select
|

Property Investors: benefits of having residency or citizenship in another country

South African investors have the opportunity to obtain residency or citizenship in another country without having to emigrate, or having ancestral ties to that country by making use of a residency or citizenship through investment programme, says James Bowling, CEO of Monarch & Co, a company that specialises in investor and immigration programmes around the world.
 
He notes that for investors to qualify for the programme they have to meet certain requirements.  Such requirements typically include investing in either a business venture or purchasing a property within the country of choice. He says that a driving factor for many investors is the numerous benefits they may acquire from purchasing real estate through a residency or citizenship programme, particularly in countries within the European Union (EU).  “Investors are eligible, through many of these programmes, to enjoy all the advantages of becoming an EU resident or citizen including freedom of travel, ability to study, work or live in any other EU member country and access to some of the world’s best health and education facilities. Investors currently have a wide variety of countries to choose from that offer residency and citizenship programmes with St Kitts & Nevis, Mauritius, Malta, Greece, the USA, Portugal, the UK and Cyprus among the most popular choices.”
Bowling says that by obtaining citizenship in another country, the investor becomes a citizen of that country, which entitles them to carry that country’s passport.  This is a major benefit as the investor will be able to keep their existing citizenship and passport and thus the new passport becomes their second passport. “South African citizens who have dual citizenship and hold foreign passports are able to utilise their second passports while travelling abroad, which allows them to avoid many of the visa restrictions in place for a South African passport holder,” says Bowling.

“In countries such as Seychelles and Mauritius, South Africans receive visas free of charge on entry, entitling them to three months’ residency in a calendar year. However, European Union (EU) countries have far stricter visa requirements for South Africans. In most cases, investors must go in person to the representative consulate – which is often in Pretoria – to apply and pay for a visa. For non-EU passport holders, the advantage of having residency in Malta, Portugal or Cyprus is that it comes with a long-term Schengen visa, which allows entry into most other EU countries, including the UK.

According to Bowling, aside from the travel benefits that a residency or citizenship programme offers, an international property investment is a great way for investors to diversify their portfolios and spread their risk, provided the necessary considerations are taken into account. “Investing in property in another country will also act as a currency hedge against the fall in value of the rand, with investors having the potential to earn capital growth in a foreign currency. High tourism interest coupled with low-tax benefits also makes purchasing property in these jurisdictions a very sound investment,” says Bowling. “In addition, owning an international property provides the opportunity to earn an attractive annual yield from renting out the property and could provide those with the desire for a change of lifestyle the ideal getaway, particularly upon retirement.”
 
Bowling notes another advantage that dual citizenship provides is the ease of relocation for business purposes. “As a citizen of the country, the investor will not have any restrictions with regard to their work or business operations and dealings. Also many of the countries in the citizenship programmes have taken steps to unlock their economic growth by developing themselves as financial service centres through the creation of a low tax jurisdiction, thereby making it attractive for individuals and corporates to make the country their new tax domicile,” explains Bowling. “The low-tax benefits and ease of travel between member states of the EU make these countries ideal business locations.”
 
He concludes by saying that a residency or citizenship programme can provide investors with lifestyle security and the assurance that they have easy access to the majority of countries within the European Union.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK