FAQ - Proprietas

General

How much can investors invest offshore?

Currently, an individual over the age of 18 may invest a total amount of R11 million offshore per calendar year. This consists of a R10 million foreign capital allowance and a further R1 million discretionary allowance. No tax clearance is required when investing the R1 million discretionary allowance, but investors need to obtain tax clearance from the South African Revenue Service (SARS) to utilise the R10 million foreign capital allowance.

Our South African legal partners STBB will gladly guide and assist in this respect.

Which real estate investment is best for me?

This really depends largely on your key objectives, budget, and timelines. Finding that delicate balance between pure investment returns in hard currencies and/or future lifestyle choices is the salient issue, really. This always-asked question will be discussed in detail in our first free no-obligation discussion when we contact you from an inquiry made.

No shoe fits all and our local team and over twenty expert partners abroad will guide you in a very personal and trusted way. Many of our clients become great friends. We love it.

How many family members are included in these programmes?

Again, this varies from country to country and also with varying conditions, costs and ages limitations. Our biggest family successfully applied for consisted of 11! Both parents, both sets of grandparents and five children, some at school and some at university.

What is the difference between domicile (citizenship) and residence?

Whereas domicile means living AND working in the country, residence simply means living in the country. Many complicated tax issues can arise with legal domicile as it often controls jurisdiction with respect to taxation-particularly inheritance tax.

Efficient tax structuring is a very important part of the decision-making process and our tax-planning partners are well versed in these challenges.

What about health and life insurance policies and regulations?

Most of the prime investment destinations for the Golden Visa programs require adequate health insurance (medical aid) aspart of the process when applying.

Proper health insurance planning is an important element in the residence planning.

Some medical aids offer cover only in specific countries whilst others offer a broader option.

Regardless, international health insurance plans offer a multitude of comprehensive medical cover when you eventually live and possibly work outside your home country.

Again, our partners and associates will be there to guide you along the way.

What is citizenship by investment?

Many countries around the world have programs that allow individuals to obtain citizenship and a second passport by investing in a participating country. This investment is in the main via real estate investments with minimum qualifying criteria, investing in government bonds or even making a capital transfer. The investment requirements and costs associated with the investment vary depending on the chosen program.

Do I have to relocate to get a residency permit?

Many countries do not require you to relocate to obtain a residency permit. Portugal, for example, requires Golden Visa holders to spend seven days in the country each year, or even the option of 14 days combining the second and third year whereas Cyprus requires a visit once every two years. Spain on the other hand requires applicants to spend at least 6 months each year in the country in order to be eligible for permanent residency in year five. Greece is similar.

How long is the residency permit valid?

How long the residency permit is valid for depends on the program and destination country you choose to invest in. With renewal, investor residency permits are usually valid for around five years, and the renewal of the permit is usually dependent upon the initial investment being maintained and some other criteria.

How long does it take to get citizenship by investment?

The amount of time it takes to obtain citizenship depends on the country and the citizenship by investment program. In Malta and Cyprus for example, the process takes less than six months. In Portugal, investors can obtain citizenship in five years, and in Spain it takes around ten years. But importantly, there are a huge number of additional criteria such as costs, tax issues etc. which vary considerably.

Citizenship in the Caribbean, countries such as Grenada or Saint Kitts and Nevis, is swift and relatively inexpensive, yet again serve a very different objective. But then these do not qualify for the European Union citizenship as they are not member Schengen states. Our partners in our Spain and Greece offices are highly experienced to assist should this non-EU objective be important to you

Can I let out my property and how will that work?

No problem. All our real estate partners offer full concierge and management services of properties. This would include sourcing suitable long term or short-term tenants, check in and out procedures, inventory checking, paying of monthly property related costs and taxes and any other specific request you might have.