South African Expats: When Did You "Rip the Band-Aid Off"

[koeks525]

Hey everyone,

While filing my final tax return with SARS, I got a chance to zone-in on my finances (both what is left in South Africa and what I have here with me in Canada) and it got me thinking about what I really want long term. After much thought, considering the fact I have now passed 1 year of living and working Canada, I have decided now would be a good time to liquidate what I have left in South Africa (investments, emergency savings, retirement). I have started transferring the remaining portion of my emergency savings still sitting in South Africa and liquidating parts of my investments (not a lot but its something).

I have sort of come to conclude that life is full of risks, and one cannot really "have their cake and eat it at the same time". You have to pick a side and roll with your decisions (good or bad). My worry, for the longest was "what if things don't work out" or "what if I find myself back in ZAF after a short while", and "what if you find yourself unemployed for reasons beyond yourself?". I think this kind of thinking is a bit flawed. Life is full of risks and you have to accept the outcome of such decisions, whether good or bad. I also feel like I cannot truly "lock in" into the new life I am building here because of being "too cautious" and keeping a "backup plan".

So I want to hear from others who have left South Africa, (and perhaps those who left and later returned to ZAF): when did you decide it was time to "rip the bandaid off", as in, liquidate and transfer the last standing things in South Africa?

 

[Sinbad]

3 years. Minimum no tax res period before you can take out any retirement annuities

 

[koeks525]

3 years. Minimum no tax res period before you can take out any retirement annuities

This is interesting.

I read about the 3 year rule. Did you also have to produce a certificate from SARS proving you no longer a tax resident of South Africa? Or did they accept the information you provided?

 

[theratman]

Don't think I could ever give up my SA assets, but to be fair my situation is complex. I've been moving over as much liquid assets as I can from SA, but my fixed assets in SA are performing better than they would offshore. It does makes tax a huge headache.

If I wasn't in the situation I'm in then I'd be happy to move across completely and give up SA tax residence.

 

[Sinbad]

This is interesting.

I read about the 3 year rule. Did you also have to produce a certificate from SARS proving you no longer a tax resident of South Africa? Or did they accept the information you provided?

You need your Sars non res certificate

 

[vigras rojara]

I've been away for seven years and still have assets in SA. I have never really finalised what I want to do with them long term, but I may at some point buy a coastal property back in SA and spend a few months a year there, so it's not an urgent decision.

 

[koeks525]

Don't think I could ever give up my SA assets, but to be fair my situation is complex. I've been moving over as much liquid assets as I can from SA, but my fixed assets in SA are performing better than they would offshore. It does makes tax a huge headache.

If I wasn't in the situation I'm in then I'd be happy to move across completely and give up SA tax residence.

I fortunately do not have immovable assets of any type in South Africa; just a lot of liquid assets like cash, ETFs/Stocks and the retirement fund. My thinking over the years was not to pick up any immovable assets as they are a pain to dissolve AND, I might move (which happened).

 

[theratman]

I fortunately do not have immovable assets of any type in South Africa; just a lot of liquid assets like cash, ETFs/Stocks and the retirement fund. My thinking over the years was not to pick up any immovable assets as they are a pain to dissolve AND, I might move (which happened).

I'd over all the liquid stuff across to make it easy on the tax stuff.

In my case the immovable assets are not worth disposing of as they are high growth, provide a great income, and provide me with a fall back plan.

 

[koeks525]

Going through this exercise tonight. Selling off everything. I did trigger some sales on Friday. ETFs, stocks and crypto... all going, going, gone.