February 27, 2023
Investing in property abroad? What your Foreign Exchange provider should be offering you.
Residence by investment programs are becoming more sought after by South Africans looking to either emigrate or secure residency by investing in a property abroad.
Greece has increasingly become a popular destination where currently a EUR 250,000 real estate investment can qualify for residency in the country and citizenship can be achieved after seven years of residence. The rental yields on property investments have consistently shown positive returns. The Greece Golden Visa Program is considered one of the most affordable residency by investment programs that provide access to Europe. However, legislation has already been passed to increase the required investment to EUR 500,000. These changes come into effect on 1st May 2023.
For those investors looking to secure alternative citizenship in the EU in the shortest time, Malta may be the right option. It requires a combination of property investment, non-refundable contribution, and charitable donation. Investors will receive their residency card within weeks of applying and are eligible to make their citizenship application a year later.
If it is a green card for the US that you are after, then the EB5 program would be the right choice for you. Investors are required to invest a minimum of USD 800,000 in a government-approved project to qualify for green cards and ultimately, US citizenship.
Grenada’s citizenship by investment programme is a favourite for South Africans seeking global mobility and the security of a second passport, without the complexities of moving abroad. With a minimum investment of USD 220,000 in a government-approved real estate development, one can secure citizenship within 4-6 months. This programme offers the added benefit of additional family members being included under a single investment and eligibility to apply for an E2 treaty investor visa, if they ultimately want to end up in the US.
Apart from the idyllic island life, Mauritius also offers a strong economy with low taxes and no capital gains tax for a minimum property investment of USD 375,000. Seychelles, also the second richest country in Africa, offers a similar opportunity for USD 1 million.
To maximise the purchasing power of your foreign currency, we recommend that individual’s partner with a reputable specialist foreign exchange provider that can offer you the most competitive exchange rates to make your money go further.
With target rate alerts and automatic market orders, your provider can help ensure that you never miss out on a favourable market price and with dedicated dealing, they can help manage your currency risk by securing exchange rates in advance.
It is also advisable to seek out a well-established foreign exchange provider that has significant market volumes to ensure that you get the most competitive pricing.
While good pricing is a very important consideration, your specialist foreign exchange provider must also be able to assist in ensuring that all exchange control requirements are complied with. They should also be able to assist you in obtaining a Foreign Tax Clearance Certificate from SARS, required for transfers utilising your annual individual Foreign Capital Allowance of up to R10 million per calendar year (ending 31 December).
With peace of mind that your currency transfer is in capable hands, you can focus your time on finding the perfect property.
Currency Partners can refer you to our trusted immigration partner to tell you more about the various options, while we will handle all the complexities of obtaining your Foreign Tax Clearance Certificate from SARS, as well as manage any exchange control matters and applications as a complimentary benefit of our service.
To speak to an expert, please email email@example.com or call us on +27 21 203 0081.
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