Toby asks: If you are emigrating, how much of your assets are you able to take with you?
Maya replies:
The answer is all your assets — at a price.
According to Zorha Deen, exchange-control specialist at FNB, there are various allowances that you qualify for:
- Your allowance: Each adult is entitled to take R4-million as a foreign capital allowance. This is effectively a conversion of your foreign investment allowance, so if you have already utilised a portion of your foreign investment allowance, your capital allowance will be reduced by this amount.
Your capital: You can then apply to take the rest of your assets subject to a 10% levy.
Relocation allowance: You also qualify for a discretionary allowance of R750 000 per family member over the age of 12 and R160 000 per child under the age of 12. This is effectively a conversion of the travel allowance and can be used in your relocation costs.
Holiday money: If you decide to leave funds in South Africa, they will be moved to a blocked account where only interest can be transferred overseas. You can use these funds for holidays back to South Africa where you can draw up to R75 000 of capital a year at a rate of R3 000 per day.
What you need to know:
- You will first need to obtain a tax-clearance certificate from Sars and fill in the bank form MP336B, where you will also have to provide your proof of permanent residence in the new country.
All your local bank accounts will be closed and you will not be able to use your South African bank cards abroad.
The bank will be able to transfer all your funds to your new overseas account.
If you return to South Africa within five years you will have to repatriate all your funds.
If you have received any donations, you may not be able to include those in the funds you are transferring as this is seen as a loophole for South African residents to use family who are emigrating to take their own funds offshore.
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