The Financially Independent Permit (FIP), the no.1 way for high net worth and businesspeople to obtain residency in South Africa and have security on their long term investments, is one of the ways of obtaining permanent residence status in South Africa. With South African permanent residency (PR), a world of opportunities opens up for foreign migrants such as starting up or investing in existing businesses, having access to long-term loans for property purchases, favourable interest rates on bonds and other long-term loans, as well as access to long-term investments.
However, the proposed changes to the Immigration Laws as envisaged in the Draft White Paper on International Migration for South Africa, could see you not being able to have permanent residence, and consequently having limitations on the opportunities you may have in South Africa as a high net worth individual who can have direct access to PR in terms of the FIP. In terms of the proposed law changes, permanent residency will be replaced by a long-term residence permit – further details still to be provided.
It is not clear yet when the proposed law changes will be implemented. With the uncertainty of the changes, and the FIP being one of the permits under current laws that gives direct access to permanent residency, the question on most people’s minds is, what impact will the law changes have for me, as an investor, a business person or someone wishing to retire in SA on an FIP? If I miss this opportunity, will I still qualify to apply for any other visa/permit under the new laws and how will this impact business and investment opportunities in South Africa for me? Although South Africa is a progressive state in terms of its immigration policies for migrants with substantial amounts of capital, it has not been able to adequately attract and retain investment capital in South Africa and this only compounds the questions that one has on their migration to SA.
Now, instead of battling with the questions and uncertainties around the law changes, one must grab the opportunity at hand and apply for their FIP before more stringent laws are implemented. Although the main objective of these law changes is to introduce a simple and predictable immigration process that will contribute to the growth of the economy as well as attract and retain migrants with capital to invest in South Africa, until the new laws have been finalised and have come into effect, one cannot gamble with their investments and business opportunities. The volatile economic situation globally and the unprecedented health crisis could all put a spin to migration laws. The future is definitely not predictable. Law changes could see the qualifying capital increasing (this has happened previously) and you do not want to find yourself in a situation where you no longer qualify for this permit and have limited options for your migration to South Africa.
With the looming law changes added to the already bureaucratic visa application process, anxiety and stress overcomes many migrants, and for the high net worth individuals who qualify for the FIP, the risks on their long-term investments and business opportunities in South Africa becomes a reality – which is difficult to fathom.
Grab the opportunity – apply now!
Despite the pending law changes, the demand for migrants with substantial amounts of capital who will help boost the South African economy continues to rise. Applications do get processed and permits issued. High net worth individuals must capitalise on this opportunity as the FIP grants direct access to permanent residence in South Africa offering a world of opportunities and any delay will result in:
- Losing out on the benefits of having PR before the law changes
- Possibility of qualifying capital increasing, thereby resulting in you not being able to qualify for the permit anymore and having limited visa/permit options
- Dealing with the lengthy processing times
How we can help you
With the looming law changes, working with NMS will give you the added advantage of always being a step ahead. We will ensure to keep you abreast of the progress on the law changes. This takes away the anxiety that comes with the uncertainty and general assumptions surrounding any changes and how they might affect your prospects for having permanent residency through the FIP.
As our team comprises of qualified South African lawyers, one will have the comfort of knowing that they will receive precise and accurate information on the proposed law changes and will get the necessary guidance in relation to how this affects your application.
