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A legal resident is a spy who operates in a foreign country under cover from his embassy. He is an official member of the embassy staff, such as a commercial, or military attaché. Thus he has diplomatic immunity from prosecution and cannot be arrested by the host country if suspected of espionage. At best he can be expelled back to his home country.

An illegal resident is a spy who operates in a foreign country but without the cover of his embassy. Thus he cannot claim immunity from prosecution when arrested. He usually operates under a false name and has documents making him out to be an actual national or from a friendly country. Examples of such illegals include Rudolf Abel who operated in the United States ; and Gordon Lonsdale who was born in Russia , claimed to be Canadian and operated in Britain .