PREPARING FOR YOUR FINANCIALLY INDEPENDENT PERMIT APPLICATION

You qualify for the Financially Independent Permit (FIP), and you have learnt of the various benefits that you can derive from this permit such as:

• Direct access to permanent residency in South Africa, thereby having all the rights and duties of a South Africa citizen (except the right to vote)
• No need for your investments and assets to be brought into South Africa, giving you that flexibility to manage your investments anywhere in the world and still enjoy the benefits of a permanent resident in South Africa
• Great security on your long-term investments with access to long-term loans for property purchases, and other business ventures
• Less complex process not requiring the long-winded route of temporary residence visas first
• Great flexibility in terms of your activities in South Africa as well as your movements in and out of the country. You do not need to physically stay in South Africa to enjoy the benefits of this permit.

You are now planning to make sunny South Africa your home for the long haul. Or maybe not, but you would like to have access to those great benefits and flexibilities that come with being a permanent resident without having to go through the long-winding temporary residence route. With a temporary visa, access to loans is very difficult and if the loan is granted, usually the duration of your temporary visa impacts the repayment period and results in high interest rates which can be a huge and an unnecessary financial burden on you. In some instances, before being granted the loan or finance, you are required to pay a huge deposit due to the fact that your temporary residence visa does not guarantee security of your stay in South Africa. There is no security of tenure for long-term investments and this can be a very precarious place to be.

“From my own personal experiences, going through the temporary residence process can be a tedious process and having obtained South African permanent residency (in another category), I can testify that the joy you get the moment you have that approval is immeasurable. It spells out endless possibilities, opportunities, a brighter future and less stress on an uncertain legal status in a foreign land” – Christine Mutsau – Lead Immigration Specialist at NMS.

Here are some tips to help you prepare for a successful application.

1. Do not procrastinate
The world is in turmoil right now due to the novel corona virus, causing a lot of anxiety and uncertainty towards the future. Do not let this be a deterrent factor for you if you are considering migrating to South Africa. Now is the time to act! The new normal is going to kick in soon, and with it, new changes will come, which might make the whole immigration process more stringent than it has been, in order to curb the spread of the virus and associated risks. Therefore, the sooner you act and start preparing for your move to South Africa, the better it will be for you when the application process opens and you can submit your application.

2. Ensure eligibility
Make sure that you qualify for the permit. The first step is knowing how much your assets are worth and to ensure that you meet the minimum qualifying criterion of R12 million net-worth. Obligation free assessments are available and you may contact us, we are available to answer any questions that you might have.

3. List all your sources of income
Before making any financial commitments such as the FIP application, look at your financial situation holistically. You need to get a valuation of your assets, equities, investments, business interests and any cash amounts in bank accounts, to ensure that the you have documentary proof confirming your net-worth.

4. Setup your goals
By setting up goals, both long and short-term, you plan for your intended long-stay or investment in South Africa. Your short-term goals are ensuring that you submit your application as soon as possible, once the application process re-opens and before the law changes take place, whilst your long-term goals will be aligned to your FIP and the need to get South African residency, thus giving you the option to purchase property, start your own business or even a retirement plan.

If you have accompanying family members, such as children of school going age, you need to plan ahead of time if they are migrating with your or they will be joining you at a later stage. Other visa options might need to be considered for family that will be joining you immediately.

5. Investments

The FIP does not require you to bring in any money in to South Africa except for the fee of R120 000 payable to the Department of Home Affairs once the application is approved. However, investments are great ways of making your money work for you and if done correctly, such investments can be your retirement fund and can ensure a life without financial worries once you do not have a day job anymore.

As the powerhouse of the continent, South Africa is considered a great region for investors. Although without its own challenges, there are great opportunities in South Africa for potential investors, with plenty of natural resources that can be mined and extracted, therefore opportunities lie ahead for you to consider and explore.

You can also go through our useful general checklist for your migration to South Africa