If emigrating from South Africa (and seeking advice on what emigration allowances are available) clients have two routes they may consider:
- Formal emigration.
- Utilising their annual discretionary allowance and annual foreign investment allowance.
Formal emigration carries with it potential repercussions regarding how you may operate your banking in South Africa and access to loans etc and advice should be sought. Below we look at how your allowances could enable you, on emigration, to transfer as much as R22 million per year without formal emigrating.
Highlights of using ’emigration allowances’
- Annual Discretionary Allowance – R1 million per calender year per adult.
- Foreign Investment Allowance – R10 million per adult per calender year.
- Children’s allowance – R200,000 per calender year.
- Additional amounts – At the discretion of the reserve bank applications can be made for the transfer of additional amounts over and above the allowances.
Details should you formally emigrate
- Foreign assets held need not be deducted from the above amount.
- Transfers that have been effected under Section 0 (point 6.1.1) of the Exchange Control Manual need to be deducted from the above allowances.
- Applicants need to have been resident in South Africa for at least five years.
- The South African Revenue Service needs to have confirmed that appropriate arrangements must be in place to pay, or already have been paid, any tax obligations.
- Documentary evidence that the applicant has indeed been granted appropriate permission to take up residence in another country and that the authorised dealer (empowered by the Reserve Bank) is satisfied that it is the intention of the applicant to permanently relinquish South African domicile.
How Incompass can assist
As you would expect from an experienced foreign exchange control company we are able to guide you through your applicable emigration allowances and complete the required paperwork on your behalf. Of course you will also enjoy the benefit of personalised service, no administration fees and the best of currency exchange rates.
If you are emigrating and need assistance considering transferring capital as an emigration allowance contact Incompass – the smart way to transfer your money.