If you’re a South African and you’ve been living abroad for a number of years, it’s more than likely that financial emigration from South Africa is something you’ve considered recently. Especially if you’ve got retirement investments or annuities back home and you’ve been keeping an eye on the ZAR’s performance in the currency market. If you’re thinking of cashing in your retirement annuity or pension fund and relocating your funds abroad, this is something that becomes possible only once you’ve completed the process of financial emigration.
Here’s what you need to know about financial emigration from South Africa, including why you should be thinking about it and how it works if you are a Nedbank client.
Financial emigration from South Africa: what does it mean?
Financial emigration is the official process laid down by the South African Reserve by which it is possible for you to be designated as an emigrant for exchange control purposes, if you meet all the requirements.
Financial emigration from South Africa simply formalises your exit for exchange control purposes, which means you will no longer be bound by the same exchange control limitations as you would if you were still a resident. Financial emigration changes nothing except your exchange control status. You’re still a South African citizen for as long as you want to be; you can still keep your South African passport and wear your Springbok supporter jersey as much as you like.
Financial emigration from South Africa: why would you want to?
Once you become an emigrant, it becomes easier for you to transfer money out of the country – both capital and income – which is a massive step in protecting your South African savings from the Rand’s fluctuations in the global currency market.
Completing financial emigration is also your ticket to accessing and cashing in your retirement savings before you reach retirement age. Once you’ve cashed in your retirement savings and transferred the proceeds abroad (less fees and tax) you’re free to spend this money as you choose – investing in property, travelling or paying for your child’s education – it’s your call!
What do you need to consider before financial emigration?
The process of financial emigration is pretty standard, regardless of which brand you bank with. As a Nedbank customer considering financial emigration from South Africa, you’ll want to ensure that you have the following ready before starting.
- Your South African income tax affairs must be up to date and you must be able to show good standing with SARS in the form of a tax clearance certificate.
- Bear in mind that once you’ve completed the process of financial emigration, your account with Nedbank will become a non-resident bank account and you will be able to access a range of banking services specifically for emigrants.
- This account – sometimes called an emigrant’s capital account – is subject to exchange control in South Africa.
- The assets that you leave behind after financial emigration will be administered by Nedbank, by means of your non-resident account in line with local exchange control regulations.
How do you financially emigrate if you bank with Nedbank?
Settling down permanently outside the Common Monetary Area (which consists of South Africa, Lesotho, Namibia and Swaziland) means that you’re eligible to be considered an emigrant for exchange control purposes.
As your banking intermediary, Nedbank will ensure that you comply with all the necessary formalities and provide the correct supporting documentation. It’s possible to start your financial emigration through any of Nedbank’s foreign exchange branches.
FinGlobal: Financial and Tax Emigration specialists
With so much paperwork and so many rules and regulations to meet at every stage, it’s worthwhile trusting the task to the specialists. FinGlobal has already helped more than 60 000 clients since 2011, proving ourselves as the financial emigration specialist of choice because we’re there to help our clients every step of the way.
It makes good sense to choose a financial emigration partner like FinGlobal because with us you’re assured:
- Optimal payouts over a shorter period than other providers
- Better exchange rates than commercial banks
- Tailored solutions to suit your exact requirements
- Using our services means you’ll have your funds faster
- No upfront payment required, transparent costs and fees
FinGlobal also has a 100% success rate because we’re:
- 100% compliant as a licensed financial services provider
- 100% hassle-free as a SARB approved foreign exchange intermediary
- 100% confidential: your personal information and finances remain private.
Let us help you with your financial emigration, retirement annuity withdrawal, tax clearance, tax refunds or foreign exchange requirements. Let us call you back to get started with your free telephonic assessment.