Real Estate Investor Magazine South Africa May/June 2019 | Page 51

OFFSHORE
LISTED
UK is still the most popular
destination for SA property
investors who want to invest
offshore. This is according to
Matt Jay, managing partner
at Alliance Investments an established UK property
developer and investor
specialists with offices in
Manchester, Hong Kong,
Shanghai & Dubai.
Corporate investment entities in the
United States: Have you thought
about how you are going to struc-
ture your corporate entity? Many
investors and business owners
never do, but setting up the right
structure can protect your assets in
ways that fit your specific needs. your favour.
Some advisors recommend you
place each of your properties in
its own Limited Partnership. That
would allow you 100% control
over the properties, and to make
your children partners with limited
ownership and no control over the
operations. Over time you could
pass more and more ownership
of the business to your children
and avoid estate tax. This is just
one example of how a customized
corporate structure can work in
Moving funds from SA offshore? At
the start of each new calendar year,
SA resident individuals receive new
annual allowances from the Reserve
Bank under SA exchange control
regulations. These controls remain
unchanged for the 2019 calendar
year as follows:
• R1 million Discretionary Allowance
(DA)
• R10 million Foreign Capital Allow-
ance (FCA)
To determine a custom corporate
structure, answers to these 6 ques-
tions for the right structure.
1. What will your company be
doing?
2. In which state will you be doing
business?
3. Will you have employees?
4. Are you looking to form an LLC,
Corporation or Limited Partnership?
5. If you are forming an entity
to protect rental property or
properties, in which states are the
properties?
6. In which state or country do you
live?
• A Foreign Tax Clearance Certificate
• (FTCC) is valid for 12 months from
date of issue, so you can apply now
and draw down on the balance as
often as you like
• You do not need to redeem your
investments/sell your shares in or-
der to apply for your FTCC – you can
apply using your latest investment
statements
SA Real Estate Investor Magazine MAY/JUNE 2019
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