South Africa represents less than one percent of the world economy and restricting yourself to local investments means you will miss the opportunity to invest in some of the biggest and most successful businesses and markets in the world.
Offshore savings form an important part of a diversified portfolio, but it is important to ensure your offshore saving are structured correctly so that you do not overpay in tax and estate duties.
Maximum capital gains tax rate of 12% versus 18%
No executor’s fees will apply on death which is a saving of up to 4.03%
Income tax rate is 0% rather than at one’s marginal tax rate of up to 45%
You can nominate a beneficiary for the investment or create a joint account