A financial change in status, not a loss of citizenship
Financial emigration, also known as formal emigration simply concludes your financial affairs from a South African point of view. When you financially emigrate your status, for exchange control purposes with the South African Reserve Bank, changes from resident to non-resident. Financial emigration does not change your status as a South African. You and your family still have the right to South African citizenship and your South African passports.
- A Standard Discretionary allowance of R1m
- A Foreign Investment Allowance of R10m (a personal tax clearance for allowance purposes is required for this).
Access to your Retirement Annuity before you turn 55
When you financial emigrate you can cash in your South African retirement annuities even before you turn the age of 55 and move the money abroad. What’s more, your retirement annuity proceeds can be used for any purpose – whether you want to go on a worldwide cruise or buy a new home.
- South African source inheritance
- The proceeds of assets declared in your emigration application
- Passive income, i.e. rent, dividends, director’s fees, salary for services rendered in South Africa and income from discretionary or vesting trusts