Get to grips with Financial Emigration10th Nov 2020
We’ve been helping people save time and money on their international currency transfers since 1996, and our expert team are here to take the hassle out of processes like Financial Emigration.
What is Financial Emigration?
Financial Emigration is the term used to describe the process of becoming a non-resident in the eyes of the South African Reserve Bank (SARB). If you apply for Financial Emigration status you’ll be considered a non-resident once placed on record as an emigrant of South Africa.
Any funds you introduce to South Africa after your emigration will be deemed ‘non-resident funds’ and will be subject to non-resident exchange control regulations.
You can liquidate your retirement annuity before it matures and transfer a lump sum to another country. You can also freely transfer inheritances and investment incomes (rent, dividends etc.) abroad, as well as any assets listed in your declaration.
Get to grips with Financial Emigration
Financial Emigration could be the right option for you if you’re considering moving abroad for five or more years and if you tick any of these boxes:
Becoming a financial emigrant doesn’t mean giving up your citizenship or your passport, it just means moving your financial affairs to your chosen country of residence.
Financial Emigration is NOT the same as tax emigration, and it doesn’t guarantee a non-resident tax status.
Apart from that, there are a few things to be aware of:
- The process generally takes between 4 – 8 weeks
- Your bank account will be classified as ‘non-resident’ (you won’t be able to use internet banking)
- Your ability to take on new credit or loans in SA could be cut
- Reversing the process can be complicated and time consuming
How do you get started?
If Financial Emigration is the right step for you, get in touch with us for a free assessment.
We do charge a fee, but it won’t exceed R12,000 (excluding VAT) and the financial benefits outweigh the cost.