Financial EmigrationFinancial emigration is the process to conclude your financial affairs when leaving South Africa to settle in another country.
What is financial emigration?
Financial emigration is the process to conclude your financial affairs when leaving South Africa to settle in another country – and simply means your status – for exchange control purposes – changes from resident to non-resident. That’s all. Emigration does not affect your South African birth right, citizenship or the right to retain your South African passport – because once a South African always a South African.
As a financial emigrant you may transfer offshore:
- the proceeds of your retirement annuity, even before age 55
- South African source inheritance
- the proceeds of assets declared in your emigration application
- passive income, i.e. rent, dividends, director’s fees, salary for services rendered in South Africa and income from discretionary or vesting trusts
- proceeds from a third party life policy
What is formal emigration?
In plain English – formal emigration from South Africa constitutes an agreement between you and the Reserve Bank where, for exchange control purposes, your status changes from resident to non-resident. That’s all. As an emigrant you will always retain your birthright, citizenship and right to your South African passport – because once a South African always a South African.
Important to keep in mind:
- for exchange control purposes your South African bank account becomes a blocked rand account which is subject to regulatory restrictions.
- your remaining South African based assets, and transactions from this account, will be controlled by the bank holding your blocked account.
- your tax affairs must be in order and up to date.
The key benefit to financially emigrate from South Africa? Your freedom to be.
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I’m now living in Ireland and approached FinGlobal (previously cashkows) to help me with my financial emigration process, as this can be a very painful thing to attempt on your own. FinGlobal took care of everything, keeping me updated every step of the way.Angela Ross Innes
I am based in the UK & recently used FinGlobal (previously cashkows) to complete my emigration process from South Africa. They exe’cuted all the necessary requirements to finalise matters with SARS and to surrender various policies I had. They made all the arrangements for the funds to be transferred to my UK bank account and the entire process was efficient and painless. If you’re thinking of emigrating, FinGlobal knows their stuff – I’d recommend them.Maxine Jones