TOP CITIZENSHIP-BY-INVESTMENT OPTIONS FOR SOUTH AFRICANS

When it comes to getting a second passport or residency through investment, there are over 100 countries to choose from. Sarah Young unpacks the top programmes available to South Africans and highlights five important considerations.

When considering investing offshore with a view to obtaining citizenship of a foreign country, there are five important factors you need to take into account:

1. Relocation or Plan B?

The first decision you need to make is whether you want to uproot your family and leave South Africa or whether you simply want a “Plan B” in a worst-case scenario. Some programmes are effectively "immigrant visas" and therefore there is an expectation that you will relocate to the jurisdiction and make it your permanent home once you have been granted residency, but many are not.

2. Family benefits.

The next factor to consider is the size of your family and who you’d like to benefit from the programme.

Most, if not all, countries allow the applicant to include their spouse and children, but some allow you to include your extended family too.

3. Minimum investment amount.

The most common question we get asked is: “How much does citizenship by-investment cost?”. The price can vary substantially depending on the programme and jurisdiction you choose and whether you’re after a second citizenship or simply a second residency.

4. Time you’ll have to spend in the country.

Different programmes have different minimum stay requirements. Some require a minimum of 183 days a year, some a nominal number of days, while with others you never have to set foot in the country if you don’t want to. Your appetite for travel (and the associated expenses) are important to consider before you commit to a particular programme.

5. Your timeline.

Finally, your choice of programme will depend on how soon you want your second citizenship or residency to be granted. Some programmes take only a few months, while others require years of forward planning. The further in advance you start the process, the more flexibility you might have on this point. Below are the top citizenship-by investment programmes for South Africans.

GRENADA

Grenada’s citizenship-by-investment programme is our first choice for South Africans seeking global mobility and the security of a second passport, without the complexities of moving abroad.

The Spice Isle is a Caribbean dream, with picturesque waterfronts and tropical beaches. However, its stunning natural beauty isn’t the reason it’s on our short list.

The main appeal of Granada’s programme is that there is no requirement to travel to the island before, during or after the citizenship process is complete – there's no minimum stay requirement. With a Grenadian passport, you can travel visa-free to over 140 countries (compared with South Africa’s 105), including the Schengen area, the UK, Hong Kong, Singapore, China and Russia. In addition, Grenada has an E-2 Treaty with the US, which means Grenadian citizens who are prepared to invest in and operate a business in the US can secure the right to live and work in the US.

Grenada citizenship-by-investment quick facts

• Do you need to relocate? No.

• Family that may be included: Spouse, children, financially dependent adult children up to the age of 29, financially dependent parents and grandparents, and single siblings with no children.

• Timeline: Six to eight months (including the time to secure documents)

• Minimum investment amount: $150 000 National Transformation Fund government donation or US$220 000 real estate investment plus $50 000 government contribution.

• Minimum stay requirements: None

Ireland

Ireland offers one of the world’s most powerful passports and it’s also currently the only passport that allows settlement in both the EU and UK. With an Irish passport, you can travel visa-free to 190 countries.

This, combined with Ireland’s thriving economy, safe environment and top educational opportunities, makes the Irish Immigrant Investor Programme our favourite for families looking to move abroad through investment.

Ireland is still a great option if you don’t wish to relocate: you only need to spend one day a year in the country to maintain permanent residency indefinitely. However, if you choose to relocate, you can claim Irish citizenship and that powerful passport after five years of reckonable residency.

Irish Immigrant Investor Programme quick facts

• Do you need to relocate? It is not required to maintain Stamp 4 permanent residency. Yes, if you wish to apply for citizenship.

• Family that may be included: Spouse, children, unmarried financially dependent adult children up to the age of 24 who are enrolled in full-time education.

• Timeline: Six to nine months for residency, five to six years for citizenship.

• Minimum investment amount: €500 000 endowment, or €1 million enterprise investment, or €1 million investment fund, or €2 million real estate investment trust.

• Minimum stay requirements: One day per year to maintain residency. For citizenship, at least half of the minimum five-year period must be spent living in Ireland and the 12 months prior to a citizenship application must be spent in Ireland.

Malta

Malta’s historic architecture and iconic gilded domes serve as one of Hollywood’s favourite backdrops for ancient and fantastical productions.

Malta’s Permanent Residence Programme (MPRP) is one of the most successful residency-by-investment programmes, as it’s more affordable than many other European residency programmes and offers visa-free travel throughout the Schengen area.

MPRP quick facts

• Do you need to relocate? No.

• Family that may be included: Spouse, children, unmarried financially dependent adult children under the age of 29, and financially dependent parents and grandparents above 55 years of age.

• Timeline: Two months.

• Minimum investment amount: Only €100,000 plus a real estate purchase or five-year property lease. However, the main applicant is required to possess capital/assets of not less than €500 000 of which €150 000 must be in financial assets.

• Minimum stay requirements: None

Sarah Young is the Investment Migration Manager at Sable International.

Is Portugal’s Golden Visa programme ending?

Portugal’s popular Golden Visa investment programme looks set to be curtailed after successfully running for over 15 years. On 16 February 2023, the Portuguese Prime Minister, António Costa, held a press conference where he presented the general terms of a housing reform proposal. The address included proposed changes to both immigration law and the popular Golden Visa scheme. The primary agenda of the council sitting was housing issues in Portugal and, in particular, the affordability and availability of rental properties.

This is a preliminary proposal. The next step will be a public consultation process with all relevant stakeholders being asked for feedback. This will happen in March 2023, after which a final proposal will be drafted and presented to Parliament. Any further amendments will be considered before it returns to Parliament for general approval. If approved, it will be sent to the President for ratification or reconsideration.

There will be a great deal of media hype around this matter. Sable International, alongside its partners in Portugal, will be active in the public hearings over the next period.

For those who are already invested in the programme, it is important to understand that no changes have yet been legislated or approved.

The bigger underlying question, which will have to be debated, is whether the Portuguese parliament can change the terms of the Golden Visa for those already invested in the programme.

- Andrew Rissik, Group International Director at Sable International