About South Africa
South Africa boasts the most advanced, broad-based economy in sub-Saharan Africa, which is now home to more than one billion people. Over one million South Africans currently live overseas, primarily in English-speaking, economically developed countries such as Australia, Canada, New Zealand, the UK and the US. Sovereign designs and implements wealth and tax planning strategies for internationally mobile South Africans, as well as providing efficient offshore estate and business structuring for expatriates looking to return to South Africa.
South Africa – Key insights
- South Africa is an important emerging economy and the second-largest economy in Africa.
- Party to numerous treaties and cooperation agreements, including the African Continental Free Trade Area.
- Over one million South Africans currently live overseas.
- Increasing numbers of South Africans are returning home after working abroad.
- South African residents are taxed on their worldwide income. Non-residents are taxed on their South African sourced income. South Africa has Double Taxation Agreements (DTAs) with over 80 countries, including the UK, US and Mauritius.
- South Africa tax residents can transfer a total of ZAR12 million (c. USD725,000) per year using single discretionary allowance and foreign investment allowance.
- 25 million annual tax exemption on foreign earnings of South African tax residents who work overseas for more than 183 days per year.
- ‘Loop Structures’ may assist in streamlining estate planning, asset protection and achieving tax efficiency.
- Capital Gains Tax deferral through a ‘section 42 asset-for-share-transaction’.
- Tax Emigration – Results in a South African Revenue Service (SARS) Notice of Non-Resident Tax Status.
Why choose Sovereign South Africa?
Sovereign South Africa serves private clients, corporates and intermediaries across various sectors. Combining in-depth local knowledge and the reach of Sovereign’s global network, our Cape Town-based team is trusted by clients to deliver fully compliant, tax-efficient structures to facilitate inbound and outbound business and cross-border investments. We design and implement strategies that provide economic and geographic diversification. This includes supporting individuals and families in respect of their global mobility options, domestic and overseas property purchases, asset holding structures, as well as tax and succession planning.
Key Highlights:
Sovereign South Africa – Corporate, Fiduciary and Private Client Services
Sovereign’s Cape Town office is recognised for its expertise in the provision of efficient and compliant offshore corporate structures for businesses trading or investing into and out of South Africa as well as internationally. It also assists private clients and their families with fiduciary solutions in support of wealth management, asset holding, tax and succession planning, and global mobility. Working in conjunction with a client’s financial and legal advisors, we assist in establishing international offshore structures that offer enhanced efficiencies and protections.
Corporate Services
Many South African business owners, entrepreneurs and investors establish or structure their interests strategically overseas. This allows local operations to continue to grow, whilst also leveraging international advantages in respect of global market opportunities and access to foreign investment. Many jurisdictions also provide tax incentives, including lower personal and corporate income taxes, reduced withholding taxes and import duties as well as access to double tax treaties. Certain jurisdictions have favourable capital gains and inheritance tax frameworks, offering further advantages for wealth preservation. Where South African business interests are considered, offshore holding structures can provide significant advantages to business owners.
Private Client and Fiduciary Services
Sovereign South Africa’s private client services assist clients (high-net-worth individuals, entrepreneurs, executives and professionals) to structure their assets in support of their personal, family and business interests across multiple jurisdictions. Through Sovereign’s global network, we specialise in setting up offshore corporate and trust structures that can provide South Africans with opportunities for efficient wealth management, asset protection and succession planning. We also assist clients on a broad range of issues in respect of residency and citizenship programmes, foreign property ownership, double tax treaties and international retirement planning solutions.
Sovereign Insights: stay updated on South Africa
The international tax, legal and regulatory landscape is constantly changing. We actively seek out and process relevant information to ensure compliance and reduce risk. Explore our latest news, blogs and posts to stay informed on changes impacting your investments, operations and legacy planning in a global context. You can also subscribe to our newsletter.
Sovereign People
Sovereign South Africa places an emphasis on strong client relationships, technical excellence and a commitment to delivering high-quality service. The office is led by highly experienced and qualified staff with a significant depth of knowledge and expertise in their respective fields, often gained through years of practical application and ongoing learning. The senior team is also committed to supporting the growth and development of their teams throughout their professional journeys.
- Robert Hovenier
Managing Director - Africa
Read more – Robert Hovenier - Ralph Wichtmann
Managing Director - South Africa
Read more – Ralph Wichtmann - Coreen van der Merwe
Director
Read more – Coreen van der Merwe - Roné Silke
Head of Client Engagement
Read more – Roné Silke - Timothy Mertens
Chairman
Read more – Timothy Mertens
Sovereign Knowledge Hub
Sovereign is focused on supporting clients by ensuring they have the knowledge, information and resources they need to stay informed and make confident decisions. From briefings, information sheets and case studies to videos and webinars, our ‘Knowledge Hub’ contains the practical resources to give clients the latest perspectives on the business, legal and wider issues that matter. Browse the library.
News
- Why South Africans Should Regularly Review Their Offshore Structures Read more – Why South Africans Should Regularly Review Their Offshore Structures
- How international investors assess African startup business structures Read more – How international investors assess African startup business structures
- Mauritius Budget 2026/27: why South African Tech entrepreneurs should pay attention Read more – Mauritius Budget 2026/27: why South African Tech entrepreneurs should pay attention
Webinars
- Webinar – Why is Portuguese Residency so appealing to South Africans? Read more – Webinar – Why is Portuguese Residency so appealing to South Africans?
- Webinar – A holistic approach to international residency and citizenship planning for South Africans and the impact on SA tax residency and exchange control Read more – Webinar – A holistic approach to international residency and citizenship planning for South Africans and the impact on SA tax residency and exchange control
- Webinar – South Africa lifts ‘loop structure’ restrictions Read more – Webinar – South Africa lifts ‘loop structure’ restrictions
Sovereign – Licences and Professional Affiliations
Sovereign Trust (SA) Limited is registered with South Africa’s Financial Intelligence Centre (FIC) and the Information Regulator. We boast a strong professional consulting team made up of non-practising lawyers and experienced consultants, who work closely with clients’ financial, tax, investment and legal advisers to deliver compliant international corporate and fiduciary solutions. Our team also holds memberships with the Society of Trust and Estate Practitioners (STEP), and we adhere to ethical and professional standards under the STEP Code of Professional Conduct
Sovereign’s Global Network
Established in 1987, the Sovereign Group has grown to become one of the largest independent corporate and trust service providers worldwide with an office network now spanning over more than 20 jurisdictions across Africa, Europe, the Middle East and Asia. This global reach enables us to provide local expertise with an international dimension and allows our clients to access a global service from a local point of delivery. Sovereign Trust (SA) Limited works in close coordination with our international network to deliver seamless cross-border solutions to our clients.
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
