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While wealthy South Africans find the investment in a second passport worthwhile and demand for a second passport has increased dramatically over the past year, Nadia Read Thaele, Founder and CEO of LIO Global, a leading firm specializing in second homes and Citizenship by investment says the ability to invest in property is an added bonus.
Many of the places that offer these Citizen by Investment (CIB) programs are idyllic, such as Mauritius and the Caribbean, with strong tourism and rental markets. These are also destinations South Africans aspire to travel to, he adds.
The investment required is often less than what you would pay for a luxury property in South Africa, and instead of looking for second homes here, wealthy South Africans are taking the opportunity to invest in a second home in offshore destinations where they can obtain a second home. or citizenship.
The benefits of such a passport include access to visa-free travel to countries that cannot be reached with a South African passport. Families want to be mobile in a global market and have access to international education for their children. There are also tax benefits and the peace of mind of having a “Plan B” is a great driver for many investors.
In addition to the equity retention that the property offers, investors benefit from capital growth and can take advantage of rental income, adds Ms. Read Thaele. This, in addition to the currency coverage when owning an asset based on USD. The property can be used for a luxury vacation or rental income while continuing to grow in value.
The required holding period is usually around five years, but certain areas like the Commonwealth of Dominica (Dominica) in the Caribbean only require three years.
The entry level investment in property required ranges from around EUR 350,000 (approximately R5.6 million) for Portugal (residence only) and Mauritius (from USD 375,000) while Caribbean countries are around USD 200,000 (R3 million ) (or a $ 100,000 gift option).
The Commonwealth of Dominica (Dominica) in the Caribbean is a great option for South Africans, he said. It tops the Citizenship by Investment Ranking for the “Best Program in the World” for the fourth consecutive year and is one of the most beautiful places in the world with natural beauty, lush and tropical landscapes, virgin rivers and waterfalls and white and black sand beaches .
There are beautiful properties and resorts to choose from and you can sell your investment after three years, five years if the next investor also wants to apply for citizenship.
Its CBI program does not restrict dual citizenship and offers a second citizenship and passport with no mandatory visit or interview requirements.
Full citizenship can be achieved in three to five months. The passport offers visa-free travel to more than 136 countries, including the United Kingdom, the Schengen countries, and Hong Kong.
An impressive property option is “The Residences” at Secret Bay, consisting of 42 architecturally stunning villas and villa estates within the closed confines of Secret Bay.
Secret Bay is a complex of six-star villas, spectacularly located on top of a cliff where the rainforest meets the sea. It has earned numerous high-profile accolades, including being voted the “World’s Best Resort,” being among Fodor’s “100 Most Amazing Hotels in the World,” and earning a rigorous Green Globe Certification for its eco-friendly and sustainability efforts.
The luxury villas are spacious and each is located within its own secluded enclave. Constructed from sustainable tropical hardwoods, each villa features pristine indoor and outdoor living areas, gourmet kitchens with energy-efficient appliances, and built-in purified drinking water.
$ 208,000 will buy you a share in the ownership of a villa and qualify you (and your family) for the citizenship program, Read Thaele said. Ten of the villas are finished and operational and most of them are already sold out. Secret Bay does not sell off plan, only once the villas are ready. An entire villa is priced at $ 1,220,800.
Current returns are around 2.95% net, although Covid-19 will of course have an impact on returns over the next several months.
Owners also gain membership in “ThirdHome,” a luxury travel club that allows members to exchange time in their second homes for stays in incredible locations in more than 90 countries.
He further said that Dominica has become a popular choice as the program is very clear and there are attractive real estate options to choose from.
While Dominica is currently one of the best priced destinations for South Africans to obtain a second passport, the window of opportunity is closing rapidly, as the government intends to increase costs in 2021 to further align it with other passport programs. Caribbean citizenship.
Read: High Net Worth South Africans Eager to Invest in a Second Passport
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