The concept of retirement has changed over the last decade. Gone, are the days where we settled on retirement estates close to our hometowns or merely in a picturesque coastal town close by. Planning ahead for this time has become more crucial than ever and the consideration of retiring abroad has also grown. According to a 2021 study by Money, a UK-based comparative services company shares how South African’s most ideal retirement location is Mauritius while Portugal takes second place.
With the idea of retiring abroad is becoming increasingly popular, South Africans are allowed R1 million to invest offshore however with a tax clearance certificate you can invest more, this is not limited to funds but property and other investment options.
Why should you consider offshore investments? Even if you are a seasoned investor with a portfolio that is spread across several investments, it’s important to note that offshore investors have access to globally listed companies giving you access to a wide range of companies. You can access stronger markets, hedge your money across foreign currencies while you enjoy a life of leisure.
Investing offshore is a great option to consider if you’re looking to retire abroad at a later stage while making a long-term investment now. With the South African Reserve Bank (SARB) confirming that offshore investment limits for all investment and product providers, including retirements funds, have been set at 45%, allowing more flexibility and diversification of your portfolio. Whether you decide to purchase property or invest in a fund, your money will be secure and offer you a return on your investment in the form of rental returns or fund payments over time. By purchasing property from $375 000 in Mauritius or €280 000 towards a fund in Portugal, you can secure an alternative visa into the destination you dream of retiring in.
Before purchasing foreign property or investing offshore, its imperative that you seek guidance and have all the information you require to make the right decision. 12 Star Capital can assist you with your future plans and facilitate your application process.