Leaving South Africa is rarely just one decision. It’s many smaller decisions made while packing up a life. Like which visa to apply for and what to do with the house. Whether to keep the South African retirement annuity or cash it in. How much money to move and when. Most of these choices seem manageable at the time. But years later, one unexpected event changes everything. An inheritance is delayed, or a tax bill appears without warning. Perhaps a retirement fund pays out significantly less than anticipated. At this point, the true cost of a shortcut becomes clear.
We work with South African expats at every stage of this process, and the same handful of mistakes keep coming up. None of them is the result of carelessness. They happen because financial and tax admin gets pushed to “later” while the more urgent parts of a move take priority. The good news is that almost all of them are avoidable, and most are still fixable if you catch them early enough.
Here are the mistakes we see people regret most, several years into their new life abroad.
1. Delaying or skipping tax emigration from South Africa
Leaving South Africa and ceasing to be a South African tax resident are not the same. Confusing these two is a common mistake. If you don’t formally notify SARS through the tax emigration process, you can stay a South African tax resident forever. This means SARS expects you to declare and pay tax on all your income, not just what you earn in South Africa.
The consequences often appear years later, usually at inconvenient times. You might face unexpected tax assessments. Or there might be delays in accessing your South African retirement funds or issues moving money internationally. All of this, because your tax status was never regularised.
Read more: Tax emigration – how to become a non-tax resident of South Africa.
Read more: The dangers of not completing tax emigration after you leave South Africa.
2. Cashing in a retirement annuity without understanding the tax implications
Before you decide what is right for you, it is crucial to speak to a financial advisor. This will help you make an informed decision. There are tax implications which you need to consider.
Read more: Tax on retirement annuity withdrawal in SA – what expats need to know.
Read more: 4 things you could do if you cashed in your South African retirement annuity early.
3. Not making full use of the Single Discretionary Allowance and Foreign Investment Allowance
South African tax residents can move money offshore using two annual allowances, which reset on 1 January each year.
Single discretionary allowance (SDA): R2 million per calendar year
This is available to South African residents aged 18 and older. No SARS tax clearance is required. It covers any legal purpose abroad, including travel, gifts, remittances, donations and investments. The limit increased from R1 million to R2 million on 8 April 2026, and unused portions cannot be carried over to the next year. Residents under 18 qualify for a travel allowance of up to R400,000 per calendar year.
Foreign investment allowance (FIA): R10 million per calendar year
This is in addition to the SDA, and it requires an Approval for International Transfer (AIT) tax compliance status PIN from SARS. Combined with the SDA, a tax resident can transfer up to R12 million per calendar year. Amounts above the allowed limit require approval from the SARB’s Financial Surveillance Department.
What happens when you cease tax residency
Both allowances are tied to your residency status. While you remain a South African tax resident, you can use both allowances, including from abroad, without returning to South Africa.
In the calendar year in which you cease tax residency, you may transfer up to R2 million as a final travel allowance without a TCS PIN. This is once-off and cannot be used again in later years.
After that, the SDA and FIA no longer apply to you. You are not cut off from moving funds, but the route changes: as a non-resident you may transfer up to R10 million per calendar year through an authorised dealer, and you will need a SARS AIT PIN for it. Larger amounts require Financial Surveillance Department approval.
Together, these allowances total R12 million per year through compliant channels.
Many people regret not using these allowances each year before emigrating. This means they forfeit the chance to benefit as larger foreign transfers once living abroad require additional SARS and SARB compliance steps. Others try to move larger sums through informal or non-compliant channels, which is not the right way.
Read more: The SDA: the R2-million opportunity most South Africans forget each new year.
Read more: Six things SARS wants you to know about the limits on transferring money out of South Africa.
4. Ignoring exchange control compliance when moving money
When you live abroad, every transfer out of South Africa must use the right channels. This includes an authorised dealer, the correct Balance of Payments reporting code, or, for larger or related-party transactions, approval from the South African Reserve Bank.
If you skip this step and use informal transfers through family, you might not see issues right away. However, problems can arise later and could also open those people to additional tax liabilities. Larger transactions, like inheritances or property sales, may be delayed or flagged due to a lack of clear compliance records.
Read more: Externalising funds from South Africa: an Exchange Control compliant approach.
Read more: How SARS impacts international money transfers.
5. Getting the property decision wrong, or leaving it too late
Deciding whether to rent out or sell a South African property before or after emigrating can be very emotional. Many people think, “We’ll decide later,” but this can be risky. Managing a rental property from abroad also adds complexity.
Read more: The ex-pat conundrum: to rent or sell your South African property when moving overseas?
Read more: Ceasing tax residency and selling your property in South Africa: why timing matters.
6. Leaving a will that doesn’t account for cross-border assets
Depending on your circumstances, it might be ideal to have two wills (one dealing with your South African assets and another dealing with your worldwide assets). It is best to consult a professional advisor before making any decisions.
Read more: Cross-border estate planning: expats, what happens to your South African assets on death?
Read more: What happens to your overseas assets if you only have a South African will when you die?
7. Not planning ahead for a future inheritance
Few people consider how to receive a South African inheritance while planning to emigrate. Beneficiaries living abroad often struggle to claim and transfer their inheritance. This depends on their South African tax residency status and the correct documents.
This can lead to money being blocked or delayed for months. This situation adds financial and administrative strain during an already tough time of loss.
Read more: Inheriting money from South Africa while living abroad? Here’s what expats need to know.
Read more: Do you need tax emigration to receive your South African inheritance?
8. Treating it as a form-filling exercise instead of getting advice
Most of the mistakes above don’t happen in isolation. Tax residency, retirement funds, exchange control, property, and estate planning are linked. A choice in one area can lead to issues in another. Trying to handle all of it alone, without professional advice, is often where the smaller mistakes above start.
Read more: Financial emigration for expats: doing it yourself vs. calling in the experts.
The bottom line
Almost none of the regrets above come from a single bad decision. They come from putting off financial admin that felt like it could wait until the cost of waiting became clear.
The sooner you sort your South African tax and financial matters after emigrating, the less it will likely cost you later. You’ll also keep more of your money.
If this sounds familiar or you’re unsure of your situation, consider getting a professional assessment before a decision becomes expensive to reverse. You can start with our financial emigration FAQs.
At FinGlobal, we can help you complete your tax emigration from South Africa, move your money compliantly, and get your retirement funds, property, and estate plan in order, all in one place. Get in touch with our team today to find out where you stand.
Article written by Werner Kriel, Head of Advisory services at FinGlobal.