28 Jan How To Move Your Money When Emigrating
Emigrating! What important things should you consider?
You already know that you are going to have to move money; exchange your money. You’ve also heard of people speaking about a Tax Clearance and your Retirement Annuities are on your mind. You may even think about inheritance money you may get in the future: what’s going to happen to that?
It may seem easy to just use your bank for this advice, however with good advice from a company like Rand Rescue you will find competitive rates and advice that relates to your specific situation. After all, your move will not be the same as others.
You obviously want to be totally legal and need to understand the requirements of the South African government and your new country; no one wants a shock later.
The South African Reserve Bank authorises money transfers to private individuals as an unrestricted allowance of up to R1m per calendar year or through Foreign Investment up to R4m per calendar year.
This may sound straightforward but what about your Retirement Annuities; what about your South African Credit card; What about if you need a tax clearance? What about ending up paying double tax? Could that happen?
As far as your Retirement Annuities are concerned once you have left SA permanently, since 2008 there is no longer any need to leave those annuities there. They are fully transferable to your new home country – not just after the age of 55.
Your emigration to a new country has to be registered formally with the correct SA authorities for this annuity transfer. You may want to seek professional advice for this. This is offered by Rand Rescue.
Until you have officially registered your permanent emigration status you will always be considered by South Africa as a “South African resident temporarily abroad.” Consider this when you want to claim back all the tax you have paid on goods, whilst on holiday in SA and been refused. This registration of your emigration status with South African Reserve Bank (SARB) and South African Revenue Services (SARS) does not affect your South African Citizenship – it is separate and only involves your finances. We offer advice on how to lodge your official emigration status.
Many of us still use our SA credit cards when we move. This can be done for a short time but should not be continued for long. Penalties can be attached to these credit card purchases and can contravene the Exchange Control Regulations. It is best to stop using your SA credit card. If you’ve tried to use the SA card to purchase tangible possessions you will also have realised it is a problem – it is not recognised to purchase hard goods like furniture and cars.
You need a tax clearance from the SARS. This is not as easy or uncomplicated as you may think. There are three types of tax clearances you can apply for:
– Tax clearance for emigration purposes
– Tax clearance for Foreign Investment
– Tax clearance certificate of good standing
You will need good advice here and Rand Rescue can assist with your tax clearance application!
Once you have left you may still have a SA bank account which will be closed after a while, unless you are still actively using it. If you have an inheritance paid out or other policy you will need a South African bank account. This is not easy to open from outside the country. If you have recorded an official emigration from South Africa you are now allowed to open a blocked account for inheritance money to be paid into. If you have recorded your emigration this money may also be remitted to an offshore bank account. Once again you need advice about the best way to move this money – the way that is cost effective and right for your circumstances.
Rand Rescue has been assisting ex-pat South Africans since 2009 across the world. During this time period we have moved over half a billion rands for South Africans. The group has fully operational offices in New Zealand, Australia, and United Kingdom and of course in South Africa. Contact us to make your life easier. We have over 24 years of expertise in this field and want to help.