If you’re a South African living abroad, or even a foreign national with ties to the country, chances are you’ve come across the term non-resident bank account in South Africa. Maybe you’ve heard other terms thrown around too, like blocked rand account, emigrant capital account, or expat bank account in South Africa. Confused yet? Don’t worry, you’re not alone. There are a lot of terms and titles out there when it comes to expat banking. That’s why, in this article, we’ll break down what a non-resident bank account is, why you might need one, what it’s been called over the years, and give you tips on how to go about opening a non-resident bank account in South Africa, without the usual admin headaches.
So, what is a non-resident bank account?
A non-resident bank account is pretty much what it sounds like: a South African bank account for someone who doesn’t live in South Africa anymore, or who never did in the first place. If you’re no longer considered a resident for exchange control purposes (which usually means you’ve formally ceased South African tax residency), this is the type of account you’ll need to manage your money. Think of it as your financial home base in South Africa, even if you live on the other side of the world.
Read more: Opening a South African bank account after tax emigrating: What you need to know.
Why would you need a non-resident bank account in South Africa?
There are plenty of reasons people choose to open a non-resident bank account in South Africa:
- You’ve got property in SA and want to receive rental income
- You’ve got investments or shares paying dividends
- You need a way to receive pension or annuity payments
- You’ve sold assets and want to repatriate the funds abroad
- You’re planning to return someday but still want to manage your money locally.
And sometimes, it’s just about staying compliant with exchange control rules and making sure you don’t get stuck when moving money in or out of the country.
Read more: Keeping your South African bank accounts and financial connections post-emigration.
Wait. Why all these different names for non-resident bank accounts?
Over the years, the regulations around non-resident banking in South Africa have changed quite a bit. And with that, so have the account names, to keep up with the times.
Here’s a quick look at the different labels these accounts have had:
1. Blocked Rand Account / Rand Blocked Account
Back in the day, when someone emigrated from South Africa, their local assets would be held in a blocked rand account. The name says it all – these funds were “blocked” for exchange control reasons and had to be managed through strict rules by the South African Reserve Bank.
2. Emigrant Capital Account
As the rules evolved, this term came into use. The emigrant capital account served the same purpose – housing the proceeds of local assets that were being transferred abroad – but with slightly updated rules and terminology.
3. Non-Resident Bank Account
Today, the go-to term is just a non-resident bank account. It’s simpler, and with recent changes to financial emigration and tax residency rules, it reflects a more modern approach to cross-border money management.
How to open a non-resident bank account in South Africa
If you’re living outside of South Africa and wondering about opening a non-resident bank account in South Africa, here’s the good news: it’s doable. The slightly less-good news? There’s still some paperwork involved. Obviously.
You’ll usually need:
- A certified copy of your passport or SA ID
- Proof of address (either local or abroad
- Proof of non-residency (like a tax non-residency confirmation from SARS)
- SARS tax clearance, depending on your situation
- Source of funds documentation
What about expats and non-citizens?
You might have also read terms like expat bank account in South Africa, expat bank account, or non-citizen bank account on your internet wanderings. While they sound different, they’re often talking about the same thing, or at least accounts that serve a similar purpose.
- An expat bank account is usually for someone temporarily living abroad but still earning or managing money in SA.
- A non-citizen bank account is typically for a foreign national with business or personal ties to South Africa.
Either way, these are just variations of non-resident accounts, with a few tweaks depending on your residency status, visa, or how long you plan to stay.
Why not just do it yourself?
You can go directly to the bank and try to open a non-resident account, but if you’ve ever dealt with South African banking bureaucracy, you’ll know it’s not always smooth sailing. Every bank has its process. The documents they want may differ. And if you don’t tick all the boxes the first time? Back to square one.
FinGlobal: cross-border financial specialists for expats abroad
Let’s cut to the chase: when it comes to non-resident bank accounts, there’s a lot to digest. From the different names (like blocked rand account and emigrant capital account) to the steps involved in opening a non-resident bank account in South Africa, it can feel like a bit of a hassle.
But the bottom line is this: If you’re living abroad and still need to manage money in South Africa, whether it’s from investments, retirement annuity cash out, or property income, a non-resident account in South Africa is essential.
Need to open a non-resident bank account in South Africa? Let FinGlobal help you do it – quickly, seamlessly, and 100% in compliance. We’ll handle the red tape, so you don’t have to. Contact FinGlobal today!