Immigration threshold lowered
2003-02-25 20:31
Cape Town - Public criticism had resulted in a lowering of the financial threshold for retired foreigners wishing to reside temporarily in South Africa, according to the department of home affairs.
However, the controversial special training levy of two percent has been retained for the quota permit, which is aimed at addressing specific skills shortages in South Africa.
Acting director-general Ivan Lambinon told the National Assembly's home affairs committee that the new threshold was reflected in the immigration regulations gazetted last week.
The Cape Town regional chamber of commerce and industry is among the critics of the previous regulation, which required an income of R25 000 a month or a net worth of R15m.
It claimed this would discourage foreign nationals from settling in South Africa, and would also drive out many thousands of people who had settled in South Africa, but could not meet the new requirement.
A tax consultant at PriceWaterhouseCoopers, Linda Lamprecht, said R15m, even by international standards, was a large amount of net assets "and thereby only millionaires may apply".
Millionaires
"Very few individuals will be able to satisfy the condition, thereby precluding many foreign bona fide foreign nationals from retiring in South Africa," she said in a written submission to the committee.
The new regulation states that the person wishing to retire must have a net worth of R12m, providing an income of at least R15 000 a month, or demonstrate an income of R20 000 a month in the form of a pension, irrevocable annuity or retirement fund.
In her submission, Lamprecht said a more acceptable limit for a retired couple who owned property in South Africa, as well as transport, would be R10 000.
"It should be noted that with interest rates as they presently are, one would require an investment of only R3m in a South African bank account to generate an income of R25 000 a month."
However, Cape Town regional chamber of commerce and industry regional director deputy director, Colin Boyes, said he was still concerned about the regulation being retroactive.
He was referring to the fact that the temporary permit will have to be renewed, and that those already in South Africa will be prejudiced.
In a written reply to the UDM's Annelize van Wyk, Lambinon said there had been a great deal of public debate on the issue, which had wrongly identified the retired person permit as though it were the only one available for long-terms visitors.
Permit
"The truth is that this is a new category of permit which does not replace but merely supplements the other categories of permits, which are still available.
"Any permit available in the past will be available in the future on better conditions."
Labminon said while the old visitor's permit had to be renewed often, it could now be issued for up to three years merely by showing that one can provide for his or her living expense, calculated at R15 000 per month.
To satisfy this amount, the rental value of property owned in South Africa could be included.
If people wished to retire on such a visitor's permit, they may do so without resorting to a retired person permit, Lambinon said.
However, the advantage of the retired person permit was that it did not need to be renewed as often.
The new Immigration Act, which replaces the unconstitutional Aliens Control Act, will be implemented from March 12.
- SAPA