Tax changes to become effective in March next year would see those retaining SA residency/citizenship while working overseas being taxed twice on income, which may be contributing to the exodus. Earlier this week, Xpatweb, an expatriate management network in South Africa, said it had seen a 364% increase since last year in South Africans expressing interest in applying for a second passport. Director Marisa Jacobs said this was based on “the statistics of increased enquiries we have received”. “We are not sure if this is because of our prominence in the market or a reflection of the market as a...

Tax changes to become effective in March next year would see those retaining SA residency/citizenship while working overseas being taxed twice on income, which may be contributing to the exodus.

Earlier this week, Xpatweb, an expatriate management network in South Africa, said it had seen a 364% increase since last year in South Africans expressing interest in applying for a second passport.

Director Marisa Jacobs said this was based on “the statistics of increased enquiries we have received”.

“We are not sure if this is because of our prominence in the market or a reflection of the market as a whole.”

The apparently turbulent future of the country was “driving record numbers of South Africans to apply for second EU passports”. This option was increasingly being seen as plan B.

“South Africans are looking to their future and their children’s, so having the opportunity to study and work in any country across the EU is appetising.

“Ease of travel is also a key reason, with the SA passport allowing access to 102 countries, but excluding the world’s biggest economies such as the US, UK, Europe and its Schengen area and Canada.

“A Cyprus passport allows visa-free travel to 169 countries, Greece 183, Malta 182 and Portugal 184. Thus travel, education, employment, business opportunities and a better future are key reasons for the record numbers of South Africans in the past 12 months applying for EU passports.”

Global Migration SA managing director Leon Isaacson said second passports could be obtained by applicants “who have family roots in specific countries, and by those who qualify based on investment, net worth and skills”.

Peter Farmerey, from international moving company Biddulphs International, said only the more wealthy South Africans would be able to obtain citizenship through an investment. Jacobs said that to meet the requirements to financially emigrate, one must intend to move abroad permanently.

“The process includes an SA Revenue Service and Reserve Bank process and largely depends on a person’s circumstances.”

South Africans were also setting their sights on Mauritius, which required an investment of $100,000 (R1.5 million). – jenniffero@citizen.co.za

Grenada’s terms for citizenship are alluring

Citizenship via investment in under nine months and visa-free travel to 143 countries, including the EU Schengen area, UK, China, Singapore and Hong Kong, are seeing Grenada in the Caribbean drawing attention from South Africans.

They include those seeking a holiday home with sound investment potential plus rental income from a growing tourism base, according to Chris Immelman, head of Pam Golding International.

“With no need to visit Grenada during the application process, minimal processing fees and no physical residency required, investors and those looking to acquire second citizenship are finding this a very appealing option,” he said.

“Grenada’s CBI programme only requires a minimum investment of $220,000 (R3.3 million), with no interview, management experience or qualifications necessary.”

Coupled with this, Grenada has a source-based taxation system, so tax resident citizens are not subject to Grenadian tax on foreign income, nor do they pay any wealth, gift, inheritance or capital gains tax.

Expert tips

Xpatweb has shared a few facts relevant to four of the most popular countries for South Africans to move to and how the process to obtain a visa works.

Greece

1. Investment from €250,000 (R4.1 million).

2. Then application for residency is made.

3. After seven years, citizenship and passport can be attained.

4. No residency required during process.

Portugal

1. Investment from €280,000 (R4.6 million).

2. Then application for residency can be submitted.

3. After five years, citizenship and passport can be attained.

4. No residency required during process.

Malta

1. Investment from €1.15 million (R24 million).

2. Then immigration application is submitted.

3. Passport can be attained in 12 months.

4. No residency required during process.

Cyprus

1. Investment required of €2 million (R33 million).

2.Then immigration application is submitted.

3. Passport can be attained in six to eight months.

4. No residency required during process.

For more news your way, download The Citizen’s app for iOS and Android.