Estate Living Magazine New Beginnings - Issue 37 January 2019 | Page 63
L I V E
S M A R T
About Ocorian
the investment. Taxes one should be cognisant of include transfer or
stamp duty, capital gains tax, income tax and inheritance tax.
At Ocorian Africa, Middle East and Asia (formerly known as
ABAX), we provide private client, corporate and fiduciary
services, including the establishment and ongoing
administration of Mauritian global businesses, trusts, funds,
limited partnership structures and foundations.
Ocorian can assist with introductions to reputable
international property consultancies.
No matter the political situation, South Africans who can afford to
invest in property offshore should do so. This comes with the benefit
of growing wealth outside of the country, also providing the safety
net of a second residency or citizenship, while offering expanded
global travel freedom.
With over 300 local ‘feet on the ground’ in Mauritius, our
flexible and commercial service provides an exciting platform
for our clients to invest into the burgeoning markets of Africa,
the Middle East and Asia.
The UK remains a prime destination for South Africans seeking
residency elsewhere. From 2018 to 2021, prime central London
housing prices are expected to appreciate by 15.2%, according to
the latest Global Real Estate Outlook (GREO) report released in
2018. Ocorian’s worldwide footprint also gives access to a plethora
of services delivered seamlessly in 12 business jurisdictions
across North America, Europe, the Middle East, Africa and
Asia.
Cities such as Manchester and Liverpool offer promising rental
yields for investors in the buy-to-let market. A government strategy
known as the Northern Powerhouse initiative has played a part
in driving positive market sentiment in the region. Infrastructure
developments – such as upgrading Manchester’s Metrolink system,
and the future introduction of a new high-speed rail network – will
reduce travel time and increase connectivity, which is great for the
city’s economy. In Manchester, gross rental yields of up to 5.6% were
recorded at the end of 2017, while Liverpool has seen average rental
yields of 6.2%. Africans will have no problems getting their money offshore, as
citizens have a foreign investment allowance of R10 million annually.
A tax clearance certificate from the South African Revenue Services
(SARS) is required before proceeding. In addition, South Africans
have a R1 million discretionary allowance that they can use for
foreign investment without having to obtain tax clearance – allowing
them to continue to send funds to their preferred investment
destination. Investors who opt for a residency programme must be
clear that different programmes tie the residency to the investment
in different ways. For some, like Portugal, after the property has been
held for five years, it is possible to obtain permanent residency. In
some other countries, like Mauritius, the residency ceases as soon
as the property is sold. Each programme is different and has its own
benefits and drawbacks.
Other destinations that offer residence by investment programmes
are also looking more appealing on the back of the strengthening
rand. Portugal, in particular, is appealing to South Africans, both for
the affordability of quality properties, and because of the support
offered to residency seekers through the programme. South
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Alan Witherden
[email protected][email protected]
Business Development Director
www.ocorian.com
Nousrath Bhugeloo
Regional Head, AMEA
Business Development