So, you’ve made the big move, or maybe you’re still planning it. Either way, life as a South African abroad is filled with opportunity. But while you’re building a new life in another country, there’s one thing you can’t afford to ignore: your financial future.
From retirement savings sitting back in South Africa to property and investments you’ve spread across borders, managing your wealth as an expat can get complicated. Without a solid cross-border strategy in place, you could be looking at unnecessary tax bills, frustrating red tape, or even trouble accessing your own money.
If you’ve already completed tax emigration from South Africa, or you’re planning to cease your South African tax residency, now’s the time to get a handle on your finances and put a plan in place that protects your wealth, no matter where in the world you are.
Cross-border financial strategies – why expats need to think bigger about their finances
Living abroad comes with its fair share of financial curveballs. You might be taxed twice on the same income, run into restrictions when trying to move money offshore, or find it a struggle to access your retirement savings when you need them most. That’s where smart planning comes in. For South African expats, wealth protection starts with:
- Making sure your assets are protected in the right places
- Structuring your investments for tax efficiency
- Staying compliant across multiple countries
- Building a plan that works in the long run, not just the short term
Without a proper roadmap, it’s easy to get caught off guard, especially if you’re not clear on SARS tax residency rules and how they affect you, not to mention how your ability to withdraw your retirement annuity before the age of 55 all depends on your tax resident status.
Jurisdictional asset protection – where your money lives matters
Not all financial systems are created equal. Some countries – think Switzerland, Singapore, or the Isle of Man – are known for being safe havens with solid investor protection. Others? Not so much. Choosing the right countries in which to hold and grow your wealth isn’t just about returns; it’s about peace of mind. If a bank goes under or there’s political or economic upheaval, you want to know your money’s safe.
So don’t just go where the wind blows. Be deliberate about where your money lives.
Tax-efficient investment structures – tools that make a big difference
Here are three powerful tools every South African abroad should consider part of their expat wealth planning strategy:
1. Offshore investment bonds: These are great for long-term growth and can be tailored to suit your personal goals, especially if you’re not sure whether you’ll stay abroad forever or return to South Africa one day. They’re also handy when it comes to succession planning.
2. International pension plans: Perfect for globally mobile professionals, these plans are portable, flexible, and often more tax-efficient than local retirement options. That means more of your money stays where it belongs: with you.
3. Trusts and foundations: If you’ve built up significant wealth and want to protect it for the next generation, a trust or foundation can help you do just that. These structures also make cross-border estate planning a lot smoother.
Retirement withdrawals – what you need to know
The key to unlocking early access to your South African retirement annuity, preservation fund, or provident fund lies in your tax emigration – that is, officially changing your status to a non-resident for tax purposes with SARS.
It’s this change in tax residency status that allows you to access your retirement savings earlier than usual. But there’s a catch: once SARS recognises you as a non-resident, you need to wait for the three-year rule to run its course before you can legally withdraw those funds.
Why go through all this? Because tax emigration can be used as a strategic move that helps you protect your golden-year savings. By cashing in your retirement funds and moving them out of South Africa, you can shield your accumulated wealth from local risks like exchange controls, political uncertainty, and currency volatility.
However, we’re not just talking about access. You will also need to carefully consider the tax implications of your tax emigration and subsequent retirement annuity withdrawal, including exit tax, lump sum withdrawal tax, and the possibility of double taxation depending on your new country of residence.
So, don’t think of your tax residency status as just a paperwork exercise. It’s a vital step in protecting your retirement savings, giving you more control over when and how you access your money, all while staying fully compliant with the rules.
Read more: Emigration and changing your tax resident status after leaving South Africa.
Sending money out of South Africa – the right way
Many expats make the same mistake – assuming that once you live abroad, you can just move money around however you like. Not so fast.
South Africans are still subject to foreign exchange control, even after leaving the country. Whether you’re using your foreign investment allowance as a tax resident or looking to move funds offshore legally as a non-resident, it pays to know the rules and stick to them.
Planning helps avoid delays, limits tax exposure, and makes sure everything’s above board.
Read more: SARS Approval of International Transfers – what South Africans need to know in 2025.
Expat wealth protection – thinking of returning to SA one day?
A lot of expats eventually circle back to South Africa, whether for family, retirement, or lifestyle reasons. If you’re one of them, you’ll need to think about repatriation planning, which is just code for making sure your financial ducks are in a row before you come home.
That means re-evaluating your offshore assets, localising investments where necessary, and prepping for a smooth re-entry into the South African financial system.
Read more:
- Returning to South Africa? Tax implications for the non-compliant expat’s homecoming.
- Returning to South Africa after financial emigration – what expats need to know about coming home.
FinGlobal: cross-border financial strategies for expats
Cross-border financial planning isn’t a DIY job. The rules are complex, the paperwork is relentless, and the stakes are high.
That’s where FinGlobal can step in and lighten the load. We specialise in helping South African expats:
- Legally exit the South African tax system
- Withdraw retirement savings at the right time
- Stay compliant in every country they call home
- Move money where it needs to be
Wherever you are in your expat journey, we’re here to guide you through the maze of expat wealth protection, step by step. Ready to take control of your financial future? Let’s make it happen. Contact FinGlobaltoday.