FEATURE ARTICLE
Fight or Flight
BY MONIQUE DU TOIT
S outh Africans have been on the edge of their seats for most of 2017. From local political drama, including several cabinet reshuffles, state capture revelations, and economic downgrades, to global crises involving some of the largest economies, you’ d be forgiven for being skeptical and cautious of investing.
But what if that’ s exactly the reason you should? We’ re always looking for the latest hotspots and emerging markets, staying abreast of the most important changes to international legislation and news. If you have any questions about investing offshore, leave us a message at editorial @ reimag. co. za, or visit our Facebook page.
Advantages of offshore property
According to an article by iProtect, offshore investments are becoming increasingly attractive to South Africans:“ Investing in an offshore portfolio means diversifying risk in terms of currency and a country’ s political and economic stability. Investors are no longer limited to a local market but have the choice of investing where they perceive the best opportunities are for a good return on their investment”
Specific advantages of an offshore property investment largely depend on the country in which you’ re investing. Below, we break down the main attractions of some of the most popular locations.
According to a 2016 article on Corpocrat, citizenship through property ownership is possible in several European countries and Caribbean islands- each with varying costs and duration.
In Dominica, for instance, it states that $ 100 000 in real estate or shares can lead to citizenship. It takes between 3 and 5 months to process and leads to a lifetime citizenship. Antigua and Barbuda requires a $ 400 000 investment in government approved property, which leads to citizenship for the entire family. Both Dominica and Antigua and Barbuda offer citizens visa-free travel to the Schengen zone, while Antigua and barbuda also includes travel to Canada and the UK. St Lucia is another popular option, with visa free travel to more than 120 countries, including the UK and Schengen zone. The cost of a citizenship through property ownership here is $ 300 000 into a property or properties approved by the government.
Portugal offers citizens an EU residence permit card, allowing visa free travel within the Schengen zone. Investors looking to gain citizenship here will need to invest € 500 000 in property, after which you’ re granted residency. After six years, this leads to citizenship. In Malta, investors have a choice between residency and citizenship. In the case of residency, an investment of € 275 000 must be made into property, while citizenship requires an investment of € 900 000, of which € 350 000 must be made into property.
10 NOVEMBER 2017 SA Real Estate Investor Magazine