Top 3 European residency- and citizenship-by-investment programmes for South Africans
Wealthy South Africans looking to future-proof themselves against a volatile economy, weak currency, and a lack of global mobility are opting for a number of residency- or citizenship-by-investment programmes in Europe.
Andrew Rissik, managing director of Forex and Investment Migration at Sable International, suggests three programmes that meet the needs of most South Africans looking for a second residency and/or citizenship.
What are residency- and citizenship-by-investment programmes?
Residency-by-investment (RBI) and citizenship-by-investment (CBI) are terms for a number of programmes offered by governments around the world that allow someone to invest in a country’s economy in exchange for temporary/permanent residency or citizenship.
Whether it is residency or citizenship is dependent on the country’s programme. Each country has different requirements and different investment options.
The benefits of the top three residency- and citizenship-by-investment choices
While each programme offers unique benefits, there are some benefits that all the programmes on this list share, such as:
- Tax benefits
- Global mobility
- Financial protection – you can open an offshore bank account and diversify your investment portfolio
- Immediate family members can be included on all programme applications
- All countries on this list allow dual citizenship and will allow you to retain your South African citizenship
The factors that have influenced this list include:
- Global mobility – these programmes can all lead to a strong passport, promising visa-free access to up to 187 countries.
- Physical presence – these countries require a low physical presence in the country to obtain or maintain residency, so there’s no need to relocate if you don’t wish to.
- All programmes offer some form of return on investment (ROI)
- Other monetary factors – besides ROI, there are other financial benefits to these programmes, such as favourable tax and wealth laws.
The Immigrant Investor Programme – Ireland’s investor visa
Ireland has become an attractive destination to many multinational companies, who have chosen it as the home for their European headquarters. This is because Ireland has one of the fastest-growing economies in the European Union (EU) and maintains a high position on the list of Europe’s top destinations for foreign investment.
Ireland has a high standard of living and ranks high in earnings, education, security and health.
Ireland’s Immigrant Investor Programme, also known as Ireland’s investor visa, is a residency-by-investment programme and not a citizenship-by-investment programme. However, this programme remains appealing for two reasons: Its low residency requirements and the business expansion opportunities.
Investors are granted a Stamp 4 visa (Irish permanent residency) which grants you full residency and working rights and you can start a business in Ireland too. If you are not yet ready to relocate to Ireland, you can retain this Stamp 4 visa with just one day a year spent in Ireland. Ireland’s investor visa also includes dependent children up to the age of 24, provided they are financially dependent on you and in full-time education.
To qualify for the Immigrant Investor Programme, you can make a donation of €500,000 or make an investment starting at €1 million. Ireland’s residency-by-investment can be turned into full Irish citizenship if you relocate to Ireland. The Irish passport is now the only one that offers holders the ability to live and work in both the EU and, through a common travel agreement, the UK.
Portugal’s Golden Visa programme
Portugal tops many impressive lists such as being the fourth best place to retire, fifth on UNICEF’s 2019 list of family-friendly countries, and fourth on the Institute for Economics & Peace’s 2021 Global PeaceIndex. This is coupled with Portugal’s high standard and low cost of living, its breathtaking views of golden beaches and the beautiful mountainous landscape.
While Portuguese winters can be reminiscent of a Cape winter, Portugal enjoys a long, warm and beautiful summer and an overall climate similar to South Africa.
The Golden Visa, Portugal’s residency-by-investment programme, allows holders to live and work in Portugal and travel for 90 days visa-free throughout the European Schengen Area. After holding the Golden Visa for five years, you may be eligible for Portuguese permanent residency and citizenship.
As a Portuguese national, you can apply for a Portuguese passport – one of the strongest passports in the world. Citizenship can be applied for in tandem with permanent residency. The Golden Visa’s physical presence requirement is only 35 days over the entirety of the five years. Portugal also has a range of tax benefits.
Those who spend more than 183 days in Portugal can register for a Non-Habitual Residence tax programme, which makes them exempt from almost all foreign source income tax. There is also no
wealth or gift tax.
The Golden Visa investment options start at €280,000 for a property rehabilitation project in a low-density area within Portugal. Other investment options are available at €350,000, €400,000 and €500,000.
Malta’s citizenship-by-investment programme – Exceptional Services by Direct Investment
Malta’s citizenship-by-investment programme, also known as the Exceptional Services by Direct Investment (ESDI) programme, allows applicants to apply for Maltese citizenship after 12 or 36 months of Maltese residency.
Malta is a beautiful island in the Mediterranean with one of the most stable economies in Europe. Malta offers dual citizenship and Maltese nationality can be passed on to future generations through descent.
The Maltese passport is currently ranked as the seventh strongest passport in the world and allows visa-free travel to 185 destinations. Malta also sits comfortably as the eighth-best place to retire.
Maltese residency can be processed and approved in as little as 60 days and your Maltese citizenship application will be approved in 36-40 months depending on which timeline you choose. This programme requires a large non-refundable government contribution which starts at €600,000 for the main applicant based on an application for citizenship after 36 months.
This is increased to €750,000 should the main applicant opt to apply for citizenship on the expedited 12-month timeline. In addition to your government contribution and residence requirement, the other ESDI requirements include:
- A property lease or real estate investment
- A once-off charitable donation
- By Andrew Rissik, managing director Forex and Investment Migration, at Sable International
Read: More South Africans are moving to this island – as it targets skilled tech and finance workers
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