What are the advantages vs the disadvantages of financial emigration from South Africa?
Financial emigration from South Africa is a choice, and based on your unique circumstances, there are advantages and disadvantages to this process.
Some of the advantages of financial emigration include:
- You will enjoy easy access and transfer of your South African funds if you live in another country.
- You have the rare opportunity to access and transfer any retirement annuity, as well as pension, provident and preservation fund savings before the maturity date.
- You will enjoy a simpler remittance of any post-emigration South African-source inheritances, i.e. no tax clearance is required.
Unlike the many advantages of financial emigration, the disadvantages are far and few between. These include:
- You are no longer permitted to hold a credit card in South Africa, or have personal loans, other than a mortgage bond and vehicle finance). This means you have to settle your personal loans before finalising the financial emigration process.
- Capital gains tax (CGT) will be triggered on all your assets, except for fixed property, at the time of your formal emigration. This is because you are deemed to have sold your assets on the day before you leave.