Offshore Investment
Whilst we are eternally optimistic and patriotic about South Africa we are also acutely aware of the risks of over concentrating ones property, human and investment capital in one emerging market country which contributes less than 1% to global GDP.
We also don’t see offshore investment as a binary option but rather a spectrum of opportunities which can be tailored to an individual or family’s unique situation and needs.
Offshore Investment Chart
Products
Offshore Feeder Funds, Exchange Traded Funds and Structured Notes
The easiest way to invest offshore. Funds are transferred from your South African bank account into a South African investment house’s Rand account and then invested on your behalf in hard currency offshore assets.
Withdrawals are back into Rands. No foreign currency exchanges, tax certificates or Reserve bank approvals are required.
We are able to access all major available feeder funds, all ETFs and even tailor Structured notes to your requirements.
Physically Externalised Assets
This involves either utilising money which is already in hard currency offshore or exchanging Rands for hard currency and moving the money offshore and then investing it in offshore assets.
Investment options include offshore Funds, offshore stock broking accounts and offshore structured notes.
Withdrawals are back into hard currency and are physically outside of the country.
As a South African resident, you may take the following offshore per annum:
- R1m as part of your Travel Allowance
- R10m as part of your Foreign Discretionary Allowance with Tax clearance certificate
- Amounts above your combined Travel and Foreign Discretionary Allowance require Reserve bank approval which we can arrange.
Physical Business Outside Of South Africa
Many of our clients have businesses which have global earnings ie earnings outside of South Africa.
We have successfully helped some of these clients with our partners to set up business assets in an offshore jurisdiction, as a springboard into Africa, as well as other jurisdictions appropriate to their respective situations.
This ensures offshore earnings remain offshore in hard currency at favourable tax rates.
Usually an offshore family Trust is utilised as the owner of the offshore company.
The trust can be seen as the family bank, a “Plan B” or life raft of sorts – An alternative if circumstances deteriorate at home.
Residency And Citizenship Of Foreign Countries
There are multiple jurisdictions which allow and encourage residency and citizenship through various schemes and programmes linked to investment, donation and property ownership.
No person or family’s situation is the same and tailored solutions are required with high consultation to navigate the multiple variables in making such decisions.
Our partners are ideally placed to guide you on these considerations as they have done for thousands of high net worth clients across the globe.
Full Physical Financial Emigration
This is the most extreme, disruptive and costly of the options where one packs up and physically moves to start a new life in a foreign land.
We have partnered with relocations and emigration specialists who can guide you each step of the way.