Where to get a golden visa

Residence and citizenship by investment programmes — also known as golden visa schemes — are still top of mind for wealthy South Africans looking for a hedge against political, economic and currency volatility.

Industry players say real estate-linked programmes, which typically require a minimum investment of R5m-R10m, remain popular, as you’re effectively buying hard currency bricks-and-mortar assets in exchange for the right to live, work, study and travel visa-free abroad. Investing in property as a route to residence or citizenship also offers the benefit of acquiring a holiday pad or future retirement home abroad.

A decade ago, South Africans looking for golden visa opportunities had limited choice — mainly Mauritius and the Seychelles. At least a dozen other countries have since introduced golden visa schemes, including Portugal, Spain, Malta, Greece, Cyprus, Montenegro, the United Arab Emirates (UAE) and the Caribbean islands of Grenada, St Kitts & Nevis, Antigua & Barbuda and the Commonwealth of Dominica.

However, the investment criteria of several residence and citizenship programmes have recently been amended (or will soon be). Others, such as Cyprus and Montenegro, have abolished their schemes in their entirety. Portugal, which has been a standout golden visa destination among South Africans in recent years, no longer allows real estate investments in exchange for residence rights.

Chris Immelman, who heads Pam Golding International, says though Portugal has closed its property-based golden visa programme, it still offers foreigners residence and citizenship opportunities via a private equity fund investment. Pam Golding International recently introduced such a programme, with a minimum investment of €500,000. Investors initially qualify for residence, which can lead to citizenship after five years.

It’s primarily about creating a Plan B, either to allow children to study and work abroad, for future retirement purposes or to ensure increased global mobility
— Amanda Smit

Immelman says there’s still strong interest in residence and citizenship programmes in EU countries, especially among South Africans who want to secure access to education and job opportunities for their children. Another European country that will soon amend its golden visa criteria is Greece which, Immelman says, is appearing increasingly on South African radars.

He points out that the investment threshold for Greece’s residence programme will increase from €250,000 to €400,000 at the end of August. However, Greek residence does not lead to citizenship, as it does with Portugal. In addition, there’s talk of Spain scrapping its golden visa programme due to rising pressure on house prices and stock shortages, which locals blame partly on the influx of foreign investors.

Changes have also recently been introduced to citizenship by investment programmes in the Caribbean. Until recently, the minimum investment requirement for some islands was only $100,000. However, the governments of Antigua & Barbuda, the Commonwealth of Dominica, Grenada, and St Kitts & Nevis have agreed to increase the minimum investment threshold to $200,000. This became effective as of June 30.

These nations have also adopted a shared framework to encourage best practices in terms of regulation and due-diligence protocols.

Amanda Smit, managing partner at wealth migration specialists Henley & Partners in South Africa, tells the FM that Caribbean golden visa programmes have become increasingly popular among South Africans.

Despite the recent move to standardise investment requirements, she says the region still offers the most affordable route to a second passport. Smit adds: “It’s also one of the easiest and quickest ways to obtain increased mobility. And there are limited physical stay requirements.”

Smit argues that most South Africans looking to acquire alternative citizenship don’t want to emigrate physically. “It’s primarily about creating a Plan B, either to allow children to study and work abroad, for future retirement purposes or to ensure increased global mobility.”

She says the mobility issue has become a key driver among South Africans because of the ongoing brain drain, which is leaving thousands of parents and grandparents behind, with limited visa-free travel opportunities, when adult children relocate offshore. “There’s a growing pool of South Africans who want to travel abroad regularly solely to visit children and grandchildren. Acquiring a second passport allows them hassle-free and unrestricted visits abroad.”

Smit notes it’s not only South Africans who are increasingly looking to invest in alternative residence and citizenship opportunities. “Country diversification has become very much a new asset class among high net worth individuals across the globe,” she says.

As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty and social upheaval, millionaires are voting with their feet in record numbers
— Dominic Volek

While not everyone physically migrates to another country when they obtain alternative residence or citizenship, the world’s wealthy are nevertheless relocating at an unprecedented rate. The trend has been supported by the wars in Europe and the Middle East, according to the Henley Private Wealth Migration Report 2024 released last month.

Dominic Volek, group head of private clients at Henley & Partners, says 2024 is turning out to be a “watershed” moment in the global migration of wealth. An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the record of 120,000 set in 2023.

“As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty and social upheaval, millionaires are voting with their feet in record numbers,” he says.

The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024, more than double the 4,200 who left the country last year. The report says the UK has lost much of its allure on the back of rising political and policy uncertainty post-Brexit. In March, Britain also announced it plans to scrap its 225-year-old non-domiciled tax regime, which allows those with extensive wealth overseas not to be taxed on it in the UK.

In stark contrast, the UAE is likely to be the biggest beneficiary of wealth migration this year, with a record-breaking 6,700 wealth migrants expected to relocate to the region in 2024. Volek cites its zero income tax, golden visa schemes, luxury lifestyle and strategic location as some of the UAE’s major attractions.

Other countries that count among Henley’s Top 10 wealth magnets for 2024 include Singapore, Canada, the US, Australia, Italy, Switzerland, Greece, Portugal and Japan. Unsurprisingly, Israel dropped out of Henley’s top wealth migration hotspots after featuring among the top 10 destinations for migrating millionaires for several decades.

The report reads: “This seismic shift underscores how swiftly conflict can unravel a country’s appeal to the world’s wealthy and globally mobile.”

How golden visa programmes stack up

Antigua & Barbuda citizenship by investment programme

Minimum of $200,000 nonrefundable donation or real estate investment
Processing time of three to four months
Visa-free travel or visa-on-arrival to 140 destinations, including Hong Kong, Russia, Singapore, the UK and Europe’s Schengen area
No minimum stay requirement

Grenada citizenship by investment programme

Minimum of $235,000 nonrefundable donation or $270,000 real estate investment
Processing time of seven to eight months
Visa-free travel or visa-on-arrival to 140 destinations, including China, Russia, Singapore, the UK and Europe’s Schengen area
No minimum stay requirement
This is the only Caribbean programme that holds an E-2 Investor Visa Treaty with the US. It allows citizens to be eligible to apply for a nonimmigrant visa after being domiciled in Grenada for a continuous period of three years

Dominica citizen by investment programme

Minimum of $200,000 nonrefundable donation or real estate investment
Processing time of three months
Visa-free travel or visa-on-arrival to 140 destinations, including China, Russia, Singapore, the UK and Europe’s Schengen area
No minimum stay requirement

Portugal golden residence permit programme

Minimum investment of €250,000 in an income-generating and recoverable investment
Processing time from 18 months
The right to live, work and study in Portugal
Visa-free travel in Europe’s Schengen area
Eligibility to apply for citizenship after five years as a legal resident while keeping other citizenship(s)
Low physical presence requirement (seven days during the first year of residence and 14 days for the two subsequent years)

Greece golden visa programme

Minimum investment of €250,000 in real estate (if a 10% deposit is paid by August 31 and the investment is finalised by December 31), or €400,000 after August 31
Processing time of three to four months
Freedom of travel to Europe’s Schengen area
Residence permit renewable every five years, provided the holder maintains a property in Greece

Spain residence by investment programme

Minimum investment of €500,000 in real estate; minimum €1m in an investment fund, bank deposit or listed shares; or minimum €2m in government bonds
Processing time of about 20 days
The right to live, work and study in Spain
Freedom of travel to Europe’s Schengen area
Low physical presence requirement (only to renew residence card after three years initially and every five years thereafter)