There are many restrictions for South Africans attempting to do business offshore. Through dual nationality, or residency in another country, entrepreneurs are able to put overseas structures in place and set up bank accounts offshore, without having to relocate. In addition, visa-free travel is simpler and more agile.
Which countries should South African entrepreneurs consider?
Portugal and Grenada currently offer two of the best options for investment migration, enabling residency or citizenship without the need to spend extensive time in either country.
From a residency perspective, the Portugal Golden Visa offers a route to Portuguese citizenship without having to live full-time in Portugal. This programme not only allows the holder to live and work in Portugal, but also affords them the right to visa-free travel throughout the European Schengen area.
It’s important to note that in October 2023, Portugal removed the purchase of real estate as a golden visa qualifying investment. However, the investment requirement is now available through investing €500,000 into a qualifying investment fund.
Through the Portuguese residency programme, holders can qualify for permanent residency and apply for citizenship after five years.
You don’t need to spend much time in the country, as holders are only required to spend an average of seven days a year in Portugal. However, it doesn’t hurt to spend longer in the country if you are aiming for Portuguese citizenship in the long term, as this fortifies your genuine ties to the country.
Besides the flexible minimum stay requirements, a key aspect of applying for citizenship is the need to demonstrate an A2 level of the Portuguese language. A key aspect of applying for citizenship is a language test. This can be done through sitting a formal A2 level exam, or applicants can opt to pursue an intensive in-person or online language course where the A2 course content is broken down into key modules. Both routes will test your understanding of the language and your ability to communicate in Portuguese.
Another popular solution is the Grenada Citizenship-by-Investment Programme, as it’s one of the most cost-effective Caribbean options. To qualify for citizenship, the applicant needs to invest $270,000 into a government-approved real estate project.
What makes Grenada such a viable option for South Africans is that you don’t need to travel to Grenada before, during, or after the process is complete. The programme is fully remote, and can be processed from South Africa as everything is filed electronically. The interview takes place online, and once passports are issued, they are sent to the applicant’s home country.
The Grenada passport allows holders to live and work in Grenada, and also in other CARICOM member states, including Antigua and Barbuda, Dominica, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines. Grenadian citizens also have visa-free access to 140 countries, including the Schengen area, the UK, China, Hong Kong and Brazil.
What benefits will your family enjoy?
With the Portugal Golden Visa, the main applicant’s spouse and minor children (under 18 years) are included. For adult children to be included on the application, they need to be single, i.e. unmarried, and they need to be fully financially dependent on the main applicant. Also, they need to be enrolled in tertiary education.
For example, if your child is 24 years old, and intends to study medicine, and plans on being enrolled in tertiary education until they’re 30 years old, technically, they can still be included on the application.
Parents between the ages of 55 and 64 can be included on the application, but they would need to be financially dependent on the main applicant. Once parents are aged 65 and above, there’s no requirement to prove any adult dependency as they are of retirement age.
In terms of Grenada, your spouse is included, but the main applicant needs to supply a marriage certificate, and so lifetime partnerships or common-law spouses unfortunately do not qualify. Minor children are included, as well as adult children under the age of 30, provided they are dependent on the main applicant.
Adult children don’t need to be enrolled in full-time education, but they should not be engaged in any full-time economic activity; they need to be financially dependent on the main applicant.
Parents can be included on the Grenada application, but they need to be financially dependent on the main applicant.
Single siblings can also be added to an application for Grenada, but the government levies an additional non-refundable contribution sum to the total application costs for the inclusion of a sibling.
Ultimately, for South Africans, having the right passport or residency can enable entrepreneurs to be in the right place at the right time, to do business, especially in a turbulent economic environment.
* Young is an investment migration manager at Sable International.
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