Offshore investments are ideal for people who want to make use of their offshore allowance to diversify their investments.They are also for the more sophisticated investor or the investor who intends to permanently settle overseas at a later stage.
It is important to bear in mind that offshore investments have proven in the past to be more risky than local investments.
Some regulation changes afoot include:
The current R4-million lifetime offshore investment limit will be replaced by an annual R4-million limit.
Investment in excess of the limit will be subject to approval by the South African Reserve Bank.
Furthermore the single discretionary allowance of R750 000 per annum will be increased to R1-million per annum.