Your FAQs answered: Exploring global citizenship and investment options

In an uncertain climate, having an international plan B for you and your family can give you peace of mind. How do you make this happen, and what does it look like? Sable International discusses a few common options, including those that let you stay in SA and enjoy the lifestyle you’ve worked hard to achieve. 

>>> Visit Sable International at the Global Citizenship and Emigration Expo in October and November to discuss the best options for you and your family.

Take up a second passport or residency 

SA allows for dual citizenship, so taking up second citizenship is a great way to secure the future while remaining in SA for the time being. You can achieve this in a few different ways depending on your personal circumstances.

A second passport through ancestry

If your parents or grandparents were born in another country, you may be entitled to second citizenship through ancestry. Even if you do not intend to ever leave SA, there are many benefits to claiming this citizenship, such as acquiring a more powerful passport that provides enhanced global mobility. 

UK nationality law

The UK, in particular, has complex rules about who can claim citizenship through ancestry. This is partly due to the scope of the former British Empire and the number of agreements made with separate colonies and territories as they won independence. 

It's also partly due to ever-changing laws that are being brought in line with modern values. For example, the most recent changes took place earlier this year to combat discrimination. If you were previously told you didn’t qualify for UK citizenship through a UK-born ancestor, you might now be eligible. 

Residency and citizenship through investment

If you don't have ties to another country through ancestry, or you would like to explore alternative routes to second citizenship, then investing might be the answer. 

Governments around the world have introduced residency- and citizenship-by-investment options to boost foreign direct investment. These varied programmes offer investors passports or residency rights in exchange for a significant financial contribution, sometimes in the form of a property investment, investment into an approved fund, or donation. 

A few of Sable International’s favourite programmes include:

• Portugal’s Golden Visa programme — Allows you to put the full investment amount into a property or a private equity fund, where it has a chance to grow.
• Grenada’s citizenship-by-investment programme — There’s no requirement to travel to the island before, during or after the citizenship process is complete.
• Irish Immigrant Investor programme — The only passport that allows settlement in both the EU and UK.
• Malta’s Exceptional Services by Direct Investment programme — The fastest route to an EU passport available. 

Immigrate using a work visa

The two most common methods of moving overseas are through family connections (an ancestry visa, or spouse who holds a second passport) or for work. 

To move to a new country on a work visa you need to possess a skill that’s in short supply in that country. Governments keep lists of desired skills and occupations that you can find easily online. 

While immigration systems vary from country to country, two popular destinations for South Africans are Australia and the UK.

Emigrating to Australia

Australia has two different systems for bringing needed skills into the country: general skilled migration and employer-nominated visas. 

To migrate to Australia through general skilled migration, you need to earn a minimum number of points, which are awarded for factors such as your age (you must be under 45), work experience, and qualifications, among other factors. For this visa type, you don't need to find work with a specific employer, but you do need to be invited to apply by the government after submitting an expression of interest. 

Generally, someone whose occupation is desperately needed in Australia will be selected over someone who scores more points.

To migrate through an employer-nominated visa, you will need to find a job in Australia with a company authorised to hire foreign workers. Having a good deal of experience in your field and relevant qualifications will work to your advantage here.

Some areas of Australia are easier to migrate to than others. While the big cities generally have enough skills, there are greater shortages in the regional areas. If you are unable to find your occupation on the general skills shortage list, it’s worth trying the regional lists. And if you’re unable to find work with an employer in Sydney, Melbourne or Brisbane, you might want to look in smaller towns or cities such as Perth and Canberra. 

Emigrating to the UK

The UK has recently switched to a points-based immigration system, similar to Australia’s. The main difference between the countries is that the UK does not have a general skilled migration route. You will need to find work in the UK with an authorised employer and meet a points threshold to be able to move to the UK on a Skilled Worker visa. 

Most of the points will come from having a job offer from a licensed sponsor, the right skill level, and English language skills. Other points are awarded for your occupation, salary (there is a minimum requirement, based on the type of work you do), and qualifications. Unlike Australia, there is no age cap for Skilled Worker visas. 

Internationalise your business

If you have founded your own business, an alternative to moving overseas might be expanding your business to another country. While, in some cases, this is a method that can be used to emigrate, the primary benefit is the ability to earn an international income and reach a wider market. 

Expand your business to the UK

The UK is an investor- and entrepreneur-friendly country, making start-up costs for businesses lower than in most other developed countries. Setting up a branch or subsidiary in the UK is relatively painless, provided you have the right advice and assistance. 

If you wish to, you can move to the UK temporarily using the Expansion Worker visa to set up your UK entity. Once the business is set up, you may be able to sponsor yourself to stay using the Skilled Worker route. However, moving to the UK is not required and you can continue to run your UK entity from SA. 

Start a business in the UK

Suppose you have a new business idea for something not available in the UK. In that case, you may also be able to move to the UK with your family to start your business there using a Start-up or Innovator visa. As with the Expansion Worker route, you will need to eventually switch to another visa if you want to settle permanently in the UK. 

Move your business to Australia

If you own and run a successful business, you may be able to move the business (and your family) to Australia using the Business Innovation visa. Your business will need to have an annual turnover of at least AU$750,000 and you, and/or your partner, will need to have net assets to the value of at least AU$1.25m.

The cut-off age for most Australian visas is 45. However, the cut-off for the Business Innovation visa is 55 and the government can choose to waive this requirement if your proposed business will be of exceptional economic benefit to the nominating state or territory. The Business and Innovation visa is temporary and can be converted to a permanent residence visa after three years of living in Australia and managing a successful business with turnover benchmarks.

Retire overseas

Some countries have visas designed for retirees or those who are earning a passive income. For example, Portugal’s D7 visa.

Portugal D7 visa

If you’re drawing a pension or other qualifying passive income (such as real estate income, returns from investments, dividends, royalties or profit shares), you may be able to apply for the D7 visa to live or retire in Portugal.  This income has to meet or be above Portugal’s national minimum wage. 

D7 visa holders enjoy the right to live, study and/or retire in Portugal. However, you may not work there. There are great tax benefits to residing in Portugal while receiving a foreign pension and you can enjoy visa-free travel throughout the Schengen area for up to 90 days in each six-month period. 

Investing offshore

Even if you don’t want to leave SA at present, sending some of your wealth offshore can provide a safety net should you, or your family, need it in the future.

You can now externalise up to R1m a year without requiring special tax clearance, through a single discretionary allowance (SDA). All SA residents over the age of 18 are also entitled to move an additional R10m out of the country with an application to the SA Revenue Service (Sars). This is known as your foreign investment allowance (FIA). 

By planning in advance, you can move a significant portion of your wealth offshore so it’s available later should you need it. 

Creating a global financial plan

When you consider that SA’s economy only represents 0.31% of the world economy (as of 2021), and the total number of companies listed on the JSE is now at a record low, and shrinking, investing in global markets makes a lot of sense. 

If you’re considering emigration in the short term or distant future, building a financial plan and relationship with a financial adviser that can move with you globally is essential. A cross-border specialist understands the tax implications and complexities that the average local adviser might not be aware of. When it comes to emigration and tax residency changes, you want to be sure that you avoid creating a number of negative knock-on effects for your investments and tax planning.

An independent financial service provider with experience in the offshore space can find a suitable investment solution for you, whether it’s an offshore general investment account, portfolio bonds or retirement annuity trusts.

Offshore real estate

Contrary to popular opinion, real estate investment outside SA is attainable and, in many cases, you can even qualify for a mortgage with a better interest rate than you’d find on local property in SA. 

Buying property offshore cannot only generate a foreign-currency rental income or yield, but also provide an asset that can be passed down to future generations. 

Give your children an international education

Many SA parents feel like the best way to give their children a good future is to move the family overseas. However, this is likely to mean a period of upheaval for everyone and numerous lifestyle sacrifices. 

To secure a bright future for your children, an alternative is to send them abroad for their tertiary qualifications. As the Western world starts to feel the effects of its ageing population and skills shortages become more pronounced, more countries are introducing post-study work visas and opportunities to encourage graduates to stay on. 

Countries such as Australia, the UK and the US already have these programmes in place. However, choosing the right vocation and area of study is essential for the best possible chance at permanent settlement post-study. 

The Explore analysis and report

Your situation is unique and your plans should be too. The Sable International Explore analysis and report offers a comprehensive breakdown of your options and a tailored plan for the future based on your individual situation. 

Drawing on expertise across Sable International and up-to-date research, the report will cover your family's options with regard to:

• any second passports you may be eligible for;
• immigration options to get residency in potential jurisdictions;
• citizenship-by-investment programmes you may qualify for;
• lifestyle, wealth, income and spending analysis and comparison;
• advice on international study options for your child’s education; and
• skills and vocation planning.
  
  

>>> Purchase your Explore Report today or visit us at the Global Citizenship and Emigration Expo from October 27 — November 9 in Johannesburg, Pretoria, Durban and Cape Town to discuss your options. 

Alternatively, call +27 (0) 21-657-1507 or email explore@sableinternational.com.  

This article was paid for by Sable International.