Navigating Offshore Investments

A Guide for South African Investors

Why Look Beyond Our Borders?

Investing offshore allows South Africans to diversify their wealth, access global growth opportunities, and hedge against currency volatility. Understanding the available structures is the first step toward building a resilient international portfolio. This guide explores the three primary pathways: Endowments, Sinking Funds, and Open Platforms.

The Three Pathways at a Glance

Offshore Endowment

A tax-efficient insurance “wrapper” ideal for long-term growth and estate planning.

  • Fixed 12 % effective CGT rate
  • Superior estate planning benefits
  • Protection against creditors
  • 5-year restriction period

Sinking Fund

Structurally similar to an endowment but without a “life assured.”

  • Fixed 12 % effective CGT rate
  • Simplified long-term structure
  • No creditor protection
  • Suitable for legal entities

Open Platform

A direct investment account offering maximum flexibility and control.

  • CGT at your marginal rate (up to 18 %)
  • Full control and liquidity
  • Investor handles all tax admin
  • Complex estate implications

The Tax Advantage

For individuals in higher tax brackets (> 30 %), endowments and sinking funds offer a significant tax benefit. The life company manages all tax administration, simplifying your financial life.

This infographic is for informational purposes only and does not constitute financial advice.