While global travel remains off the cards for many, an increasing number of countries are creating schemes to lure foreign investors back to their shores to help restore Covid-hit economies.
The rise of the digital nomad and work-from-anywhere trends have further supported the introduction of “golden visa” or “residency-by-investment” programmes. Such initiatives — residency offered in return for a fixed investment, typically in property — often lead to the acquisition of a second passport.
It’s generally a win-win: governments gain much-needed foreign funds to boost local economies, while investors gain access to visa-free travel and opportunities to live, work and study abroad — usually with the added allure of tax benefits.
Migration investment specialists such as Henley & Partners have reported renewed interest in these schemes among wealthy South Africans in recent months. Most are looking for a “plan B” as a hedge against political, economic and currency instability.
Mauritius, Portugal and the Mediterranean islands of Cyprus and Malta until recently ranked as the most popular investment migration destinations among SA’s high net worth individuals. The minimum investment required has generally been in the region of €500,000. However, some countries have recently lowered the entry requirement to €280,000-€350,000.
A number of new opportunities are also coming to the fore. For instance, Montenegro, in southeast Europe, now offers a relatively quick and easy route to a second passport.
Amanda Smit, who heads Henley & Partners’ SA operations, says full Montenegrin citizenship can be obtained within six months in exchange for a direct investment starting from €350,000. Only one visit to the country is required to provide biometrics, and no physical stay is necessary.
She says travel freedom is a major draw card. So too is the fact that Montenegro is an official EU candidate country, with EU membership expected to be granted in 2025. That means citizenship offers the potential future right to live, work and study in any EU member state.
Countries that have introduced residency or citizenship initiatives this year include the United Arab Emirates, Saudi Arabia, Kenya, Oman and Russia. Zanzibar, the Indian ocean island off the coast of Tanzania, last month also launched a tax and residency investment scheme. It allows foreigners to buy property in government-approved strategic investment status (SIS) projects — and acquire a residency permit in the process.
Residency permits, which offer tax and other benefits, are also available to foreigners who invest in local business ventures, including restaurants, bars, water sports and retail operations. No minimum investment amount or minimum stay is required.
Blue Amber Zanzibar is the island’s first SIS-approved project. It’s a luxury mixed-use beach resort development spread across 411ha along the Muyuni coastline.
Blue Amber developer Pennyroyal is selling two-, three-and four-bedroom villas for $197,000-$525,000.
Though not a new programme, Italy offers non-EU citizens two residency routes, via an investor visa and through an elective residence visa. Both are known as “type D” visas and people can apply directly at the Italian embassy or consulate.
The investor visa requires that foreigners make a single investment in “strategic assets”. This includes either a minimum investment of €2m in bonds issued by the Italian government with a minimum residual maturity of no less than two years; a minimum €500,000 investment in a listed or unlisted company that’s incorporated and operating in Italy; a minimum €250,000 in an official list of innovative start-ups; or a minimum philanthropic donation of €1m.
Once holders of an investor visa enter Italy, they must apply within eight days at the local police headquarters for a two-year residency permit, which is renewable for further three-year periods for as long as their original investment in Italy is maintained.
The elective residence visa is aimed at foreigners who want to relocate to Italy, either by buying or renting a property, and who are able to support themselves. Those who apply for an elective residence visa therefore cannot work in Italy and must provide proof of a minimum income of €30,500 per person per year.
The visa is valid for one year and can be renewed indefinitely, as long as you maintain your residence in Italy and meet the income requirements. Visa holders are allowed to travel within the Schengen area for up to 90 days every six months. To qualify for Italian citizenship, non-EU residents must live in Italy for at least 10 years.
*A previous version of this story stated that South Africans looking to relocate to the EU without having to buy property qualify for a new Italian investment migration scheme, with an entry requirement of €100,000 that is “gifted ” to the Italian government to fast-track the purchase of a residency permit, followed by citizenship and a passport within one year.
SA real estate agency Chas Everitt International was looking to team up with Umbria-based Italian financial services consultancy Arkadia to promote the programme to SA investors. However, Berry Everitt, CEO of Chas Everitt International earlier this week said the property group will no longer be associated with Arkadia as it was made aware that the programme is not authentic.
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