Offshore

You clicked on this link because you think outside the box. You know there is more ways to accomplish things than the norm.

Multiple Passports : A South African with an Estonian passport can travel 189 countries in the world without a visa. You can have the freedom to roam. There are multiple passport combinations to achieve your specific goals with regards to travelling.
Golden Visa or Passport : Most countries offer residency or what is know as a golden visa or passport to applicants via investment programs. The specific requirements varies from country to country which may vary from investment in property, investments in a business, government bonds or social development programs.
Citizenship vs Tax Residency vs Residency : These may sound or look the same, but they are not. Familiar yourself with the difference of each and start reaping the benefits to your choosing.
Offshore Entity : Since 2021 it is legal for South Africans to loop their business interest via an offshore company. In short it means that a South African can hold a South African Asset via an offshore entity looping back into South Africa. Except for the tax benefits it also provides protection for assets, especially if there is a signed Bilateral Investment Treaty in place between the offshore country and South Africa. A Bilateral Investment Treaty is enforced by the International Criminal Couth (ICC). Going offshore also opens brand new markets to you or your business.

Foreign Tax

South Africa : Company Tax - 27%, Individual Tax - Progressive rates between 18% to 45%

Ireland : Company Tax - 12.5%, Individual Tax - 20% on income below EUR42,000.00 and 40% on any income above this threshold.

Estonia : Company Tax - 22%, Individual Tax - 22%

Mauritius : Company Tax - 15%, Individual Tax - Progressive rates between 10% to 25%.

United Kingdom : Company Tax - 19% to 25%, Individual Tax - Progressive rates between 20% and 45%.

Liechtenstein : Company Tax - 12.5%, Individual Tax - 22.4%

Finland : Company Tax - 20%, Individual Tax - 35%

Hungary : Company Tax - 9%, Individual Tax - 15%

Cyprus : Company Tax - 12.5%, Individual Tax - Progressive rates between 20% to 35%.

We did not list tax havens with 0% tax rates for most of those tax havens are on watch list with other countries. It is like dealing with the shady character on a street corner, you just don't. There are exceptions such as Monaco, but the entry barrier is quite high and comes with it's own set of rules.

There are more countries with favourable tax rates out there but it will depend on your needs and the specific setup you will require.

Crypto Trading

Let's address the elephant in the room. If you trade Crypto's and you are a very successful Crypto trader and you trade in your individual name, up to 45% of your earnings will be up for grabs by SARS. That 10x you just achieve is suddenly only a 5.5x.

The short answer is to register a company for your Crypto trading and pay 27% on your profits and manage the company as a proper business within all the rules and regulations. There is more to it than just simply registering a company and start trading but we believe you will do all the necessary homework or get professional advice. Remember to keep a set of books for your annual tax return on your Crypto's.

There are alternatives out there as well such as Brazil's recent announcement that Crypto's will be taxed at a flat rate of 17%.