By: Layve Rabinowitz
Covid crisis has spurred many to re-evaluate their circumstances
Most of our South African clients have a global mind-set when it comes to their capital. Diversification is and always has been a key theme and many externalise the majority of their surplus wealth. Recently, however, we have seen a growing trend of people wanting to relocate themselves and their families offshore.
For our most recent research report (Four Pillars of Capital: A time for reflection, Stonehage Fleming 2020), we asked whether survey respondents believed that families will become more oriented to a home jurisdiction or retain a multi-jurisdictional presence. 30% said they believed client families would retain or increase their multi-jurisdictional presence. This is something that is borne out in our own experience in South Africa where there has been a noticeable shift in sentiment across our client base since the outbreak of the coronavirus pandemic.
While there still exists a strong fundamental loyalty to South Africa, for a growing group, Covid-19 has exacerbated their concerns around political and financial stability, prompting them to look elsewhere to base themselves and their families.
There are many things that affect a person’s decision to move overseas, including what the destination offers in terms of financial security, lifestyle, education and career opportunities for them and their family.
As advisers to these families, our starting point is getting to grips with their personal and professional objectives and their lifestyle needs. From there, we can advise on the residency and tax implications. Our international specialists understand the wider effects of country-specific advice and are well aware of any knock-on effects that guidance may have. We offer families a synchronised and coordinated thought process from pre-immigration planning to moving and post arrival support.
The Covid-19 pandemic has temporarily hampered international travel. However, people are using the time to re-evaluate their circumstances and many are increasingly looking to internationalise both their families and their wealth.
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