RANDS AND SENSE
South Africans invest offshore for a number of reasons: to protect their wealth from domestic political or economic risk, to access markets and opportunities unavailable locally, or to diversify across countries, regions and currencies.
Without expert advice, however, it’s easy to be tripped up by the complexities that often accompany global investments, such as estate duty, inheritance tax, restrictions on investing offshore and currency fluctuations.
The factors to consider include:
South African estate tax. This tax is paid by the estate of the deceased in the form of estate duty. Generally, the beneficiary who inherits the funds is not liable to pay the tax, because the estate has already paid it. The estate duty rate is 20% on the dutiable amount of estates up to R30 million, and 25% for anything above R30m.