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Wealthy South Africans are choosing to live the good life in Portugal

By Sable International 28 January 2020

Just voted the best tourist destination in the world by the World Travel Awards, Portugal is becoming the destination of choice for South Africans looking to live and invest their money elsewhere. Most popular is the Portuguese Golden Visa Programme which gives Saffers a Plan B or the option to go and live in Portugal for a minimum €350,000 investment.

John Dunn, emigration specialist with Sable International, says that the increase in enquiries and investments in Portugal by locals has more than doubled in the past year, as South Africans realise the benefits of basing themselves there. 

“The Portugal Golden Visa allows you to live and work in Portugal, and affords you the right to visa-free travel throughout the European Schengen Area. After five years, you and your immediate family can qualify for permanent residence and potentially citizenship – it’s good Plan A or B for people considering emigrating,” says Dunn.

“Portugal is very comfortable for South Africans, English is widely spoken and the standard of living is really good, plus you’re well situated in Europe. And for people not ready to leave South Africa yet, but looking at setting up in Europe, Portugal has a very low minimum stay period of 35 days within five years.”

Routes to a Golden Visa 

Dunn says there are four ways people can obtain a Golden Visa: “Firstly a €1 million capital investment – This can be in the form of a fund deposit into a Portuguese bank account, the purchase of Portuguese stocks and bonds or a company investment.  

“Secondly, you could create 10 jobs – If you employ 10 workers at minimum wage and all employees pay social security you can qualify for a Golden Visa. There is no minimum investment for this route. 

“Another route is by purchasing a property of €500,000 or €350,000 – This is a popular option among investors. You must purchase a property, or multiple properties, with a minimum value of €500,000. The property you purchase can be rented out.”

The €350,000 category focuses on stimulating redevelopment of old, dilapidated buildings in what the government refers to as “regeneration zones”. You can invest in eligible properties that are over 30 years old or buildings located in an urban regeneration area. The property purchase price combined with the ex-VAT value of the rehabilitation work contract must equal at least €350,000.

Golden Visa investment options

According to Golden Visa requirements, a €350,000 investment can be made in a number of ways:

  • Real estate rehabilitation: This category focuses on stimulating redevelopment of old, dilapidated buildings in what the government refers to as “regeneration zones”. You can invest in eligible properties that are over 30 years old or buildings located in an urban regeneration area. The property purchase price combined with the ex-VAT value of the rehabilitation work contract must equal at least €350,000.
  • Invest in research: Invest capital of at least €350,000 in research conducted by accredited institutions that are part of the national scientific and technological system.
  • Invest in an existing business: Invest in a business with a registered office in Portugal. A minimum amount of €350,000 must go to either incorporate or increase the share capital and create a minimum of five full-time permanent jobs for a minimum period of five years.
  • Invest in private equity funds: This is one of our most popular investment options, and involves an investment of €350,000 in regulated private equity funds. This can be an easier option for some as it avoids the hassle of looking for property and subsequent management.

Speak to a professional 

“Undergoing this type of process alone leaves you exposed to unnecessary risk. If you’re looking at buying a property for anywhere between R7 million and R10 million, there is a certain amount of risk involved in the real estate investment. To do this in a foreign country and currency adds to that potential risk,” says Dunn. 

“Sable has key partnerships with legal advisors and consultants in Portugal across all critical areas, and we help people navigate the process.”

Sable International is offering a series of free and informative seminars to discuss global citizenship by investment, residency and offshore investment options & considerations:  

  • JOHANNESBURG – Southern Sun Hyde Park, Sandton, Tuesday 25 February and Wednesday 26 February 2020
  • PRETORIA – The Regency Conference Centre, Menlyn, Thursday 27 February 2020
  • BLOEMFONTEIN – Protea Hotel Willow Lake, Tuesday 3 March 2020
  • STELLENBOSCH – Stellenbosch Golf Club, Friday 28 February 2020
  • CAPE TOWN – Marriott Hotel Crystal Towers, Century City, Wednesday 4 March and Thursday 5 March 2020

For more information click here 

Email: [email protected] Tel: +27 (0) 21 657 2120

 

About Sable International
Sable International is an expert in helping small to medium-sized businesses, private individuals and clients with international interests. Their clients are often global citizens with family, offices, suppliers, clients, property or wealth overseas.

They’ve built a business out of specialising in cross-border financial and immigration advice and solutions. They tailor solutions that help their clients maximise outcomes in the shortest time possible.

Sable International offers holistic, full-service solutions through their citizenship, residency, wealth, tax and forex divisions for those looking to internationalise themselves, their wealth or their business.

www.sableinternational.com

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