Estate Living Magazine Retirement Living - Issue 40 April 2019 | Page 64

G O O D
L I F E
LIVE
LARGE
South African retirees have come a long way – and are going a long way. Rather
than banish themselves to the local old age home to toil over macramé, those
with adequate financial resources are increasingly slipping on their Raybans,
waving sayonara and flying off into the sunset. These sunsets are increasingly
in Portugal, Mauritius or Malta, all of which are welcoming qualifying South
Africans with open arms.
Many are looking for tax-efficient economies and an enhanced
quality of life, or just a more exotic lifestyle, and some want to be
closer to children relocated in Europe or the UK.
Transferring money offshore is no obstacle. South Africans are
able to take out R10 million annually (R20 million for couples),
plus their R1 million discretionary allowance. And South African
citizens are allowed to hold a second citizenship.
Here are the implications, the tax breaks, and the incentives.
PORTUGAL
Why Portugal? Portugal has a Mediterranean, sunny climate, is
safe, with a thriving economy, has over 100,000 foreign retirees
who speak English, over 40 golf courses just in the Algarve
region, good food, and a relatively low cost of living. The rest of
Europe and the UK are easily accessible.
Incentives: In 2010, the Portuguese government introduced
the Non-Habitual Residency Programme (NHR) to attract non-
EU residents to the country. Under this, certain types of income
– including your SA pension, interest, dividends and royalties
– are exempt from any tax in Portugal for 10 years. Yes, you’ll
have to live in the country for more than 183 days of the year, but
it’s not mandatory, under this scheme, to purchase a property.
Renting is permitted.