This, with the now discontinued non-habitual residency scheme, had made Portugal an affordable option for those in retirement, he said.
Portugal offered the D7 passive income visa and golden visa programmes.
The D7 visa is designed for individuals with a steady passive income from external sources, requiring a minimum income of €820 (R16,190) a month.
Applicants are required to secure a tax identification number, a local bank account and accommodation in Portugal.
The golden visa offers residency through investments, with options starting at €250,000 (R4.93m) for cultural heritage restoration or €500,000 (R9.87m) in investment funds or business ventures. Property investment is no longer a qualifying option due to recent legal changes.
Portugal’s appeal is enhanced by its pleasant climate, rich cultural heritage and friendly atmosphere, all of which contribute to its growing popularity among South Africans.
Cowley said the country’s safety and lifestyle were attractive, especially for those looking to enjoy a more tranquil and secure environment.
While traditional destinations such as the UK, Australia and the US still attract large numbers of South Africans, Portugal’s rising prominence reflects a broader trend of exploring more destinations.
According to Stats SA, the number of South Africans living abroad has grown from about 1.5-million in 2001 to more than 2-million in 2021.
Cowley said financial planners should adapt their strategies to cater to this evolving landscape. They should offer comprehensive advice tailored to the diverse needs of expatriates moving to less conventional destinations.
“There are more South Africans living outside South Africa now than at any other point in our country’s history.
“It’s not a South Africa issue, it’s a worldwide phenomenon that is here to stay and one which places financial planners at risk of losing their wealthier clients if they cannot provide relevant cross-border solutions” said Cowley.
BusinessLIVE
Rich South Africans flock to Portugal for stability
The EU country has become an increasingly popular destination, diverging from the traditional emigration routes to the UK, Australia and the US
Portugal has become an increasingly popular destination for wealthy South Africans, marking a change from the traditional emigration routes to the UK, Australia and the US.
About 12,500 South Africans have settled in Portugal, said Overseas Trust and Pension (Otap), a specialist provider of international trust, retirement and pension solutions.
“About 12,500 South Africans have moved to Portugal, 71,000 to New Zealand, 140,000 to the US, 206,000 to Australia and 217,000 to the UK,” the organisation said.
Canada was also a popular destination, with about 51,000 South Africans living there, Otap data showed.
According to the firm's director and co-founder Rex Cowley, the affluent are drawn to Portugal because it offers attractive tax incentives, such as exemptions on income and capital gains, no wealth or inheritance taxes and appealing residency and pension schemes. Foreign pensions are 85% exempt from tax.
This, with the now discontinued non-habitual residency scheme, had made Portugal an affordable option for those in retirement, he said.
Portugal offered the D7 passive income visa and golden visa programmes.
The D7 visa is designed for individuals with a steady passive income from external sources, requiring a minimum income of €820 (R16,190) a month.
Applicants are required to secure a tax identification number, a local bank account and accommodation in Portugal.
The golden visa offers residency through investments, with options starting at €250,000 (R4.93m) for cultural heritage restoration or €500,000 (R9.87m) in investment funds or business ventures. Property investment is no longer a qualifying option due to recent legal changes.
Portugal’s appeal is enhanced by its pleasant climate, rich cultural heritage and friendly atmosphere, all of which contribute to its growing popularity among South Africans.
Cowley said the country’s safety and lifestyle were attractive, especially for those looking to enjoy a more tranquil and secure environment.
While traditional destinations such as the UK, Australia and the US still attract large numbers of South Africans, Portugal’s rising prominence reflects a broader trend of exploring more destinations.
According to Stats SA, the number of South Africans living abroad has grown from about 1.5-million in 2001 to more than 2-million in 2021.
Cowley said financial planners should adapt their strategies to cater to this evolving landscape. They should offer comprehensive advice tailored to the diverse needs of expatriates moving to less conventional destinations.
“There are more South Africans living outside South Africa now than at any other point in our country’s history.
“It’s not a South Africa issue, it’s a worldwide phenomenon that is here to stay and one which places financial planners at risk of losing their wealthier clients if they cannot provide relevant cross-border solutions” said Cowley.
BusinessLIVE
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