South African Expat Investment Options: Best Investments for South Africans Abroad

What are the best investment options for South African expats?

Best investments for South African expats often include a mix of local and offshore assets, such as South African unit trusts, real estate, retirement annuities, government bonds, and offshore portfolios.

Expat investing in South Africa allows you to retain exposure to the country’s diverse economy while balancing currency risk through offshore diversification.

Many expats maintain investments in rand-denominated products for local income and stability, while allocating part of their wealth abroad in stronger currencies for long-term growth and protection.

Combining both domestic and offshore assets gives South African expats a more balanced approach.

However, for those planning to live abroad long-term, offshore investments are generally more portable and flexible.

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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

Investing as a South African expat

Investing as a South African expat isn’t only about where you place your money — it’s also about how you manage access, taxation, and long-term financial structure while abroad.

South Africans living overseas often face unique challenges: fluctuating exchange rates, restrictions on fund transfers, and the need to remain compliant with both South African Revenue Service (SARS) and their host country’s tax rules.

Managing these effectively can make a significant difference to net returns.

Instead of focusing solely on portfolio mix, expat investors should consider:

• How their tax residency status affects global income and capital gains.
• Whether to keep or convert retirement products, such as preservation funds or RAs, after relocation.
• How to move funds abroad legally
• Which global platforms or financial centers (e.g., Mauritius, Isle of Man, or Guernsey) are best for holding offshore assets.

How to invest as a South African expat

South Africans living overseas can invest through both domestic and international channels. Here’s how to approach it strategically:

1. Set up or maintain the right accounts. If still tax-resident, you can continue investing through South African platforms and retirement funds. After formal tax emigration, consider offshore investment accounts that allow foreign currency holdings and multi-jurisdictional access.
2. Diversify across jurisdictions. While South Africa offers solid long-term potential, currency depreciation and political uncertainty make diversification essential. Offshore mutual funds, ETFs, and bonds provide exposure to stronger economies and stable currencies.
3. Use licensed providers. Always invest through FSCA-regulated institutions or international brokers recognized in reputable jurisdictions. This protects against fraud and ensures compliance with exchange controls.
4. Understand repatriation and reporting. Offshore gains may need to be declared to SARS even after tax emigration, depending on your circumstances. Always keep proper documentation for transfers abroad.
5. Consult an international financial advisor. Professional guidance helps ensure you remain compliant and optimize your structure for both growth and tax efficiency.

Is investing in South Africa worth it?

Yes, investing in South Africa can still be worthwhile for expats who understand local risks and opportunities.

The country offers strong returns in sectors such as financial services, resources, renewable energy, and technology.

South African equities and government bonds have historically provided attractive yields compared to many developed markets.

But for long-term expats, it’s usually best to treat local assets as part of an income or heritage base rather than a growth engine.

What are the best investment options in South Africa for expats?

Investing in South Africa for foreigners and returning South African expats is open and regulated for property, equities, and business ownership. Non-residents can invest in JSE-listed shares, South African property, and local funds through a recognized bank or brokerage account.

Foreign investors often explore:

• Real Estate: Property in Cape Town, Johannesburg, or Durban offers capital appreciation and rental income potential.
• Equities & ETFs: Exposure to JSE-listed companies and South African ETFs provides growth through sectors like mining, finance, and telecoms.
• Government Bonds: South African government bonds offer relatively high yields for conservative investors.

While the South African Reserve Bank allows foreign investment, it requires proper documentation for repatriation of funds and adherence to exchange control regulations.

Best investments for South African residents

For South African residents, options expand further to include tax-free savings accounts (TFSAs), retirement annuities (RAs), and company pension funds.

These remain reliable long-term investment choices for those planning to remain or eventually return to South Africa.

What are the alternative investments in South Africa?

Among the best investments for South Africans outside traditional equities and bonds that allow investors to tap into local growth opportunities.

• Private Equity Funds investing in local startups and mid-sized businesses.
• Renewable Energy Projects under government-backed programs.
• Listed REITs (Real Estate Investment Trusts) for exposure to commercial and industrial properties.
• Collectibles (like art, wine, watches, cars, antiques, etc.)

These carry higher risks but may outperform in growth or inflationary environments.

Best Offshore Investments for South African Expats

The best investments offshore for South African expats typically include:

1. Multi-currency offshore accounts: Allow holdings in USD, GBP, or EUR, protecting wealth from rand volatility.
2. Offshore bonds and investment wrappers: Offered in jurisdictions like Guernsey or Isle of Man, these structures enable tax-deferred growth and estate-planning efficiency.
3. Global ETFs and mutual funds: Provide broad access to equities, bonds, and alternative assets worldwide.
4. International pension plans: Portable savings vehicles designed for globally mobile professionals.
5. Offshore property investments: Real estate in stable economies offers currency diversification and potential residency benefits.
6. Trusts and holding companies: High-net-worth South Africans often use offshore structures to manage wealth succession and reduce administrative burdens.

Offshore investing isn’t about hiding assets. It’s about creating global access, protection, and long-term growth flexibility.

Best Alternative Investments for South African Expats Abroad

When living overseas, many choose best South African expat investment options that deliberately move beyond rand-denominated risks.

Top offshore alternatives include:

• Private Equity and Venture Capital Funds: Access to international private markets and early stage startups in the US, Europe, or Asia.
• Residency and CBI Programs: Options in Greece, Malta, and the Caribbean provide asset diversification and global mobility.
• Hedge Funds and Structured Products: Offer exposure to advanced global strategies, commodities, and currencies uncorrelated with traditional markets.
• Offshore Real Estate Funds: Property portfolios in developed markets can provide both yield and currency stability.
• Impact and ESG Investments: Renewable energy, social infrastructure, and sustainability-focused funds align with values-driven investing trends.
• Collectibles and Passion Assets: Fine art, vintage cars, and rare timepieces purchased through regulated global dealers for long-term appreciation.

Offshore Structures for South African Expats

Some high-net-worth South Africans establish offshore companies or trusts to manage global holdings efficiently.

Properly structured, these vehicles:

• Help simplify estate planning
• Offer confidentiality and legal protection
• Optimize tax exposure across jurisdictions

Professional advice is recommended before establishing offshore entities, and we can help with that.

South African Tax Residency Rules

Your tax obligations depend on whether you’re a resident under the South African Income Tax Act.

• South African Tax Resident: Taxed on worldwide income.
• Non-Resident: Taxed only on South African-sourced income (such as rental or dividends).
• Expats under the Foreign Employment Exemption: May exclude part of foreign income if you meet the 183/60-day rule.

If you’ve emigrated financially or obtained non-resident status, confirm whether your local and host-country tax treaties (DTAAs) affect your income, dividends, or capital gains.

Do I have to pay tax in South Africa if I live abroad?

If you’ve formally ceased tax residency with SARS, you’ll generally pay tax only in your country of residence.

However, if you still earn South African-sourced income, those earnings remain taxable locally.

Double Taxation Agreements (DTAs) between South Africa and other countries help determine where taxes apply and prevent double payment.

If you live abroad permanently and qualify as a non-resident, you only pay tax on income sourced within South Africa.

What happens to your investments when you move abroad from South Africa?

When moving abroad, you can usually retain your South African investments, but you’ll need to:

1. Update your tax residency status with SARS.
2. Reclassify your accounts as non-resident for exchange control purposes.
3. Review fund accessibility. Some retirement products may be withdrawn after formal financial emigration.

Regularly review your holdings with an offshore investment advisor to ensure compliance and optimize your global portfolio.

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