How South Africans can diversify their portfolio beyond borders

International diversification is now an essential part of modern financial planning. Yet managing your wealth across borders can be complex. Tax laws, exchange control regulations and investment rules differ from country to country, and without expert guidance, even small mistakes can be costly.

If you are among the nearly one million South Africans living and working abroad, or simply want to create greater financial security for your family, the right cross-border partner can help you grow your wealth, stay compliant with SARS and protect your financial future wherever life takes you.

Why invest offshore?

The South African stock market represents less than 1% of the global economy. This means investors who keep all their assets locally are missing out on valuable opportunities in the wider world.

Investing offshore helps you:

• Spread your risk across global markets
• Access stronger currencies
• Tap into industries not available on the JSE
• Build long-term financial stability

The challenge for many South Africans is finding qualified advice. The challenge for many South Africans is if finding an advice firm that has the experience and knowledge to navigate international markets.

Our cross-border wealth specialists are licensed in multiple jurisdictions and can help you build a diversified portfolio designed around your goals, risk level and time frame. Whether you’re staying in South Africa or planning to move abroad, we’ll make sure your money is working globally for you.

How tax residency affects your obligations

Understanding your tax residency is crucial when managing finances across borders. Even if you live outside South Africa, SARS may still consider you a tax resident, which means you could be liable for tax on your worldwide income. 

In 2024, about 38,000 taxpayers left South Africa, according to SARS. However, leaving the country does not automatically change your status. To stop being a tax resident, you must complete tax emigration, which also helps avoid double taxation.

Key points to know

• Tax residents are taxed on worldwide income
• Non-tax residents are taxed only on income sourced in South Africa
• Completing tax emigration formally ends your South African tax residency
• Exit tax (Capital Gains Tax) may apply to your worldwide assets when changing residency
• Double Taxation Agreements (DTAs) prevent you from being taxed twice on the same income

How we can help

Our cross-border tax specialists can:

• Determine whether you qualify as a tax resident or non-tax resident
• Complete your tax emigration and notify SARS
• Calculate and manage exit tax obligations
• Advise on how DTAs affect your new country of residence

Getting this right ensures compliance, avoids penalties, and gives you confidence in making informed cross-border financial decisions.

Exchange control: How much can you legally move offshore?

South African ID holders can legally move funds overseas each year within certain limits. Getting this right is the essential first step to any offshore plan. Here’s how it works:

• Up to R1 million per year: Transfer funds using your Single Discretionary Allowance (SDA) without needing tax clearance from SARS. Non-residents for exchange control are not eligible for this allowance.
• Up to R10 million per year: Use your Approval for International Transfer (AIT) for offshore investments or emigration purposes. This requires tax clearance from SARS.
• More than R10 million: You’ll need special approval from the South African Reserve Bank (SARB) to transfer higher amounts.

Our forex specialists can guide you through each step to ensure your transfers are compliant, efficient and cost-effective.

Transferring your retirement annuity abroad

South Africa’s new two-pot retirement system, which came into effect on 1 September 2024, has changed how retirement savings are accessed. Here’s what to know:

• Savings pot: You can withdraw a portion of these funds before retirement under certain conditions.
• Retirement pot: Two-thirds of your contributions are allocated here and can only be accessed once you retire.
• If you tax emigrate: You can only access your retirement pot after being a non-tax resident for three consecutive years.

Planning ahead helps you avoid unnecessary tax, delays and financial stress when accessing or transferring your retirement funds.

Why work with cross-border specialists

Managing wealth, tax and currency across borders requires a deep understanding of multiple jurisdictions. Few firms offer this level of integrated expertise under one roof.

With over 30 years of experience in global wealth, tax and forex solutions, we bring together everything you need to manage your finances seamlessly across borders.

Our goal is simple: to make international wealth management easy, compliant and effective for South Africans at home and abroad.

Your global journey starts with the right partner. Whether you’re growing your wealth abroad, planning a move or protecting your assets, we’ll guide you every step of the way. Speak to our cross-border specialists today and start building your future beyond borders. Contact us at +27 (0) 21 657 2120 (SA), +44 (0) 20 7759 7514 (UK) or [email protected].