How to fund your permanent holiday break-away

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The biggest stumble block of achieving the dream of the island lifestyle is funding. I have found a simple solution how to fund your permament holiday break-away. For the first time in my life I have to thank the Government and Inland Revenue Service for the brilliant idea. It can be funded from tax-savings, let me explain:

In the table below I compare the taxation bill of a South African tax resident to a Dream-Island-Resident on R1,000,000 income. Consider that R1000,000 equals $81,300. It is likely that your country’s tax would be similar to South Africa due to "Transfer Pricing" and other complex regulations resulting in a similar worldwide tax regime. This tax regime prevent people from moving to the most economical place of business from a tax point of view. It doesn't matter where you are moving, you will be taxed by the country of your residence. This tax are being utilised to fund the bankruptcy of basically all the governments of the world.

There are a few exceptions to the rule: About 250 islands with very low tax rates and minimalistic regulations. These islands do what they do best: providing the ultimate lifestyle opportunities and destination of choice to business people, who are willing to invest.


On an annual income of R1,000,000 you will pay an estimated tax of R436,440 In South Africa. I have made a few assumptions and based it on an average household's profile. Yours will be different depending on your income. For illustration purposes I have left it quite simple and I have disregarded many other taxes such as Estate duty taxes, “Sin taxes” “Customs excise and duties” etc. This calculation provides an estiamte of your minimum tax bill.

On the Dream Island destination ( I have one specifically in mind) the Income Tax vary from 0%-3% depending on your classification. The only other tax payable is Value Added Tax at 10%. On the same annual income you will pay only R107,600 tax.  A tax saving of R328,840! My income can be boosted with R1,644,200, after only 5 years . The saving after 5 years equals 3 years of my income in South Africa. These figures are mind-blowing. I can obtain the Dream Island beachfront house, not pay any rates and taxes, not pay any Capital Gains Tax, look after my mother comfortably without the worries of donations tax and make no unnecessary costly Estate Planning exercises.

Shocking news

Yesterday I received this shocking mail from an informed source that needs to fasttrack the Dream-Island-Plan urgently.

“Hi there,

We are all expecting big changes to tax laws to be announced when the budget is read next month. The minister of finance has warned us of sweeping increases in taxes required to fund the huge shortfall of billions of Rands required by Treasury.  In addition, Treasury needs this money as soon as possible so we can expect radical changes to PAYE calculations with effect from 1st March.”

Do you have a plan in place? How are your tax funds being uitlised? With the pace that taxes are being increased you either have to find additional income or you have to escape to a Dream Island like me. The intricacies of the plan will be shared in future blogs. Thank you for reading.


Louis Munro

Chartered Accountant (SA)

>Founder: Munro Accountancy Inc

>Founder: Your Moment Your Life (YMYL)

>Co-founder: Savvic Statutory Services (Pty) Ltd

>Co-founder: The Fun Accountant

> SFM Elite + member

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