The reasons for high demand from South Africans
For many South Africans, emigration promises new horizons free from the country’s economic and security concerns. Portugal’s golden visa presents a unique opportunity, granting residency and a path to EU citizenship through property or business investment. This complete guide examines how South Africans can navigate the requirements and make the most of Portugal’s allure.
What is Portugal’s golden visa program
Introduced in 2012, Portugal’s golden visa allows non-EU investors to gain temporary residency through real estate purchases, capital transfers, job creation, and more. After 5 years of meeting requirements, you can obtain permanent EU residency.
For South Africans, the program accelerates the immigration process with minimal residency requirements. Simply visit Portugal once every two years to renew your visa. The low physical presence obligation makes it easier to obtain residency while still working in South Africa.
The golden visa also grants you and your family complete freedom of movement within the Schengen Area. As of 2023, over 10,000 investors have used the program to relocate to Portugal.
Golden visa investment options for South Africans
To qualify for the golden visa as a South African citizen, you must invest through one of the approved options:
- Real estate investment: Purchase property valued at €500,000 or above. This is the most popular route, allowing you to live in or rent out the real estate. ⭐⭐⭐⭐⭐
- Capital transfer: Invest €1 million or more in a Portuguese bank deposit account. Lower risk, but doesn’t facilitate settlement in Portugal. ⭐⭐
- Business investment: Invest €350,000+ in a Portuguese business and create 10+ local jobs. Rewarding for entrepreneurs. ⭐⭐⭐⭐
- Fund Investment: Invest €350,000+ in an approved Portuguese fund. Suitable for investors seeking diversified assets. ⭐⭐⭐
- Research activity: Conduct high impact research through investment of €350,000+ over 5 years. Niche option for researchers. ⭐
- Arts investment: Invest €250,000+ in arts/culture supporting national heritage. Unique choice for arts patrons. ⭐⭐
Each option has pros and cons, but real estate investment offers the clearest path for most South African families. The high property value requirement is within reach for many.
Real Estate investment tips for South Africans
Purchasing real estate in Portugal is the most popular path to get the golden visa for South Africans. Here are tips for investing in property:
- Consider lower cost areas like Castelo Branco, Covilha and Guarda which offer affordable properties with strong rental income potential.
- Research both major cities like Lisbon and Porto along with up and coming secondary cities.
- Expect to generate rental yields to cover expenses instead of relying on capital appreciation alone.
- Work with an agent to identify off-market deals not widely advertised to maximize value.
- Target properties needing minor renovations under €500,000 to qualify for the discounted €350,000 minimum.
- Factor in taxes, fees and costs – approximately 15% of gross rental income.
- Develop an exit strategy to recoup the investment after 5-10 years.
Application process Step-by-Step for South African applicants
While the investment threshold is substantial, Portugal aims to make the application process straightforward for South Africans. Here are the step-by-step requirements:
1. Choose your investment option
Consider your financial capabilities and intentions for relocating. Real estate or a capital transfer tend to be the most feasible for South Africans.
2. Find a property or prepare your investment
If investing in real estate, research locations and connect with realtors familiar with the golden visa program. For other investments, transfer funds and complete paperwork.
3. Prepare your documents
Gather documents including your passport, background check, application forms, investment evidence, and more. Most will require apostille certification and translation.
4. Submit your golden visa application
Hire a visa consultant to review your application and submit it on your behalf to Portugal’s Immigration Services.
5. Attend your in-person interview
Once approved, you’ll be summoned for an interview in Portugal to verify documents and confirm your investment.
6. Receive your golden visa
If approved after your interview, your biometric residence permit will be issued, completing the application journey.
Cost breakdown for South African investors
The total costs for a South African family will vary depending on factors like:
- Number of dependents included
- Type of investment selected
- Use of a visa consultant vs. self-application
That said, the main expenses include:
| Cost | Estimate |
|---|---|
| Investment amount | €350,000 – €1,000,000 |
| Due diligence fees | ~€5,000-€10,000 |
| Document translation | ~€2,000 |
| Application fees | ~€5,280 |
| Health insurance | ~€1,000 per person annually |
| Consulting service fees (optional) | ~€5,000-€15,000 |
Why Portugal appeals to South Africans
Beyond the straightforward golden visa program, Portugal offers an unmatched quality of life for South African expats:
- Family reunification – The golden visa allows dependents to join you and attend school or work in Portugal, reuniting families divided by emigration.
- Favorable climate – Portugal’s year-round sunny, temperate weather appeals to South Africans accustomed to outdoor lifestyles.
- Security – Portugal has extremely low crime rates, providing peace of mind for South Africans weary of unrest.
- Affordability – The cost of living, healthcare, and education are all lower compared to South Africa. Taxes are also favorable.
- Open society – Portugal has grown increasingly cosmopolitan and multicultural, easily welcoming South African newcomers.
For South African parents seeking brighter futures for their children, Portugal ticks all the boxes.
Top cities for South Africans in Portugal
South African expats flock to Portugal’s major cities which balance cosmopolitan offerings with charm:
Lisbon – The vibrant coastal capital entices families and young professionals alike with its balmy climate, coastal walks, and lively nightlife. Education and jobs abound.
Porto – This historic port city in the north is ideal for outdoorsy South Africans who want urban amenities alongside access to surfing, sailing, and the countryside. Cost of living is lower than Lisbon.
Cascais – Just west of Lisbon, this former fishing village turned resort town has stunning ocean vistas and luxury estates. Perfect for South Africans seeking an exclusive coastal lifestyle.
Lagos – For laidback South Africans, Lagos in the Algarve has beautiful beaches, family-friendly enclaves, and a sizeable expat community.
Obtaining citizenship as a South African golden visa holder
The greatest benefit of the golden visa for South Africans is the accelerated route to acquiring full Portuguese, and thereby EU, citizenship.
After living in Portugal for 5 years, you can apply for permanent residency. Once you’ve spent 6 years as a legal resident, you can naturalize as a Portuguese citizen.
This gives you the right to live and work anywhere in the EU. Your children born in Portugal also gain citizenship.
For South African families, Portuguese passports unlock tremendous educational and professional prospects for the next generation.
AptCitizenship guidance can optimize the process for South Africans
Given the investments and documents involved, specialized legal support can streamline the golden visa application for South Africans.
Experts assist with every step, including:
- Investment and property advice from local market specialists
- Document preparation and translation oversight
- Application submission and appointment booking
- Relocation and integration help in Portugal
For those who can afford it, consulting services are well worth the investment. They minimize headaches and delays for South Africans undertaking the golden visa journey.