An overview of International Pension Plans (IPP’s) One of the most important aspects of financial planning is ensuring the passing on of wealth to a spouse, family and future generations on one’s demise. However, this is one area of financial planning that can become very complex when the deceased person’s assets or accounts are in different countries, and this is

The Draft Taxation Laws Amendment Bill, 2025 has been published and is currently open for consultation. As noted in the last South African Budget Speech, the proposal is to remove the tax exemption on Foreign Pensions where such pensions have been accrued because of services rendered abroad. What this means is that where an individual worked abroad and their employer

Overview A letter of wishes (LOW) is a private written document prepared by the Member of a Foreign Pension or the Settlor of a Discretionary Trust to provide guidance to Trustees on how they may exercise their powers. While not legally binding, it is a valuable interpretive tool, offering Trustees insight into the Member or Settlor’s intentions, values, and priorities

A lack of understanding and compliance with Category H (Retirement) income has left clients with significantly higher tax bills than they expected, irrespective of their classification as Non-Habitual Residents (NHR). This has arisen from the presumption that: i) all foreign pensions are seen as pensions in Portugal, and ii) the benefits paid by foreign pensions will be classified as retirement

Overview The decoupling of domicile for UK Inheritance Tax (IHT) liability has created new planning opportunities for British expatriates and their advisers. Many British expatriates retain substantial UK situs assets – an estimated £650 billion in residential property and £66 billion in individual savings accounts (ISAs) alone without considering the value held in self-invested personal pensions (SIPPs) or other assets,

The decoupling of UK inheritance tax (IHT) from domicile provides UK expatriates and their advisers with a world of new planning opportunities to mitigate UK tax and probate, whilst significantly enhancing their clients’ financial position. Current research confirms the scope of the issue, as UK expatriates have been found to have extensive exposure to UK situs assets. For example, UK

A death benefit from a pension – including a Self-Invested Personal Pension (SIPP), a Qualifying Recognised Overseas Pension Scheme (QROPS) or a Qualifying Non-UK Pension Scheme (QNUPS) – becomes subject to income tax in the hands of a UK beneficiary if the deceased member was over the age of 75. Moreover, the rate of tax can be as high as

In a globalised world, people are more transient than ever, and the role that international pensions are playing to accumulate and safeguard wealth, whilst providing efficient income and ensuring succession, has risen significantly over the last 15 years. This rise is in part due to the cross-border recognition of foreign pensions from a legislative perspective, the ability to transfer pensions

In today’s volatile financial environment, many individuals are seeking ways to safeguard their savings from political instability whilst wanting access to global financial markets and hard currency. International pension funds are becoming more sought after, particularly for South Africans, as they provide a simple and easy-to-understand, yet powerful option to ensure financial security and peace of mind. “Contributing to an

As global financial markets evolve, South African investors are increasingly drawn to opportunities beyond their borders, seeking diverse portfolios and protection against currency risks. Foreign pensions, in particular, offer a pathway to internationalise future wealth and secure assets across jurisdictions. “For South Africans considering retirement abroad, understanding foreign pensions is key to a successful, compliant financial strategy and future,” explains