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Is financial emigration the right choice for you?

By April 4, 2016October 23rd, 2023Financial emigration

Is financial emigration the right choice for you?

April 4, 2016

The thought of financial emigration may fill you with fear and anxiety. The fact of the matter is that many people dread this process thinking it will prohibit them from ever bringing money back to South Africa. After all, the process of emigrating from your beloved home is already an anxiety-inducing move.

Why choose financial emigration?

Most people who have emigrated from South Africa don’t even consider financial emigration. If you have relocated abroad, the easiest way to transfer your money offshore is using your annual discretionary or foreign investment allowances of R1 million and R10 million respectively.  But those who wish to transfer the proceeds of their retirement annuities or South African inheritance will have to apply for financial emigration.


Financial emigration refers to the act of exiting your home country financially. This process does not impact your South African birth-right, citizenship or the right to retain your South African passport.


There really is no reason to fear financial emigration – in many ways this actually simplifies life for you. For all intents and purposes it only means that all your money will now flow out of a central bank account for exchange control purposes, which means you can sit back and relax – knowing your finances are 100% above board.


Benefits of financial emigration

As a financial emigrant you will no longer have access to internet banking or multiple South African bank accounts. All your financial matters will be consolidated under one roof through a blocked bank account managed by a financial emigration specialist at your appointed banking institution.


Financial emigration offers you significant benefits, including:

  • transferring the full capital value of your retirement annuity proceeds offshore, before age 55
  • offshore payment of inheritance without exchange control approval
  • paying passive income such as rent, dividends, directors’ fees, salary for services rendered in South Africa and income from discretionary or vesting trusts, offshore
  • paying the proceeds from a third party life policy offshore
  • concluding your financial affairs with the South African authorities, such as SARS and SARB


Which route is right for you?

Choosing the right course for moving your money is not always easy. Either route has its benefits, but your personal circumstances alone can determine which is right for you.


Luckily, finglobal has the knowledge, experience and accreditation to assist you with your decision and the process of financial emigration from South Africa. If you’re interested in a cost- and obligation free consultation, simply leave your details and we’ll call you.

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