Real Estate Investor Magazine South Africa September/ October 2019 | Page 49

T
here are a wide variety of Permanent Resi-
dency (PR) programmes to choose from in
the European Union (EU) but some coun-
tries have more benefits than others for South
Africans based on cost, language, safety, health,
education, work and business opportunities,
convenience of transaction and quality of life.
Jenny Ellinas of Cypriot Realty, Costas Souris of
Quality Group and Andrew Rissik of Sable Inter-
national say they have received a massive in-
crease in enquiries this year for both residency
and citizenship programmes in Europe.
The comparison exercise for investors often
becomes tainted by emotional factors, so to
evaluate the best let’s try being logical. Many SA
families want a Plan B in their back pocket if living
in South Africa becomes for many and various
reasons untenable. For others it is about retaining
standards of living in an environment where the
Rand is self-destructing. If you as most do enjoy
goods and services which mostly come from
abroad, you must ensure that your purchasing
power is measurable in a hard currency.
Just like Portugal and Greece, Spain offers
a Golden Visa Program for non-EU citizens to
get residency. If you have 500,000 EUR you can
invest into a real estate property, you will gain
family residency. Every two years, you renew
your residency and after five years it is possible
to gain permanent residency. Then, after ten
years, citizenship. It is not necessary to live in
Spain in order to retain and renew the residency
visa permit and suggestion would be to avoid
spending more than six months there since this
will qualify you to pay taxes in the country.
However, the three countries that come out
best for South Africans that use the €uro, and
offer the are Cyprus, Portugal and Malta based on
REImag’s research.
The top three EU countries - Cyprus,
Portugal and Malta
All three countries offer beautiful beaches with
clean waters and a rich diversity of culture and
gastronomy. The quality of life and personal
safety is excellent. So how does one choose which
country would suit a young family? If you don’t
speak Portuguese, then Malta and Cyprus both
former British colonies are the easier choice as
they both are mainly English. Other advantages
if one comes from a commonwealth country is
the familiar legal and governmental practises;
and you drive on the left. Cyprus is most geared
for sports and leisure and has an enviable factor
of 4: 1 in respect of local population versus annual
tourism which drives the wide variety of activities.
Golden VISA Permanent Residency
(PR) programmes
PR programs give the right to a family to relocate
to their chosen country now or in the future.
With their RSA passport and PR card they have
automatic rights to visit or live permanently
in their chosen country. The least expensive is
Cyprus at €300 000. The cost of the immigration
application in Cyprus is also the least expensive
at €8400 for a family with young children. The
process is also the fastest, and most assured route
to EU Citizenship by naturalisation within 7 years.
Malta offers two PR routes. Either purchase for
€350 000 or rent for a minimum of five years at
a minimum rental of €16 000pa. Portugal allows
€500 000 to purchase anywhere or €350 000 per
annum on regeneration projects in preselected
areas (Older than 30 years) Malta and Portugal
offer Schengen visa with Cyprus about to enter
the system.
ECONOMIC & TAX
Passive Income & Education
If you are wanting to maximise passive income
after tax then Cyprus is the only answer. All
three countries offer very good educational
opportunities with Cyprus and Malta offering dual
degrees through British aligned universities.
POPULATION & TOURISM STATS
IMMIGRATION – Family of 4 people
What environment do you feel safe in? Is familiarity
of culture and systems found in commonwealth
countries comforting? Is price and immigration
fees a big issue? Passive income by rentals is
equally important, and most of all the return after
tax.
The best way to decide on a property and
programme is to go and see for yourself on an
inspection trip to Cyprus. Both Quality Group
offers complimentary 3 nights’ accommodation
at a 5-star hotel accommodation in Larnaca
while Cypriot Realty offers 3 nights in a 5-star
hotel in Paphos. They both arrange customised
and personalised inspection tours at your
convenience.
SA Real Estate Investor Magazine SEPTEMBER/OCTOBER 2019
47