Section 26 of the Act – Direct Residence
Section 27 – Residence on other grounds
9. Section 27(f) of the Act – Financially Independent
Those foreign applicants with high ‘net worth’ often apply for PR under the financially independent category.
The Department fails to provide any meaningful description of the how the ‘net worth’ is to be presented. It is our view that ‘net worth’ may comprise of net asset value or ‘net wealth’ which would typically include all property and liquid assets i.e. banking and investments less any liabilities to show a ‘net worth’ of R12 Million or more.
What is most unfortunate about the financially independent category is that in addition to showing a ‘net worth’ of a minimum of R12 Million, the Department, will, upon success of the PR application, impose an administration fee of R120,000.00, which is simply irrational.
PR under the financially independent category will allow family members to apply in the same application provided the family members qualify in their own right i.e. spouse category showing five years as spouses with main applicant, biological children of the main applicant. Note: that only one fee of R120,000.00 is payable upon success.
What is most concerning is that this exorbitant administration fee gives no additional right to expect such PR outcome to arrive in any shorted period and this then begs the question as to what the huge fee is for?
Note: Very often, the retirement category for PR can achieve the same outcome without having to pay the exorbitant administrative fee.