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Demand for second passports and citizenship by investment (CIB) programs has skyrocketed since level 3 of the Covid-19 lockdown, says Nadia Read Thaele, CEO of LIO Global, a firm specializing in second residence and citizenship by planning investments.
Thaele said Grenada in the Caribbean currently tops the list with a 120% increase in applications compared to last year. He said most investors are choosing to invest in real estate for the added benefits, but many families are opting for the cheaper gift option. The success rate to date is 100%, he said.
Grenada is one of the few countries with an active CBI program and a bilateral investment treaty that will allow you to live and work in the US through the US E-2 Treaty Investor Visa program.
This is a big draw for South Africans to gain access to the United States, one of the most difficult countries to enter, Thaele said.
“Investment in property starts from just around R3.6 million, roughly R5.37 million for a family, including costs, not particularly high compared to what you will pay for a house in the high-income areas of South Africa.
“It’s equal to what you’ll pay for a basic one-bedroom apartment at Mouille Point or Melrose Arch, and you’ll get a second expedited citizenship in less than six months,” he said.
While many South Africans are actively seeking to emigrate with FNB, for example, recently noting that immigration-related property sales account for around 17% of all current sales, Thaele said that rather than emigrating, many wealthy South Africans are investing in properties abroad in areas where you can secure a second citizenship.
The attraction of the Grenada E-2 Visa option also outperforms the US EB-5 investor visa, he said, as the cost is substantially lower and the process much simpler.
The processing time for the E-2 visa is usually around two months compared to five years for the EB-5 visa and it takes approximately 24 months before you can move to the US with the EB visa -5.
“Investor confidence in South Africa is at an all-time low and wealthy South Africans are concerned about the economy and the future of the country.
“Finance Minister Tito Mboweni’s speech has not inspired much confidence and says the desire for a ‘Plan B’ option has accelerated, especially due to high levels of crime and future uncertainty.
“The benefit of a CIB program is that it is not yet necessary to sell and emigrate and wealthy South Africans are seizing this opportunity.”
Additional benefits
Thaele said Grenada offers additional benefits in addition to easy access to the US.
Aside from the enviable Caribbean lifestyle, it is politically stable and offers excellent tax advantages and a favorable investment regime, he said.
As a member of Caricom (a Caribbean Community of 15 Caribbean nations and dependencies), this is also advantageous as it offers freedom within the Caricomgroup of countries, including places like the Bahamas and Jamaica.
It also offers one of the fasting routes to obtain a second citizenship (less than six months) and a passport with visa-free travel to more than 143 countries in the UK, EU Schengen countries, Singapore, Hong Kong and China.
“If you invest in the real estate option, you can resell after three years (or 5 years if to another CBI investor) and still keep the passport,” Thaele said.
He said the E-2 investor visa is valid for 5 years and can be renewed without any limits on extensions, as long as the underlying investment still qualifies.
Spouses and dependents will normally be granted the same period of stay as the principal. Another significant benefit is that the principal’s children under the age of 21 can go to school (public or private) in the US and are eligible for state tuition.
Read: Leaving South Africa? Here’s what you need to know about taxes
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