When engaging in offshore investments or acquiring assets abroad, it is essential to take into account the potential tax implication associated with these assets. These taxes can manifest in various forms, such as capital gains tax, dividend tax, and income tax, which may apply during the course of the investment. Additionally, they can also be relevant when considering succession and estate planning, particularly when transferring these assets to beneficiaries.
Another noteworthy financial consideration in offshore assets is the matter of probate or executor fees, a concept familiar to South African residents. Probate refers to the process by which the validity of a will is established. It can become a costly and time-consuming procedure, particularly when the jurisdiction governing the asset and the probate laws do not align with South African executorship regulations, or when there is no valid South African will in place.
Immovable property can be particularly complex and expensive to transfer to heirs, often necessitating a separate will in the jurisdiction where the asset is located. Seeking specialised advice regarding the specific asset and jurisdiction is crucial to determine whether a separate will is required and executable in that location. A separate will for offshore assets can streamline the estate settlement process, reducing potential delays and costs.