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lots of incorrect assumptions in that post.......

 

South African income tax legislation (as modified by a DTA), dictates on how capital gains are taxed in South Africa.  Unfortunately the legislation is not necessarily reciprocal and you would have to refer to local (in your case) Portuguese legislation (as modified by any DTA) in order to assess the tax implications on your side.....

For example, and not relevant to your case, but para 12(4) of the 8th Schedule of the South African Income tax act dictates how a incoming immigrant Base cost is reset on becoming a South African resident.  There is no modification in the DTA necessary.  For completeness, the relevant income tax legislation reads as follows.
4) A person who commences to be a resident must, subject to paragraph 24, be treated as having
disposed of each of that person's assets, other than assets in the Republic listed in paragraph 2 (1) (b) (i) and (ii), and as having acquired each of those assets at a cost equal to the market value of each of those assets, which cost must be treated as an amount of expenditure actually incurred and paid for the purposes of paragraph 20 (1) (a).

Incidently, you'll note that there is no mention of "exit tax" (which is a misnomer anyway).  So irrespective if "exit tax" was paid, South Africa regards the base cost as being "reset".

In your case, the key to unlocking the puzzle is to understand what Portuguese legislation say's, and if you're in luck, it may have a similar provision to the above....... 

Tax legislation, and in particular international tax implications are not alway's logical and I strongly advise you once again to seek appropriate expert tax advice (not from myself).  Don't just assume because "South Africa do it this way, Portugal must treat you the same"

I no longer require an offshore investment account - however I previously opened an account with Internaxx (google them) and transferred money across to them at various stages from SA Bank's - it allows direct exposure to multiple international markets at a reasonable price (but certainly not the cheapest).  I can highly recommend them.

Note however, the account was opened in a different era, where local product providers did not over reasonable offshore packages.   today - I would take a serious look at the local offerings and in particular the Easy Equities option.  So yes, I'd say go ahead.

ps.  although the acquisition of Mercantile by Capitec has been announced, sale has not yet been completed.  So Mercantile is NOT a subsidiary of Capitec.

Yeah I was wondering about the TFSA. Is it tax-free from all taxes including Dividend Tax and Capital Gains Tax or only Income Tax?

TFSA provide a wrapper that exempts any tax in respect of income tax (i.e. interest), capital gains tax and dividends withholding tax. 

Very impressive.  I've often though of doing the same, but i never got around to it.  So well done.

My first thought was how you treated the eventual taxation of a RA, and i didn't see it your spreadsheet.  But then saw your differential Gain rates, so i'd guess it was there.  Any chance you can confirm the logic  around your gain rates, and how you considered the eventual taxation of a RA. 

Regards

Suggestion.  If you're invested in REITS, short to medium term, throw your R30k annual contribution limit into REITS (in ETF's) via a tax free savings vehicle.  Its a break even or win - distributions will be tax free.  Long term, you can look at switching depending on your preferences....

Also note that over time it has been suggested that the basic interest exemption will be removed.....

I'm finding this one extremely difficult to read, and i haven't been as negative on a budget since the 90's.   

I think the obvious solution on financing the fiscus, would be to increase the vat rate from 14%.  Politically, i don't think the ANC has the willpower to do it......

I do think that fuel levies will be increased significantly as a result of the drop in oil price.  The drop in oil price will have the effect of shielding the increase.......  I'm sure the minister will jump at the opportunity.

On the normal tax front, income tax brackets, especially in the lower end,  will probably be adjusted to cater for fiscal creep.  At the higher end of the income scale, i am anticipating increase in effective tax rates, most of it via adjusting of brackets, but it wouldn't surprise me if they adjust upwards the marginal tax rates in the higher brackets. 

On the capital gains side, i'd expect a increase in rates (CGT, doesn't bring in much tax revenue, but it certainly makes a political statement).  Dividends tax will be increased proportionally to the cgt rate.  On companies tax, my guess is that they will leave it as is, but the possibility exists that they will increase by 1 or 2%.

On the non-tax front, it will be interesting to get a update on the national health scheme proposals (would effectively another tax in due course).  Plans in respect of SAA, Telkom, Eskom and other state assets, may also be interesting to watch.