Emigration allowance

Wikipedia defines emigration as follows: “Emigration is the act of leaving one’s country or region with the intent to settle permanently in another. It is the same as immigration but from the perspective of the country of origin.”

Since South Africa has exchange control legislation governed by the South African Reserve Bank, when South Africans emigrate (to go and live in another country) they have the option of financially emigrating as well and effectively placing their emigration on record with the South African Reserve Bank. Once you have formally (financially) emigrated then the South African Reserve Bank will change your residency status from resident to non-resident and your bank will open a blocked Rand account where all your South African assets will be housed for transfer overseas.

This change in your residency status has no effect on your right to South African citizenship or South African passport, it is simply an exchange control matter.

There are reasons to emigrate and reasons not to, and there are cost implications to emigrating – one doesn’t always need to emigrate considering the allowances already available to private individuals.

Some of the reasons to emigrate may include:

  • Enabling the transfer of retirement annuities offshore prior to retirement age of 55
  • Move proceeds of preservation funds offshore
  • Convert some South African pensions to cash to transfer offshore
  • Transfer inheritances offshore in some instances
  • Estate planning is some instances depending on the country emigrating to

Contact us for a free consultation on whether to emigrate or not to emigrate and compare our costs for processing your emigration.

Contact FX Capital

Durban:  031 5368844
Cape Town:  021 6572153

E-mail: info@forexcapital.co.za