How much it costs to pay your way out of South Africa

Source: Businesstech, 18/11/2024

In 2024, for South Africans looking to start fresh abroad, the costs of securing a new citizenship or residency through investment vary dramatically, from about R1.8 million for some of the more accessible Caribbean nations to an eye-watering R138 million for the priciest options in Asia. A complex mix of failing public services, political instability, and new policies, including the recent enactment of the National Health Insurance (NHI), has motivated many South Africans with the financial means to explore citizenship or residency by investment programs. This trend is particularly pronounced among the countrys wealthy, who seek stability, global mobility, and economic opportunity outside South Africa.According to the 2024 African Wealth Report, South Africas millionaire population has been shrinking, with 400 fewer high-net-worth individuals (HNWIs) recorded in 2023 compared to the previous year.This brings the countrys total to around 37,400 millionaires as of early 202a significant decrease from the 48,700 millionaires counted a decade ago in 2013. The report attributes this decline to two main factors: the ongoing erosion of wealth within the country and a steady wave of emigration among those with the resources to leave.Henley & Partners, a global leader in investment migration advisory, worked with New World Wealth to publish this wealth report. It notes that interest in residency and citizenship by investment programs is surging worldwide, offering individuals an opportunity to diversify their financial portfolios geographically while enhancing travel freedom and access to global business networks. The increasing number of these programs reflects the growing demand from investors seeking security in volatile times and access to diverse economic landscapes.Choosing the right citizenship or residency program depends on various factors, including the size of the applicants family, their desired level of commitment to a new country, and the processing time for applications. The investment required varies widely, as do the perks, restrictions, and geographical locations each country offers. Generally, citizenship by investment requires a higher financial commitment than residency options, but for some, the opportunity to secure full citizenship is worth the premium.Among the cheapest citizenship-by-investment destinations, Caribbean nations like Antigua and Barbuda, Dominica, and St. Lucia lead the list, offering programs that start at around R1.8 million. These countries offer straightforward paths to citizenship, typically with no requirement to reside there after approval. For those looking toward Europe, North Macedonia provides the most affordable citizenship option, appealing to investors who prefer a European base with the benefits of EU proximity and relatively low costs.At the other end of the spectrum are programs that come with a much heftier price tag. While countries such as Canada, New Zealand, and Australia offer pathways to residency and eventual citizenship, they tend to require substantial investment and may come with residency obligations. Asia, however, is home to the worlds most expensive citizenship options. Singapore stands out as the priciest, with its program costing up to R138 million, primarily due to its high demand among ultra-wealthy investors drawn to its robust economy, low taxes, and world-class infrastructure.BusinessTech looked at the cheapest and most expensive destinations for South Africans through residence by investment, as outlined by Henley & Partners, which are listed below with the requirements.______________Top five cheapest destinationsSt. LuciaFactorsRelocation requiredNoFamily that may be includedSpouse, children under 31, siblings under 18, and parents aged 55 and over, as well as to add dependents after they have been granted citizenship.Timeline3 to 4 monthsMinimum investment amount$100,000Minimum stay requirementsNone.TotalR1.8 million______________Antigua and BarbudaFactorsRelocation requiredNoFamily that may be includedSpouse, dependent children under 31 (as well as their spouse and children), parents and grandparents aged 55 and over, and unmarried siblings of the main applicant and/or their spouse of any age, as well as to add dependents after they have been granted citizenship.Timeline3 to 4 monthsMinimum investment amount$200,000Minimum stay requirementsMinimum of five days during the first five years of obtaining citizenship.TotalR3.5 million______________DominicaFactorsRelocation requiredNoFamily that may be includedSpouse, unmarried children under 31 who are fully dependent on the main applicant, and parents and grandparents aged 65 and older, as well as to add dependents after citizenship has been granted to the main applicant.Timeline3 monthsMinimum investment amount$200,000Minimum stay requirementsNone.TotalR3.5 million______________North MacedoniaFactorsRelocation requiredNoFamily that may be includedCitizenship is applicable to individuals aged 18 and older. Dependent children under 18 can apply for citizenship by descent once both or one of their parents has received citizenship.Timeline2 to 5 monthsMinimum investment amount€200,000 (approximately $220,000)Minimum stay requirementsNone.TotalR4 million______________St. Kitts and NevisFactorsRelocation requiredNoFamily that may be includedAbility to include a spouse, children under 26, and parents aged 65 and over, as well as to add dependents after citizenship has been granted to the main applicant.Timeline4 monthsMinimum investment amount$400,000Minimum stay requirementsNoneTotalBetween R4.6 million and R6.4 million______________Top five most expensiveSingaporeFactorsRelocation requiredYesFamily that may be includedThe spouse of the investor and their children (under 21 years old) are eligible to apply for permanent residence under the investor’s application. Male dependents will be liable for national service.Parents and unmarried children of the investor who are 21 years old and above are not eligible to be included in the application for permanent residence status, but they may instead apply for a five-year long-term visit pass.Timeline9 to 12 monthsMinimum investment amountSGD 10 millionMinimum stay requirementstwo yearsTotalR138 million______________Hong KongFactorsRelocation requiredYesFamily that may be includedA successful applicant may bring dependants (including spouses and unmarried dependent children aged under 18) to Hong Kong. They will normally be granted permission to stay for two years.Timeline1 to 9 monthsMinimum investment amountHKD 30 millionMinimum stay requirementsThe applicant must maintain the investment for at least seven years.TotalR71.8 million______________New ZealandFactorsRelocation requiredNoFamily that may be includedResidence applicable to a spouse and dependent children up to the age of 24Timeline8 to 9 monthsMinimum investment amountNZD 5 millionMinimum stay requirements117 days within four yearsTotalR57.3 million______________AustraliaFactorsRelocation requiredNoFamily that may be includedAbility to include a spouse and children under 23 who are financially dependent on the investor.Timeline12 monthsMinimum investment amountAUD 2.5 millionMinimum stay requirementsSpend at least two years of a five-year period in AustraliaTotalR30.8 million______________CanadaFactorsRelocation requiredNoFamily that may be includedCitizenship is applicable to individuals aged 18 and older. Dependent children under 18 can apply for citizenship by descent once both or one of their parents has received citizenship.Timeline12 to 37 monthsMinimum investment amount¬200,000 (approximately $220,000)Minimum stay requirementsThree years (or 1,095 days) of physical presence out of a five-year periodTotalR16.3 million