With the holiday season almost upon us, many expats are eagerly anticipating their return to South Africa for Christmas. With the excitement of reuniting with loved ones and experiencing the festive cheer and warmer weather, it’s easy to overlook the financial implications of your trip.
To ensure a stress-free and financially sound holiday, we’ve compiled a handy list that will help you plan a trip to South Africa.
Returning to South Africa – pre-trip financial planning
1. Budgeting. A good plan hinges on its budget. As a South African returning home, you’ll need to think about:
- Setting a realistic budget: Create a detailed budget, allocating funds for flights, accommodation, transportation, meals, gifts, and potential emergencies.
- Tracking your spending: Use budgeting apps or spreadsheets to monitor your spending and identify areas where you can cut back.
- Having an emergency fund: Set aside an emergency fund to cover unexpected expenses, such as medical emergencies or travel disruptions.
2. Handle your currency exchange and remittances before you return to South Africa, so it’s one less thing to worry about, money-wise:
- Research exchange rates: Compare exchange rates offered by banks, currency exchange services, and online providers.
- Timing your transfers: Time your money transfers strategically to avoid unfavourable exchange rate fluctuations.
- Secure remittances: Use reputable remittance services to ensure the safety and security of your funds.
- Travel money cards: Consider using a prepaid travel money card to simplify transactions and protect your funds.
Read more: Top tips for international money transfers: How to choose the best FOREX provider.
3. Decide what payment methods you’ll be using when going back to South Africa for Christmas:
- Cash vs. cards: Determine your trip’s optimal mix of cash and cards. While cash offers flexibility, cards provide convenience and security.
- Card security: Inform your bank of travel plans to avoid card blocks.
- ATM withdrawals: Be aware of potential ATM fees and exchange rate charges when withdrawing cash.
4. Don’t overlook insurance considerations when planning your trip to South Africa:
- Travel insurance: Invest in comprehensive travel insurance to cover medical emergencies, trip cancellations, lost luggage, and other unforeseen events. Trust us when we say no one has ever regretted paying for travel insurance, while the opposite cannot be said.
- Health insurance: If you have existing health conditions, ensure your travel insurance covers any necessary medical treatments when returning to South Africa.
5. Think about the tax factors when returning to South Africa:
- Tax residency: Understand your tax residency status in South Africa. Even a short-term stay can have tax implications.
- Consult a tax advisor: Seek professional advice from a South African tax advisor to ensure compliance with tax laws and optimise your tax position. They can help you understand any tax implications of any income, investments, and property holdings in South Africa.
Hot question: When you emigrate, how long do you have to leave South Africa before returning?
Answer: There’s no specific time limit for how long you must stay outside South Africa after emigrating. However, to be considered a non-resident for tax purposes, you must meet certain criteria related to physical presence and intention to reside outside of South Africa. Here are the basics of what you need to consider:
- Tax residency:
– Physical presence test: To cease being a tax resident in South Africa, you generally need to spend fewer than 91 days in the country in a tax year.
– Ordinarily resident test: This test is more complex and depends on various factors, including your primary residence, family, and economic ties to South Africa. - Visa and immigration regulations:
– Visa restrictions: If you’ve emigrated and obtained a foreign residency permit, you may be subject to visa restrictions when returning to South Africa.
– Immigration laws: It’s essential to comply with South African immigration laws, particularly if you plan to stay in the country for extended periods.
Hot question: How much is the bank balance required for a South African visa?
Answer: The specific bank balance requirement for a South African visa can vary depending on the type of visa you are applying for and your circumstances. Generally speaking, for tourist visas:
- Minimum balance: Typically, you’ll need proof of funds equivalent to approximately R3,000 per person per month of your stay.
- Bank statement: A recent bank statement, usually covering the past three months, is required to demonstrate financial stability.
6. Take this opportunity to track your progress in terms of your investment and retirement planning:
- Review your investment portfolio: Assess it to ensure it aligns with your long-term financial goals. Consider rebalancing your portfolio to account for any changes in your financial situation.
- Retirement planning: Review your contributions and investment choices if you have a retirement fund in South Africa. Consult with a financial advisor to optimise your retirement savings strategy.
7. Decide how you’ll be handling payments when returning to South Africa – cash vs card:
As you prepare to return home to South Africa, understanding the best payment methods can significantly impact your travel experience. Let’s break down the pros and cons of cash and card payments to help you make informed decisions.
| Feature | Cash | Cards |
| Convenience | It is less convenient, especially for large transactions | More convenient, easy to use and track spending |
| Security | Less secure, risk of theft or loss | More secure, with advanced security features and fraud protection |
| Fees | No additional fees | Potential foreign transaction fees and ATM fees |
| Privacy | More private, no digital trail | Less private transactions can be tracked |
| Accessibility | Widely accepted, especially in smaller businesses and rural areas | Widely accepted, but may have limitations in certain areas |
| Exchange Rate Fluctuations | Vulnerable to exchange rate fluctuations | It can be affected by exchange rate fluctuations but often offers better rates than exchanging cash |
| Budgeting | Harder to track spending | It is more straightforward to track spending and budgeting |
Mobile Payments: Use apps like SnapScan or Zapper for added convenience. It’s essential to understand the pros and cons of each payment method. By taking a balanced approach with cash, card, and mobile payment options, you can ensure a smooth and financially stress-free trip to South Africa and a financially rewarding holiday season. Happy travels!
FinGlobal: Simplify your currency exchange when returning to South Africa
Tired of the hassle of finding the best foreign exchange rates? FinGlobal is here to streamline your trip planning for returning to South Africa. As your trusted partner, we offer:
- Competitive exchange rates: Enjoy highly competitive rates, often significantly better than commercial bank rates.
- Transparent fees: No hidden fees or surprises.
- Fast and efficient service: Swift processing and secure transfers.
- Personalised support: Our experienced team is dedicated to providing tailored solutions to your needs.
Planning a trip to South Africa? Contact FinGlobal today for a FREE consultation to learn more about our convenient cross-border financial services for South African expats.