Offshore Investments

Offshore investing is often demonized in the media, which paints a picture of investors stashing their money with some illegal company located on an obscure Caribbean island where the tax rate is next to nothing. While it's true that there will always be instances of shady offshore deals, the vast majority of offshore investing is perfectly legal. In fact, depending on your situation, offshore investing may offer you many advantages.

Under current South African law, you are entitled to apply to the South African Reserve Bank to invest up to R2 million in foreign investments. Certain criteria will have to be met though. For instance, your tax matters should all be in order and you will need a clearance certificate from the South African Revenue Service. Once your application is approved, you may convert your funds into any currency of your choice and invest overseas. Your returns will be paid into an offshore bank account.

Choosing what to invest in can be a bit tricky, especially in the current financial climate. Consulting an accredited financial advisor will assist you in mitigating the risk but you should always proceed with caution. Although you can make a significant amount of money with a good investment, you can also lose your life savings if you invest poorly.

Some companies, like Sanlam, have investment schemes that allow you to invest Rands overseas, thus bypassing the whole application process. This will also pay your returns in Rands. There are, however, many other ways to invest overseas and we will cover some of those options on this website. One thing to keep in mind is that I am NOT an accredited financial advisor. The purpose of this website is simply to assist you in finding the correct people to advise you on your investments and also to highlight some tips and tricks when investing.