Financial Emigration from South Africa
We’ll help you get through the process of financial emigration from South Africa and be with you every step of the way to your assets.
Formally emigrating from South Africa means SARB doesn’t see you as a resident. That’s all.
Financial emigration from South Africa
What does financial emigration from South Africa mean?
Financial emigration (also known as formal emigration) means that your status – for exchange control purposes with SARB – changes from resident to non-resident. Financial emigration does not change your status as a South African.
Financial emigration can happen at any time
Financial emigration concludes your financial affairs from a South African point of view. Most of the time, the financial emigration is done retrospectively – meaning that most South African expats have left the country without recording their financial emigration at the time of their physical emigration from South Africa.
Advantages of financial emigration from South Africa
Financial emigration makes it easier for you to transfer money out of South Africa (capital and income) and helps protect your South African savings from the Rand’s fluctuations in the global currency market.
For many people, the drawcard is that they can access and transfer their retirement annuity in South Africa offshore, before retirement date. The proceeds of your retirement annuity can be used for any purpose – from buying a new home to investing in your children’s education.
On completion of a financial emigration, you may also transfer any South African source inheritance abroad, any passive income, for
Emigrating from South Africa – things to be aware of with your financial emigration
To record your financial emigration from South Africa, your South African income tax affairs must be in order and you must obtain a tax clearance certificate from the South African Revenue Service (SARS). Once you have successfully concluded your financial emigration, for exchange control purposes, your South African bank account is re-designated as an emigrant’s capital account (previously known as a blocked account), which is subject to exchange control in South Africa.
Your remaining South African-based assets will be administered by the bank holding your emigrant’s capital account, in terms of the exchange control regulations in South Africa.
Emigrating from South Africa and settling into a new country is usually challenging, and financial emigration can be quite a daunting and complex process if you do it on your own. The entire process from submitting your documents to accessing your funds can usually take up to six months. There are a lot of rules, regulations
We deal with all South African banks, insurance and investment companies, pension funds and other related financial institutions.
Find out about the new tax law changes on financial emigration effective from 1 March 2021.
There’s a massive difference between physical and financial emigration from South Africa. Financial emigration starts with informing the South African Reserve Bank of your decision to permanently relocate.
Financial emigration, also known as formal emigration simply concludes your financial affairs from a South African point of view. When you financially emigrate your status, for exchange control purposes with the South African Reserve Bank, changes from resident to non-resident.
Considering whether or not to emigrate financially is a rather big move for South Africans who have relocated abroad. However daunting it may seem, though, it’s important to consider this step if you’ve been living overseas for a while and have financial assets left in South Africa.