Question 1

How much money am I allowed to transfer overseas?

Accepted Answer

If you're still considered a tax resident of South Africa, you can transfer up to R1 million per person per calendar year without needing SARS approval. If you want to transfer more, up to an additional R10 million, you'll need to apply for an Approved International Transfer (AIT) from SARS, and you'll have to provide proof of where the money comes from.
However, once you've completed tax emigration, the AIT process allows you to transfer any amount of funds; there’s no set limit.

Question 2

Can I access the funds in my retirement annuity?

Accepted Answer

You can typically only cash out your retirement annuity in full after being a tax resident outside South Africa for at least three continuous years. However, if you're 55 or older and your annuity is worth less than R247,500, you might qualify for a full withdrawal sooner

Question 3

Is it possible to cash in my living annuity?

Accepted Answer

Living annuities cannot be fully surrendered unless their total value falls below R125,000.

Question 4

Does Tax Emigration effect my Citizenship?

Accepted Answer

No, tax emigration does not affect your citizenship. Your citizenship is entirely separate from your tax residency status. If you were born in South Africa, you retain the right to return and live there unless the law changes in the future. Citizenship matters are handled by the South African Consulate, while tax emigration is processed and approved by SARS.

Question 5

What documents do I need to complete tax emigration?

Accepted Answer

The documents required for tax emigration may vary depending on your circumstances, but you will generally need:
 • Current proof of address
 • South African tax number
 • South African ID document
 • A valid passport (from any country, not necessarily South African)

Question 6

What are the benefits of tax emigration from South Africa?

Accepted Answer

• Reduced tax obligations: As a non-resident, you no longer pay South African tax on your worldwide income. SARS can only tax you on income earned within South Africa.
 • Retirement annuity access: After maintaining non-resident status for three consecutive years, you can withdraw your retirement annuity savings (subject to applicable tax).
 • Easier international transfers: With a Tax Compliance Status PIN and an Approval for International Transfer (AIT) from SARS, transferring funds abroad is simpler and fully compliant.

Question 7

Can I open a South African bank account and do I have to open one?

Accepted Answer

If you have not previously completed financial emigration or tax emigration, and your SARS tax status has not yet changed to non-resident, you are able to open a bank account in South Africa. You will need your barcoded ID book or smart ID card, your South African tax number, and a current proof of address in order to open a bank account. The account can be used to transfer your funds or receive an inheritance. South African Exchange Control regulations require the flow of currency to be directed via a South African bank account through an Authorised Dealer. There are very few exceptions to this requirement. As every person's circumstances differ, please contact us to find out if opening a bank account in South Africa is appropriate and relevant for your needs.

Question 8

How long does tax emigration typically take?

Accepted Answer

While the process usually takes 4-6 months, our efficient systems and established relationships help ensure the smoothest possible journey. We manage every step to minimise delays and complications.

Question 9

How much does it cost to complete tax emigration?

Accepted Answer

Our costs vary depending on the complexity of each case. Please contact us for a free quote.

Question 10

Does having a new foreign passport mean I have formally emigrated and can access my retirement annuities?

Accepted Answer

No, having a foreign passport does not mean you have formally emigrated. Formal emigration for exchange control or tax purposes only applies if:

• Your emigration was officially recorded with the South African Reserve Bank (before 1 March 2021), or
 • You declared non-tax residency with SARS and obtained the required tax clearances (since 1 March 2021).

Question 11

What about exit tax?

Accepted Answer

Exit tax is a crucial consideration in tax emigration. Our team provides expert guidance to calculate potential liabilities accurately, identify opportunities for minimization, and plan optimal timing while ensuring compliant declaration.

Question 12

What happens after completion?

Accepted Answer

We provide comprehensive support through the final stages of your transition, including tax return filing, SARS deregistration guidance, and documentation for your new jurisdiction. Our team remains available for ongoing advisory support as needed.

Question 13

Why do I need to open a South African bank account?

Accepted Answer

You may need to open a South African bank account if you haven’t completed financial or tax emigration and your SARS status is still listed as resident. To open the account, you’ll generally need:
 • Your barcoded ID book or smart ID card
 • Your South African tax number
 • A current proof of address
This account allows you to transfer funds abroad or receive money, such as an inheritance.

At FinSelect USA, we assist you with the whole process.

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