Portugal, Cyprus ramps up appeal for South Africans seeking EU citizenship

FOREIGNERS – including South Africans, wanting to acquire freedom of movement for themselves and their families to study, work and live anywhere in the European Union, are increasingly turning to Portugal to acquire EU citizenship, says Chris Immelman, MD of Pam Golding International.

“The benefits offered via Portugal’s Golden Visa Programme, with its Schengen Visa and Portuguese residency, have suddenly became considerably more accessible with the introduction by the Portuguese government of a new category, which lowers the entry level from a €500 000 (R8.3m) investment in real estate to €350 000 – in special circumstances.”

Since the Golden Visa Programme was introduced in October 2015 and up to June 2017, close to 200 South African investors have acquired residence permits, investing a minimum of €500 000 in residential property in prime locations mainly in the vibrant capital city of Lisbon.

Now, Portugal has taken its appeal up a notch by lowering the threshold entry level by allowing developers to approach government in order to renovate buildings of at least 30 years in historically significant centres or locations which are earmarked as urban regeneration areas. For good reason, Portugal remains a highly sought-after destination for international property buyers – including South Africans – but now new kid on the block, Cyprus, is stirring up interest in the marketplace, says Immelman.

“For the bulk of South African residential property buyers in these countries, their primary aim is to acquire European Union residency for their families – mainly with a view to enabling their adult children gain ease of access to study and work abroad, and to travel freely in Europe.

“An offshore investment in a stable country is an ideal way to diversify a property portfolio and the appealing island of Cyprus in the middle of the Mediterranean Sea offers considerable opportunities to accomplish this. For an investment of €2 million, you can acquire full European citizenship for life in just four to six months for you and your entire family up to the age of 28 years, with the opportunity to disinvest after three years by selling your property, but with the requirement that you reinvest €500 000,” says Immelman.

“Property here has a sound underlying investment value. In Cyprus as with Portugal, we have done our homework, meeting with local developers and law firms and thoroughly researching the market in person.

For investors in Cyprus, a key advantage is that citizenship can be passed on to future generations by descent, while a Cypriot passport also allows visa-free travel to 159 countries including Canada, Hong Kong, Singapore and the UK.