Following what is widely described as a lacklustre Budget 2021 and SONA, Ms Nadia Read Thaele, Founder and CEO of LIO Global, a leading specialist firm in second residency and citizenship by investment, says the demand for Caribbean property as a means to obtain a second passport has spiked.
South Africans are now actively looking for “Plan B” options as well as greater travel freedom, she says. They are concerned not just about the economic outlook for the country but policies around expropriation and taxation of the wealthy.
Investing in a CBI (Citizenship by Investment) programme offers a way of securing a second residency or citizenship with added benefits of access to mainstream destinations such as the USA, UK and Euro Zone for extended periods. These programmes generally allow you to invest in property or pay a sum of money as a government contribution.
Investment in the Caribbean has also been relatively unaffected by the Covid Pandemic, she says further. The Grenadian passport is the most popular and attractive to South Africans as it gives access to work and live in the USA via the E-2 investment Visa Treaty.
A major advantage of the Caribbean programmes is that South Africans do not need to leave home to secure citizenship and there are no language tests or requirement to reside in the countries for any period of time. The countries are also tax friendly jurisdictions.
The costs of these have come down recently making them very affordable even for upper middle-class earners.
The citizenship programmes start from as little as R2,5 million or a property investment of just over R3,3 million for a family of four.
This is basically the price of an upper middle-class home these days or an investment property on the Atlantic seaboard, she adds.
Ms Read Thaele says her company has to date had 100% success rate on applications. The Caribbean programmes offer an easy route to citizenship in as little as three to six months depending on the programme. The passports offer visa-free travel access to the UK and Euro Zone for up to 90 out of 180 days, and either China or Hong Kong depending on the country.
You can choose to make a non-refundable government donation or invest in a government approved real estate project, which is typically a five-star luxury resort property offering a USD rental yield. The added benefit of investing in property is that it gives you a second or holiday home and there are rental pools available, she says.
In most instances, the property can be sold after a holding period of five years without losing your citizenship. The properties are generally situated in incredible locations and come fully furnished and managed with no annual fees.
The most popular programme for South Africans at the moment is Grenada for its access to the USA via the E-2 Visa Treaty.
It requires a property investment of USD 350 000 (R5,1 million) or USD 220 000 for fractional ownership, or alternatively, a government donation of USD 150 000 for a single applicant (USD 200 000 for a family of up to four). The E-2 Visa Treaty allows Grenadian citizens to invest in the USA, and live and work there; as well as send their children to US schools and universities.
The St Kitts and Nevis programme starts at USD 200 000 (R3 million) for a property investment which must be held for seven years. Alternatively, a government donation of USD 150 0000 for a single applicant (USD 175 000 with spouse plus USD 10 000 per additional dependents).
The Dominican programme starts at USD 200 000 (R3 million) for a property purchase or government donation of USD 100 0000 for a single applicant. St Lucia starts at USD 300 000 (R4,4 million) for property and USD 100 000 for a government donation for a single applicant (up to USD 190 000 with spouse and two dependants).
The most expensive in terms of real estate, is Antigua and Barbuda which requires a property investment of USD 400 000 (R5,9 million) or USD 200 000 for a half share. It is the most cost effective should a family wish to go the donation route, starting at USD 100 000 for a family of four, plus additional costs.