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Guide

Investing offshore from South Africa, properly.

The allowances, the approvals, the tax, the jurisdiction and the adviser: a practical guide for South African residents and expatriates who want hard-currency assets held outside the country.

In this guide

  1. Why South Africans go offshore
  2. The allowances
  3. Tax on offshore assets
  4. Choosing a jurisdiction
  5. Choosing an adviser
  6. The process, step by step
  7. Five lessons from those who went before

Written by the Intrasia Wealth investment team. Reviewed by the Head of Legal and Compliance under our editorial standards. Updated 22 September 2026 to reflect the increased single discretionary allowance under SARB Exchange Control Circular 6/2026. Not tax advice. Intrasia Wealth assists South African clients to externalise funds within their allowances; see the South Africa page.

Why South Africans go offshore

Three reasons come up in almost every first conversation: the rand, concentration and continuity. The rand has lost value against the US dollar over most long periods, so holding only rand assets is a currency bet. Most South Africans already have their home, their business or their pension in the country, so their wealth is concentrated in one economy. And families with children studying or working abroad want assets that can follow them without a paperwork exercise each time.

Going offshore is not about avoiding South African tax, and it should never be. It is about diversification and access to global markets in a hard currency.

The allowances

Single discretionary allowance (SDA)R2 million per calendar year, per adult, for any purpose. No SARS approval needed. Increased from R1 million with effect from 8 April 2026.
Foreign investment allowance (FIA)Up to R10 million per calendar year, per adult, with an Approval for International Transfer (AIT) from SARS. Unchanged by the 2026 increase.
Above R10 millionPossible with a special application to the South African Reserve Bank's Financial Surveillance Department.
Who administers itExchange control is administered by the SARB through authorised dealers (the banks). Your bank processes the transfer once the approval is in place.

Last reviewed 22 September 2026 against the South African Reserve Bank's Exchange Control Circular No. 6/2026 (8 April 2026), which raised the single discretionary allowance from R1 million to R2 million per adult per year. The same circular raised the minors' travel-related allowance from R200,000 to R400,000; the R10 million foreign investment allowance is unchanged.

The AIT process asks SARS to confirm your tax affairs are in order and to review your assets and liabilities. Allow several weeks. Have your tax returns filed and up to date before you apply. Your adviser should be able to walk you through the documentation but cannot apply on your behalf without your authority.

Tax on offshore assets

South African tax residents are taxed on worldwide income and gains. That means offshore dividends and interest are taxable, offshore capital gains are taxable when realised, and offshore holdings must be declared on your return. Mauritius does not tax the gains, so there is no double taxation, but the South African liability remains. Some jurisdictions and structures change the timing or the character of the tax; they never remove the obligation to declare.

Two situations need specialist advice before you act: ceasing South African tax residence, which triggers a deemed disposal of most worldwide assets, and holding offshore assets through a trust, where South Africa's attribution rules can tax the donor. Intrasia Wealth does not give tax advice and will work with your tax practitioner.

Choosing a jurisdiction

MauritiusTwo hours' flight, same time zone, DTA with South Africa, no capital gains tax, no exchange control, FSC-regulated, lower cost base. The natural first choice for African families.
Channel IslandsMature, well regulated, higher cost. Common for larger family trusts with UK connections.
SwitzerlandDeep private banking, highest cost, high minimums. Suits very large portfolios.
Global funds on a South African platformRand-denominated funds that invest globally, held on a local platform in your name. No externalisation and no SARS approval needed, but the money stays inside the exchange control net. Useful alongside a direct hard-currency portfolio; check the fee layers on any platform.

Choosing an adviser

The test is accountability. A firm licensed only offshore is not answerable to the FSCA, and you have no recourse to the FAIS Ombud. Whoever advises you should be an authorised FSP you can look up, should tell you in writing what they are paid, and should be able to explain the tax consequences or send you to someone who can. For the avoidance of doubt: Intrasia Wealth advises South African residents in South Africa and keeps their assets there. If you decide to externalise funds, the transfer is arranged by you and your bank, and the offshore adviser you choose should be one you can hold to account. See how we work in South Africa.

The process, step by step

  1. Conversation. Goals, existing assets, time horizon, currency needs.
  2. Proposal. Written allocation, costs and reporting, with a rand comparison if you want it.
  3. Approvals. AIT application if you are using the foreign investment allowance, prepared with your tax practitioner.
  4. Account opening. Custodian account in your name; identity verification under the rules of the regulator for the entity and service applicable to you.
  5. Transfer. Your bank externalises the funds under the allowance.
  6. Investment. With the offshore adviser or custodian you have chosen, in stages if markets or currency warrant it.
  7. Reporting. Quarterly, in the currency you choose.

Five lessons from those who went before

  • Externalising everything in one week because of a headline, then sitting in cash for a year.
  • Buying an offshore product with three layers of fees because it was easy.
  • Using an unregulated introducer who cannot be held to account.
  • Not declaring offshore holdings, which turns a diversification decision into a legal problem.
  • Putting assets in a trust without understanding South Africa's attribution rules.

Questions we are asked

Frequently asked

What is the difference between the single discretionary allowance and the foreign investment allowance?
The single discretionary allowance (SDA) is R2 million per calendar year that a South African resident over 18 can send abroad for any purpose without tax clearance, increased from R1 million by the South African Reserve Bank's Exchange Control Circular No. 6/2026 (8 April 2026). The foreign investment allowance (FIA) remains up to R10 million per calendar year and still requires an Approval for International Transfer (AIT) from SARS.
Do I pay South African tax on offshore investments?
Yes. South African tax residents are taxed on worldwide income and capital gains, regardless of where assets are held. Offshore holdings must be declared. Mauritius has no capital gains tax, which avoids double taxation but does not remove the South African liability.
Can Intrasia Wealth help me externalise funds?
Yes. South African residents are advised in South Africa under our FSCA licence. We build rand-based portfolios on a South African platform and global hard-currency portfolios offshore, and we assist you to externalise funds within your allowances, working with your bank and tax adviser. This guide explains how the process works.
Can I invest offshore in rand?
You can buy rand-denominated feeder funds, but the money stays inside South Africa's exchange control net. Externalising funds through your allowances and holding hard-currency assets directly is what most people mean by going offshore.
Why Mauritius rather than Jersey, Guernsey or Switzerland?
Proximity, a shared time zone, a double-taxation agreement with South Africa, no exchange control, and a regulator that South Africans can deal with directly. Costs are generally lower than the Channel Islands or Switzerland for comparable service.
Is my money safe in Mauritius?
Assets are held with an independent custodian in your name, not with the adviser. Mauritius is FATF-compliant and an OECD Inclusive Framework member. As with any jurisdiction, safety comes from the custody arrangement and the regulation of the firm, both of which you should verify.

Questions about the guide? Ask us.

We will explain the allowances and the tax honestly, even where the answer is that you do not need us.

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