What are the two ways to invest offshore?
Offshore investing spreads your savings across currencies and markets beyond South Africa, so that less of your wealth depends on one economy and one currency. It also lets you hold money in the currency you expect to spend it in, for example on a child’s studies abroad or your own retirement. It brings its own risks, costs, tax rules and paperwork. There are two ways to do it.
1. Invest in rand. You buy offshore funds through a South African platform or unit trust. You invest and withdraw in rand, but your money follows offshore markets. Fund managers invest abroad within their own Reserve Bank limits, so you do not use your personal allowances.
2. Move money abroad. You change rand into foreign currency and invest it directly offshore, for example in offshore funds, in a portfolio of international shares or on an offshore platform. This uses your exchange control allowances.
How much can you move offshore?
| Allowance | Limit per adult, per calendar year | What you need |
|---|---|---|
| Single discretionary allowance (SDA) | R2 million | No SARS tax PIN |
| Foreign investment allowance | R10 million more | A SARS Approval International Transfer (AIT) PIN |
- The SDA is for South African residents aged 18 and older. You can use it for any legal purpose abroad, including investing. It went up from R1 million to R2 million on 8 April 2026.
- The Reserve Bank calls the second allowance the foreign capital allowance.
- For an AIT, SARS asks where the money came from and for a statement of your assets and liabilities for the past three tax years.
- Larger amounts need Reserve Bank approval.
How is it taxed?
As a South African tax resident, you are taxed on your worldwide income and gains, including your offshore investments. You must declare them on your tax return. Tax you pay in another country can generally be credited against your South African tax on the same income.
Things to know
- Currency works both ways. A weaker rand raises the rand value of your offshore assets. A stronger rand lowers it.
- Costs. Watch for currency conversion costs, transfer fees and offshore platform fees.
- Retirement funds have a limit. Retirement funds can hold up to 45% offshore. Money outside retirement funds has no such limit.
- Plan for your estate. Think about how your offshore assets will pass to your family when you die. You may need a will in the other country too.
Who it suits
Offshore investing may suit you if you want to spread your savings across currencies and markets beyond South Africa, if you expect to spend money abroad (for example, on a child’s studies or your own retirement), or if you are planning to leave South Africa.