foreign investment allowance
If you are invested directly offshore, it is unlikely that you will need a foreign Will for these assets. However, if you have other assets offshore, such as fixed property or business interests, it may be necessary to seek estate
Direct offshore investing can be used effectively if you intend to access the money in the offshore jurisdiction in which you are invested, such as if you plan to retire abroad or send your children to an overseas university. Direct
A Rand-based offshore investment is the simpler of the two options as you do not need to convert your money into another currency. By investing through a local, reputable LISP platform which has a mandate to invest in foreign assets,
The other option for externalizing funds offshore is to utilise the indirect option through Rand-denominated funds. Indirect offshore investing means that no Rands are physically transferred by the investor, and their investments remain domiciled in South Africa.
From an income tax perspective, as a South African resident, you will have to pay tax on the interest and dividends earned on your foreign-domiciled investments. This is because South Africa uses a residency-based system to calculate tax, and South
Through indirect offshore investing, you effectively invest in a local unit trust portfolio that has a mandate to invest in foreign assets – a relatively simple, convenient, and cost-effective process. As an investor, you will invest your Rands with a
Once your financial emigration has been finalised, your South African bank account will be re-assigned for exchange control purposes as an emigrant’s capital account and will be subject to South African exchange control rules. The proceeds of the sale of
