In this edition we highlight retirement permits for two main reasons:
- Traditionally this is the time of year when many ‘swallows’ are seeking to renew visitors visas so they may extend their stay in South Africa from 3 months to 6 months.
- The recent decline in the value of the rand has seen many more individuals and couples meet the financial qualifying criteria.
For those interested in South Africa as a destination for their retirement years there are two permit options
- The retired permit – available as a temporary permit for 4 years and also permanent residency
- The independent financial persons permit
The normal application process needs to be followed and the applicant must meet the health and good standing requirements but the main criteria is a financial one. The rules are to ensure that the applicant / applicants are able to support themselves financially whilst staying in South Africa and are as follows:
- Temporary residency either an income equivalent to R20,000 per month per applicant or an available lump sum equalling R960,000 per applicant.
- Permanent residency a guaranteed income of R20,000 per applicant per month.
As an example of how much the recent decline in the value of the rand has made an individual applying for permanent residency would have needed in February 2013 a monthly income of 1481 GBP per month. The same person today would require 1,090 GBP per month. In short nearly 400 GBP less per month is required to meet the criteria.
Similarly if going the lump sum route for temporary residency a sum of 52, 300 GBP is now required as opposed to 71,000 GBP a year ago.