23 May Financially Independent Permit: Permanent Residency in SA
Individuals seeking permanent residency in South Africa may apply under the financially independent visa category. The Financially Independent Permit (FIP) is the primary option for high-net-worth individuals and business people to secure permanent residency in South Africa and ensure the safety of their long-term investments.
What is High-Net-Worth?
High-net-worth equates to the amount of net worth an applicant can prove against their name. This amount is determined by subtracting the applicant’s liabilities from their assets. An applicant must be of high-net-worth and demonstrate a minimum of R12 million in net worth assets.
What is the Financially Independent Permit?
This permit allows the applicant to remain in South Africa permanently. Ideal for high-net-worth individuals of any age and nationality who wish to stay in the country permanently. The permit serves as a permanent residency visa and grants individuals who obtain this visa the right to work, study, or run a business in South Africa.
What Are the Key Aspects of a Financially Independent Permit?
There are no minimum investment or residency requirements, unlike other residency programs. You are not required to invest a certain amount of money or live in South Africa for a specific duration to maintain the permit.
This permit is specifically designed for individuals who can demonstrate a high personal net worth of R12 million or more.
Upon approval, the permit allows for permanent residency in South Africa without the need for periodic renewals. This is also beneficial for families as spouses and children can be included in the application as dependents.
Another requirement includes the payment of a one-time fee of R120,000 to the Department of Home Affairs (DHA) after approved for the permit but before it is issued.
Lastly, while there are no mandatory residency requirements, applicants must enter South Africa at least once every three years to maintain their permanent residency in the country.
Why is this permit beneficial?
One of the benefits of obtaining a Financially Independent Permit is the fact that it grants immediate Permanent Residence status, after the application and DHA fee are processed, and offers the holder the flexibility to retire in South Africa, start a business, work, or study. You may enter and exit the country freely, and should you leave, there are low requirements to re-enter South Africa once every three years to maintain your permanent residency. As SA Immigration Specialists, we can assist you in all aspects of your application, giving you more time to enjoy the experience.
Facts to take note of:
- The status of a Permanent Resident does not affect the holder’s citizenship in their home country.
- A Permanent Resident can obtain a South African identity book endorsed as “non-citizen”.
- You will be eligible for citizenship after 5 years of continuous residence.
- Unlike some other Permanent Residency categories, Permanent Residence under Financial Independence does not contain additional conditions.
- The Permanent Resident process takes approximately 12-24 months to obtain.
- There is no requirement to reside in South Africa immediately upon issuance of the permit, but you must enter the country within the first 12 months to activate it.
- Traveling in and out of South Africa becomes much easier, and the need for extending visas becomes a thing of the past.
- Becoming a permanent resident will render you a South African tax resident.
In essence, the Financially Independent Permit offers a direct path to permanent residency for those who can demonstrate sufficient financial resources to sustain themselves in South Africa without needing to work or rely on an income from within the country.
Contact our June Luna team to get started with an initial assessment. Our skilled attorneys can help you secure Permanent residency: Financial Independence.