to apply for british citizenship after 5 years only with the PR status.