Emigration is a harrowing experience. Although you’ll undoubtedly settle in after a while, those first few months inundate you with admin and leave you emotionally drained. It therefore stands to reason that you would like to keep your financial migration as simple as possible… and it is possible. Here are 4 things to consider when emigrating from South Africa.
Tips to consider when emigrating from South Africa
- Move your South African retirement annuities offshore
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.
- 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.
- 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: R10m 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
- South Africa’s leading financial migration planning solution provider
- Experienced in-house professionals comprising of chartered accountants, Certified Financial Planners, tax professionals and emigration and legal specialists
Leave your details and one of our financial consultants will contact you for an obligation free quote or to answer any of your emigration questions.
[contact-form-7 id=”6581″ title=”Blog post (call me)”]