Why financially emigrate from South Africa?
Advantages of financial emigration include: Ensuring your taxes are fully compliant and your tax residency status cannot be reversed. No South African tax liability on foreign income. The ability to access your South African retirement annuities before the age of 55 without penalties.
SARB removed the requirement to financially emigrate from South Africa in 2021, but SARS had not yet aligned their processes with the emigration change until now. The tax compliance status in terms of “emigration” has remained an option on efiling even though SARB removed the concept of emigration.
Multiple reasons
Safety and security, education, South Africa's weak currency, the lack of job opportunities and the political instability are still the main driving force behind the high emigration figures in South Africa (Daniel, 2018).
Exit tax when you leave South Africa
When you declare yourself non-tax resident, you're deemed to have sold your assets (excluding immovable property situated in South Africa and your RA) to your foreign self. A CGT amount, known colloquially as “exit tax”, then becomes immediately due.
Moving abroad does not wipe your debts or relieve you of the obligation to settle the debts you left behind. Furthermore, moving overseas does not mean that your creditors will stop hounding you for payment. As long as the debt you owe remains, you will be liable in South Africa.
United Kingdom (UK) The UK is one of the easiest countries to immigrate to for South Africans because of its popularity and large expat community. It also boasts a powerful economy, top-notch educational institutions, and a rich history of diplomatic ties with South Africa.
As long as you can verify the legitimacy of the source of your funds, there is no limit to the amount of money you can move out of South Africa as a non-resident. However, where the amount exceeds the Foreign Capital Allowance of R10 million, you will require prior approval from the South African Reserve Bank.
Skilled South Africans looking to move internationally have been reported on extensively, with the issues of load shedding, challenges in finding employment, and crime all contributing to the mass exodus.
Insecurity, lack of economic livelihood, drought and crop failure are some of the push factors that motivate migrants seeking better opportunities to undertake risky migratory routes. Labour migration remains one of the dominant forms of population movement in the region.
Rank | Country | No. of South Africans |
---|---|---|
1 | United Kingdom | 217 180 (2021) |
2 | Australia | 206 730 (2022) |
3 | United States of America | 139 332 (2022) |
4 | New Zealand | 71 382 (2018) |
What is the 183 day rule in South Africa?
You qualify as a South African tax resident. You perform employment services outside South Africa on behalf of an employer (it does not matter if the employer is South African or foreign) You spend at least 183 full days physically outside of the borders of South Africa in any 12-month period.
Stats SA has published its Migration Profile Report for South Africa, revealing the numbers of people who have left the country behind – and those who have returned. The data shows that, since 2000, around 413,000 South Africans have emigrated to other countries – and in 2022, just under 28,000 made their way back.
South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source.
The display period for a default is 1 or 2 years; for a judgment, 5 years. These periods are in line with the data retention periods prescribed by the NCA. This enables banks and stores to make informed risk decisions when deciding on whether to grant you credit.
The number of years it takes for debt to become prescribed varies depending on the type of debt. For personal loans, credit cards, retail accounts, and vehicle loans, the timeframe is three years. Therefore, debt older than 5 years in South Africa is, most of the time, no longer collectable.
If the estate lacks funds to cover the debt through asset sales, the debt is dissolved; heirs don't inherit it. Collection agencies usually pressure heirs to use their own money for debt repayment but unless they co-signed the debt, heirs aren't obligated to pay.
Mauritius
It is one of the safest countries in Africa and have a friendly local community. There is a complimentary blend of island living with setting up businesses. There is a great quality of life and affordable lifestyle. The country is also ideal for senior citizens seeking a country for retirement.
If you're looking for a destination which is similar to South Africa, then you may consider Saint Lucia, Belarus, Saint Vincent and the Grenadines as well as Cuba. All these countries come in around the South African GDP per capita of R155 302.51.
- Appropriate tax clearance must be obtained.
- Declarations of adherence to allowances.
- Appropriate audit trail of money remitted to South Africa that is to be repatriated.
- Invoices.
- Reserve Bank clearance.
How much cash can you legally keep at home South Africa? As much as you want, if it is in the local currency Rands. You just need to be able to prove it is proceeds from legal activities, because they can confiscate it if it is proceeds of crime.
What is the difference between emigrating and immigrating?
Immigrate begins with the letter I. If you associate I with “in,” you can easily remember that immigrate means to move into a different country. Emigrate begins with an E, so if you associate it with exit, you'll remember that it means to leave your home country.
Diaspora and emigration
Since the 1990s, there has been a significant emigration of whites from South Africa. Between 1995 and 2005, more than one million South Africans emigrated, citing violence as the main reason, as well as the lack of employment opportunities for whites.
South Africans are getting poorer as the country's population continues to grow while its economy stagnates, meaning there is less money to go around. This was revealed by the World Economic Forum (WEF) in its Future of Growth report, which outlines the competitiveness of economies worldwide.
What do you think are the main reasons why many expats are drawn to return home? Expats return home for a variety of reasons. Often the desire to be near friends and family is a factor, as well as the feeling that they have a sense of purpose and belonging in the country.
However, life expectancy experienced a sudden drop beginning after 1995, as the HIV/AIDS epidemic spread throughout the country, beginning in the early 1990s. As the epidemic spread through the country, life expectancy would fall by almost 10 years, bottoming out below 54 years in 2005.