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 L Alan Witherden [email protected] [email protected] Business Development Director www.ocorian.com Nousrath Bhugeloo Regional Head, AMEA Business Development