Financial emigration

[Tomtomtom]

Things don't look good for making a big dollar purchase, for sure.

But your assets are not (should not be) cash in the first place, so the historical / future nominal ZAR exchange rate is not enough to base a decision on.

 

[seted]

If you earn above the threshold, or have multiple income streams, you have to submit a return. You may not be taxed on the income, but you still have to tell sars about the income.

 

[marco]

I officially emigrated from SA over 3 years ago. A simple process that I did myself and used FNB as my bank to channel money from SA to Portugal. I keep my investments in SA and can only use FNB to transfer money via a blocked account.

I have to tell FNB to open the account before I transfer money from my broker as it will bounce back as in death or divorce. FNB has to report to SARB if the amount is higher than R50k and it takes up to 10 days to get the transfer. I have to send FNB proof of why I need the money. R30k is no problem.

When you arrive in Europe you must get a "tax residency for immigration" doc and send it to SARS and your books will be closed.

No need for expensive agents as it takes 3 trips to SARS and 3 to your bank.

Now the SARS website states that when you emigrate all your assets and investments bar your primary property must be "deemed as sold" and Capital Gains Tax will apply and the Base Cost will be reverted to the value a day before your emigration.

My SA Cross Border Tax Charted Accountant said this is BS as the formal emigration way I did it exempts me from it and indeed, I see that my e-filing is stagnant since 2014.

You can follow my blog on my emigration from SA and the process and stress I had here.
http://shareforum.co.za/shares/my-retirement-blog/

 

[MJames]

I have read that you can transfer cash quite easily via your bank accounts in SA and Abroad (up to the limits).

Transferring of RA's etc is another story. I have researched that you can do it yourself (hmm maybe a bit difficult) or use specific companies. Can anyone recommend any?

 

[marco]

Do it yourself. It is so simple. The bank will guide you all the way as they will be the custodians of your SA assets and cash.
It cost me just over R600 plus petrol. Cashkows fees were between R12k and R20k but they have been taken over by Bidvest.

I have just read all 3 pages and what a joke. Most posters have not done it or researched it at all but jet they feel they can advise on the subject.

One poster said he had to pay 45% tax on the money he deposited into his new country!!! WTF. You can bring R10m and deposit into your overseas account without paying a cent tax on it. It could have been CGT earnings or Income Tax earnings or Royalties earned in SA. How would they know. FFS.

I still have to submit income tax every year to SARS but as it is CGT, SA has no rights to it as it is a residence tax and I am resident here in Portugal.

Had I cashed in all my stocks and submitted the proceeds to Portugal and sent SARS a letter of International Tax Residency, I would be able to close my tax books.

You may also one day inherit and will have trouble transferring it overseas if you have not Financially Emigrated.

 

[MJames]

Do it yourself. It is so simple. The bank will guide you all the way as they will be the custodians of your SA assets and cash.
It cost me just over R600 plus petrol. Cashkows fees were between R12k and R20k but they have been taken over by Bidvest.

I have just read all 3 pages and what a joke. Most posters have not done it or researched it at all but jet they feel they can advise on the subject.

One poster said he had to pay 45% tax on the money he deposited into his new country!!! WTF. You can bring R10m and deposit into your overseas account without paying a cent tax on it. It could have been CGT earnings or Income Tax earnings or Royalties earned in SA. How would they know. FFS.

I still have to submit income tax every year to SARS but as it is CGT, SA has no rights to it as it is a residence tax and I am resident here in Portugal.

Had I cashed in all my stocks and submitted the proceeds to Portugal and sent SARS a letter of International Tax Residency, I would be able to close my tax books.

You may also one day inherit and will have trouble transferring it overseas if you have not Financially Emigrated.

Thanks Marco! Obrigado

Wow R600 compared to R15K Nice work. I have been looking at FinGlobal (Cashkows), Expatri8 and Exchange for free. I saw in a forum that some companies charge up to nearly 20% of your retirement funds in order to process it. 20% of every R1mil is R200K!

Expatri8 look like a very cost effective company. They charge you but not so much. They have mentioned that they come in under R10 000 to assist.

I will update the info once I have all my ducks in a row and about to decide on which route to take. I expect myself to miss a step while getting everything else sorted so an agent will definitely be needed when the time comes.

Thanks again.

 

[LOTR]

Thanks Marco! Obrigado

Wow R600 compared to R15K Nice work. I have been looking at FinGlobal (Cashkows), Expatri8 and Exchange for free. I saw in a forum that some companies charge up to nearly 20% of your retirement funds in order to process it. 20% of every R1mil is R200K!

Expatri8 look like a very cost effective company. They charge you but not so much. They have mentioned that they come in under R10 000 to assist.

I will update the info once I have all my ducks in a row and about to decide on which route to take. I expect myself to miss a step while getting everything else sorted so an agent will definitely be needed when the time comes.

Thanks again.

Just do it yourself through your own Bank, or any SA bank of your choosing. The companies listed will deal with you and still hand it all to a bank anyway for finalisation. You'll be paying both sets of fees then - the companies and the banks.