It makes little sense to leave your retirement annuities in South Africa when considering emigration.
1. Move your South African retirement annuities offshore
It makes little sense to leave your retirement annuities in South Africa when considering emigration. Amended tax legislation of 2008 entitles you to transfer the full capital value of your South African RA’s offshore before age 55.
Where do you start? Record your financial emigration with the South African Reserve Bank and freely move your retirement annuity monies offshore.
2. Record your financial emigration from South Africa
When living and working abroad, despite permanent residency or citizenship, from an exchange control perspective you’re regarded a South African resident until such time as the South African authorities have recorded your status as non-resident.
Financial emigration is a declaration of your asset base to SARS and the Reserve Bank with the intent to financially exit from South Africa.
It’s a considered and time-consuming process. To make your financial emigration a smooth and cost effective experience it’s advisable to seek the advice of a registered South African service provider.
3. Legally transfer money from South Africa
Transferring money from South Africa is subject to Exchange Control Regulations – breach of regulations is a criminal offence and subject to penalties.
To legally transfer money abroad requires Reserve Bank authorisation and, in some instances, a SARS tax clearance certificate.
Two transfer opportunities, subject to criteria and Reserve Bank approval:
Discretionary Allowance: R1m per person, per annum.
Foreign Investment Allowance: R4m per person per annum.
4. Transfer inheritance income from South Africa
Transferring South African inheritance income offshore is subject to Exchange Control Regulations.
Living abroad, as a beneficiary of an estate you’ll need an active South African bank account for inheritance income, from where the proceeds can be transferred to your new home country.
No bank account? Contact a South African financial services provider to open the relevant bank account to transfer your inheritance income offshore.
Talk to finglobal.com:
- authorised South African Financial Services Provider. FSB # 42872
- regulated by the Financial Services Board in RSA
- international Professional Provident Society (PPS) advisor
- South Africa’s leading financial migration planning solution provider
- 54 internationally experienced in-house professionals
- state-of-the-art, fully integrated information technology system
- in-depth understanding of Exchange Control Regulations
- respected cross-border tax team and knowledge base
- global client base extending across 75 countries globally
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