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What is financial emigration?

By December 18, 2018October 5th, 2023Financial emigration

What is financial emigration?

December 18, 2018

There’s a massive difference between physical and financial emigration from South Africa. Physical emigration entails relocating your life, your belongings, and your family to another country. Financial emigration starts with informing the South African Reserve Bank of your decision to permanently relocate. After making this first step, you’ll begin the process of tying up your financial affairs in South Africa.
If you’re considering taking the step to start the South African financial emigration process, it’s important to remember that it doesn’t affect your citizenship in any way. All it really means is that you’re getting your ducks in a row and declaring your assets to the Reserve Bank to get permission to transfer them to the country you’re moving to.

As a South African financial emigrant, you are allowed to transfer the following out of the country:

  • The proceeds of your retirement annuity (even before retiring)
  • Your inheritance, and any proceeds from a third party life policy
  • The assets you declared to the South African Reserve Bank in your emigration application
  • Any passive income; this includes rent, director’s fees, dividends, salaries for services rendered in South Africa, and trust income.

The benefits of financial emigration

Financial emigration from South Africa has a range of benefits, provided you get the correct tax advice before making the first step and applying with the SARB. You won’t need to transfer the proceeds of certain assets, like bank accounts, living annuities or discretionary funds. However, you will still be able to transfer these funds using foreign investment allowances.

By undertaking the correct steps and ensuring a smooth process, once living abroad you will probably no longer be seen as a tax resident of South Africa.

How do I financially emigrate?

Your first port of call is the South African Reserve Bank.

  1. Complete a Form MP336(b) – Emigration: Application for foreign capital allowance. (Form MP336(b) and more info are available on the South African Reserve Bank website. You’ll need this completed, approved form to submit to SARS in the next step.)
  2. Apply for a Tax Clearance Certificate – Emigration from SARS. This tax clearance certificate is based on the form you completed for SARB, so you’ll need to provide SARS with a certified copy of this. (see additional supporting docs required on the South African Revenue Service website).
  3. Submit the Form MP336(b) and your tax clearance certificate to your bank who will complete the process for you.
Although it seems simple enough, there are benefits to using a financial emigration specialist like FinGlobal. Besides the fact that we know what we’re doing and have done it many, many times, we pride ourselves on security, convenience, and success. With thousands of clients in over 105 countries, we’re confident in our ability to make your move easier. 100% transparency means you get all the facts and the numbers in a way that you understand, as well as empowering you to make the most informed decision on the various options available to turn your annuities into cash.
We know the headache that can come with paperwork; leave that to us! We’ll make sure your path to financial emigration is smooth and obstruction-free. As a recognised and fully compliant financial services provider, working with us means that upon arrival in your new country, you’ll have access to your funds with financial planning services, so you can roll your sleeves up and get to work in creating your new life – resting easily in the knowledge that your money is taken care of.
So what’s the first step? Get in touch! You’ve read about how convenient and secure our processes are. We’d love to prove that to you, and offer you a service designed to ensure that you come out on top, financially secure, and stress-free, meeting all of your day-to-day foreign exchange needs at the same time.

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