Best Offshore Investments for South Africans — May 2026
South Africa is less than 1% of global equity markets. Use your R1M discretionary + R10M investment allowance each year to diversify into US tech, European luxury, emerging markets and global bonds. We've ranked the top rand-hedge and direct USD options. Updated 15 May 2026.
Quick answer: What's the best way to invest offshore from SA?
For most investors under R1M, rand-based feeder funds like Ninety One Global Franchise (14.8% 5-yr ZAR return) and Nedgroup Core Global Feeder are easiest — no SARS admin. For larger amounts, externalise using your R10M Foreign Investment Allowance via Allan Gray Offshore or direct broker (Interactive Brokers, Saxo). Above R2M, consider offshore endowments for tax-efficient estate planning.
Top 10 Offshore Investment Options in South Africa
Ranked by 5-year ZAR return for rand-based funds, and EAC for direct offshore. Tick up to 3 to compare.
Offshore Allowance Calculator
See your remaining offshore room and projected USD value at retirement.
- R1M discretionary + R10M FIA per year
- Uses live ZAR/USD reference rate
- Projects in both ZAR and USD
Three routes to invest offshore from SA
1. Rand-based feeder funds
Invest in rands, fund holds offshore assets. No allowance used. Best for amounts under R1M and beginners. Examples: Ninety One, Allan Gray, Coronation.
2. Direct offshore (FX conversion)
Convert to USD/GBP/EUR. Uses your R1M discretionary or R10M FIA. True currency exposure. Platforms: Interactive Brokers, Saxo, Investec One Place.
3. Offshore endowment
For amounts above ~$100,000. Tax-efficient wrapper for estate planning, avoids US/UK situs tax. Examples: Old Mutual Wealth International, Momentum Wealth.
Frequently asked questions
How much can I invest offshore per year?
South Africans have a R1 million Single Discretionary Allowance (no SARS tax clearance) plus a R10 million Foreign Investment Allowance (requires SARS approval) per calendar year — R11 million per adult. Spouses can each use their own, totalling R22M per couple.
Do I need to declare offshore investments to SARS?
Yes — SA tax residents pay tax on worldwide income and capital gains. You must declare offshore dividends, interest, and capital gains annually. Most reputable platforms issue IT3(b) and IT3(c) certificates to make this easier.
Rand-hedge vs true offshore — what's the difference?
Rand-hedge funds are still SA-domiciled and pay you back in rands. True offshore means your money is externalised — held in a foreign currency, in a foreign jurisdiction. Only true offshore protects you from SA-specific systemic risk (e.g. exchange controls changing).
What about US estate tax on Apple, Microsoft etc?
US-domiciled assets above $60,000 owned by a non-resident are subject to US federal estate tax of up to 40%. To avoid this, use Irish-domiciled ETFs (like CSPX for S&P 500) or invest via a UK/Channel Islands platform. Important to plan for if you hold direct US shares.
Will the rand strengthen or weaken?
Citadel and major asset managers expect 2-3% annual rand depreciation over the next decade — far less than the historical 5%. Don't invest offshore solely for currency depreciation; invest for diversification and access to global growth sectors not available on the JSE.
How we ranked these offshore options
Rankings combine 5-year ZAR returns (where applicable), total EAC, minimum investment, regulatory protection, and tax efficiency for SA investors. Data as at 15 May 2026. We don't accept payment for rankings.